One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Outset Medical, Inc.
OM · NMS · Healthcare · Medical Devices
Current price
$4.19
52-week range
$2.84 - $13.39
Market cap
$78.76M
Balance sheet
Healthy
-4.78x Concerning
Net cash $42.74M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
1 Risk
0 rewards · 1 risks
View details ↓What this company does
Outset Medical, Inc.
Outset Medical sells a special dialysis machine called the Tablo system that makes clean water and dialysis fluid right on the spot, designed for people who need dialysis. Their main money comes from selling these machines and the supplies they need, and this matters because it offers a more convenient way for patients to manage their treatment at home instead of always going to a clinic. They also have digital tools, part of their Tablo Data Ecosystem (a connected system of software and services), to help patients and doctors track treatment information.
How the company got here
Outset Medical, Inc. was founded in 2003, originally as Home Dialysis Plus, Ltd., and later changed its name in 2015. The company's journey has been focused on developing innovative solutions to make dialysis more accessible and less complex. A key turning point was the development and FDA clearance of its Tablo Hemodialysis System, which is designed for use in both hospital and home settings. The COVID-19 pandemic, while disruptive, unexpectedly created more opportunities for Outset by increasing the demand for their dialysis systems in critical care situations. This period highlighted the system's ability to be deployed quickly in various settings, even in converted spaces like cafeterias, underscoring its versatility and importance during healthcare crises.
What it actually does
Outset Medical is a medical technology company that has developed a groundbreaking hemodialysis system called Tablo. Tablo is designed to simplify the dialysis process, making it easier for both healthcare providers and patients. It's a compact, all-in-one machine that purifies water and produces the necessary dialysis fluid (dialysate) on demand, eliminating the need for separate, bulky water treatment systems. This integrated approach allows dialysis to be performed in more locations, including hospitals and homes, with just a tap water source and an electrical outlet.
Tablo Hemodialysis System
The core of Outset Medical's business is the Tablo Hemodialysis System. This system is designed to be used across different care settings, from hospitals to patients' homes. It simplifies dialysis by integrating water purification and dialysate production into a single unit, which can be operated with basic utilities. The Tablo system also features advanced software and connectivity, allowing for seamless integration with electronic medical records (EMR) and providing data analytics for better patient care and operational efficiency. The company generates revenue from the sale of Tablo consoles and related consumables, such as Tablo cartridges and accessories.
Tablo Data Ecosystem
Complementing the Tablo Hemodialysis System is the Tablo Data Ecosystem. This ecosystem includes various platforms designed to enhance the user experience and data management. TabloHub is a portal for customers, MyTablo is a patient-facing portal, and TabloDash is an internal data analytics platform. These components allow for better tracking of treatments, remote monitoring, and streamlined data entry, which can improve clinical outcomes and operational efficiency for healthcare providers. Revenue from this segment is tied to the adoption and use of the Tablo system.
What management is betting on now
Outset Medical's management is focused on increasing the predictability of their capital sales and improving overall gross margins, with a target of 50%. They are transitioning to an enterprise-based sales model to achieve greater sales consistency and are emphasizing the clinical benefits of the Tablo system as a key competitive advantage. The company is also working to expand its integration with Electronic Medical Record (EMR) systems to boost future recurring revenue from services and consumables. Management sees the acute care market as a significant opportunity and believes Tablo is well-positioned to reduce hospital-acquired infections and improve patient outcomes.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-20.96M
FY2024 Q4
$-16.53M
FY2025 Q1
$-25.79M
FY2025 Q2
$-5.12M
FY2025 Q3
$-6.48M
FY2025 Q4
$-9.74M
FY2026 Q1
$-12.91M
FY2026 Q2
$-9.75M
Revenue
$31.64M
Net income
$-17.98M
Diluted EPS
-0.97
Operating cash flow
$-9.63M
Free cash flow
$-9.75M
Fetching…
Sources
Revenue
$27.86M
Net income
$-18.98M
Diluted EPS
-1.03
Operating cash flow
$-12.84M
Free cash flow
$-12.91M
Fetching…
Sources
Revenue
$28.87M
Net income
$-19.49M
Diluted EPS
0.33
Operating cash flow
$-9.52M
Free cash flow
$-9.74M
Fetching…
Sources
Revenue
$29.43M
Net income
$-17.84M
Diluted EPS
-1.00
Operating cash flow
$-6.32M
Free cash flow
$-6.48M
Fetching…
Sources
Revenue
$31.42M
Net income
$-18.54M
Diluted EPS
-1.04
Operating cash flow
$-4.82M
Free cash flow
$-5.12M
Fetching…
Sources
Revenue
$29.75M
Net income
$-25.78M
Diluted EPS
-3.66
Operating cash flow
$-25.66M
Free cash flow
$-25.79M
Fetching…
Sources
Revenue
$29.47M
Net income
$-25.64M
Diluted EPS
-0.47
Operating cash flow
$-16.49M
Free cash flow
$-16.53M
Fetching…
Sources
Revenue
$28.67M
Net income
$-27.94M
Diluted EPS
-0.55
Operating cash flow
$-20.57M
Free cash flow
$-20.96M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $4.19
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $42.7M - more cash than debt. Interest coverage -4.8x.
Net debt
$-42.74M
Interest coverage
-4.78x
Outset Medical, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
OM
BASELINE
Outset Medical, Inc.
Total debt $104.45M Interest coverage -4.78x This is the baseline the peer rows are being compared against.
Total debt $12.28B Interest coverage 4.75x This peer still has a real interest-payment cushion, while OM does not.
Total debt $13.41B Interest coverage 3.47x This peer still has a real interest-payment cushion, while OM does not.
Total debt $9.67B Interest coverage 0.61x This peer still has a real interest-payment cushion, while OM does not.
Total debt $1.02B Interest coverage 7.98x This peer still has a real interest-payment cushion, while OM does not.
Total debt $727.35M Interest coverage -4.03x Neither company has much profit cushion over interest right now.
What you should know
The case for and against OM
0 Rewards
1 Risk
Rewards
Risks
-
Return on equity was -59.2% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-1.83x
P/B
0.82x
P/S
0.67x
EV/EBITDA
-0.57x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
41.8%
Operating margin
-49.6%
Net margin
-63.1%
ROE
-59.2%
ROA
-15.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.08x
Current ratio
5.19x
Quick ratio
4.02x
Total debt
$104.45M
Total cash
$147.19M
Growth
How the business has been compounding
Revenue TTM
$117.80M
Revenue 5Y CAGR
3.9%
EPS TTM
-4.00
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-38.32M
Free CF TTM
$-47.12M
FCF margin
-40.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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