How to Value Unprofitable Businesses: Ouster (OUST Stock) Example -- Normalized Profit Calculator

Ouster's current ~$41 price already assumes 30% annual revenue growth for 10 years plus a 20% free cash flow margin, making it a hold rather than a bargain.

• Q2 2026 beat: Ouster grew revenue 56% YoY to $55M, more than tripled sensor shipments to over 17,000 units, and hit 49% GAAP gross margin (53% non-GAAP) while holding opex growth under 5%.
• Still deeply unprofitable: GAAP operating margin sits at -36.7% and free cash flow margin at -28%, even as falling average selling prices reflect a Jevons paradox dynamic that drives volume.

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