Is Ouster's Growth Tied to Customers' Sales Volume and LiDAR Adoption?

Ouster, Inc. OUST is strategically positioned to benefit from the accelerating global adoption of LiDAR technology, which is becoming increasingly integral to the automotive, industrial, robotics and smart infrastructure markets. Ouster’s long-term growth is thus tied to the sales volumes of its customers.

With already a diversified customer base, Ouster continually aims to penetrate diverse end markets to increase sales volumes. Thus, increased adoption of its lidar solutions and the customers’ ability to sell their products will directly influence Outser’s growth. Notably, OUST’s merger with Velodyne has been a catalyst in this regard. The merger created a lidar powerhouse with over 850 customers spanning the automotive, industrial, robotics and smart infrastructure industries.  

Ouster is transitioning from a primarily hardware-driven business model to one centered on software-enabled solutions, generating recurring revenue streams. Its Gemini perception platform and BlueCity analytics suite exemplify this shift by extracting actionable intelligence from LiDAR data, thereby deepening customer engagement and expanding long-term value. With the global LiDAR market expected to approach $19 billion by 2030, the upcoming Chronos chip is designed to lower costs and enhance performance, paving the way for broader adoption across large-scale applications.

The company believes its digital lidar sensors are one of the highest-performing, lowest-cost solutions available today, positioning it at the center of a global revolution in autonomy. OUST targets a total addressable market that is projected to reach $19 billion by 2030.

What About OUST’s Competitors?

Like Ouster, customers’ sales volumes are pivotal for Aeva Technologies AEVA and Luminar Technologies LAZR. As their customers scale up volumes of vehicles or systems equipped with LiDAR, Aeva’s and Luminar’s sales rise too.

Both Aeva and Luminar have braced themselves with their 4D LiDAR-on-chip design and high-performance sensors for extensive use in advanced driver-assistance and autonomous systems. 

Increasing production volumes thus aids operating leverage, ramps up revenue and drives margin expansion.

OUST’s Price Performance

Shares of OUST have gained 203.4% year to date, outperforming the industry.

OUST’s Expensive Valuation

OUST trades at a price-to-sales multiple of 10.53, higher than the industry average of 2.07.

Estimates for OUST Witness Northward Movement

The Zacks Consensus Estimate for OUST’s third-quarter and fourth-quarter 2025 EPS has witnessed no movement over the past 30 days. The same holds true for 2025 and 2026 estimates.
 

The consensus estimates for OUST’s 2025 and 2026 revenues and EPS indicate year-over-year increases. 

OUST currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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