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One Stop Systems (OSS)
:OSS
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One Stop Systems
(NASDAQ:OSS)
51Neutral
Positive Factors
Market Demand
The y/y revenue growth in the OSS segment was driven by both defense and commercial customers, evidence of broad-based demand.
Revenue Growth
The company reported positive revenue growth with both segments achieving double-digit revenue growth.
Negative Factors
Profitability
Q4 profitability was below estimates due to a lower margin product mix and a one-time contract loss.
One Stop Systems (OSS) vs. S&P 500 (SPY)
Market Cap
$50.00M
Dividend YieldN/A
Average Volume (3M)256.02K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth-10.19%
EPS Growth-97.96%
CountryUS
Employees106
SectorTechnology
Sector Strength46
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-0.65
Shares Outstanding20,323,261
10 Day Avg. Volume208,476
30 Day Avg. Volume256,019
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.06
Price to Cash Flow (P/CF)15.20
P/FCF Ratio16.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.50Price Target Upside82.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
One Stop Systems Business Overview & Revenue Model
Company DescriptionOne Stop Systems (OSS) is a technology company specializing in high-performance computing systems for demanding edge applications. The company designs and manufactures advanced computer systems for applications that require high-speed processing, such as artificial intelligence, deep learning, and big data analytics. OSS serves various sectors, including military, aerospace, autonomous vehicles, and telecommunications, providing tailored solutions that meet the specific needs of these industries.
How the Company Makes MoneyOSS generates revenue primarily through the sale of its high-performance computing systems and related products. The company offers a range of solutions, including edge computers, flash storage arrays, and GPU-accelerated servers. These products are sold directly to end-users or through a network of distributors and resellers. Additionally, OSS provides custom engineering services to design and build specialized computing solutions for clients with unique requirements. The company also forms strategic partnerships with technology providers and leverages these collaborations to enhance its offerings and expand its market reach, contributing to its revenue growth.
One Stop Systems Financial Statement Overview
Summary
One Stop Systems faces significant challenges with declining revenues and profitability, as evidenced by negative margins and net income. The balance sheet remains relatively strong with low leverage, but there are concerns about declining asset and equity values. Cash flow has shown improvement, but operational inefficiencies remain a concern.Income Statement
The company has experienced declining revenue with a negative revenue growth rate from 2022 to 2023, and significant net losses over the past year. The gross profit margin has also decreased, indicating challenges in maintaining profitability. The negative EBIT and EBITDA margins further highlight operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows a stable equity position with a relatively low debt-to-equity ratio, indicating manageable leverage. However, the declining total assets and stockholders' equity over the periods suggest potential concerns about asset utilization. The equity ratio remains strong, indicating a solid capital structure.60
Neutral
Cash Flow
The company has shown improvement in free cash flow, turning positive in the TTM, which is a positive indicator. However, the operating cash flow to net income ratio is low, reflecting challenges in converting income into cash flow. The free cash flow to net income ratio also highlights this inefficiency.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 52.71M | 60.90M | 72.42M | 61.98M | 51.90M | 58.31M | Gross Profit |
| 8.74M | 17.95M | 20.40M | 19.64M | 16.43M | 19.40M | EBIT |
| -10.58M | -2.29M | 1.57M | 470.63K | -424.28K | 1.20M | EBITDA |
| -8.79M | -4.59M | 3.41M | 4.95M | 1.55M | 1.16M | Net Income Common Stockholders |
| -10.78M | -6.72M | -2.23M | 2.33M | -6.54K | -900.34K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.27M | 11.82M | 13.24M | 19.64M | 6.32M | 5.19M | Total Assets |
| 36.06M | 48.27M | 56.36M | 51.59M | 39.13M | 39.78M | Total Debt |
| 1.84M | 4.23M | 4.30M | 3.73M | 5.39M | 2.29M | Net Debt |
| -427.34K | 185.41K | 1.18M | -1.37M | -931.86K | -2.90M | Total Liabilities |
| 9.48M | 8.68M | 12.04M | 9.63M | 9.84M | 11.01M | Stockholders Equity |
| 26.57M | 39.58M | 44.32M | 41.96M | 29.29M | 28.77M |
| Cash Flow | Free Cash Flow | ||||
| 732.32K | -1.26M | -8.34M | 5.06M | -1.07M | -11.36K | Operating Cash Flow |
| 1.48M | -439.68K | -7.81M | 5.62M | -250.17K | 2.37M | Investing Cash Flow |
| 5.52M | 1.52M | 3.91M | -15.11M | -818.79K | -2.39M | Financing Cash Flow |
| -1.45M | -171.34K | 1.95M | 8.43M | 2.11M | 2.92M |
One Stop Systems Technical Analysis
Negative
2.46
Price Trends
3.40
Negative
3.04
Negative
2.68
Negative
Market Momentum
-0.21
Negative
41.05
Neutral
40.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSS, the sentiment is Negative. The current price of 2.46 is below the 20-day moving average (MA) of 2.80, below the 50-day MA of 3.40, and below the 200-day MA of 2.68, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 40.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OSS.
