OSS Announces New Partnership with Leading U.S. Defense Prime to Develop Enhanced Integrated Vision System for U.S. Army

Rhea-AI Summary

One Stop Systems (Nasdaq: OSS) received an approximately $1.2 million pre-production order from a new U.S. defense prime contractor to design, develop, and deliver ruggedized integrated compute and visualization systems for U.S. Army combat vehicles.

OSS will supply a GPU-accelerated Video/Sensor Concentrator, intelligent PCIe switch, and GPU-accelerated Crew Computer in a SWaP-optimized rugged chassis, with prototype delivery and field testing expected after roughly 3–6 months. Testing at the U.S. Army Ground Vehicle Systems Center (GVSC) is cited as validation of OSS hardware.

Positive

• Pre-production order of approximately $1.2 million
• Prototype delivery and field testing expected in 3–6 months
• Integration into a prime contractor system increases potential for larger production opportunities
• Ongoing testing at U.S. Army GVSC validating rugged TSN and PCIe architectures

Negative

• Order is pre-production only, not a confirmed production contract
• No disclosed production schedule or revenue guidance tied to the order
• Competition noted as peers work to introduce TSN-enabled systems

Key Figures

Pre-production order value $1.2 million Initial design and prototype order from new U.S. defense prime contractor

Testing and integration window three to six months Planned testing and integration period before prototype field testing

Market Reality Check

$8.07 Last Close

Volume Volume 1,149,503 is about 1.7x the 20-day average of 675,549, indicating elevated pre-news activity. high

Technical Price at $6.44 is trading above the 200-day MA of $4.70, reflecting a longer-term uptrend into this news.

Peers on Argus 1 Down

OSS showed a -6.67% move pre-news while peers were mixed: DDD up 10.17%, QMCO up 1.52%, ALOT down 2.17%, YIBO flat. UAVS appeared in momentum scanners, down about 4.26%, suggesting stock-specific rather than broad sector dynamics.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 30	Asset sale	Positive	+0.4%	Sale of Bressner for $22.4M and refocus on core AI/edge markets.
Dec 23	Defense order	Positive	+2.1%	$1.2M follow-on Safran order, raising expected cumulative sales to $7M.
Nov 18	Product launch	Positive	+0.6%	Launch of PCIe Gen 6 product line targeting high-end AI/ML workloads.
Nov 11	Conference showcase	Positive	+3.3%	Planned SC25 demonstrations of high-performance compute and storage systems.
Nov 05	Earnings update	Positive	+22.0%	Strong Q3 growth, margin recovery, raised 2025 guidance, and capital raise.

Pattern Detected

Recent company news has generally been positive and was followed by gains, with especially strong reaction to earnings.

Recent Company History

Over the last few months, OSS highlighted several positive developments. On Nov 5, Q3 2025 results showed strong revenue growth, improved margins, and raised guidance, with a 22.03% next-day gain. Subsequent SC25 product launch and demo news in mid-November and a December follow-on defense order also saw modest positive reactions. The late-December sale of Bressner for $22.4M further sharpened the strategic focus on AI/ML and rugged edge markets. Today’s defense partnership extends that defense-focused trajectory.

Market Pulse Summary

The stock surged +22.2% in the session following this news. A strong positive reaction aligns with OSS’s history of gains following constructive news, such as the 22.03% move after Q3 2025 results. The defense partnership adds to a series of military-focused wins, but prior capital raises and ongoing project execution needs suggest investors would have weighed dilution history and contract conversion risk when assessing the durability of any move.

Key Terms

gpu technical

"OSS will deliver a GPU accelerated Video/Sensor Concentrator"

A GPU (graphics processing unit) is a specialized computer chip designed to handle many calculations at once, originally for rendering images and video but now widely used for tasks like artificial intelligence, data analysis and high-performance computing. Investors watch GPU demand and prices because strong sales often signal growth for chip makers and their customers, affect profit margins and capital spending, and can forecast wider trends in gaming, AI adoption and cloud services.

pcie technical

"an intelligent PCIe Switch, and a GPU accelerated Crew Computer"

PCIe (PCI Express) is a high-speed connection standard used inside computers and servers to link components like graphics cards, storage drives, and network adapters so they can send data quickly to each other. Investors care because faster, more efficient PCIe support can make a product more competitive—think of it as wider, faster highway lanes for data—which affects device performance, upgrade flexibility, manufacturing cost and customer demand.

time sensitive networking (tsn) technical

"validat[e] the Company’s rugged Time Sensitive Networking (TSN) and PCIe enabled compute architectures"

Time Sensitive Networking (TSN) is a set of technical rules added to standard Ethernet that guarantees data packets arrive on time and in the right order, even on busy networks. For investors, TSN matters because it enables reliable real‑time communication for industries like automotive, manufacturing, and telecom—think of it as turning a public road into a set of dedicated lanes so time-critical traffic never gets stuck, which can create product advantages and open new markets for companies that adopt it.

swap-optimized technical

"packaged in a SWaP-optimized, fully rugged, passively cooled embedded chassis"

Swap-optimized describes a financial instrument or loan structured so it can be paired easily and cheaply with swap contracts—agreements that exchange one set of future payments for another—by aligning payment timing, currency and basic terms and avoiding complex extra features. For investors, that matters because it lowers the cost and hassle of hedging interest-rate or currency risk, making future cash flows and returns more predictable, like buying a gadget that already fits common accessories.

sensor fusion technical

"digital sensor fusion architectures"

Sensor fusion is the process of combining data from multiple sensors—like cameras, radar, microphones, or motion detectors—to create a single, clearer picture of what’s happening in the real world. For investors, better fusion means products and systems that are safer, more reliable, or smarter (think a car using several eyes and ears to avoid collisions), which can reduce costs, speed product adoption, and improve a company’s competitive edge.

