One Stop Systems Reports Q3 2026 Results
Higher sales accompanied lower gross margins and greater operating cash use, while year-to-date book-to-bill reached 1.46x.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
One Stop Systems (Nasdaq: OSS) raised its 2026 revenue growth outlook to approximately 40% after reporting higher third-quarter sales. Revenue from continuing operations rose 35.9% year over year to $12.6 million for the quarter ended September 30, 2026, driven by new customers and higher production volumes. Gross margin fell to 42.6% from 45.6%, and the loss from continuing operations widened to $593,734 from $380,719.
Nine-month revenue rose 48.3% to $30.0 million, while cash used in continuing operations increased to $12.4 million from $5.9 million. Cash, cash equivalents and short-term investments were $18.9 million at September 30, versus $31.2 million at year-end. OSS expects full-year gross margin of approximately 40%-42% and adjusted EBITDA, a non-GAAP earnings measure, of $0.5 million to $1.0 million. Prior revenue growth guidance was 25% to 30%.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 revenue growth guidance increased to approximately 40%, from 25% to 30%.
- Moderate pointThird-quarter continuing-operations revenue increased 35.9% to $12.6 million, driven by new customers and higher production volumes.
- Moderate pointYear-to-date book-to-bill of 1.46x shows bookings exceeded revenue.
- Moderate point. Forward-looking: it has not happened yet and may not happen.OSS expects several large, multimillion-dollar orders to close during the fourth quarter.
- Moderate pointNine-month continuing-operations adjusted EBITDA turned positive at $0.1 million, versus a $3.2 million loss.
- Moderate pointNine-month non-GAAP continuing-operations net income reached $0.4 million, versus a $3.7 million loss.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 outlook calls for approximately 40%-42% gross margin and $0.5 million to $1.0 million adjusted EBITDA.
4 minor points
- Minor pointNine-month continuing-operations revenue increased 48.3% to $30.0 million versus the same period last year.
- Minor pointThird-quarter continuing-operations adjusted EBITDA increased to $0.3 million, from $0.2 million a year earlier.
- Minor pointThird-quarter non-GAAP continuing-operations net income reached $0.3 million, versus $31,000 a year earlier.
- Minor pointResearch and development expenses were lower year over year in both the quarter and nine-month period.
Negative
- Moderate pointNine-month continuing-operations loss widened to $8,275,982, from $5,134,263 a year earlier.
- Moderate pointNine-month cash used in continuing operations increased to $12.4 million, from $5.9 million.
- Moderate pointCash, cash equivalents and short-term investments fell to $18.9 million, from $31.2 million at December 31, 2025.
- Moderate pointThird-quarter continuing-operations gross margin declined to 42.6%, from 45.6%, primarily because of product mix.
- Moderate pointNine-month operating expenses increased 56.5% to $22.4 million, including a settlement charge and higher stock compensation.
7 minor points
- Minor pointThird-quarter continuing-operations loss widened to $593,734, from $380,719 a year earlier.
- Minor pointWorking capital declined to $37.9 million, from $45.3 million at December 31, 2025.
- Minor pointNine-month continuing-operations gross margin declined to 43.9%, from 44.4%, primarily because of product mix.
- Minor pointThird-quarter continuing-operations operating expenses increased 33.7% to $6.2 million, including bad debt, legal fees and higher stock compensation.
- Minor pointNine-month discontinued operations recorded a $0.2 million loss, versus $1.4 million income, following Bressner sale adjustments.
- Minor pointThird-quarter discontinued-operations income fell to zero, from $0.6 million a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.Potential memory component supply constraints and the federal budget outlook could affect OSS's 2026 results.
News Explained
Nine-month cash use included a $6.25 million settlement and $7.8 million inventory growth; Q3 adjusted EBITDA was $0.3 million, or about $1.2 million excluding expenses.
In its Q3 results, OSS reports that nine-month net cash used in continuing operations of
Adjusted EBITDA is a non-GAAP measure; OSS reports
Details
Market Reaction – OSS
On Oct 28, the day this news came out, the latest delayed price for OSS is 4.59% above the previous close. Argus tracked a peak move of +3.0% during the session. Our momentum scanner has recorded 12 alerts for this stock so far that day. The latest delayed price is $7.07. Relative volume is exceptionally heavy at 47.0x the average.
