Ouster, Inc. Q4 FY2025 earnings call

2025 saw execution on three strategic priorities: scaling software-attached business, transforming product portfolio, and executing towards profitability. Fourth quarter revenue of $62 million reflected continued demand in LIDAR business. Software-attached bookings doubled in 2025. Launched new SDK versions with features like on-sensor 3D zone monitoring. Validated next-gen L4 and Chronos custom silicon. Full-year revenue $169 million, product revenue grew 32% excluding royalties, shipped over 25,000 sensors, and had a product book to bill of 1.2 times in 2025.

Fourth quarter revenue was $62 million, including $41 million of product revenue, marking the 12th straight quarter of product revenue growth. GAAP gross margin was 60%, and over 8,100 sensors were shipped. Full-year revenue was $169 million, with product revenue growing 32% year-over-year excluding royalties. Software-attached bookings more than doubled in 2025 and represented over 15% of sensors shipped.

Expect first quarter 2026 revenue between $45 and $48 million, including ~seven weeks of revenue from Stereo Labs acquisition. Long-term targets of 30%-50% annual revenue growth and 35%-40% GAAP gross margin. Anticipate GAAP operating expense growth of 5%-8% from 2025 levels in 2026.

Factors causing actual results to differ from forward-looking statements are set forth in financial results release and SEC filings, but no specific detailed risks discussed in depth in the transcript

Q: How to quantify the pace of learning with systems and customer engagement in defense sector?

A: Iteration speed accelerating, defense sector automation in R&D phase.

Q: Which industry will grow fastest?

A: Smart infrastructure and mobile autonomy with Stereo Labs acquisition.

Q: Takeaways from CES?

A: CES shows physical AI trend, Ouster as one-stop shop.

Q: Royalties color?

A: Highlights IP portfolio strength, de minimis going forward.

Q: Opportunities in drones and humanoids?

A: Drones more proven, humanoids emerging.

Q: Customer conversation shift since acquisition?

A: Positive reception, customers ask for combined systems.

Q: Hardware connectivity features?

A: Build interoperable ecosystem.

Q: Software component and competitor matrix?

A: Focus on sensing and perception, opportunity to be more embedded.

Q: Hardware vision?

A: Focus on LiDAR and cameras as key sensors