Ouster, Inc (OUST) Stock Forecast & Price Target

Ouster Inc demonstrated strong financial performance in the third quarter of fiscal 2025, with revenue reaching $39.5 million, representing a 41% year-over-year increase and surpassing both consensus estimates and management's guidance. The company's non-GAAP gross margin improved to 47%, reflecting a 300 basis point year-over-year enhancement driven by stronger scalability and product mix optimization. Additionally, Ouster's solid balance sheet, boasting $247 million in cash and equivalents, positions the company well for future growth and operational efficiency, reinforcing its outlook for long-term profitability and continued market expansion.

Ouster Inc's financial outlook remains challenging due to lower EPS estimates which are influenced by discrepancies between the company's projected gross margins, despite having achieved gross margins exceeding the anticipated 35-40% in the early quarters of FY25. The flat EBITDA loss of $10 million year-over-year, attributed to increased R&D expenditures, indicates the company’s struggle to achieve profitability while developing next-gen technologies. Moreover, potential delays in the series production of its LiDAR technology, coupled with performance concerns against competitors, could hinder Ouster's revenue growth trajectory substantially in the current macroeconomic climate that is unfavorable for SPAC-listed companies.