One Stop Systems Reports Q1 2025 Results
One Stop Systems (OSS) reported its Q1 2025 financial results, with consolidated revenue of $12.3 million, down 3.1% year-over-year. The company's gross margin improved significantly to 32.6%, up 320 basis points from the previous year. The OSS segment achieved a strong 45.5% gross margin on revenue of $5.2 million, with robust bookings of $10.4 million.
The company reported a net loss of $2.0 million, or $(0.09) per share, compared to a loss of $1.3 million in Q1 2024. Despite near-term challenges, management maintains its 2025 guidance of $59-61 million in consolidated revenue, with the OSS segment expected to generate approximately $30 million, representing over 20% year-over-year growth. The company expects to achieve EBITDA break-even for the full year 2025.
One Stop Systems (OSS) ha comunicato i risultati finanziari del primo trimestre 2025, con un fatturato consolidato di 12,3 milioni di dollari, in calo del 3,1% rispetto all'anno precedente. Il margine lordo dell'azienda è migliorato significativamente, raggiungendo il 32,6%, con un incremento di 320 punti base rispetto all'anno precedente. Il segmento OSS ha ottenuto un solido margine lordo del 45,5% su un fatturato di 5,2 milioni di dollari, con prenotazioni robuste pari a 10,4 milioni di dollari.
L'azienda ha registrato una perdita netta di 2,0 milioni di dollari, ovvero $(0,09) per azione, rispetto a una perdita di 1,3 milioni di dollari nel primo trimestre del 2024. Nonostante le sfide a breve termine, la direzione conferma le previsioni per il 2025, con un fatturato consolidato stimato tra 59 e 61 milioni di dollari, mentre il segmento OSS dovrebbe generare circa 30 milioni di dollari, con una crescita superiore al 20% su base annua. L'azienda prevede di raggiungere il pareggio EBITDA per l'intero anno 2025.
One Stop Systems (OSS) reportó sus resultados financieros del primer trimestre de 2025, con ingresos consolidados de 12,3 millones de dólares, una disminución del 3,1% interanual. El margen bruto de la empresa mejoró significativamente hasta un 32,6%, aumentando 320 puntos básicos respecto al año anterior. El segmento OSS logró un sólido margen bruto del 45,5% sobre ingresos de 5,2 millones de dólares, con reservas robustas de 10,4 millones de dólares.
La compañía reportó una pérdida neta de 2,0 millones de dólares, o $(0,09) por acción, en comparación con una pérdida de 1,3 millones en el primer trimestre de 2024. A pesar de los desafíos a corto plazo, la dirección mantiene su guía para 2025 con ingresos consolidados entre 59 y 61 millones de dólares, y se espera que el segmento OSS genere aproximadamente 30 millones, lo que representa un crecimiento interanual de más del 20%. La empresa espera alcanzar el punto de equilibrio EBITDA para todo el año 2025.
One Stop Systems(OSS)는 2025년 1분기 재무 실적을 발표했으며, 연결 매출은 1,230만 달러로 전년 대비 3.1% 감소했습니다. 회사의 총이익률은 크게 개선되어 32.6%로 전년 대비 320 베이시스 포인트 상승했습니다. OSS 부문은 520만 달러 매출에 대해 강력한 45.5%의 총이익률을 기록했으며, 예약 금액은 1,040만 달러에 달했습니다.
회사는 200만 달러의 순손실, 주당 $(0.09)의 손실을 보고했으며, 이는 2024년 1분기 130만 달러 손실과 비교됩니다. 단기적인 도전에도 불구하고 경영진은 2025년 연결 매출을 5,900만~6,100만 달러로 유지하고 있으며, OSS 부문은 약 3,000만 달러를 창출해 전년 대비 20% 이상의 성장을 기록할 것으로 예상합니다. 회사는 2025년 연간 EBITDA 손익분기점 달성을 기대하고 있습니다.
One Stop Systems (OSS) a publié ses résultats financiers du premier trimestre 2025, avec un chiffre d'affaires consolidé de 12,3 millions de dollars, en baisse de 3,1 % par rapport à l'année précédente. La marge brute de l'entreprise s'est nettement améliorée pour atteindre 32,6 %, soit une hausse de 320 points de base par rapport à l'année précédente. Le segment OSS a réalisé une solide marge brute de 45,5 % sur un chiffre d'affaires de 5,2 millions de dollars, avec des commandes fermes de 10,4 millions de dollars.
