OUST: A Physical AI Darling on a Path to Profitability

Ouster $OUST just delivered an exceptional quarter as a key enabler to scaling Physical AI. The FY 2025 results prove that digital lidar is winning and growing rapidly. By backing out one-time royalties, Ouster is entering 2026 with an adjusted revenue baseline of $162.2M and management guidance for 30% to 50% annual growth.

Management is executing a strong operating leverage play. While revenue is scaling aggressively, GAAP operating expenses are targeted at just 5-8% growth. With GAAP gross margins targeting 35% to 40%, the gap to positive Adjusted EBITDA is narrowing rapidly. "$OUST is no longer just a hardware company; we are the foundational sensing and perception platform for the physical world." — CEO Angus Pacala

The acquisition of Stereolabs looks to bring immediate synergies. It adds 10,000+ customers and moves Ouster directly into the humanoid robotics arms race. Combining digital lidar with Stereolabs’ 3D vision creates a unified eyes and brain for robots.

Management highlighted "unprecedented pull" from major Tier 1 and OEM customers in the humanoid and data factory sectors. With over 90,000 ZED cameras already in the field, Ouster owns the data funnel for training Physical AI.

Ouster ended 2025 with a robust cash position over $200 with no debt, providing the runway to execute this high-margin software-attached strategy without needing the capital markets. As humanoid prototypes shift to production in 2026, Ouster is a player offering a proven, scalable, and integrated visual sensor suite. Ouster is trading ~5.5x FY26 sales when subtracting net cash, a fair price to pay for a major Physical AI enabler growing 30-50% YoY.

Technical setup: The stock is poised to gap right into the 100 & 200 SMA, so a bit tricky entry point, but it will be on my focus list for a tight entry point. If you can't tell, I'm all over the Physical AI trade for 2026.