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Key Figures
- Q3 continuing-operations revenue
- $12.6 million, up 35.9% year-over-year
- Third quarter 2026; compared with $9.3 million in Q3 2025
- Gross margin
- 42.6% vs. 45.6%
- Continuing operations, Q3 2026 vs. Q3 2025
- Adjusted EBITDA
- $0.3 million vs. $0.2 million
- Continuing operations, Q3 2026 vs. Q3 2025
- Loss from continuing operations
- $0.6 million
- Q3 2026
- Net cash used in continuing operations
- $12.4 million vs. $5.9 million
- Nine months ended September 30, 2026 vs. prior-year period
- 2026 revenue growth guidance
- Approximately 40%, compared with prior guidance of 25%-30%
- Full-year 2026
- 2026 gross margin guidance
- Approximately 40%-42%
- Full-year 2026
- 2026 adjusted EBITDA guidance
- $0.5 million to $1.0 million
- Full-year 2026
Previous Earnings Reports
-
Q2 revenue grew 62.3% and OSS raised 2026 revenue-growth guidance to 25%-30%.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
book-to-bill ratio financial
adjusted ebitda financial
non-gaap financial
discontinued operations financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Year-over-year revenue growth for the third quarter of
Year-to-date book-to-bill of 1.46x reflects strong demand and robust pipeline
across defense and commercial markets
Management increases revenue growth guidance to approximately
ESCONDIDO, Calif., Oct. 28, 2026 (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 third quarter ended September 30, 2026. Third quarter and nine-month comparisons are to the same year-ago periods unless otherwise noted. On December 30, 2025, the Company closed a definitive agreement to sell all assets and operations of Bressner Technology GmbH. All operations, assets, and liabilities associated with the sale of Bressner have been classified as discontinued operations.
“Our third quarter results were better than expected and reflect accelerating momentum across our business, supported by growing demand for our Enterprise Class compute solutions and the expanding diversity of our customer base,” stated OSS President and CEO, Mike Knowles. “We are particularly encouraged by the composition of our third quarter revenue growth, which was primarily driven by higher sales to commercial customers across healthcare, commercial aerospace, and specialized data center applications, complementing our established strength and continued momentum in defense markets. Expanding customer diversification, combined with higher average order values, reflects growing demand for our differentiated compute solutions across multiple end markets.”
“Our pipeline remains robust, with a year-to-date book-to-bill ratio of 1.46x reflecting strong underlying demand for our solutions. While third quarter bookings were influenced by the timing of customer orders, we expect several large, multimillion-dollar orders to close during the fourth quarter and continue to advance what we believe to be potentially transformative opportunities across our core defense and commercial markets. We believe these opportunities reflect our strengthening competitive position and provide a solid foundation for sustained growth,” continued Mr. Knowles.
“Third quarter adjusted EBITDA increased
2026 Third-Quarter Financial Summary
Total revenue from continuing operations increased to
Gross margin from continuing operations was
Total operating expenses from continuing operations increased
The Company reported a loss from continuing operations of
Adjusted EBITDA, from continuing operations, a non-GAAP metric, was
Net cash used in continuing operations for the nine months ended September 30, 2026, was
As of September 30, 2026, the Company reported cash, cash equivalents, and short-term investments of
2026 Nine Month Financial Summary
Total revenue from continuing operations increased to
Gross margin from continuing operations was
Total operating expenses increased
OSS reported a loss from continuing operations of
Adjusted EBITDA income, from continuing operations, a non-GAAP metric, was
Income from Discontinued Operations, net of Income Taxes
Income from discontinued operations consists of income from the Company’s Bressner Technologies subsidiary, which was sold on December 30, 2025. Income from discontinued operations also includes the gain recognized on the sale.
The Company recorded no income or loss from discontinued operations, net of income taxes, for the three months ended September 30, 2026, compared to income of
2026 Full Year Outlook
The Company 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.
Based on its current performance and business outlook, OSS is increasing its full-year 2026 revenue growth guidance. We believe that the Company’s expectations for 2026 reflect better than expected growth across its core defense and commercial markets and expected higher customer-funded development revenue compared with 2025. The Company also continues to monitor potential supply chain constraints affecting certain components, including memory, and the current outlook for the federal government budget. Changes in these assumptions could positively or negatively affect OSS’s 2026 results.
For the full year of 2026, OSS expects:
- Revenue growth of approximately
40% , compared to prior guidance of25% to30% - Gross margin of approximately
40% -42% - Adjusted EBITDA of
$0.5 million to$1.0 million
Conference Call
OSS will hold a conference call to discuss its results for the third quarter of 2026, followed by a question-and-answer period.
