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Can we have SharePoint use SQL Report Server which is already set up outside of SharePoint Farm?

The SQL Server which would be having this SQL Report Server Manager will not have Configuration Database and Content Database but will be a dedicated SQL Report Server Manager use only for SQL reporting services (Native Mode).

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As a short answer: Yes, you can use a (Native Mode) reporting server outside the SharePoint farm. It's preferred to use dedicated reporting server from Performance Perspective.

The only concern is that the SharePoint server and reporting server should be on the same network or the report server (Report Service URL / Report Manager URL) is reachable from the SharePoint server.

To configure SSRS - Native Mode

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