Forensic Analysis · Industrials / Manufacturing / Defense · as of Oct 3, 2026
Outset Medical, Inc. (OM)
A forensic read on Outset Medical, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-9.9
Distress distance
Clean
Earnings quality
4
Forensic signals
-64.3%
ROE
5.1%
Revenue growth
The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Outset Medical, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -9.9, placing it in the Distress zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+61.0%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +61.0% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by payables paid down 86% against -3% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 25% of net operating assets, against an accruals ratio of 61.0%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
-27.5%
FY2025
Return on invested capital.Return on invested capital is -27.5% in the latest fiscal year, against -70.6% in FY2023, having run between -84.2% and -27.5% across FY2023–FY2025 with no direction held. After-tax operating profit was ($134M) in FY2023 and ($53M) in FY2025, with operating income at -130.2% of revenue in FY2023, -99.7% in FY2024 and -55.8% in FY2025. The capital base behind it went from $190M in FY2023 to $192M in FY2025 (+1%), while the revenue it carried went from $130M to $119M. $134M of the $192M base at FY2025 is short-term investments (69.8%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so the loss on the operating capital is larger than this rate shows.
+114.5%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +360% over the last 2 years to FY2025 (+114.5%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~114.5% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~78%.
Key fundamentals
Latest Revenue$119.5M
Revenue Growth YoY+5.1%
Revenue CAGR (2yr)-4.3%
Net Margin-68.3%
Free Cash Flow-$47.1M
Return on Equity-64.3%
Debt / Equity0.76x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Outset Medical, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Oct 3, 2026. Forensic signals flag probability, not certainty.
Outset Medical, Inc. (OM) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
13% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 13% of revenue in FY2025. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 114.5% a year across FY2023–FY2025 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.