Date: Wednesday, October 28, 2026
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: 32264 (required for entry)
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1773205&tp_key=3a8ee0805b
A replay of the call will be available after 1:00 p.m. ET on October 28, 2026, through November 11, 2026.
Toll-free replay: 1-844-512-2921
International replay: 1-412-317-6671
Passcode: 1132264
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 one of the fastest growing segments 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 also excludes the impact of the legal settlement agreement.
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.
| EBITDA from Continuing Operations | |||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Loss from continuing operations | $ | (593,734 | ) | $ | (380,719 | ) | $ | (8,275,982 | ) | $ | (5,134,263 | ) | |||
| Legal settlement | $ | - | $ | - | 6,250,000 | - | |||||||||
| Depreciation | $ | 183,195 | $ | 192,841 | 549,811 | 583,278 | |||||||||
| Amortization of right-of-use assets net of change in operating lease liability | $ | (6,223 | ) | $ | (2,595 | ) | (16,376 | ) | (6,660 | ) | |||||
| Stock-based compensation expense | $ | 909,622 | $ | 411,687 | 2,425,963 | 1,473,442 | |||||||||
| Interest expense | $ | - | $ | 2,424 | - | 2,424 | |||||||||
| Interest income | $ | (242,570 | ) | $ | (36,433 | ) | (853,398 | ) | (159,795 | ) | |||||
| Adjusted EBITDA | $ | 250,290 | $ | 187,205 | $ | 80,018 | $ | (3,241,573 | ) | ||||||
| EBITDA from Discontinued Operations | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Income (loss) from discontinued operations, net of income taxes | $ | - | $ | 644,206 | $ | (157,274 | ) | $ | 1,359,387 | ||||||
| Post-closing adjustments to gain on sale | $ | - | $ | - | 157,274 | - | |||||||||
| Depreciation | $ | - | $ | 32,927 | - | 93,499 | |||||||||
| Amortization of right-of-use assets net of change in operating lease liability | $ | - | $ | (113 | ) | 53,796 | |||||||||
| Stock-based compensation expense | $ | - | $ | 32,934 | - | 99,514 | |||||||||
| Interest expense | $ | - | $ | 12,641 | - | 40,517 | |||||||||
| Interest income | $ | - | $ | - | - | 555 | |||||||||
| Provision for income taxes | $ | - | $ | 266,881 | - | 600,535 | |||||||||
| Adjusted EBITDA | $ | - | $ | 989,476 | $ | - | $ | 2,247,802 | |||||||
| Consolidated EBITDA | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net (loss) income | $ | (593,734 | ) | $ | 263,488 | $ | (8,433,256 | ) | $ | (3,774,876 | ) | ||||
| Legal settlement | $ | - | $ | - | 6,250,000 | - | |||||||||
| Post-closing adjustments to gain on sale | $ | - | $ | - | 157,274 | - | |||||||||
| Depreciation | $ | 183,195 | $ | 225,768 | 549,811 | 676,777 | |||||||||
| Amortization of right-of-use assets net of change in operating lease liability | $ | (6,223 | ) | $ | (2,708 | ) | (16,376 | ) | 47,136 | ||||||
| Stock-based compensation expense | $ | 909,622 | $ | 444,621 | 2,425,963 | 1,572,956 | |||||||||
| Interest expense | $ | - | $ | 15,065 | - | 42,941 | |||||||||
| Interest income | $ | (242,570 | ) | $ | (36,433 | ) | (853,398 | ) | (159,240 | ) | |||||
| Provision for income taxes | $ | - | $ | 266,881 | - | 600,535 | |||||||||
| Adjusted EBITDA | $ | 250,290 | $ | 1,176,682 | $ | 80,018 | $ | (993,771 | ) | ||||||
(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. Non-GAAP income (loss) also excludes the impact of the legal settlement agreement. 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:
