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One Stop Systems
(NASDAQ:OSS)
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Rating:53Neutral
Price Target:
$14.50
▲(16.09% Upside)
Action:Reiterated
Date:08/06/26
OSS scores in the low-to-mid range primarily due to weak historical operating performance and cash generation (negative operating/free cash flow and deteriorated TTM revenue), despite a strong low-debt balance sheet. The earnings call improves the outlook meaningfully on raised guidance and strong bookings/revenue momentum, but valuation is elevated (P/E ~39.6) and technical signals remain mixed with negative MACD and price below the 50-day average.
Positive Factors
Strong Bookings and Backlog
Record bookings and a book-to-bill of ~1.7 plus multi-year program potential exceeding $42M provide durable revenue visibility. A large, multi-year backlog supports capacity planning, de-risks near-term churn and underpins management's ability to convert development programs into serial production over time.
Negative Factors
Persistent Negative Operating Cash Flow
Consistent negative operating and free cash flow over multiple years weakens the company’s ability to self-fund growth and capital needs. Even with current cash reserves, ongoing cash consumption could force external financing or dilution, and the gap between net income and cash flow raises earnings-quality concerns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Bookings and Backlog
Record bookings and a book-to-bill of ~1.7 plus multi-year program potential exceeding $42M provide durable revenue visibility. A large, multi-year backlog supports capacity planning, de-risks near-term churn and underpins management's ability to convert development programs into serial production over time.
Read all positive factors
One Stop Systems (OSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$315.49M
Dividend YieldN/A
Average Volume (3M)1.22M
Price to Earnings (P/E)113.6
Beta (1Y)2.10
Revenue Growth-12.77%
EPS GrowthN/A
CountryUS
Employees57
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.11
Shares Outstanding24,940,130
10 Day Avg. Volume1,164,382
30 Day Avg. Volume1,216,418
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)3.50
Price to Sales (P/S)4.99
P/FCF Ratio-25.11
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$19.25Price Target Upside54.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.04
Revenue Forecast (FY)$40.80M
One Stop Systems Business Overview & Revenue Model
Company Description
One Stop Systems, Inc. (OSS) is a key developer and producer of high-performance computing (HPC) modules and systems, specifically tailored for demanding edge deployments both domestically and across global markets. These advanced systems are engi...
How the Company Makes Money
OSS primarily makes money by selling specialized hardware systems and components that extend or package high-performance computing and I/O capabilities for demanding deployments. Key revenue streams generally include: (1) Product sales of integrat...
One Stop Systems Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
Overall the call was positive: management reported strong operational momentum with 62.3% YoY revenue growth, record quarterly bookings ($15.1M) and raised full-year revenue guidance to 25%–30%. Non-GAAP profitability measures improved, the pipeline and multi-year program potential expanded materially, and the company entered the period with a strong cash position and no debt. Offsetting these positives was a one-time $6.25M legal settlement that drove a larger GAAP loss for the quarter, some gross-margin variability due to a higher mix of early-stage programs, and ongoing supply chain lead-time risks and timing uncertainty for certain defense programs. On balance, the strength in revenue, bookings, guidance raise, and balance sheet materially outweigh the one-time and operational risks cited.Positive Updates
Accelerated Revenue Growth
Total revenue from continuing operations increased 62.3% year-over-year to $9.3 million in Q2 2026.
Negative Updates
One-Time Legal Settlement Charge
OSS resolved a historical dispute with a payment of approximately $6.25 million, which was recorded in Q2 and materially increased GAAP operating expenses and GAAP net loss for the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Accelerated Revenue Growth
Total revenue from continuing operations increased 62.3% year-over-year to $9.3 million in Q2 2026.
