One Stop Systems (OSS) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated revenue increased 6.9% year-over-year to $14.1 million, with gross margin up to 31.3% and one of the highest levels of bookings in company history, driven by strong demand from defense and commercial customers.

• Strategic actions in 2023 and 2024, including leadership changes and a multi-year plan, have repositioned the business for growth and improved profitability.

• Net loss for Q2 2025 was $2.0 million ($0.09/share), improved from $2.3 million ($0.11/share) last year; non-GAAP net loss was $1.5 million ($0.07/share).

• Operating expenses rose, particularly in R&D (up 64.7% year-over-year), reflecting targeted investments in new product development and increased headcount.

• Expanding pipeline across defense and commercial sectors, with a focus on platform integration and turnkey solutions.

Financial highlights

• Q2 2025 consolidated revenue was $14.1 million, up 6.9% year-over-year from $13.2 million, and up from $12.3 million in Q1 2025.

• Consolidated gross margin expanded 610 basis points to 31.3% from 25.2% in the prior year quarter.

• OSS segment gross margin improved to 41.3% from 24.9% year-over-year, driven by the absence of a prior inventory charge and a more profitable product mix.

• Adjusted EBITDA loss for Q2 2025 was $1.0 million, improved from $1.4 million loss in the prior year quarter.

• Six-month consolidated revenue was $26.4 million, up from $25.9 million year-over-year.

Outlook and guidance

• Full-year 2025 consolidated revenue expected to be $59–$61 million, with OSS segment revenue of approximately $30 million (over 20% year-over-year growth).

• EBITDA break even expected for the full year 2025.

• OSS segment gross margin for 2025 now expected in the 40% range, up from prior guidance of mid to upper 30s.

• BRESSNER segment modeled at $30–$31 million for 2025, with 7–9% annual growth expected long-term.

• OSS segment projected to sustain 20–25% annual growth into 2026–2027.