One Stop Systems (OSS) Q4 2025 earnings summary

Executive summary

• Completed sale of Bressner subsidiary for $22.4 million, streamlining operations and strengthening the balance sheet.

• Achieved record Q4 2025 revenue growth of 70.2% year-over-year to $12 million, driven by strong defense and commercial demand.

• Q4 net income from continuing operations was $2 million, reversing a $3.4 million loss in Q4 2024.

• Positioned as a pure-play provider for high-performance compute in defense and commercial markets, with strong momentum entering 2026.

• Annual book-to-bill ratio for 2025 was 1.2x, reflecting robust demand.

Financial highlights

• Q4 2025 revenue reached $12 million, up from $7 million in Q4 2024 and $9.3 million in Q3 2025.

• Q4 2025 gross margin was 58.5%, up from 9.4% in Q4 2024 (26.8% excluding prior year contract loss charge).

• Record GAAP net income from continuing operations of $2 million ($0.08 per diluted share) vs. a net loss of $3.4 million in Q4 2024.

• Adjusted EBITDA from continuing operations was $2.5 million, compared to a loss of $2.8 million in the prior year quarter.

• Ended 2025 with $33.4 million in cash and equivalents, no debt, and $6.8 million in total liabilities.

Outlook and guidance

• 2026 revenue growth expected in the range of 20%-25%, with gross margin around 40%.

• Positive EBITDA and Adjusted EBITDA anticipated for the full year, with negative EBITDA in H1 offset by H2 gains.

• Revenue seasonality expected: 40% in H1, 60% in H2, less pronounced than 2025.

• Growth driven by defense and commercial markets, with increased customer-funded development sales.

• R&D expenses projected at 10%-12% of annual sales, higher in H1 due to customer-funded development.