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One Stop Systems (OSS)
:OSS
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One Stop Systems
(NASDAQ:OSS)
Rating:60Neutral
Price Target:
$6.00
▲(6.19% Upside)
Positive Factors
Demand
The y/y revenue growth in the OSS segment was driven by both defense and commercial customers, evidence of broad-based demand.
Future Outlook
The current year is expected to see not only 20% growth in the core OSS segment but also a book-to-bill of 1.2x or better.
Revenue Growth
The company reported positive revenue growth for the first time in 2024 this quarter, 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. SPDR S&P 500 ETF (SPY)
Market Cap
$108.53M
Dividend YieldN/A
Average Volume (3M)571.53K
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth4.65%
EPS Growth-79.75%
CountryUS
Employees103
SectorTechnology
Sector Strength87
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.07
Shares Outstanding21,924,818
10 Day Avg. Volume493,915
30 Day Avg. Volume571,529
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue1.32
Enterprise Value/Gross Profit8.35
Enterprise Value/Ebitda-5.85
Forecast
1Y Price Target
$6.50Price Target Upside15.04% 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 solutions and edge computing systems for various industries, including aerospace, defense, automotive, and telecommunications. The company designs and manufactures custom hardware and software solutions, such as high-speed data acquisition systems, rugged servers, and GPU-based computing systems, enabling clients to meet their demanding processing needs in complex environments.
How the Company Makes MoneyOSS generates revenue primarily through the sale of its custom hardware and software solutions. The company has a diversified revenue model that includes direct sales to clients, long-term contracts with government and defense sectors, and partnerships with technology providers. Key revenue streams include the sale of high-performance computing systems, ongoing maintenance and support services, and specialized engineering services for custom projects. Additionally, OSS benefits from strategic partnerships with major technology firms and government contracts that provide a steady income base and opportunities for growth in emerging markets.
One Stop Systems Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: 14.84%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, record bookings, and improved gross margins. Strategic contracts in defense and healthcare were secured, supporting a positive outlook for 2025. However, challenges include a reported net loss and potential supply chain risks. Overall, the positive aspects significantly outweigh the negative, suggesting a robust trajectory for OSS.Q2-2025 Updates
Positive Updates
Record Bookings and Revenue Growth
OSS ended the quarter with one of the highest levels of bookings in its history, totaling $25.4 million with a book-to-bill ratio of 2.3. Consolidated revenue increased by 6.9% year-over-year to $14.1 million.
Improved Gross Margins
Consolidated gross margin expanded by 610 basis points to 31.3%. The OSS segment gross margin improved from 24.9% to 41.3% due to nonrecurrence of an inventory charge and a more profitable product mix.
New Strategic Contracts and Awards
OSS secured a $6.5 million contract for military environments, a $5 million award from the U.S. Navy, and a $2 million order from a medical imaging OEM, indicating strong demand and strategic growth.
Strong Outlook and Guidance
OSS expects 20% year-over-year revenue growth in its segment, and consolidated revenue of $59 million to $61 million for 2025. Positive EBITDA is expected in the second half of 2025.
Negative Updates
Net Loss and EBITDA
OSS reported a GAAP net loss of $2 million or $0.09 per share, and a non-GAAP net loss of $1.5 million. Adjusted EBITDA was a loss of $1 million.
Supply Chain Challenges
Longer lead times from suppliers due to higher production volumes are impacting supply chain, which could pose risks to the second half performance.
