Ouster, Inc. Q1 FY2026 earnings call

• Acquired Stereolabs in February 2026, seeing positive customer response. • Launched Rev8, world's first native color LiDAR. • LiDAR business grew 44% y-o-y with strong contributions from industrial vertical, including large deals for port automation and autonomous earth-moving company. • Alster's smart infrastructure solutions business saw momentum with expanded ITS distributor network, winning contracts and announcing expansion with Georgia Department of Transportation. • Master Gemini had revenue from significant customer renewal. • Released Stereolab ZX Nano, shipping this month, setting new standard for wrist-mount stereo vision. • Rev8 is built with next-gen L4 ouster silicon, redefining LiDAR with native color sensing, offering high resolution, image quality, and functional safety certifications.

Outdoor had $49 million in revenue in Q1 2026, achieving 13th straight quarter of product revenue growth. Shipped over 12,600 LIDAR and cameras. LiDAR business grew ~44% y-o-y. Smart Infrastructure Vertical was largest contributor to Q1 revenue, followed by Industrial. Gap gross margin was 43%, up 200 basis points from same quarter last year. Royalty revenue in Q1 was not material, with total royalty revenue in 2026 expected to be less than $5 million, mostly recognized in back half.

• Expect Q2 2026 total revenue in range of $49.5 million to $52.5 million. • Long-term financial framework includes revenue growth of 30% to 50%, gap gross margins of 35% to 40%, and gap operating expense growth of 5% to 8% from 2025 levels. • Confident in innovation and go-to-market strategy to move closer to positive operating free cash flow and profitability.

Q: How many customers have been waiting for Rev8 to move into series production and which new applications are seeing material opportunities?

A: While not pre-announced, worked closely with key customers for over a year. New applications include high-altitude drone surveying, high-speed applications, heavy machinery, and multibillion-dollar industrial safety devices.

Q: How to think about mix going forward and edge compute leverage?

A: Expect significant growth across all product lines. Edge compute expected to contribute more, but still getting feet under us on positioning.

Q: Will REV7 continue to be produced and transition look?

A: Fully committed to producing and supporting REV7 for established customer base; Rev8 is seamless upgrade but customers can choose.

Q: Opportunities in automotive with Rev8?

A: Rev8 is autograde, designed for functional safety, ideal for automotive including robo-taxis and trucks.

Q: Most important steps to hit break-even?

A: Continued innovation, revenue scale, gross margins, and OPEX mix contribute to EBITDA improvement.

Q: How Rev8's color is achieved and applications?

A: Core innovation at silicon level, world-first. Applications include training physical AI models and 3D surveying.

Q: Upsize in value and price with Rev8?

A: Pricing depends on customer application, with Rev8 being drop-in compatible for quick adoption.