One Stop Systems (OSS) Q4 2024 earnings summary

Executive summary

• Achieved consolidated year-over-year revenue growth in Q4 2024, with both OSS and Bressner segments posting double-digit increases and sequential growth every quarter in 2024.

• Progressed on a multi-year transformation plan focused on AI, machine learning, sensor processing, and autonomy, broadening customer base and concentration.

• Customer-funded development revenue increased 118% to $3.7 million in 2024, positioning for larger multi-year production opportunities.

• Management expects double-digit consolidated revenue growth and EBITDA break-even in 2025, with OSS segment revenue projected to grow over 20%.

Financial highlights

• Q4 2024 consolidated revenue was $15.1 million, up 15.1% year-over-year; OSS segment up 10%, Bressner up 19.9%.

• Q4 consolidated gross margin was 15.7% (23.8% excluding one-time charges), down from 33.7% last year, mainly due to product mix and a $1.2 million contract loss charge.

• Q4 GAAP net loss was $3.1 million ($0.15/share); non-GAAP net loss was $2.6 million ($0.12/share).

• Adjusted EBITDA loss of $2.3 million, including $1.2 million in one-time charges.

• FY 2024 revenue was $54.7 million, down 10.2% year-over-year, mainly due to loss of a major media customer and Bressner segment decline.

Outlook and guidance

• Projected consolidated revenue for 2025 is $59–$61 million, with OSS segment revenue expected at ~$30 million (over 20% year-over-year growth).

• Company expects to be at break-even for full-year 2025, with improved revenue and profitability in the second half.

• Anticipates 2025 OSS segment book-to-bill ratio of ~1.2.