Ouster, Inc.

Hello and welcome to Ouster's third quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After today's presentation and remarks, there will be an opportunity to ask questions. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw your question, simply press star one again. The call today is being recorded and a replay of the call will be available on the Ouster Investor Relations website an hour after the completion of this call. And with that, I'd now like to turn the conference over to Chen Geng, Senior Vice President of Strategic Finance and Treasurer. Chen, please go ahead.

Thank you, operator, and good afternoon, everyone. Thank you for joining our third quarter 2025 financial results call. Today on the call, we have Chief Executive Officer Angus Bacala, 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 8K 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, anticipated industry trends, our business and strategic priorities, the development and expansion of our products, and our revenue guidance for the fourth quarter of 2025. 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 third quarter 2025 financial results release, and in the quarterly and annual reports we file with the Securities and Exchange Commission. Any forward-looking statements that we make on this call are based on assumptions as of today, and other than as may be required by law, Oster 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 that was issued today. 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 review our strategic priorities. Ken will cover our financial results in more detail before I close with some final thoughts. Our third quarter results reflect the continued growth we are seeing across our business with revenue of $39.5 million, representing our 11th straight quarter of revenue growth. We set a new quarterly record with over 7,200 sensors shipped, bringing physical AI to life across multiple applications, including yard logistics and traffic intersections. Gross margin remains strong at 42%, and we ended the third quarter with 247 million cash and equivalents and no debt. This performance further demonstrates our ability to convert pilot programs into large volume orders as we deepen our relationships across our diverse customer base. In our smart infrastructure vertical, we expanded deployments of Ouster Gemini and Rev7 at logistics yards around the country, helping our customer improve throughput, efficiency, and safety. We continued to progress with testing new Gemini AI algorithms at key customer sites during the quarter, with the potential to expand use cases and more than quadruple the number of sensors per logistics yard. We also won new deals to bring Alster Blue City to additional intersections across Utah to enhance traffic flow, safety, and operational efficiency. In our industrial vertical, we shipped a significant number of REV7 sensors to a leading global technology company as it continued to expand the use of autonomous mobile robots across its warehouse floors. Ouster's sensors are mounted on a variety of warehouse equipment, including AMRs, forklifts, and tuggers, enabling our customers to detect and avoid nearby objects and helping heavy machinery to work safely in unstructured environments. We also secured a substantial order to supply REV7 to a large European industrial equipment manufacturer, which is upgrading the sensor stack on its next generation electric mining trucks. These trucks are part of an autonomous haulage solution that increases safety, productivity, and efficiency while producing zero greenhouse gas emissions during operations. During the quarter, we delivered REV7 sensors to support the continued expansion of CERV Robotics' last mile delivery fleet across the United States. Last month, CERV announced its 1,000th robot deployment, compared to an average of 57 active daily robots in the fourth quarter of last year, and expects to reach 2,000 robots in service by the end of this year. serve as a prime example of Ouster's engagement with companies that are rapidly accelerating from initial testing to commercial deployment. Turning to our 2025 strategic priorities, we progressed across all three key focus areas. One, scaling the software attached business. Two, transforming the product portfolio. And three, executing towards profitability. Our software attached business gained traction during the quarter. Yard Logistics was a key driver of demand, and we also won a deal to deploy Gemini for crowd management solutions at major tourist sites and large events in South Korea. More customers are recognizing the benefits of our LiDAR solutions, and we won pilot deployments for intelligent perimeter security spanning energy and industrial sites, tarmacs, data centers, and defense facilities across the world. In September, we announced a strategic partnership with Constellis, which now offers a unified security solution enabled by Ouster Gemini and Ouster Digital LiDAR. By investing in AI perception, Ouster has built a core platform to enable our customers to develop targeted, market-specific applications. With Gemini, Constellis can provide real-time analytics, threat classification, and automated response protocols to bring physical AI to advance security operations. Constellus' operational expertise and global network positions us to rapidly advance Gemini for critical and large-scale security operations. In the ITS market, I'm excited by the continued growth of our Alster BlueCity solution, where we won large deals in the US and Canada. We continue to expand our distribution network and find seven new exclusive partnerships to bring BlueCity to additional states including Illinois and Missouri. We are proving the value of AI-powered LiDAR to state and local governments across the nation, and our Blue City Partnership Network now covers the majority of a nationwide market of over 300,000 signalized intersections. We also brought on a transportation integrator in Europe following a successful pilot deployment in Brussels. These partnerships, in conjunction with expanding our Blue City bundles to provide customers with more setup options, are key actions to support the continued growth of our software solutions. Moving to the product portfolio, we continue to make major investments in retraining our AI algorithms on an ever-expanding corpus of field data. In the third quarter, these efforts delivered better detection accuracy at longer ranges and higher vehicle speeds to support use cases like tolling and highway monitoring. We also released real-time localization, or RTLS, in our OUSR SDK. RTLS empowers our customers to understand the position of their assets with centimeter-level accuracy, enabling features like geofencing, automatic speed limit enforcement, and custom go-no-go zones. In addition, LiDAR-powered RTLS significantly reduces the investment and infrastructure required by legacy sensors. Our team continued to progress with testing and validation of our next generation L4 and Chronos custom silicon. These investments will unlock major performance, security, and reliability improvements for our OS sensors and become the backbone of our solid-state digital flash line. The innovations from this next phase of our product roadmap are expected to more than double our current addressable market and are the most profound investment in our product roadmap to date. Finally, I am proud of our team's consistent execution towards profitability as we deliver record results in the third quarter as we remain on track to meet our long-term financial framework. I'll now turn it over to Ken to cover our financial results in more detail.