Ouster, Inc. 2026 Q2 Earnings Call

Please go ahead. Thank you, operator, good afternoon, everyone.

Thank you for joining our second quarter 2026 earnings call. Today on the call, we have Chief Executive Officer Angus Pacala, and Chief Financial Officer Ken Gianella. As a reminder, after the market closed today, Ouster issued its financial news release, which was also furnished on a Form 8-K and is posted in the investor relations section of the Ouster website. Today's conference call will be available for webcast replay in the investor relations section of our website. I want to remind everyone that on this call, we will make certain forward-looking statements.

These include all statements about our competitive position, product advantages and growth opportunities, anticipated industry trends, our business and strategic priorities, our operating expense targets, the impact of our recent acquisition, the development and expansion of our products, our products' capabilities and performance, and our revenue guidance for the third quarter of 2026 and long-term financial targets. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause actual results and trends to differ materially from those contained in or implied by these forward-looking statements are set forth in the second quarter 2026 financial results release and in the quarterly and annual reports we filed with the Securities and Exchange Commission.

Any forward-looking statements that we make on this call are based on assumptions as of today. Other than as may be required by law, Ouster assumes no obligation to update any forward-looking statements, which speak only as of their respective dates. In today's conference call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures discussed today is included in the financial results release. I would now like to turn the call over to Angus.

Hello, everyone, and thank you for joining us today. I'll start with a brief recap of the quarter and an update on our strategic priorities before Ken covers our financial results in more detail. We delivered exceptional results for the second quarter, generating $55 million in revenue and shipping over 17,000 sensors. This marks our 14th straight quarter of product revenue growth and is a testament to the strength of our unified sensing and perception platform. We had strong contributions from our industrial and smart infrastructure verticals for use cases in warehouse automation, yard logistics, port automation, mining, and ITS. Across the world, customers have continued to scale their investment in Physical AI. Our smart infrastructure business continues to scale, with major deployments in New Jersey and Georgia to support the 2026 FIFA World Cup.

The New Jersey DOT deployed Ouster BlueCity to create a digital traffic twin across 42 highway locations around MetLife Stadium. In Georgia, we deployed BlueCity at an additional 30 intersections across the Atlanta area, including around Mercedes-Benz Stadium. Upon the conclusion of the World Cup, BlueCity will continue to provide high-fidelity traffic monitoring, automated data analytics, and real-time safety alerts designed to optimize traffic and enhance the safety of everyday residents in these locations. Ouster sensors are helping industrial customers like AIM Intelligent Machines improve safety and productivity for autonomous operations in complex, unstructured environments. AIM's autonomy kits retrofit heavy machinery into AI-powered fleets that maximize safety and productivity.

We expanded our footprint in the defense industry with a strategic agreement with ARGUS Interception and announced a collaboration with FieldAI to leverage Rev8 to power the next generation of robotic autonomy in markets like construction, mining, and security. The second quarter was also a period of strategic execution and expansion for Ouster. We brought the world's first native color lidar sensors to customers with Rev8 and set a new standard for wrist-mount stereo vision with the ZED X Nano. We also deepened our partnership with NVIDIA, bringing Rev8 to the NVIDIA DRIVE and Jetson platforms. With dedicated NVIDIA toolkits supporting direct data ingestion and drivers designed to leverage Jetson Orin and Thor, Ouster is providing customers with a production-ready ecosystem that is critical to solve the most complex challenges in Physical AI.

We are actively scaling our Rev8 production lines and anticipate reaching production volumes by the end of the quarter. As previously announced, we expanded our partnership with Benchmark to support Rev8, establishing manufacturing capacity that ultimately exceeds 100,000 units per year. We also achieved Build America, Buy America compliance for Rev8, which makes Rev8 and BlueCity eligible for deployment in U.S. government-funded infrastructure upgrades. Finally, we continue to bolster our strong operational execution with disciplined financial management. Building upon an already resilient balance sheet, the additional capital we raised provides us with the ability to fully fund our current business plan while providing immense strategic flexibility. This strength gives our customers ultimate confidence in our ability to serve their needs and serve as their foundational Physical AI partner.

Turning to our 2026 strategic priorities, we progressed across all three key focus areas, revolutionizing our lidar camera and AI compute products, extending our leadership in Physical AI solutions, and executing towards profitability. The launch of Rev8 was the most important product release in Ouster's history and a pivotal moment for Physical AI. Featuring the world's first native color lidar, Rev8 has set a new industry benchmark and delivers the holy grail for 3D spatial perception. Feedback from customers has been electric, calling Rev8 a massive leap in sensing capability that provides unprecedented situational awareness to scale next-generation Physical AI solutions where it matters most. Engineered for functional safety and built for scale, Rev8 is driving commercial momentum across all of our verticals.

From the harsh, demanding environments of mining and construction sites to the dynamic, complex worlds of robotaxi fleets and statewide traffic networks across the country, Rev8 is cementing Ouster as a core perception partner for market leaders scaling real-world autonomy. Customer response has been immediate, highlighted by multiple million-dollar-plus orders, including the world's largest manufacturer of heavy machinery, a leading developer of autonomous agriculture equipment, and a top autonomous vehicle provider. During the quarter, we secured a significant order to provide the Utah Department of Transportation with its largest lidar deployment to date, covering several hundred intersections across the state. With native color and industry-leading performance, Rev8 is solidifying our market leadership and deepening relationships across these and other key accounts. Our acquisition of Stereolabs is already proving strategic and financial value.

The ZED X Nano was the most successful launch in Stereolabs' history and expanded our reach into industrial and robotics markets, winning new sockets requiring smaller form factors. By delivering high resolution and ultra-low latency capture pipeline and millimeter accuracy, we're giving roboticists a major upgrade to their vision systems, enabling machines to sense, think, act, and learn with unprecedented precision. With a unified lidar camera and AI compute stack, Ouster is providing customers with the world's most capable perception platform. We also upgraded our Gemini and BlueCity software solutions with Rev8, opening up a new level of spatial intelligence. This breakthrough introduces the industry's first native color lidar detection system, simultaneously capturing both color and 3D depth information without the need for complex calibration.

Powered by the Rev8 OS1 Max, we released advanced detection for BlueCity, delivering double the range and resolution of previous generations and achieving multimodal detection and classification up to 500 feet. By providing unmatched situational awareness and delivering precise, high-fidelity digital traffic twins, Rev8 opens up higher speed markets and allows transportation departments to further optimize signal timing based on real-time data to improve traffic flow while reducing their total cost of ownership. Privacy is paramount for this market, and we designed BlueCity with system-level privacy features at the edge to reduce the collection of identifying features. Ouster BlueCity has quickly become a premier traffic management solution, including the three largest lidar-based deployments in the U.S., and our goal is to be the number one provider of smart infrastructure solutions.

Since its launch in 2023, we have established Gemini as a standard for sensing and perception, providing the real-time digital traffic twin necessary for our smart infrastructure customers to increase their efficiency and safety. We see an enormous opportunity in our other verticals to provide software solutions for everything that moves in the physical world. Similar to smart infrastructure, these customers need a less technical, turnkey solution that is easy to deploy. We will continue to invest in products and solutions that broaden our market opportunity and help accelerate our customers' development. Finally, our strong results are aligned with our long-term financial framework. We are making strategic investments to expand our addressable market while maintaining our path to profitability. With that, let me now turn the call over to Ken, who will provide more context on our second quarter financial results.