One Stop Systems ((OSS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for One Stop Systems (OSS) painted a generally positive picture, highlighting strong bookings, significant defense contract wins, and promising new product launches. Despite these positive developments, the company continues to navigate challenges, including net losses and ongoing supply chain issues. The performance in the Bressner segment was notably mixed, reflecting both achievements and areas for improvement.
Record Bookings and Growth
OSS reported one of the highest levels of bookings in its history, totaling $25.4 million for the first half of 2025. This achievement resulted in a book-to-bill ratio of 2.3. The company anticipates approximately $30 million in OSS segment revenue for the full year, representing over 20% year-over-year growth.
Defense Contract Wins
The company secured a record $6.5 million contract for high-performance servers and FPGA systems tailored for military environments. Additionally, OSS received orders totaling $8.9 million from the U.S. Navy and a defense contractor for the P-8A Poseidon aircraft, underscoring its strong presence in the defense sector.
Commercial and Healthcare Growth
OSS continued to expand its footprint in the commercial and healthcare sectors, receiving a $2 million production order from a leading medical imaging OEM. This program’s total value is expected to exceed $25 million over five years, highlighting the company’s growth potential in these markets.
Launch of Ponto Platform
OSS announced the launch of Ponto, a PCIe Gen 5 GPU expansion platform designed for data centers. This platform is expected to contribute to revenue starting in 2026, marking a significant step in the company’s product innovation strategy.
Improved Financial Performance
The company reported consolidated revenue of $14.1 million for Q2 2025, reflecting a 6.9% increase year-over-year. The OSS segment’s gross margin improved significantly to 41.3% from 24.9% in the same period last year, showcasing enhanced financial performance.
Net Loss Despite Revenue Growth
Despite the revenue growth, OSS reported a GAAP net loss of $2 million for Q2 2025, compared to a net loss of $2.3 million in the prior year quarter. The non-GAAP net loss was $1.5 million, indicating ongoing financial challenges.
Challenges with Supply Chain and Production Ramp
OSS is facing longer lead times and supply chain challenges due to increased production volumes expected in the second half of the year. These issues are impacting the company’s ability to meet growing demand efficiently.
Mixed Performance in Bressner Segment
The Bressner segment experienced a decrease in gross margin by 120 basis points year-over-year to 24.3%, primarily due to changes in product mix. This mixed performance highlights areas where the company needs to focus on improvement.
Forward-Looking Guidance
Looking ahead, OSS’s leadership expressed confidence in the company’s future performance. They anticipate second-half revenue of about $19 million and project full-year revenue of $30 million for the OSS segment, reflecting over 20% growth. On a consolidated basis, OSS maintains its full-year revenue guidance of $59 million to $61 million, with expectations of achieving EBITDA breakeven for 2025.
In conclusion, the earnings call for One Stop Systems highlighted a positive outlook with strong bookings and significant contract wins, despite ongoing challenges. The company’s strategic initiatives and growth in various sectors underscore its potential for future success, making it a company to watch for investors interested in the defense and technology markets.