One Stop Systems Delivers Record 2025 Results, Sets Ambitious Growth Targets for 2026

Summary

One Stop Systems, Inc. (“OSS”, Nasdaq: OSS), a leader in rugged, enterprise-class compute solutions for AI, machine learning, and sensor processing at the edge, has published a shareholder letter detailing a transformative 2025 and its outlook for 2026. The company reported record financial results, executed a strategic divestiture, and provided strong forward-looking guidance—all developments that are potentially material and could impact OSS share price.

Key Financial and Strategic Highlights

• Record Quarterly Performance: OSS achieved record quarterly earnings per share, record quarterly gross margin, and the second-highest quarterly sales in company history for Q4 2025.
• Strong Growth Metrics: Revenue from continuing operations grew 31.2% to \$32.2 million in 2025, with gross margin from continuing operations reaching 49.6%. The company posted net income of \$2.0 million, or \$0.08 per diluted share, for Q4 2025.
• Book-to-Bill Ratio Improvement: The book-to-bill ratio improved to approximately 1.2x in 2025 from 1.14x the prior year, indicating robust future order flow.
• Bressner Sale Completed: OSS completed the sale of its Bressner Technology GmbH subsidiary for \$22.4 million in December 2025, a year ahead of schedule. This move streamlines the business, strengthens the balance sheet, and pivots the company to higher-margin, higher-growth segments.

Strategic Transformation and Market Focus

• OSS executed a multi-year strategic plan starting in 2023, shifting focus from legacy, lower-margin revenue streams to rugged enterprise compute solutions for high-growth defense and commercial markets.
• The company enhanced its leadership team and Board, elevated its technology, and repositioned its product portfolio to better align with global trends in edge AI and enterprise-class compute.

Defense Market Momentum

• P-8 Poseidon Program: Remains a cornerstone with over \$65 million in total contracted revenue to date, including \$23 million awarded since early 2025. These awards are expected to contribute through 2027, providing substantial forward visibility.
• OSS is increasingly embedded in multi-year, program-driven opportunities with leading defense contractors. The company is scaling design wins into production and sustainment, reinforcing its position as a trusted provider for mission-critical, rugged compute infrastructure.
• Advancements in next-generation sensor processing and vision systems for U.S. Army platforms could be transformative, representing high-value, long-term opportunities.

Commercial Market Expansion

• OSS expanded into new verticals such as robotics, aerospace, and medical imaging, winning key contracts:
  • Robotics: Displaced an incumbent for a next-gen robotics platform supporting autonomous construction and mining equipment.
  • Aerospace: Secured a multi-year program expected to generate ~\$6 million.
  • Medical Imaging: Advanced a relationship now entering production, with potential to exceed \$25 million over five years.
• These wins are scalable, platform-based, and offer long lifecycles with recurring revenue potential.

2026 Outlook and Guidance

• Revenue Growth: OSS expects revenue to increase by 20% to 25% in 2026.
• Gross Margins: Anticipated to remain strong at approximately 40%.
• Profitability: The company projects positive EBITDA and adjusted EBITDA for 2026.
• Financial Flexibility: The sale of Bressner has enhanced the company’s balance sheet, enabling disciplined investment in further growth.
• Risks: OSS remains mindful of potential supply chain constraints and changes in the federal budget environment, but believes its pipeline, customer-funded development, and strong market positioning provide a robust foundation for continued execution.

What Shareholders Should Know

• The sale of Bressner, record profitability, and strong forward guidance are all potentially price-sensitive events that could materially impact OSS’s share value.
• The company’s shift to higher-margin, recurring revenue streams and its successful penetration of lucrative defense and commercial markets indicate a stronger, more resilient business model.
• OSS’s positioning on multi-year, large-scale defense programs and key commercial platforms enhances revenue visibility and reduces risk.

About One Stop Systems

One Stop Systems, Inc. is a leader in AI-enabled solutions for demanding edge environments. OSS designs and manufactures enterprise-class compute and storage products that deliver rugged AI, sensor fusion, and autonomous capabilities in harsh environments. Its products are used in autonomous trucking, farming, aerospace, and defense applications, covering the full AI workflow from data acquisition to deep learning and inference.

Forward-Looking Statements Disclaimer

This article contains forward-looking statements regarding OSS’s expected financial performance, market positioning, and business strategy. Actual results may differ due to risks such as supply chain constraints, defense spending changes, and other uncertainties. Investors should refer to OSS’s SEC filings for additional risk factors. No assurance is given that forward-looking statements will be achieved.

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