{"id":990144,"date":"2026-08-05T08:17:59","date_gmt":"2026-08-05T12:17:59","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/one-stop-systems-reports-q2-2026-results\/"},"modified":"2026-08-05T08:17:59","modified_gmt":"2026-08-05T12:17:59","slug":"one-stop-systems-reports-q2-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/one-stop-systems-reports-q2-2026-results\/","title":{"rendered":"One Stop Systems Reports Q2 2026 Results"},"content":{"rendered":"
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\n Second quarter of 2026 revenue increased 62.3% year-over-year to $9.3 million<\/em>\n <\/p>\n

\n Second-quarter bookings reached $15.1 million, representing the highest quarterly bookings in the Company\u2019s history<\/em>\n <\/p>\n

\n Company raises full year 2026 revenue growth guidance to 25% to 30%<\/em>\n <\/p>\n

ESCONDIDO, Calif., Aug. 05, 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 second quarter ended June 30, 2026. Second-quarter and six-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.<\/p>\n

\u201cOSS delivered another quarter of strong year-over-year revenue growth, which accelerated to 62.3% in the second quarter from 55.0% in the first quarter, reflecting continued execution against our multi-year strategic plan and growing demand for rugged, enterprise-class compute at the edge,\u201d stated OSS President and CEO, Mike Knowles. \u201cI am pleased to report that we also achieved the strongest quarterly bookings results in our history, with second quarter bookings reaching $15.1 million. This produced a book-to-bill ratio of 1.6x for the quarter and 1.7x year-to-date, which we believe provides strong support for continued growth. Our year-to-date results have benefited from important program-of-record activity, including a new intelligence platform for the U.S. Department of Defense that is expected to generate approximately $44 million over the next four years.\u201d<\/p>\n

\u201cOur momentum also reflects a growing portion of revenue and bookings generated across an increasingly diverse range of defense and commercial customers. This includes mission-critical defense applications across C5ISR, sensor fusion, and autonomy programs serving both defense and commercial markets, and niche data center, robotics and medical applications.\u00a0\u00a0 Many of these opportunities originated as development initiatives over the past several years and are now increasingly transitioning into larger scale, multi-year production orders.\u00a0\u00a0 We believe this broadening activity demonstrates that OSS is gaining market share and becoming an increasingly important technology partner for organizations that require enterprise-class compute in demanding and rugged environments,\u201d continued, Mr. Knowles.<\/p>\n

\u201cGiven our strong start to the year, continued bookings momentum and expanding program activity, we are increasing our full-year revenue guidance. Overall, we believe OSS is well positioned to deliver sustained growth and create meaningful long-term shareholder value for years to come,\u201d concluded Mr. Knowles.<\/p>\n

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

Total revenue from continuing operations increased 62.3% to $9.3 million, from $5.8 million in the second quarter of 2025. The increase was primarily due to higher sales to a medical imaging OEM of liquid-cooled server products to support a breast cancer screening application, as the customer moved from initial prototypes in 2025 to production in 2026; sales with a new customer for short-depth server products engineered for military applications onboard naval vessels and aircraft; and sales with a new customer for compute products to support autonomous construction and mining equipment.<\/p>\n

Gross margin from continuing operations was 39.1% for the three months ended June 30, 2026, compared to 41.3% in the prior year quarter. The decrease in gross margin was primarily driven by product mix, including a higher level of customer-funded development, early prototype and low-rate initial production activities, partially offset by more favorable manufacturing absorption due to higher production volume and higher usage of reserved inventory to fulfill customer orders.<\/p>\n

During the second quarter of 2026, OSS recorded a $6.25 million charge related to the settlement of a legacy commercial dispute involving a former customer relationship and events dating back several years ago. The one-time settlement does not constitute an admission of liability, is unrelated to the Company\u2019s current operations or growth programs and fully resolves the dispute.<\/p>\n

Total operating expenses from continuing operations increased 129.8% to $11.3 million, and included a $6.25 million legal settlement charge described above. Excluding the legal settlement, total operating expenses from continuing operations increased 2.9% to $5.1 million. This increase was predominantly attributable to higher general and administrative and marketing and selling expenses and partially offset by lower R&D expenses.<\/p>\n

The Company reported a loss from continuing operations of $7.3 million, or $0.29 per diluted share for the three months ended June 30, 2026, as compared to a loss from continuing operations of $2.5 million, or $0.11 per share, in the prior year period. The Company reported a non-GAAP net loss from continuing operations of $0.2 million, or $0.01 per diluted share, compared to a non-GAAP net loss of $2.0 million, or $0.09 per share, in the prior year period.<\/p>\n

Adjusted EBITDA loss, from continuing operations, a non-GAAP metric, was $0.3 million for the three months ended June 30, 2026, compared to an adjusted EBITDA loss, from continuing operations, of $1.8 million in the prior year period.<\/p>\n

Net cash used in continuing operations for the six months ended June 30, 2026, was $0.6 million, compared to net cash used in continuing operations of $2.8 million in the prior year period.<\/p>\n

As of June 30, 2026, the Company reported cash, cash equivalents, and short-term investments of $31.4 million, and total working capital of $38.1 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 2026 First-Half Financial Summary<\/strong>\n <\/p>\n

Total revenue from continuing operations increased 58.8% to $17.4 million, compared to $11.0 million for the same period last year. This increase was primarily driven by revenue generated from new customers in 2026 and from higher production volume with certain existing customers.<\/p>\n

Gross margin from continuing operations was 44.9%, as compared to 43.3% in the prior year. The increase in gross margin percentage was primarily driven by engineering efficiencies realized on certain of our customer-funded development programs and more favorable manufacturing absorption due to higher production volume.<\/p>\n

Total operating expenses increased 67.5% to $16.2 million, and included a $6.25 million charge related to the legal settlement charge described above. Excluding the legal settlement, total operating expenses increased 2.7% to $9.9 million. This increase was predominantly attributable to higher personnel and professional services costs, offset by lower research and development expenses.<\/p>\n

OSS reported a loss from continuing operations of $7.7 million, or $0.31 per share, as compared to a loss from continuing operations of $4.8 million, or $0.22 per share, in the prior year. The Company reported non-GAAP net income from continuing operations of $0.1 million, or $0.00 per share, compared to a non-GAAP net loss from continuing operations of $3.7 million, or $0.17 per share in the prior year.<\/p>\n

Adjusted EBITDA loss, from continuing operations, a non-GAAP metric, was a loss of $0.2 million, compared to an adjusted EBITDA loss, from continuing operations, of $3.4 million in the prior year period.<\/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

The Company recorded no income or loss from discontinued operations, net of income taxes, for the three months ended June 30, 2026, compared to income of $0.5 million in the prior year. For the six months ended June 30, 2026, loss from discontinued operations, net of income taxes, was $0.2 million, compared to income from discontinued operations, net of income taxes, of $0.7 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

Based on its current performance and business outlook, OSS is increasing its full-year 2026 revenue growth guidance. The Company\u2019s expectations for 2026 reflect expected continued 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\u2019s 2026 results.<\/p>\n

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