L'entreprise a enregistré une perte nette de 2,0 millions de dollars, soit $(0,09) par action, contre une perte de 1,3 million au premier trimestre 2024. Malgré les défis à court terme, la direction maintient ses prévisions pour 2025, avec un chiffre d'affaires consolidé attendu entre 59 et 61 millions de dollars, le segment OSS devant générer environ 30 millions, représentant une croissance annuelle de plus de 20 %. L'entreprise prévoit d'atteindre l'équilibre EBITDA pour l'ensemble de l'année 2025.
One Stop Systems (OSS) meldete seine Finanzergebnisse für das erste Quartal 2025 mit konsolidierten Umsätzen von 12,3 Millionen US-Dollar, was einem Rückgang von 3,1 % im Jahresvergleich entspricht. Die Bruttomarge des Unternehmens verbesserte sich deutlich auf 32,6 %, ein Anstieg um 320 Basispunkte gegenüber dem Vorjahr. Das OSS-Segment erzielte eine starke Bruttomarge von 45,5 % bei einem Umsatz von 5,2 Millionen US-Dollar und verzeichnete robuste Auftragseingänge von 10,4 Millionen US-Dollar.
Das Unternehmen meldete einen Nettoverlust von 2,0 Millionen US-Dollar bzw. $(0,09) pro Aktie, verglichen mit einem Verlust von 1,3 Millionen US-Dollar im ersten Quartal 2024. Trotz kurzfristiger Herausforderungen hält das Management an der Prognose für 2025 fest, mit konsolidierten Umsätzen von 59 bis 61 Millionen US-Dollar. Das OSS-Segment soll dabei rund 30 Millionen US-Dollar erwirtschaften, was einem Wachstum von über 20 % im Jahresvergleich entspricht. Das Unternehmen erwartet, für das Gesamtjahr 2025 die EBITDA-Breakeven-Marke zu erreichen.
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Insights
OSS delivered mixed Q1 with impressive margin expansion to 32.6% despite revenue dip to $12.3M; strong bookings signal potential future growth amid wider losses.
One Stop Systems posted a mixed financial picture in Q1 2025, with a standout improvement in profitability metrics counterbalanced by revenue challenges and increased losses. The consolidated gross margin expanded
The segment breakdown reveals significant variance in performance. The OSS segment, contributing
The
Operating expenses increased
Management's maintained full-year guidance of
First quarter of 2025 consolidated gross margin increased 320 basis points year-over-year to
OSS segment gross margin of
OSS segment experienced strong first-quarter bookings of
Management continues to expect double-digit consolidated revenue growth in 2025 and consolidated EBITDA break even for the year
ESCONDIDO, Calif., May 07, 2025 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. ("OSS" or the "Company") (Nasdaq: OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML), autonomy and sensor processing at the edge, reported results for the three-month period ended March 31, 2025. Comparisons for the three-month periods are to the same year-ago periods unless otherwise noted.
“Our OSS segment achieved strong bookings during the first quarter of 2025, driven by growing demand from both new and existing commercial and defense customers. This positive trend highlights increased interest in our Enterprise Class compute solutions and validates our strategic focus on building multi-year, predictable revenue streams. Higher OSS segment orders are particularly encouraging amid ongoing uncertainty in business and government spending. Momentum remains strong, as the programs we are pursuing closely align with our customers’ evolving priorities on AI, ML, autonomy and sensor processing at the Edge," stated OSS President and CEO, Mike Knowles.