Company Guidance
During the One Stop Systems (OSS) Second Quarter 2025 Conference Call, the company provided optimistic guidance reflecting significant growth and strategic achievements. OSS reported a year-over-year revenue increase of 6.9% to $14.1 million for Q2 2025 and highlighted a substantial improvement in gross margins, expanding 610 basis points to 31.3%. The OSS segment alone saw a gross margin jump from 24.9% to 41.3% due to favorable product mix and operational efficiencies. The company also achieved one of its highest levels of bookings, totaling $25.4 million with a book-to-bill ratio of 2.3 in the first half. OSS anticipates approximately $19 million in segment revenue for the second half, compared to $11 million in the first half, aiming for full-year revenue of roughly $30 million, marking over 20% growth. Consolidated revenue for 2025 is expected to be between $59 million and $61 million, with the company targeting EBITDA breakeven for the year. The growth was driven by strong demand for OSS's high-performance edge compute solutions, with significant contract wins in defense and commercial sectors, including a $6.5 million defense contract and new orders for the P-8A Poseidon aircraft. Additionally, OSS launched a new data center product, Ponto, designed for the growing composable infrastructure market, expected to significantly contribute to revenue in 2026.One Stop Systems Financial Statement Overview
Summary
One Stop Systems is facing financial difficulties with declining profitability and cash flow challenges. Despite a low debt-to-equity ratio, negative return on equity and cash flow issues highlight the need for strategic improvements.Income Statement
One Stop Systems has faced challenges in maintaining profitability, as evidenced by negative net profit margins and declining EBIT and EBITDA margins over the TTM period. While there was a slight revenue growth of 1.67% in the TTM, the overall trend shows a decline from previous years, indicating potential issues in sustaining revenue growth. The gross profit margin has also decreased compared to earlier periods, reflecting pressure on cost management.45
Neutral
Balance Sheet
The company maintains a relatively low debt-to-equity ratio, suggesting conservative leverage practices. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio remains stable, but the declining total assets and stockholders' equity over time may pose risks to financial stability.55
Neutral
Cash Flow
Cash flow metrics highlight significant challenges, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is positive, indicating some efficiency in converting net income to cash flow, but the overall negative cash flow growth and operating cash flow coverage ratio suggest liquidity issues. The company needs to improve cash generation to support operations and growth.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 55.21M | 54.69M | 60.90M | 72.42M | 61.98M | 51.90M |
| Gross Profit | 8.74M | 7.72M | 17.95M | 20.40M | 19.64M | 16.43M |
| EBITDA | -12.47M | -11.41M | -4.59M | 3.41M | 4.95M | 1.55M |
| Net Income | -13.99M | -13.63M | -6.72M | -2.23M | 2.33M | -6.54K |
Balance Sheet | ||||||
| Total Assets | 39.38M | 36.93M | 48.27M | 56.36M | 51.59M | 39.13M |
| Cash, Cash Equivalents and Short-Term Investments | 9.49M | 10.01M | 11.82M | 13.24M | 19.64M | 6.32M |
| Total Debt | 5.48M | 2.83M | 4.23M | 4.30M | 3.73M | 5.39M |
| Total Liabilities | 13.17M | 9.76M | 8.68M | 12.04M | 9.63M | 9.84M |
| Stockholders Equity | 26.20M | 27.17M | 39.58M | 44.32M | 41.96M | 29.29M |
Cash Flow | ||||||
| Free Cash Flow | -3.17M | -470.85K | -1.26M | -8.34M | 5.06M | -1.07M |
| Operating Cash Flow | -2.84M | -108.10K | -439.68K | -7.81M | 5.62M | -250.17K |
| Investing Cash Flow | 3.66M | 4.19M | 1.52M | 3.91M | -15.11M | -818.79K |
| Financing Cash Flow | 528.19K | -1.18M | -171.34K | 1.95M | 8.43M | 2.11M |
One Stop Systems Technical Analysis
Positive
5.65
Price Trends
4.81
Positive
3.64
Positive
3.34
Positive
Market Momentum
0.14
Positive
59.25
Neutral
44.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSS, the sentiment is Positive. The current price of 5.65 is above the 20-day moving average (MA) of 5.25, above the 50-day MA of 4.81, and above the 200-day MA of 3.34, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 44.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $67.35M | 9.29 | 15.81% | ― | -0.26% | -6.79% | |
60 Neutral | $108.53M | ― | -44.58% | ― | 4.65% | -79.75% | |
60 Neutral | $42.79M | ― | -24.73% | ― | -9.09% | -1586.89% | |
57 Neutral | HK$14.80B | 10.64 | -0.76% | 4.27% | 6.99% | -31.80% | |
56 Neutral | $85.53M | 16.92 | -19.13% | ― | 7.14% | -415.34% | |
52 Neutral | $30.13M | ― | -5.11% | ― | -18.85% | -2549.17% | |
41 Neutral | $25.27M | ― | -7.04% | ― | 154.52% | 47.31% |
* Technology Sector Average
Performance Comparison
OSS
One Stop Systems
5.65
3.58
172.95%
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YIBO
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One Stop Systems Corporate Events
Executive/Board ChangesShareholder Meetings
One Stop Systems Holds Virtual Annual Meeting
Neutral
May 20, 2025
On May 14, 2025, One Stop Systems held its Annual Meeting virtually, where approximately 65.44% of the company’s shares were represented, establishing a quorum. During the meeting, stockholders elected five directors, ratified the appointment of Haskell & White LLP as the independent accounting firm, approved executive compensation, and agreed on the possibility of adjourning the meeting to solicit additional proxies, although this adjournment was not enacted.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.