One Stop Systems Risk Analysis
One Stop Systems disclosed 46 risk factors in its most recent earnings report. One Stop Systems reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
One Stop Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $245.86B | 26.73 | 20.02% | 2.59% | -5.34% | -30.57% | |
66 Neutral | $9.35B | 121.82 | 2.76% | ― | -7.29% | -64.31% | |
58 Neutral | $21.67B | 10.60 | -18.43% | 2.42% | 4.66% | -24.45% | |
55 Neutral | $710.75M | 63.37 | 2.30% | ― | -8.65% | ― | |
51 Neutral | $50.00M | ― | -40.85% | ― | -10.19% | -97.96% | |
45 Neutral | $755.48M | ― | -123.20% | ― | -19.70% | -70.40% | |
44 Neutral | $1.98B | ― | -152.77% | ― | -24.49% | -250.61% |
* Technology Sector Average
Performance Comparison
OSS
One Stop Systems
2.46
-0.80
-24.54%
ADTN
Adtran
9.22
3.78
69.49%
CIEN
Ciena
62.86
13.41
27.12%
CSCO
Cisco Systems
61.40
13.02
26.91%
EXTR
Extreme Networks
14.68
3.14
27.21%
NTGR
Netgear
24.62
8.85
56.12%
One Stop Systems Earnings Call Summary
Earnings Call Date: Mar 19, 2025 | % Change Since: -19.61% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Negative
The earnings call presented a mix of positive developments such as revenue growth and a strong book-to-bill ratio, but was overshadowed by significant financial challenges including contract loss charges, inventory write-downs, and a substantial drop in gross margins. Despite future growth projections, the immediate financial setbacks impact the overall sentiment.Highlights
Consolidated Year-Over-Year Revenue Growth
OSS returned to consolidated year-over-year revenue growth for the fourth quarter and sequential consolidated growth for every quarter in 2024, driven by strength across both operating segments.
Significant Increase in Customer-Funded Development Revenue
Customer-funded development revenue increased by 118% in 2024 to $3.7 million, indicating potential for larger revenues if products are adopted in large-scale multiyear programs.
Strong Book-to-Bill Ratio
OSS achieved an annual book-to-bill ratio of 1.14 for their OSS segment, with an expectation to increase this ratio to 1.2 in 2025.
Projected Revenue Growth for 2025
OSS anticipates a consolidated revenue of $59 million to $61 million for 2025, including an OSS segment revenue growth of over 20% year-over-year.
Lowlights
Contract Loss Charge
OSS took a charge related to contract losses of $1.2 million for incurred and anticipated costs to satisfy performance obligations on a customer-funded development contract.
Inventory Charges
OSS incurred $7.1 million of inventory charges related to obsolete and slow-moving inventory due to the transition of the company's business model and operating strategy.
Gross Margin Decline
Consolidated gross margin in the fourth quarter was 15.7% compared to 33.7% in the prior year, with the OSS segment gross margin dropping to 9.4% from 45.9% a year ago.
GAAP Net Loss
OSS reported a GAAP net loss of $3.1 million or $0.15 per share for the fourth quarter, compared to a net loss of $278,000 or $0.01 per share in the prior year.
Company Guidance
During the One Stop Systems (OSS) Fourth Quarter 2024 Conference Call, the company highlighted significant progress and future guidance for 2025. OSS achieved consolidated year-over-year revenue growth in every quarter of 2024, largely driven by its OSS segment and an increased focus on converting its $1 billion sales pipeline. The company reported a 118% increase in customer-funded development revenue to $3.7 million in 2024, indicating potential for larger future revenues. For 2025, OSS projects consolidated revenue between $59 million and $61 million, with the OSS segment expecting over 20% year-over-year growth to approximately $30 million. The company anticipates an annual book-to-bill ratio of 1.2 for its OSS segment and expects to be EBITDA breakeven for the full year of 2025. Despite facing some order delays due to budget concerns, OSS remains optimistic about its pipeline opportunities, particularly in the data center and defense markets, which include a $200 million opportunity in composable infrastructure and potential $200 million production orders for a defense program.One Stop Systems Corporate Events
Business Operations and StrategyFinancial Disclosures
One Stop Systems Reports Q4 2024 Financial Results
Negative
Mar 19, 2025
On March 19, 2025, One Stop Systems, Inc. reported its financial results for the fourth quarter and full year ending December 31, 2024. The company experienced consolidated year-over-year revenue growth of 15.1% in Q4 2024, driven by double-digit growth in both its OSS and Bressner segments. Despite the revenue increase, the company reported a net loss of $3.1 million for the quarter, impacted by a $1.2 million charge related to contract losses. For the full year, consolidated revenue decreased by 10.2% due to ceased shipments to a former media customer and slower economic activity in Germany. The company incurred $8.3 million in one-time charges throughout the year, affecting gross margin and net income. Looking ahead, OSS anticipates consolidated revenue growth in 2025, with expectations of over 20% revenue growth in the OSS segment.
Business Operations and Strategy
One Stop Systems Outlines Strategic Growth Priorities
Positive
Jan 14, 2025
On January 14, 2025, One Stop Systems, Inc. posted an updated investor presentation on its website, highlighting the company’s strategic growth priorities and market opportunities. The presentation emphasized the company’s strong financial position, leadership team, and its focus on expanding its market share in the rapidly growing AI, ML, and edge computing sectors. With a robust pipeline and partnerships, One Stop Systems is positioned to capitalize on the $17 billion global market for rugged edge compute applications, aiming to drive multi-year revenue growth and enhance its industry positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.