| Non- GAAP Adjusted EPS from Continuing Operations | |||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Loss from continuing operations | $ | (593,734 | ) | $ | (380,719 | ) | $ | (8,275,982 | ) | $ | (5,134,263 | ) | |||
| Legal settlement | - | - | 6,250,000 | - | |||||||||||
| Stock-based compensation expense | 909,622 | 411,687 | 2,425,963 | 1,473,442 | |||||||||||
| Non-GAAP net income (loss) from continuing operations | $ | 315,888 | $ | 30,968 | $ | 399,981 | $ | (3,660,821 | ) | ||||||
| Non-GAAP net income (loss) from continuing operations per share: | |||||||||||||||
| Basic | $ | 0.01 | $ | 0.00 | $ | 0.02 | $ | (0.17 | ) | ||||||
| Diluted | $ | 0.01 | $ | 0.00 | $ | 0.02 | $ | (0.17 | ) | ||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 24,993,832 | 21,952,963 | 24,839,830 | 21,675,802 | |||||||||||
| Diluted | 25,899,044 | 22,840,761 | 25,933,329 | 21,675,802 | |||||||||||
| Non- GAAP Adjusted EPS from Discontinued Operations | |||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Income (loss) from discontinued operations, net of income taxes | $ | - | $ | 644,206 | $ | (157,274 | ) | $ | 1,359,387 | ||||||
| Post-closing adjustments to gain on sale | - | - | 157,274 | - | |||||||||||
| Stock-based compensation expense | - | 32,934 | - | 99,514 | |||||||||||
| Non-GAAP net income from discontinued operations | $ | - | $ | 677,140 | $ | - | $ | 1,458,901 | |||||||
| Non-GAAP net income from discontinued operations per share: | |||||||||||||||
| Basic | $ | - | $ | 0.03 | $ | - | $ | 0.07 | |||||||
| Diluted | $ | - | $ | 0.03 | $ | - | $ | 0.07 | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 24,993,832 | 21,952,963 | 24,839,830 | 21,675,802 | |||||||||||
| Diluted | 25,899,044 | 22,840,761 | 25,933,329 | 22,308,957 | |||||||||||
| Consolidated Non-GAAP Adjusted EPS | |||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net (loss) income | $ | (593,734 | ) | $ | 263,488 | $ | (8,433,256 | ) | $ | (3,774,876 | ) | ||||
| Legal settlement | - | - | 6,250,000 | - | |||||||||||
| Post-closing adjustments to gain on sale | - | - | 157,274 | - | |||||||||||
| Stock-based compensation expense | 909,622 | 444,621 | 2,425,963 | 1,572,956 | |||||||||||
| Non-GAAP net income (loss) | $ | 315,888 | $ | 708,109 | $ | 399,981 | $ | (2,201,920 | ) | ||||||
| Non-GAAP net income (loss) per share: | |||||||||||||||
| Basic | $ | 0.01 | $ | 0.03 | $ | 0.02 | $ | (0.10 | ) | ||||||
| Diluted | $ | 0.01 | $ | 0.03 | $ | 0.02 | $ | (0.10 | ) | ||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 24,993,832 | 21,952,963 | 24,839,830 | 21,675,802 | |||||||||||
| Diluted | 25,899,044 | 22,840,761 | 25,933,329 | 21,675,802 | |||||||||||
(Dollars may not calculate due to rounding)
Forward-Looking Statements
One Stop Systems 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 statements regarding the Company's anticipated financial performance and outlook for 2026, including expected revenue growth, gross margin and adjusted EBITDA; anticipated customer orders and the timing and likelihood of converting sales opportunities into bookings and revenue; expected demand for the Company's products across defense and commercial markets; anticipated customer-funded development activity; the Company's ability to expand its customer base and market opportunities; and its ability to execute its strategic plan, secure positions on large, multi-year programs and achieve sustainable growth and profitability.
