Ouster, Inc.

What they do

Ouster designs and manufactures high-resolution digital lidar sensors, monocular and stereo cameras, and AI compute hardware. Its software solutions, such as Ouster Gemini and BlueCity, enable real-time detection, tracking, and traffic management. The company also owns Stereolabs, acquired in February 2026, which provides ZED cameras and AI vision software.

Revenue drivers

• Industrial — Lidar for material handling, ports, warehouses, mining, farming, and factory automation; a primary driver in recent quarters, contributing to product revenue growth.
• Smart infrastructure — Lidar and software for traffic management, security, and smart city applications; noted as a key vertical in Q2 2026 revenue growth.
• Robotics — Lidar and cameras for robots and drones; part of the company's target markets though specific revenue split not disclosed.
• Automotive — Lidar for advanced safety and autonomy features, working with technology providers, suppliers, and OEMs; not yet a major revenue contributor per filings.

Recent performance

For Q2 2026, Ouster reported revenue of $55 million, up 56% year-over-year and 12% sequentially, with product revenue of $53 million. The company shipped over 17,000 units, of which lidar was approximately 53%. GAAP gross margin was 49%, and non-GAAP gross margin was 53%. GAAP net loss was $18 million, improved from $19 million in Q2 2025. Cash and short-term investments stood at $263 million as of June 30, 2026.

Strategy

Ouster is focused on becoming the foundational end-to-end sensing and perception platform for Physical AI. The company invests in expanding its hardware portfolio, including the Rev8 OS family with native color lidar and solid-state digital flash sensors. It also integrates Stereolabs' camera and AI compute products to offer a unified platform. Manufacturing is largely outsourced to Benchmark Electronics and Fabrinet to reduce costs and scale production. Continued investment in patents and software is intended to create barriers to entry.

Risks

• Limited operating history — Ouster has been operating since 2015, making it difficult to evaluate future prospects and commercial success.
• Supply chain dependence — Relies on third parties like Benchmark and Fabrinet for manufacturing, and on suppliers for parts, which could disrupt production.
• Macroeconomic and trade risks — Tariffs and other trade measures could impact results, and global recession or inflation could hurt demand.
• Adoption timing uncertainty — Customer adoption of lidar and Physical AI solutions is hard to predict, with long development lead times.

Outlook

For Q3 2026, Ouster expects total revenue between $54.5 million and $57.5 million. Management highlights continued momentum across markets, with strong customer reaction to the Rev8 launch and successful ZED X Nano introduction. The company expects to benefit from scaling investments in Physical AI across complex, real-world applications.