OSS · One Stop Systems, Inc.

One Stop Systems reported a strong first quarter for 2026, with revenue from continuing operations surging 55% year-over-year to $8.1 million. The growth was driven by higher sales to a defense prime customer for data storage products supporting the P-8A, increased sales to a medical imaging OEM for liquid-cooled servers, and revenue from a defense prime customer for prototype compute systems for an enhanced vision system for combat vehicles. Gross margin expanded 610 basis points to 51.6%, benefiting from a more profitable revenue mix, engineering efficiencies in customer-funded development programs, and improved manufacturing absorption from higher production volumes. Operating expenses increased only 2.5% to $4.8 million, reflecting disciplined cost control. The net loss from continuing operations narrowed significantly to $0.4 million ($0.01 per diluted share) from $2.3 million ($0.11 per share) in the prior year. On a non-GAAP basis, the company achieved net income of $0.3 million ($0.01 per diluted share) compared to a non-GAAP net loss of $1.7 million ($0.08 per share) a year ago. Adjusted EBITDA turned positive at $0.2 million versus a loss of $1.6 million. Cash flow from continuing operations was a robust $4.0 million, ending the quarter with $34.4 million in cash and equivalents. Management highlighted a book-to-bill ratio of 1.8x for the quarter, with nearly $15 million in bookings, one of the strongest quarters in company history. For the full year 2026, OSS guided for revenue growth of 20-25%, gross margin of approximately 40%, and positive EBITDA and adjusted EBITDA, reflecting confidence in sustained demand across defense and commercial markets.