The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems or its partners that any of its plans or expectations will be achieved, including but not limited to expected increases in sales, revenues and profitability, non-GAAP financial measures, our multi-year strategy, expected market growth, continued or new demand for our products, increase in margins, and operating expenses. These statements are based on the Company's current beliefs and expectations. 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, as well as those relating to current geopolitical conditions, defense spending changes, the Company’s ability to successfully scale production, manage program execution, and meet customer delivery schedules, semiconductor supply constraints, and customer concentration. 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 | ||||||
| September 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 5,637,841 | $ | 31,174,880 | |||
| Restricted cash | - | 2,200,096 | |||||
| Short-term investments | 13,246,688 | - | |||||
| Accounts receivable, net | 12,743,025 | 11,549,718 | |||||
| Inventories, net | 13,724,606 | 5,420,439 | |||||
| Prepaid expenses and other current assets | 567,705 | 472,884 | |||||
| Total current assets | 45,919,865 | 50,818,017 | |||||
| Property and equipment, net | 292,229 | 674,654 | |||||
| Operating lease right-of-use assets | 1,086,582 | 1,216,871 | |||||
| Deposits and other | 36,555 | 38,093 | |||||
| Intangible assets, net | 85,695 | 73,908 | |||||
| Total assets | $ | 47,420,926 | $ | 52,821,543 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 2,114,154 | $ | 1,716,389 | |||
| Accrued expenses and other current liabilities | 5,679,614 | 3,630,130 | |||||
| Current portion of operating lease liabilities | 267,693 | 219,097 | |||||
| Total current liabilities | 8,061,461 | 5,565,616 | |||||
| Operating lease liabilities, net of current portion | 1,054,602 | 1,249,862 | |||||
| Total liabilities | 9,116,063 | 6,815,478 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Common stock, | 2,505 | 2,458 | |||||
| Additional paid-in capital | 63,751,064 | 62,968,973 | |||||
| Accumulated other comprehensive loss | (50,084 | ) | - | ||||
| Accumulated deficit | (25,398,622 | ) | (16,965,367 | ) | |||
| Total stockholders’ equity | 38,304,863 | 46,006,064 | |||||
| Total liabilities and stockholders' equity | $ | 47,420,926 | $ | 52,821,543 | |||
| ONE STOP SYSTEMS, INC. (OSS) UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars may not calculate due to rounding) | |||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue: | |||||||||||||||
| Product | $ | 12,353,277 | $ | 8,966,978 | $ | 27,822,538 | $ | 19,139,122 | |||||||
| Customer funded development | 230,241 | 295,539 | 2,179,141 | 1,090,916 | |||||||||||
| 12,583,518 | 9,262,517 | 30,001,679 | 20,230,038 | ||||||||||||
| Cost of revenue: | |||||||||||||||
| Product | 7,135,004 | 4,944,908 | 15,765,085 | 10,560,688 | |||||||||||
| Customer funded development | 90,355 | 95,919 | 1,059,839 | 696,579 | |||||||||||
| 7,225,359 | 5,040,827 | 16,824,924 | 11,257,267 | ||||||||||||
| Gross profit | 5,358,159 | 4,221,690 | 13,176,755 | 8,972,771 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative | 3,190,639 | 1,728,012 | 8,089,248 | 5,543,820 | |||||||||||
| Legal settlement | - | - | 6,250,000 | - | |||||||||||
| Marketing and selling | 1,892,397 | 1,632,506 | 5,235,314 | 4,898,135 | |||||||||||
| Research and development | 1,109,833 | 1,271,637 | 2,779,972 | 3,838,849 | |||||||||||
| Total operating expenses | 6,192,869 | 4,632,155 | 22,354,534 | 14,280,804 | |||||||||||
| Loss from operations | (834,710 | ) | (410,465 | ) | (9,177,779 | ) | (5,308,034 | ) | |||||||
| Other income (expense), net: | |||||||||||||||
| Interest income | 242,570 | 36,433 | 853,398 | 159,795 | |||||||||||
| Interest expense | - | (2,424 | ) | - | (2,424 | ) | |||||||||
| Other (expense) income, net | (1,594 | ) | (4,263 | ) | 48,399 | 16,400 | |||||||||
| Total other income, net | 240,976 | 29,746 | 901,797 | 173,771 | |||||||||||
| Loss before income taxes | (593,734 | ) | (380,719 | ) | (8,275,982 | ) | (5,134,263 | ) | |||||||
| Provision for income taxes | - | - | - | - | |||||||||||
| Loss from continuing operations | (593,734 | ) | (380,719 | ) | (8,275,982 | ) | (5,134,263 | ) | |||||||
| Income (loss) from discontinued operations, net of income taxes | - | 644,206 | (157,274 | ) | 1,359,387 | ||||||||||
| Net (loss) income | (593,734 | ) | 263,487 | (8,433,256 | ) | (3,774,876 | ) | ||||||||
| Per share basis: | |||||||||||||||
| Basic: | |||||||||||||||
| Continuing operations | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.33 | ) | $ | (0.24 | ) | |||
| Discontinued operations | $ | - | $ | 0.03 | $ | (0.01 | ) | $ | 0.06 | ||||||
| Basic (loss) income per share | $ | (0.02 | ) | $ | 0.01 | $ | (0.34 | ) | $ | (0.17 | ) | ||||
| Diluted: | |||||||||||||||
