Ouster, Inc. (OUST): A Bull Case Theory

We came across a bullish thesis on Ouster, Inc. on Citrini Research’s Substack by Citrini. In this article, we will summarize the bulls’ thesis on OUST. Ouster, Inc.’s share was trading at $23.89 as of August 4^th.

Citrini Research identifies Ouster (OUST) as a prime example of a company positioned at the intersection of two core principles: investing in megatrends and entering at cyclical inflections. Ouster operates in the fast-growing robotics and automation space, making it a key component of Citrini’s recent Humanoid Robots thematic basket. As the largest Western LiDAR provider, Ouster leverages advanced digital technology by integrating LiDAR onto CMOS chips, enabling cost efficiencies and performance advantages.

The company has built a diversified strategy across automotive, industrial, robotics, and smart infrastructure, targeting a combined $70 billion market opportunity. Notably, Ouster anticipates that non-automotive applications will eventually outpace automotive adoption, signaling vast untapped growth potential.

Ouster expects meaningful volume growth as customers shift from prototyping to commercialization, underlining management’s conviction that LiDAR adoption will accelerate over decades rather than years. To capture this opportunity, the company is aiming for 30-50% annual revenue growth with gross margins of 35-40%, supported by a lean cost structure. It has demonstrated strong execution by meeting or exceeding guidance for nine consecutive quarters. Revenue remains well-diversified across all four verticals and is supported by high-profile customers such as John Deere, Komatsu, Motional, and Serve Robotics.

With $171 million in cash as of Q1 2025 and a burn of approximately $37 million this year, Ouster appears well-capitalized as it advances toward profitability. The combination of consistent revenue growth, healthy margins, and a multi-decade growth runway positions Ouster as a compelling play on the robotics and automation megatrend.

Previously, we covered a bullish thesis on Amphenol Corporation (APH) by TMTMoats in March 2025, which highlighted its diversified exposure, strategic acquisitions, and strong positioning in AI and EV markets. The company’s stock price has appreciated by approximately 72.89% since our coverage. This is because the thesis played out with sustained demand and execution. The thesis still stands as long-term trends remain intact. Citrini shares a similar view but emphasizes Ouster’s role in the robotics and automation megatrend.

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Disclosure: None.