“As expected, our consolidated gross margin improved year-over-year and from the fourth quarter of 2024, supported by a
2025 First-Quarter Financial Summary
Consolidated revenue was
The following table sets forth net revenue by segment for the three months ended March 31, 2025, and March 31, 2024 (Dollars may not calculate due to rounding):
| Three Months Ended | |||||||||||||||||||
Entity: | March 31, 2025 | % of Net Revenue | March 31, 2024 | % of Net Revenue | % Change | ||||||||||||||
| OSS | $ | 5,206,810 | 42.5 | % | $ | 5,533,872 | 43.7 | % | (5.9 | )% | |||||||||
| Bressner | 7,052,277 | 57.5 | % | 7,117,914 | 56.3 | % | (0.9 | )% | |||||||||||
| Total net revenue | $ | 12,259,088 | 100.0 | % | $ | 12,651,786 | 100.0 | % | (3.1 | )% | |||||||||
Consolidated gross margin percentage was
Total operating expenses increased
The Company reported a net loss of
Adjusted EBITDA, a non-GAAP metric, was a loss of
As of March 31, 2025, the Company reported cash and short-term investments of
2025 Full Year Outlook
OSS is executing a strategic plan targeting both commercial and defense markets, aiming to provide integrated solutions and establish OSS as a platform incumbent on large, multi-year programs. This approach is expected to drive long-term value by increasing predictable, recurring revenue and building a strong, multi-year backlog.
As a result of OSS’ multi-year strategy, the Company continues to anticipate consolidated revenue of
Conference Call
OSS will hold a conference call to discuss its results for the first quarter of 2025, followed by a question-and-answer period.
Date: Wednesday, May 7, 2025
Time: 10:00 a.m. ET (7:00 a.m. PT)
Toll-free dial-in: 1-800-717-1738
International dial-in: 1-646-307-1865
Conference ID: 57745 (required for entry)
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1710966&tp_key=28a1f0fc7f
A replay of the call will be available after 1:00 p.m. ET on May 7, 2025, through May 21, 2025.
Toll-free replay: 1-844-512-2921
International replay: 1-412-317-6671
Passcode: 1157745
About One Stop Systems
One Stop Systems, Inc. (Nasdaq: OSS) is a leader in AI enabled solutions for the demanding ‘edge’. OSS designs and manufactures Enterprise Class compute and storage products that enable rugged AI, sensor fusion and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to harsh and challenging applications, whether they are on land, sea or in the air.
OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. These specialized compact products are used across multiple industries and applications, including autonomous trucking and farming, as well as aircraft, drones, ships and vehicles within the defense industry.
OSS solutions address the entire AI workflow, from high-speed data acquisition to deep learning, training and large-scale inference, and have delivered many industry firsts for industrial OEM and government customers.
As the fastest growing segment of the multi-billion-dollar edge computing market, AI enabled solutions require—and OSS delivers—the highest level of performance in the most challenging environments without compromise.
OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com. You can also follow OSS on X, YouTube, and LinkedIn.
Non-GAAP Financial Measures
We believe that the use of adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, is helpful for an investor to assess the performance of the Company. The Company defines adjusted EBITDA as income (loss) before interest, taxes, depreciation, amortization, acquisition expense, impairment of long-lived assets, financing costs, government funded programs, fair value adjustments from purchase accounting, stock-based compensation expense, and expenses related to discontinued operations.
Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States, or GAAP. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash operating expenses, we believe that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.
Our adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. Our adjusted EBITDA is not a measurement of financial performance under GAAP, and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results.
| For the Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net loss | $ | (2,017,634 | ) | $ | (1,339,622 | ) | |
| Depreciation | 223,847 | 289,547 | |||||
| Amortization of right-of-use assets net of change in lease liability | (2,032 | ) | 55,997 | ||||
| Stock-based compensation expense | 612,561 | 408,740 | |||||
| Interest expense | 14,186 | 35,342 | |||||
| Interest income | (72,511 | ) | (141,725 | ) | |||
| Provision for income taxes | 109,466 | 191,269 | |||||
| Adjusted EBITDA | $ | (1,132,116 | ) | $ | (500,452 | ) | |
(Dollars may not calculate due to rounding)
Adjusted EPS excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. We believe that exclusion of certain selected items assists in providing a more complete understanding of our underlying results and trends and allows for comparability with our peer company index and industry. We use this measure along with the corresponding GAAP financial measures to manage our business and to evaluate our performance compared to prior periods and the marketplace. The Company defines non-GAAP income (loss) as income or (loss) before amortization, government funded programs, impairment of long lived assets, stock-based compensation, expenses related to discontinued operations, and acquisition costs. Adjusted EPS expresses adjusted income (loss) on a per share basis using weighted average diluted shares outstanding.