| Continuing operations | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.33 | ) | $ | (0.24 | ) | |||
| Discontinued operations | $ | - | $ | 0.03 | $ | (0.01 | ) | $ | 0.06 | ||||||
| Diluted (loss) income per share | $ | (0.02 | ) | $ | 0.01 | $ | (0.34 | ) | $ | (0.17 | ) | ||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 24,993,832 | 21,952,963 | 24,839,830 | 21,675,802 | |||||||||||
| Diluted | 24,993,832 | 22,840,761 | 24,839,830 | 22,308,957 | |||||||||||
| ONE STOP SYSTEMS, INC. (OSS) UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| For the Nine Months Ended September 30, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from continuing operating activities: | |||||||
| Loss from continuing operations | $ | (8,275,982 | ) | $ | (5,134,263 | ) | |
| Adjustments to reconcile loss from continuing operations to net cash (used in) continuing operating activities: | |||||||
| Depreciation | 549,811 | 583,278 | |||||
| Provision for (recovery from) credit losses | 573,596 | (100 | ) | ||||
| Amortization of right-of-use assets | 130,289 | 169,723 | |||||
| Stock-based compensation expense | 2,425,963 | 1,473,442 | |||||
| Change in warranty reserves | 20,000 | 30,000 | |||||
| Change in inventory reserves | (548,999 | ) | (632,783 | ) | |||
| Loss on disposal of property and equipment | 11,698 | ||||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (1,766,903 | ) | (2,696,476 | ) | |||
| Inventories | (7,755,167 | ) | 671,968 | ||||
| Prepaid expenses and other current assets | (96,301 | ) | (135,855 | ) | |||
| Security deposits | 3,019 | - | |||||
| Accounts payable | 397,765 | 1,060,189 | |||||
| Accrued expenses and other current liabilities | 2,029,484 | (1,152,416 | ) | ||||
| Operating lease liabilities | (146,665 | ) | (176,383 | ) | |||
| Net cash used in continuing operating activities | (12,448,392 | ) | (5,939,676 | ) | |||
| Cash flows from continuing investing activities: | |||||||
| Purchases of property and equipment | (190,872 | ) | (108,630 | ) | |||
| (Purchase) sale of marketable securities | (13,296,773 | ) | 3,212,492 | ||||
| Net cash (used in) provided by continuing investing activities | (13,487,645 | ) | 3,103,862 | ||||
| Cash flows from continuing financing activities: | |||||||
| Proceeds from exercise of stock options | 206,122 | 1,022,988 | |||||
| Payment of withholding taxes on stock-based awards | (1,849,946 | ) | (509,977 | ) | |||
| Proceeds from bank lines of credit | - | 1,000,000 | |||||
| Net cash (used in) provided by continuing financing activities | (1,643,824 | ) | 1,513,011 | ||||
| Net change in cash, cash equivalents, and restricted cash from continuing operations | (27,579,861 | ) | (1,322,803 | ) | |||
| Net cash flow from discontinued operating activities | (157,274 | ) | 1,014,062 | ||||
| Net cash flow from discontinued investing activities | - | (359,249 | ) | ||||
| Net cash flow from discontinued financing activities | - | - | |||||
| Net change in cash, cash equivalents, and restricted cash from discontinued operations | (157,274 | ) | 654,812 | ||||
| Effect of exchange rate changes on cash | - | 381,918 | |||||
| Net change in cash, cash equivalents, and restricted cash | (27,737,135 | ) | (286,073 | ) | |||
| Cash, cash equivalents, and restricted cash, beginning of period: | 33,374,976 | 6,794,093 | |||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 5,637,841 | $ | 6,508,020 | |||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What is One Stop Systems' updated 2026 revenue growth guidance?
OSS expects approximately 40% revenue growth for 2026, compared with its prior guidance of 25% to 30%. The company attributes the increase to better-than-expected growth across defense and commercial markets and expected higher customer-funded development revenue compared with 2025.
Why did One Stop Systems use more operating cash in the first nine months of 2026?
Nine-month cash use included a $6.25 million legal settlement in the second quarter and a $7.8 million increase in inventories to support expected revenue growth. Net cash used in continuing operations totaled $12.4 million, compared with $5.9 million in the prior-year period.
What expenses affected OSS's third-quarter adjusted EBITDA?
Third-quarter adjusted EBITDA included $0.5 million of bad debt expense related to a former customer's bankruptcy and $0.4 million of legal fees associated with a previously disclosed settlement. Excluding those expenses, adjusted EBITDA would have been $1.2 million, rather than the reported $0.3 million.
Which customers and markets drove OSS's third-quarter revenue growth?
Growth included initial deliveries to a new customer developing autonomous energy nodes, higher production deliveries for commercial aerospace in-flight entertainment systems, and higher sales to a medical imaging manufacturer supporting breast cancer screening. Commercial customer growth spanned healthcare, aerospace and specialized data center applications.