Ouster Is Becoming A Serious Physical AI Player

Ouster is broadening beyond lidar into AI, robotics, and smart infrastructure via Rev8, Stereolabs, and BlueCity, expanding growth opportunities but complicating valuation. Q2 2026 revenue rose 56% to $55M, but gross margin was inflated by a one-off; underlying profitability remains elusive, with break-even expected only by 2028. At $35, OUST trades at ~69x 2028E EPS; even optimistic 2031 scenarios yield only moderate annual returns, making the current risk/reward unattractive.