Adjusted EPS is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the adjusted income from continuing operations and adjusted EPS financial adjustments described above, and investors should not infer from our presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring.
The following table reconciles non-GAAP net income and basic and diluted earnings per share:
| For the Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net loss | $ | (2,017,634 | ) | $ | (1,339,622 | ) | |
| Stock-based compensation expense | 612,561 | 408,740 | |||||
| Non-GAAP net loss | $ | (1,405,073 | ) | $ | (930,882 | ) | |
| Non-GAAP net loss per share: | |||||||
| Basic | $ | (0.07 | ) | $ | (0.04 | ) | |
| Diluted | $ | (0.07 | ) | $ | (0.04 | ) | |
| Weighted average common shares outstanding: | |||||||
| Basic | 21,384,599 | 20,709,234 | |||||
| Diluted | 21,384,599 | 20,709,234 | |||||
(Dollars may not calculate due to rounding)
Forward-Looking Statements
OSS cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. . Words such as, but not limited to, “anticipate,” “aim,” “believe,” “contemplate,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “suggest,” “strategy,” “target,” “will,” “would,” and similar expressions or phrases, or the negative of those expressions or phrases, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include but are not limited to those relating to increased sales and revenues, non-GAAP financial measures, our multi-year strategy, increase in margins, and operating expenses. These statements are based on the company's current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by OSS or its partners that any of our plans or expectations will be achieved. Factors that could interfere with our ability to achieve our plans or expectations , include but are not limited to, our ability to expand our product offerings and further penetrate our target markets, future demand for AI/ML integrations, global socio-economic challenges, stock market uncertainty or volatility, reductions in business and/or government spending, and changes in our business strategies, management and/or senior leadership. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in our latest Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Media Contacts:
Robert Kalebaugh
One Stop Systems, Inc.
Tel (858) 518-6154
Email contact
Investor Relations:
Andrew Berger
Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
Email contact
| ONE STOP SYSTEMS, INC. (OSS) CONSOLIDATED BALANCE SHEETS | |||||||
| Unaudited | Audited | ||||||
| March 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 6,498,468 | $ | 6,794,093 | |||
| Short-term investments | 2,620,169 | 3,217,065 | |||||
| Accounts receivable, net | 7,245,983 | 8,177,371 | |||||
| Inventories, net | 15,099,479 | 13,176,156 | |||||
| Prepaid expenses and other current assets | 1,178,620 | 836,364 | |||||
| Total current assets | 32,642,719 | 32,201,048 | |||||
| Property and equipment, net | 1,472,160 | 1,669,026 | |||||
| Operating lease right-of use assets | 1,463,099 | 1,536,094 | |||||
| Deposits and other | 38,093 | 38,093 | |||||
| Goodwill | 1,489,722 | 1,489,722 | |||||
| Total Assets | $ | 37,105,793 | $ | 36,933,982 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 4,475,684 | $ | 2,068,017 | |||
| Accrued expenses and other liabilities | 3,730,499 | 4,806,675 | |||||
| Current portion of operating lease obligation | 272,865 | 285,937 | |||||
| Current portion of notes payable | 1,079,484 | 1,035,050 | |||||
| Total current liabilities | 9,558,532 | 8,195,679 | |||||
| Deferred tax liability, net | 45,572 | 52,574 | |||||
| Operating lease obligation, net of current portion | 1,451,728 | 1,513,684 | |||||
| Total liabilities | 11,055,832 | 9,761,937 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Common stock, | 2,158 | 2,115 | |||||
| Additional paid-in capital | 49,824,911 | 49,082,737 | |||||
| Accumulated other comprehensive income | 293,587 | 140,254 | |||||
