{"id":958875,"date":"2026-05-06T08:19:27","date_gmt":"2026-05-06T12:19:27","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/one-stop-systems-reports-q1-2026-results\/"},"modified":"2026-05-06T08:19:27","modified_gmt":"2026-05-06T12:19:27","slug":"one-stop-systems-reports-q1-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/one-stop-systems-reports-q1-2026-results\/","title":{"rendered":"One Stop Systems Reports Q1 2026 Results"},"content":{"rendered":"
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\n First quarter of 2026 revenue increased 55.0% year-over-year to $8.1 million,\u00a0<\/em>
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\n with gross margin increasing 610-basis points to 51.6% <\/em>\n <\/p>\n

\n Net cash provided by continuing operating activities of $4.0 million for first quarter of 2026<\/em>\n <\/p>\n

\n First quarter book-to-bill of 1.8x, supporting a TTM book-to-bill above 1.2x<\/em>\n <\/p>\n

ESCONDIDO, Calif., May 06, 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 first quarter ended March 31, 2026. First quarter 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.<\/p>\n

\u201cPositive momentum continued into 2026, driven by significant year-over-year revenue growth, disciplined execution across the business, and continued expansion in profitability,\u201d stated OSS President and CEO, Mike Knowles. \u201cWe are seeing increased demand for our enterprise-class, ruggedized compute platforms across both defense and commercial markets, which we believe supports OSS\u2019s role as a critical enabler of next-generation AI, autonomy, and sensor-driven applications at the edge.\u201d<\/p>\n

\u201cImportantly, higher demand is translating into tangible growth, with nearly $15 million in bookings during the first quarter, representing one of the strongest quarters of new bookings in our history. This produced a book-to-bill ratio of 1.8x, supporting our goal of maintaining a trailing twelve-month book-to-bill ratio above 1.2x. We are seeing an expansion in our pipeline and increased customer engagement, as a growing number of organizations turn to OSS for enterprise-class, deployable compute solutions. We believe this positions us to scale alongside some of the most advanced commercial and defense programs and reinforces our confidence in sustained, multi-year growth,\u201d continued, Mr. Knowles.<\/p>\n

\u201cWe also generated record free cash flow in the quarter from continuing operations, strengthening our balance sheet, and providing flexibility to pursue both organic and inorganic growth opportunities. As a result, we believe OSS is well positioned to capitalize on a multi-year growth opportunity as demand for enterprise class, ruggedized compute at the edge remains strong,\u201d concluded Mr. Knowles.<\/p>\n

\n 2026 First-Quarter Financial Summary<\/strong>\n <\/p>\n

Total revenue from continuing operations increased 55.0% to $8.1 million, from $5.2 million in the first quarter of 2025. The increase was primarily due to higher sales to a defense prime customer of data storage products to support the P-8A, higher sales to a medical imaging OEM of liquid-cooled server products, and sales to a defense prime customer related to the design, development, and delivery of prototype compute systems for an enhanced vision system for combat vehicles.\u00a0\u00a0<\/p>\n

Gross margin from continuing operations was 51.6% for the three months ended March 31, 2026, compared to 45.5% in the prior year quarter. The increase in gross margin was primarily due to a more profitable mix of revenue, engineering efficiencies in customer-funded development programs and improved manufacturing absorption due to higher production volume.<\/p>\n

Total operating expenses from continuing operations increased 2.5% to $4.8 million. This increase was predominantly attributable to higher general and administrative expenses partially offset by lower marketing and selling and R&D expenses.<\/p>\n

The Company reported a net loss from continuing operations of $0.4 million, or $(0.01) per diluted share for the three months ended March 31, 2026, as compared to a net loss from continuing operations of $2.3 million, or $(0.11) per share, in the prior year period. The Company reported non-GAAP net income from continuing operations of $0.3 million, or $0.01 per diluted share, compared to non-GAAP net loss of $1.7 million, or $(0.08) per share, in the prior year period.<\/p>\n

Adjusted EBITDA, from continuing operations, a non-GAAP metric, was $0.2 million for the three months ended March 31, 2026, compared to an adjusted EBITDA loss, from continuing operations, of $1.6 million in the prior year period.<\/p>\n

Net cash provided by continuing operations for the three months ended March 31, 2026, was $4.0 million, compared to net cash used in continuing operations of $1.5 million in the prior year period.<\/p>\n

As of March 31, 2026, the Company reported cash, cash equivalents, and short-term investments of $34.4 million, restricted cash of $2.2 million, and total working capital of $44.7 million, compared to cash, cash equivalents, and short-term investments of $31.2 million, restricted cash of $2.2 million and total working capital of $45.3 million at December 31, 2025.<\/p>\n

\n Income from Discontinued Operations, net of Income Taxes<\/strong>\n <\/p>\n

Income from discontinued operations consists of income from the Company\u2019s Bressner Technologies subsidiary, which was sold on December 30, 2025. Income from discontinued operations also includes the gain recognized on the sale.<\/p>\n

Loss from discontinued operations, net of income taxes, was $0.2 million for the three months ended March 31, 2026, compared to income of $0.3 million in the prior year. The loss in the current year period was due to post-transaction adjustments to the gain on sale of the Bressner business for final net working capital balances.<\/p>\n

\n 2026 Full Year Outlook<\/strong>\n <\/p>\n

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.<\/p>\n

The Company\u2019s expectations for 2026 take into consideration the following: continued growth in core defense and commercial markets, higher customer funded development sales compared to 2025 levels, the potential impacts of supply chain issues for certain components such as memory, and the current outlook for the federal government budget. Changes in these assumptions could positively or negatively impact OSS\u2019s results in 2026.<\/p>\n

For the full year of 2026, OSS expects:<\/p>\n