Achieved a 12th consecutive quarter of product revenue growth, driven by durable global demand for automation, efficiency, and safety across industrial and infrastructure sectors.

Successfully scaled the software-attached business, with bookings more than doubling in 2025 and representing over 15% of total sensors shipped.

Transitioned from a lidar-only provider to a unified sensing and perception platform by acquiring StereoLabs, integrating high-performance digital lidar with AI camera vision and compute.

Maintained strong gross margins of 41% (excluding royalties) despite a volatile macroeconomic environment and the headwind of tariffs.

Deployed in-house trained AI models at over 1,200 sites globally, validating the company's investment in proprietary machine learning for real-world physical AI applications.

Advanced the digital lidar roadmap with next-generation L4 and Chronos custom silicon, which is expected to more than double the current addressable market.

Leveraged a record 8,100 sensors shipped in Q4 to deepen penetration in warehouse automation, robotaxis, and mapping verticals.

Reiterated long-term financial targets of 30% to 50% annual revenue growth and 35% to 40% GAAP gross margin for the combined Ouster and StereoLabs entity.

Anticipates 2026 GAAP operating expense growth of 5% to 8% as the company absorbs StereoLabs integration costs while maintaining overall fiscal discipline.

Expects StereoLabs to be accretive to the long-term financial framework, noting its historical revenue skew toward the second half of the year (approximately 60%).

Plans to commercialize the most significant product overhaul in company history during 2026, including next-generation sensors and expanded AI compute capabilities.

Focuses on achieving positive operating free cash flow and profitability through improved operating leverage and sustained top-line growth.

Recorded approximately $21 million in primarily one-time royalties in Q4 2025 related to long-term IP license contracts, which boosted GAAP gross margin by 20 percentage points.

Expects total royalty revenue to decrease significantly to less than $5 million in 2026, with the majority recognized in the second half of the year.

Completed the acquisition of StereoLabs on February 4, 2026, for approximately $35 million in cash, utilizing the company's 'dry powder' for strategic expansion.

Acknowledged that while defense sector interest is high, significant revenue inflection from fully autonomous battlefield systems is likely several years away due to long development cycles.

Management described a 'virtuous cycle' of Sense, Think, Act, and Learn, where data from 1,200+ sites is used to retrain and improve models rapidly.

The company believes there is another order of magnitude of iteration speed possible, which will be applied to the new industrial AI opportunities created by the StereoLabs acquisition.

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Management clarified that most current battlefield robotics are human-controlled; fully autonomous systems remain in the R&D phase.

The defense industry's development cycles resemble the automotive industry, suggesting a multi-year timeline before significant revenue shifts occur.

The acquisition enables multimodal AI training, fusing lidar and camera data to create more robust perception solutions than single-sensor competitors.

StereoLabs' neural depth models complement Ouster's neural perception algorithms, allowing for immediate cross-pollination of technology across their respective customer bases.

Initial feedback has been 'resoundingly positive,' with customers expressing a strong appetite for buying integrated hardware and software suites from a single vendor.

Management noted that the unified platform is available immediately, allowing customers to reduce development time by using Ouster's pre-integrated drivers and software.

With $211 million in cash (pre-acquisition) and no debt, Ouster maintains 4-5 years of operating runway until reaching cash flow positivity.

Management remains open to further strategic M&A if opportunities similar to StereoLabs arise, emphasizing that a strong balance sheet is vital for winning long-term customer contracts.

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