| Accumulated deficit | (24,070,695 | ) | (22,053,061 | ) | |||
| Total stockholders’ equity | 26,049,961 | 27,172,045 | |||||
| Total Liabilities and Stockholders' Equity | $ | 37,105,793 | $ | 36,933,982 | |||
| ONE STOP SYSTEMS, INC. (OSS) UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars may not calculate due to rounding) | |||||||
| For the Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Revenue: | |||||||
| Product | $ | 11,848,713 | $ | 12,287,046 | |||
| Customer funded development | 410,375 | 364,740 | |||||
| 12,259,088 | 12,651,786 | ||||||
| Cost of revenue: | |||||||
| Product | 7,912,314 | 8,818,756 | |||||
| Customer funded development | 349,782 | 109,737 | |||||
| 8,262,096 | 8,928,493 | ||||||
| Gross profit | 3,996,992 | 3,723,293 | |||||
| Operating expenses: | |||||||
| General and administrative | 2,366,369 | 2,094,317 | |||||
| Marketing and selling | 2,218,190 | 1,920,113 | |||||
| Research and development | 1,357,293 | 970,877 | |||||
| Total operating expenses | 5,941,852 | 4,985,307 | |||||
| Loss from operations | (1,944,860 | ) | (1,262,014 | ) | |||
| Other (expense) income, net: | |||||||
| Interest income | 72,511 | 141,725 | |||||
| Interest expense | (14,186 | ) | (35,342 | ) | |||
| Other (expense) income, net | (21,633 | ) | 7,278 | ||||
| Total other income, net | 36,692 | 113,661 | |||||
| Loss before income taxes | (1,908,168 | ) | (1,148,353 | ) | |||
| Provision for income taxes | 109,466 | 191,269 | |||||
| Net loss | $ | (2,017,634 | ) | $ | (1,339,622 | ) | |
| Net loss per share: | |||||||
| Basic | $ | (0.09 | ) | $ | (0.06 | ) | |
| Diluted | $ | (0.09 | ) | $ | (0.06 | ) | |
| Weighted average common shares outstanding: | |||||||
| Basic | 21,384,599 | 20,709,234 | |||||
| Diluted | 21,384,599 | 20,709,234 | |||||
| ONE STOP SYSTEMS, INC. (OSS) UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| For the Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (2,017,634 | ) | $ | (1,339,622 | ) | |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
| Deferred income taxes | 1,737 | (188,674 | ) | ||||
| Loss on disposal of property and equipment | - | 354 | |||||
| Provision for bad debt | (100 | ) | - | ||||
| Warranty reserves | - | (15,000 | ) | ||||
| Depreciation | 223,847 | 289,547 | |||||
| Amortization of right-of-use assets | 76,825 | 100,138 | |||||
| Inventory reserves | (146,200 | ) | 94,063 | ||||
| Stock-based compensation expense | 612,561 | 408,740 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 1,068,100 | 842,057 | |||||
| Inventories | (1,418,185 | ) | (66,013 | ) | |||
| Prepaid expenses and other current assets | (332,400 | ) | (224,116 | ) | |||
| Accounts payable | 2,336,310 | 1,486,003 | |||||
| Accrued expenses and other liabilities | (1,461,601 | ) | 700,041 | ||||
| Operating lease liabilities | (78,857 | ) | (44,141 | ) | |||
| Net cash (used in) provided by operating activities | (1,135,596 | ) | 2,043,378 | ||||
| Cash flows from investing activities: | |||||||
| Redemption of short-term investment grade securities | 597,288 | 1,811,364 | |||||
| Purchases of property and equipment, including capitalization of labor costs for test equipment and ERP | (12,793 | ) | (167,168 | ) | |||
| Net cash provided by investing activities | 584,495 | 1,644,196 | |||||
| Cash flows from financing activities: | |||||||
| Proceeds from exercise of stock options and warrants | 373,310 | 127,350 | |||||
| Payment of payroll taxes on net issuance of employee stock options | (243,654 | ) | (246,376 | ) | |||
| Repayments on notes payable | - | (680,948 | ) | ||||
| Net cash provided by (used in) financing activities | 129,656 | (799,974 | ) | ||||
| Net change in cash and cash equivalents | (421,445 | ) | 2,887,600 | ||||
| Effect of exchange rates on cash | 125,820 | (32,446 | ) | ||||
| Cash and cash equivalents, beginning of period | 6,794,093 | 4,048,948 | |||||
| Cash and cash equivalents, end of period | $ | 6,498,468 | $ | 6,904,102 | |||
