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OUSTOuster, Inc.Sell4.9·$43.60-12.50%
SellModerate Confidence
Investment thesis

Ouster posted 49% year-over-year revenue growth and leads its industry peer group on that dimension, but the business burns cash at 25% of revenue, carries a rich valuation, and delivers inconsistent earnings — creating a high-risk profile where the growth story must continue to accelerate to justify the current price.

Thesis pillars

  • Revenue Growth LeadershipStable
  • Cash Burn SustainabilityStable
  • Earnings Volatility RiskStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

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Ouster, Inc. (OUST) Stock Analysis

Range Bound setup

SellVALUE-TRAP 2/5GrowthModerate Confidence

Technology · Electronic Components

Sell if holding. Engine safety override at $43.60: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality; Rich valuation; Negative price momentum.

Ouster is a lidar and perception-software company serving industrial, smart infrastructure, robotics, and automotive customers, offering digital lidar sensors, cameras, AI compute, and sensor fusion software following its February 2026 acquisition of Stereolabs SAS. The company... Read more

$43.60+41.9% A.UpsideScore 4.9/10#26 of 29 Electronic Components
QualityF-score6 / 9FCF yield-1.40%
Stop $40.98Target $62.51(resistance)A.R:R -0.5:1
Analyst target$46.86+7.5%7 analysts
$62.51our TP
$43.60price
$46.86mean
$33
$75

Sell if holding. Engine safety override at $43.60: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality; Rich valuation; Negative price momentum. Chart setup: RSI 49 mid-range, Bollinger mid-band. Score 4.9/10, moderate confidence.

Passes 5/8 gates (no SEC red flags, news events none recent, earnings proximity 30d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and clean insider activity. Suitability: aggressive.

10-K grounded · weekly refresh

About Ouster, Inc.

About Ouster, Inc.

Ouster reported a net loss of $60.4 million in 2025, narrower than the $97.0 million loss in 2024, as the lidar and perception-software company outsources the majority of its sensor manufacturing to Benchmark Electronics and Fabrinet, both of which operate factories in Thailand, while continuing limited in-house production at its San Francisco facility. Two customers each accounted for more than 10% of 2025 revenue, and the company carried an accumulated deficit of $973.4 million as of December 31, 2025.

Ouster earns revenue selling digital lidar sensors, cameras, AI compute, and perception software across four target markets: industrial automation, smart infrastructure, robotics, and automotive, where lidar supports advanced driver assistance and autonomous driving systems. The February 2026 acquisition of Stereolabs SAS added ZED stereo cameras and embedded AI compute hardware, extending Ouster's platform beyond lidar into a combined sensing and perception offering the company markets to industrial and robotics OEMs. Research and development spending rose to $65.2 million in 2025 from $58.1 million in 2024 as Ouster develops its next-generation Digital Flash solid-state sensor alongside its existing OS scanning-sensor line and Gemini and BlueCity perception software for security and traffic applications.

Show full overview

Ouster discloses that two customers each accounted for more than 10% of 2025 revenue without naming them, a concentration the company says its four-market diversification strategy is intended to offset over time. Manufacturing risk compounds that customer exposure: Benchmark and Fabrinet manufacture the majority of Ouster's products from Thailand-based facilities, so a disruption at either partner, a regional shortage of semiconductor components, or new tariffs on Thai-manufactured electronics could constrain Ouster's ability to fill orders from its largest customers.

See also: Technology · Electronic Components

From Ouster, Inc.'s most recent 10-K filing, extracted July 6, 2026.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-08

Recent Developments — Ouster, Inc.

Generated 2026-07-08T03:23:47Z.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 6, 202630d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Target reached (-7.5% upside)
Quality below floor (3.2 < 4.0)
Value-trap signals (2/5): Margin compression (op margin -18.5%), Material insider selling (57 sells, 0.39% of cap)

Key Metrics

P/E (TTM)
P/E (Fwd)-1107.3
Mkt Cap$3.3B
EV/EBITDA-44.6
Profit Mgn-30.1%
ROE-25.2%
Rev Growth48.9%
Beta3.17
DividendNone
Rating analysts13

Quality Signals

Piotroski F6/9MoatNarrow

Options Flow

P/C0.80neutral
IV145%elevated

Concentration Risks(10-K Item 1A)

  • LOWCustomertop two customers
    10-K Item 1: 'For the year ended December 31, 2025, two customers accounted for more than 10% of our revenue.'
  • MEDIUMSupplierBenchmark Electronics and Fabrinet
    10-K Item 1: 'Benchmark and Fabrinet manufacture the majority of our products, which we expect will reduce our product costs'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

Show full disclosure ▾

About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.

No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.

Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

3 floor-breakers·1 ceiling hit

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ps
0.0
Analyst Target
4.0
Expensive valuation
Low model confidence on this dimension (33%).

Hyper-growth tech sacrificing current profitability for scale. Floor tripped because model treats negative margins uniformly; the growth dimension tells the other half of the story.static

Roe
0.0
Roa
0.0
Operating Margin
0.0
Net Margin
0.0
Fcf Quality
0.0
Gross Margin
5.5
Moat
6.5
Piotroski F
6.7
Current Ratio
9.9
Cash-burning: FCF -25% of revenue

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.3
Obv
1.0
Volume
4.0
Rsi
5.5
Ma Position
6.0
Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.4<4.5A.R:R -0.5=NEGATIVEINSIDER 1.08%=EXTREMENo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 30d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
49 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $35.30Resistance $63.79

Price Targets

$41
$63
A.Upside+43.4%
A.R:R-0.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-7.5% upside)
! Quality below floor (3.2 < 4.0)
! Value-trap signals (2/5): Margin compression (op margin -18.5%), Material insider selling (57 sells, 0.39% of cap)

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-06 (30d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is OUST stock a buy right now?

Sell if holding. Engine safety override at $43.60: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality; Rich valuation; Negative price momentum. Chart setup: RSI 49 mid-range, Bollinger mid-band. Prior stop was $40.98. Score 4.9/10, moderate confidence.

What is the OUST stock price target?

Take-profit target: $62.51 (+41.9% upside). Prior stop was $40.98. Stop-loss: $40.98.

What are the risks of investing in OUST?

Target reached (-7.5% upside); Quality below floor (3.2 < 4.0); Value-trap signals (2/5): Margin compression (op margin -18.5%), Material insider selling (57 sells, 0.39% of cap).

Is OUST overvalued or undervalued?

Ouster, Inc. trades at a P/E of N/A (forward -1107.3). TrendMatrix value score: 2.4/10. Verdict: Sell.

What do analysts say about OUST?

13 analysts cover OUST with a consensus score of 4.1/5. Average price target: $47.

What does Ouster, Inc. do?Ouster is a lidar and perception-software company serving industrial, smart infrastructure, robotics, and automotive...

Ouster is a lidar and perception-software company serving industrial, smart infrastructure, robotics, and automotive customers, offering digital lidar sensors, cameras, AI compute, and sensor fusion software following its February 2026 acquisition of Stereolabs SAS. The company outsources the majority of its manufacturing to Benchmark Electronics and Fabrinet, both with facilities in Thailand, and reported a net loss of $60.4 million in 2025 against an accumulated deficit of $973.4 million. Two customers each accounted for more than 10% of Ouster's 2025 revenue.

Related stocks: DAKT (Daktronics, Inc.) · FN (Fabrinet) · TTMI (TTM Technologies, Inc.) · MEI (Methode Electronics, Inc.) · VICR (Vicor Corporation)
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