One Stop Systems (OSS) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue was $12.26M–$12.3M, down 3.1% year-over-year, with OSS segment revenue at $5.2M–$5.21M and Bressner at $7.05M–$7.1M, mainly due to lower commercial aerospace shipments and product mix.

• Gross margin improved to 32.6% from 29.4% year-over-year, with OSS segment margin rising to 45.5% due to favorable product mix and inventory reserve reductions.

• Net loss widened to $2.0M–$2.02M ($0.09/share) from $1.3M–$1.34M ($0.06/share) in Q1 2024, driven by higher operating expenses, especially in R&D and stock-based compensation.

• Strong OSS segment bookings of $10.4M, including a record $6.5M defense contract, a $1.6M sonar upgrade, and a $500K medical OEM contract with potential $25M follow-on.

• Board changes occurred in April 2025, with two directors resigning for personal and governance reasons.

Financial highlights

• Revenue: $12.26M–$12.3M (down 3.1% year-over-year); OSS $5.2M–$5.21M, Bressner $7.05M–$7.1M.

• Gross margin: 32.6% (up from 29.4%); OSS segment margin 45.5% (up 11.3 pts); Bressner margin 23.1% (down 2.6 pts).

• Net loss: $2.0M–$2.02M (vs. $1.3M–$1.34M loss in Q1 2024); EPS $(0.09) vs. $(0.06).

• Adjusted EBITDA loss: $1.1M–$1.13M (vs. $0.5M loss in Q1 2024); non-GAAP net loss $(1.4)M–$(1.41)M.

• Operating expenses: $5.9M–$5.94M (up 19.2% year-over-year), with R&D up 39.8%.

Outlook and guidance

• 2025 annual guidance: consolidated revenue of $59–$61M and EBITDA break-even for the full year.

• Revenue and profitability expected to accelerate in the second half of 2025, with the first half roughly flat year-over-year.

• OSS segment revenue expected to exceed $30M (over 20% growth year-over-year); margins expected in the mid to upper 30% range.

• Management expects to recognize $497,585 in remaining customer-funded development revenue in 2025.

• Bookings and pipeline support confidence in achieving full-year objectives.