Read all positive updates
Company Guidance
The company raised full-year 2026 revenue growth guidance to 25%–30% (up from 20%–25%), continues to target full-year gross margins of approximately 40% (sustaining target mid‑30s to mid‑40s), and expects to generate positive EBITDA and adjusted EBITDA while making planned investments in personnel and R&D; that outlook is supported by Q2 revenue of $9.3M (up 62.3% YoY from $5.8M), record Q2 bookings of $15.1M and year‑to‑date bookings of >$30M (book‑to‑bill ~1.7), customer‑funded development up 145% YoY to ~$944k (~10% of Q2 revenue), Q2 gross margin of 39.1% (vs. 41.3% prior year), a Q2 adjusted EBITDA loss of $0.3M (improved from a $1.8M loss a year ago) and a non‑GAAP net loss of $0.2M (GAAP net loss $7.3M, or $0.29/share, reflecting a $6.25M legal settlement); balance sheet and cash metrics underpinning guidance include $31.4M cash and short‑term investments, no debt, $38.1M working capital, a $7.1M inventory build in Q2 to de‑risk supply, and reduced operating cash use of $629k for the six months vs. $2.8M prior year, while the company now supports 14 programs with estimated multi‑year revenue potential >$42M and average order size nearly tripled since 2023.One Stop Systems Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
78
Positive
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.27M | 32.22M | 54.69M | 60.90M | 72.42M | 61.98M |
| Gross Profit | 14.22M | 14.99M | 7.72M | 17.95M | 20.40M | 19.64M |
| EBITDA | -6.49M | -2.09M | -11.41M | -3.35M | 3.41M | 4.95M |
| Net Income | 1.29M | 5.09M | -13.63M | -6.72M | -2.23M | 2.33M |
Balance Sheet | ||||||
| Total Assets | 55.84M | 52.82M | 36.93M | 48.27M | 56.36M | 51.59M |
| Cash, Cash Equivalents and Short-Term Investments | 31.41M | 31.17M | 10.01M | 11.82M | 13.24M | 19.64M |
| Total Debt | 1.37M | 1.47M | 2.83M | 4.23M | 4.30M | 3.73M |
| Total Liabilities | 17.21M | 6.82M | 9.76M | 8.68M | 12.04M | 9.63M |
| Stockholders Equity | 38.63M | 46.01M | 27.17M | 39.58M | 44.32M | 41.96M |
Cash Flow | ||||||
| Free Cash Flow | -1.45M | -6.40M | -470.85K | -1.26M | -8.34M | 5.06M |
| Operating Cash Flow | -1.37M | -6.29M | -108.10K | -439.68K | -7.81M | 5.62M |
| Investing Cash Flow | -5.90M | 20.50M | 4.19M | 1.52M | 3.91M | -15.11M |
| Financing Cash Flow | 9.58M | 12.07M | -1.18M | -171.34K | 1.95M | 8.43M |
One Stop Systems Technical Analysis
Negative
12.49
Price Trends
15.17
Negative
13.26
Negative
10.50
Positive
Market Momentum
-0.49
Negative
45.18
Neutral
60.39
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 12.49 is below the 20-day moving average (MA) of 12.79, below the 50-day MA of 15.17, and above the 200-day MA of 10.50, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 45.18 is Neutral, neither overbought nor oversold. The STOCH value of 60.39 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 49 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $226.45M | -164.62 | -1.75% | ― | -2.47% | 91.69% | |
64 Neutral | $57.65M | -173.05 | -1.56% | ― | 15.50% | 94.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $464.14M | -1.43 | 167.40% | ― | 10.90% | 35.72% | |
53 Neutral | $315.49M | 113.57 | 3.29% | ― | -12.77% | ― | |
47 Neutral | $61.22M | -3.63 | -11.74% | ― | -6.38% | 41.73% | |
46 Neutral | $59.18M | -1.51 | -66.25% | ― | -19.66% | 97.84% |
* Technology Sector Average
OSS
One Stop Systems
12.72
7.07
125.13%
ALOT
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28.89
17.35
150.35%
INVE
Identiv
2.58
-1.09
-29.70%
QMCO
Quantum
19.40
11.97
161.10%
TACT
Transact Technologies
5.78
1.72
42.36%
UAVS
AgEagle Aerial Systems
1.00
-1.13
-53.29%
One Stop Systems Corporate Events
Business Operations and StrategyExecutive/Board Changes
One Stop Systems Announces VP Retirement and Consulting Role
Neutral
Aug 5, 2026
On July 31, 2026, One Stop Systems, Inc. entered into an amended and restated employment agreement with VP of Sales Robert Kalebaugh in connection with his retirement, clarifying his eligibility for a prorated annual bonus, the treatment of outsta...
Executive/Board ChangesShareholder Meetings
One Stop Systems Shareholders Approve Directors and Equity Plan
Positive
May 19, 2026
On May 13, 2026, One Stop Systems held its annual shareholder meeting in virtual format, with a quorum of approximately 54.37% of the 24,741,191 outstanding shares represented. Shareholders elected five directors to serve until the next annual mee...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
One Stop Systems Posts Strong Q1 Growth, Outlook
Positive
May 8, 2026
On May 6, 2026, One Stop Systems reported that first-quarter 2026 revenue from continuing operations rose 55% year over year to $8.1 million, driven by higher sales to defense and medical imaging customers and prototype compute systems for combat ...
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.