Outset Medical’s stock crashes 48% after slashing 2025 revenue forecast
Outset Medical has significantly reduced its revenue projection for 2025, leading to a substantial decline in its stock price. The company now anticipates earnings between $115 million and $120 million, which is considerably lower than its initial estimates. Investors responded swiftly, causing the stock to plummet by nearly half in a single day.
The issues began on November 11, 2025, when Outset Medical released its third-quarter results. Revenue came in at $29.43 million, falling short of analyst expectations by $1.27 million. Non-GAAP earnings per share also missed the mark, reporting a loss of $0.69—$0.03 worse than predicted. Within hours, the stock dropped $5.85, or 48.47%, closing at just $6.22 per share.
The company's revised full-year guidance added to the concerns. Instead of the previously announced range of $122 million to $126 million, Outset now anticipates revenue of only $115 million to $120 million. The sudden downgrade raised questions about the company's financial health and operational performance. Legal scrutiny quickly followed. Law firm Pomerantz LLP announced an investigation into potential securities fraud by Outset Medical. The probe targets CEO Leslie Trigg, CFO Rebecca Roberts, and other executives. Allegations include misleading statements about revenue growth and the safety of the company’s Tablo dialysis system. These claims stem from a previous stock market crash in December 2024, when shares lost over 50% of their value in a single day.
The revised forecast and legal investigation have left investors grappling with significant uncertainty. Outset Medical's stock now trades at a fraction of its former value, reflecting deep concerns about its future. Regulators and shareholders will likely monitor the situation closely as the investigation progresses.
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