One Stop Systems, Inc.

What they do

OSS builds enterprise-class high-performance compute, high-speed switch fabrics, and storage hardware and software designed for edge deployments rather than cloud datacenters. Its systems are ruggedized for harsh environments in platforms that move, such as planes, UAVs, trucks, ships, submarines, and mobile command posts, and are sold to manufacturers of autonomous vehicles, medical, industrial, aerospace, and defense equipment. The company sells equipment and embedded software, and also performs customer-funded engineering services and prototype development. On December 30, 2025, it sold its Bressner Technology GmbH subsidiary, and that business is reported as discontinued operations.

Revenue drivers

• Data storage products for defense platforms — First-quarter 2026 revenue growth was driven in part by higher sales to a defense prime customer of data storage products supporting the P-8A aircraft.
• Liquid-cooled server products for medical imaging — Higher sales to a medical imaging OEM of liquid-cooled server products contributed to the first-quarter 2026 revenue increase.
• Prototype compute systems for combat vehicles — Sales to a defense prime customer for design, development, and delivery of prototype compute systems for an enhanced vision system for combat vehicles contributed to first-quarter 2026 revenue.
• Ruggedized edge compute, switch fabric, and storage — The company's core product lines are custom servers, data acquisition platforms, compute accelerators, solid-state storage arrays, and system I/O expansion systems sold to medical, industrial, and military equipment manufacturers.

Recent performance

First-quarter 2026 revenue from continuing operations rose 55.0% year over year to $8.1 million, from $5.2 million. Gross margin from continuing operations was 51.6%, up 610 basis points from 45.5%. The company reported a net loss from continuing operations of $0.4 million, or $(0.01) per diluted share, compared with a $2.3 million net loss a year earlier. Net cash provided by continuing operating activities was $4.0 million for the quarter, and first-quarter bookings were nearly $15 million, producing a book-to-bill ratio of 1.8x.

Strategy

OSS is focusing on its core business of developing and manufacturing deployable edge computing systems for mission-critical applications, following the December 2025 sale of Bressner. The company is targeting defense and commercial demand for enterprise-class, ruggedized compute in AI, autonomy, and sensor-driven edge applications. It reported nearly $15 million in first-quarter 2026 bookings and aims to maintain a trailing-twelve-month book-to-bill ratio above 1.2x. Management also said it generated record free cash flow from continuing operations in the quarter, providing flexibility to pursue organic and inorganic growth opportunities.

Risks

• Customer concentration in defense and medical — First-quarter 2026 revenue growth depended on a defense prime customer for P-8A storage products, a medical imaging OEM, and a defense prime customer for combat-vehicle prototypes, so the loss of any of these programs would materially affect revenue.
• Program-based and prototype revenue — Some revenue comes from customer-funded engineering services, prototypes, and completed products recognized over time, which may not convert into recurring production volume.
• Divestiture-related adjustments — The Bressner sale gain of $6,707,021 is subject to post-closing adjustments for net working capital, cash, indebtedness, and transaction expenses, with any amounts payable to the buyer satisfied first from escrow.
• Operating cash flow variability — Operating cash flow was negative in each year from 2022 through 2025, including negative $6.6 million in 2025, despite the company reporting positive cash flow in the first quarter of 2026.

Outlook

Management said positive momentum continued into 2026, citing year-over-year revenue growth and continued expansion in profitability. CEO Mike Knowles said demand is increasing for the company's enterprise-class, ruggedized compute platforms across defense and commercial markets. The company cited an expanding pipeline and increased customer engagement, and said it believes it is positioned to scale alongside advanced commercial and defense programs and to capitalize on a multi-year growth opportunity.