Ouster Revenues Rise 50% as Physical AI Sensor Shipments Set Record – Unite.AI

Ouster announced on November 3, 2026 that third quarter revenues increased 50% year-over-year to $59.3 million, with combined lidar and camera shipments hitting a record above 27,000 units. Losses have narrowed as the company has expanded its physical AI sensing and sensing platform beyond lidar.

Cameras reshape the shipping mix

Total revenue for the quarter ended September 30, 2026 included $56.0 million in product revenue and $3.3 million in royalties. Product revenues increased 42% year-over-year and 6% sequentially, extending Ouster’s period of product revenue growth to 15 consecutive quarters. The product increase has come primarily from industrial and robotics customers using the sensors in warehouse automation, defense, construction, mapping and data collection.

Lidar accounted for about 27% of shipments. The earnings presentation specifies more than 7,000 Lidar sensors and 20,000 cameras, while the comparison to Q3 2025 is for Lidar only, with more than 7,200 sensors. The shipment record therefore indicates the range of the combined platform rather than providing a like-for-like comparison of lidar volumes.

Stereolabs and Rev8 extend the platform

The broader mix follows Ouster’s acquisition of Stereolabs, which closed on February 4, 2026 and was announced on February 9, 2026. Stereolabs became a wholly owned subsidiary, adding 3D vision, ZED cameras and perception software. Ouster reported at the time that Stereolabs had shipped more than 90,000 ZED cameras to more than 10,000 customers.

Ouster now offers digital lidar, cameras, AI processing, sensor fusion and perception software, and AI models for industrial, robotics, automotive, and smart infrastructure applications. CEO Angus Pacala said capacity investments made to meet the growth of robotics have enabled Stereolabs to record record shipments of cameras, and hundreds of customers have chosen Rev8 for mission-critical applications.

Ouster describes Rev8 as the world’s first native color lidar. Separate RGB channels and ranges captured by Rev8 OS1 Max illustrate its output. The company’s priorities for 2026 are revamping its AI-based camera, lidar and computing products, extending its physical AI solutions, and moving towards profitability.

Margins, liquidity and the next quarter

GAAP net loss narrowed to $14.2 million from $21.7 million a year earlier. The company-defined adjusted EBITDA loss narrowed to $3.4 million from $8.4 million; the measure begins with net loss and excludes interest, taxes, stock-based compensation, depreciation, amortization of acquired intangible assets, acquisition and integration charges, and other specified items.

Gross margin requires sequential qualification. GAAP gross margin was 43%, compared to 42% in the prior year and 49% in the second quarter of 2026; a one-off reimbursement had contributed approximately 1,000 basis points to the second quarter result. Non-GAAP gross margin, which excludes stock compensation, amortization of acquired intangible assets and specific acquisition-related charges, was 47%, unchanged year-over-year but down from 53% on a sequential basis.

As of September 30, cash, cash equivalents, restricted cash and short-term investments totaled $421 million. Operating activities used $49.4 million of cash in the first nine months of 2026, compared to $24.5 million in the same period a year earlier.

Ouster expects fourth quarter 2026 revenue of $61 million to $64 million. The central question is whether the broader camera and lidar platform can turn continued revenue growth into lower losses and lower operating cash burn combined. Record shipments demonstrate the platform’s size, but nine-month cash numbers show why unit growth alone doesn’t establish the indicated path to profitability.