AI-generated analysis. Not financial advice.

Initial design and prototype order valued at approximately $1.2 million

Integration of OSS hardware into prime contractor system further validates OSS capabilities for next-generation 360-degree vision and sensor processing solutions

ESCONDIDO, Calif., Jan. 07, 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) and sensor processing at the edge, today announced it has received an approximately $1.2 million pre-production order from a new U.S. defense prime contractor for the design, development, and delivery of ruggedized integrated compute and visualization systems for U.S. Army combat vehicles.

“This engagement with a new, top-tier U.S. defense prime contractor marks a meaningful milestone for OSS,” said Mike Knowles, President and CEO of OSS. “We believe integrating our hardware into a prime contractor’s system solution for Army combat vehicles validates the performance, ruggedization, and technical maturity of our platforms. It also strengthens our position to compete for, and win, larger production opportunities as the Army pursues next-generation vision, sensor distribution and sensor processing technologies across its fleet of manned and unmanned platforms.”

We believe the award represents a significant expansion of OSS’s participation in next-generation vision and sensor programs for the U.S. Army, by integrating OSS-designed hardware directly into a prime contractor’s system-level solution. This program builds on the Company’s existing development activities with the U.S. Army to help modernize ground vehicle situational awareness and digital sensor fusion architectures.

Under the terms of the order, OSS will deliver a GPU accelerated Video/Sensor Concentrator, an intelligent PCIe Switch, and a GPU accelerated Crew Computer packaged in a SWaP-optimized, fully rugged, passively cooled embedded chassis engineered for U.S. Army ground combat environments. These units process and disseminate real-time sensor and video data, providing a 360-degree operational view, supporting object recognition and target identification, and enabling crews to operate effectively in degraded or obscured visibility conditions.

OSS expects to deliver prototype units for field testing, following approximately three to six months of testing and integration with the prime customer’s solution. OSS’s hardware is designed to be deployed across a broad range of Army vehicles, including Stryker, Bradley, Abrams, and emerging manned and optionally manned platforms.

OSS’s hardware has been undergoing testing at the U.S. Army Ground Vehicle Systems Center (GVSC) in Warren, Michigan, which we believe continues to validate the Company’s rugged Time Sensitive Networking (TSN) and PCIe enabled compute architectures for future Army mobility, autonomy, and digital modernization initiatives.

“We are proud to advance the U.S. Army’s modernization priorities for vehicle survivability and mobility. OSS systems are purpose-built for rugged edge deployments, delivering dependable, real-time situational awareness under the most demanding conditions. This new partnership helps to reinforce our growing position in defense markets. While competitors work to bring TSN-enabled systems to market, OSS has already fielded both TSN and next-generation PCIe-enabled systems. We are extending our leading position as we deploy our solutions with another major prime contractor win. We believe this underscores the advantage of our high-speed PCIe switch fabric, which delivers ultra-low-latency performance beyond what traditional fabric connections can offer, capabilities that are critical for mission-critical government applications,” Mr. Knowles concluded.

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.

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 are based on the Company's current beliefs and expectations. 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 the potential and/or the results, the fitness of TSN, PCIe and OSS' products for ruggedized integrated compute and visualization systems for U.S. Army combat vehicles, actual revenue derived from current and expected development and purchase orders, our growth with this new U.S. prime customer, the performance reliability of the platform in certain conditions, and the timing of shipments and revenue. 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

FAQ

What did OSS (NASDAQ: OSS) announce on January 7, 2026?

OSS announced an approximately $1.2 million pre-production order from a new U.S. defense prime contractor to develop ruggedized compute and visualization systems for U.S. Army combat vehicles.

What products will OSS deliver under the $1.2 million OSS order?

OSS will deliver a GPU-accelerated Video/Sensor Concentrator, an intelligent PCIe switch, and a GPU-accelerated Crew Computer in a rugged, SWaP-optimized chassis.

When does OSS expect to deliver prototypes for field testing?

OSS expects to deliver prototype units for field testing following approximately 3–6 months of testing and integration with the prime contractor.

Which U.S. Army platforms could OSS hardware be deployed on?

OSS hardware is designed for a broad range of Army vehicles, including Stryker, Bradley, Abrams, and emerging manned and optionally manned platforms.

Does OSS have independent validation for its hardware?

OSS reports its hardware has been undergoing testing at the U.S. Army Ground Vehicle Systems Center (GVSC), which the company cites as continued validation.

How might the prime contractor integration affect OSS shareholders?

Integration into a prime contractor system could position OSS for larger production opportunities, though the announced order is pre-production and no production revenue or schedule was disclosed.