Ouster surges 10% on $70m StereoLabs acquisition
Physical AI platform combines digital lidar with vision technology, adding EBITDA-positive business
Ouster shares surged nearly 10% on Monday after the lidar maker completed its $70 million acquisition of StereoLabs, creating a unified sensing and perception platform for the emerging Physical AI market.
The stock jumped 9.97% to $21.36 in premarket trading following the announcement, with the deal positioning the San Francisco-based company as an end-to-end provider of sensing solutions for robotics, industrial automation, and smart infrastructure.
The transaction, which closed on February 4, combines Ouster's digital lidar technology with StereoLabs' AI vision, cameras, and perception software. Ouster paid $35 million in cash and issued 1.8 million shares, with 0.7 million of those shares subject to vesting over four years, according to the official announcement.
StereoLabs, founded in 2010, brings immediate scale to Ouster's operations. The French company has shipped more than 90,000 ZED cameras to over 10,000 customers and generated approximately $16 million in unaudited revenue in 2025. Critically, StereoLabs is already EBITDA positive, strengthening Ouster's path to profitability. The financial results will be consolidated into Ouster's statements starting in the first quarter of fiscal 2026.
The acquisition addresses a growing demand from customers for integrated sensor fusion rather than standalone technologies. By delivering seamlessly synchronized and calibrated data from both lidar and vision systems, Ouster aims to reduce development costs for companies building autonomous systems while improving object manipulation, safety, and navigation capabilities.
"The future of autonomy isn't about choosing between vision or lidar, it's about unifying them," said Cecile Schmollgruber, StereoLabs's chief executive. "By combining StereoLabs' AI vision with Ouster's digital lidar, we are creating the world's most capable perception platform to directly address customers' primary sensor fusion requirements."
Angus Pacala, Ouster's chief executive, described the move as building on the company's momentum in the rapidly evolving Physical AI market. "This acquisition builds on Ouster's momentum and positions us as the foundational end-to-end sensing and perception platform for Physical AI," Pacala said. "Together, we offer a unified platform that simplifies and accelerates customer development, harnesses combined investments in AI training and models, and brings thousands of new customers into the Ouster ecosystem."
The deal expands Ouster's total addressable market across robotics, industrial automation, and smart infrastructure, potentially unlocking new use cases in humanoid robotics and visual inspection. StereoLabs's three co-founders, including Schmollgruber, will continue leading the team as a wholly-owned subsidiary, with Ouster committed to maintaining continuity for existing products and the developer community.
Analysts have maintained a positive outlook on Ouster, with six analysts rating the stock a Buy and none recommending a Hold or Sell, according to market data. The consensus price target stands at $39.50, representing significant upside from current levels. Ouster's 52-week range spans $6.34 to $41.65, with the company currently holding a market capitalization of approximately $1.17 billion.
The acquisition comes as Ouster continues pursuing profitability by 2026, supported by five automotive production programs representing over $1 billion in potential revenue. The global automotive lidar market is projected to reach $20 billion by 2030, and Ouster's expanded platform positions it to capture share across multiple verticals beyond traditional automotive applications.
Ouster reported trailing twelve-month revenue of $137.3 million, with quarterly revenue growth of 40.8% year-over-year. However, the company remains unprofitable, with an operating margin of -61.4% and earnings per share of -$1.63 over the past year. The addition of an EBITDA-positive business with a proven customer base could accelerate the company's path to financial stability.