This article first appeared on GuruFocus.
Release Date: November 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
-
One Stop Systems Inc (NASDAQ:OSS) reported a significant 36.9% year-over-year increase in consolidated revenue for Q3 2025.
-
The company achieved positive quarterly EBITDA and GAAP net income, reflecting strong operational execution.
-
OSS’s strategic actions, including leadership strengthening and a multi-year strategic plan, have led to improved financial and operating results.
-
The company has a strong pipeline and customer engagement activities across both defense and commercial markets.
-
OSS raised its full-year 2025 consolidated revenue guidance to $63 million to $65 million, indicating confidence in continued growth.
-
The ongoing government shutdown may impact the timing of near-term bookings, affecting revenue recognition.
-
There is expected quarter-to-quarter variability in bookings, which could lead to fluctuations in financial performance.
-
The company experienced a 22% increase in operating expenses, primarily due to higher R&D expenditures.
-
OSS’s European markets, served by the Bresner segment, have not fully recovered to growth expectations.
-
The timing of shipments and cash flow remains uncertain, potentially affecting financial stability in the short term.
Q: How should investors think about the seasonality going forward for core OSS in light of the strong bookings execution and the government shutdown? A: Typically, OSS sees higher revenues in the second half of the year due to the timing of bookings, especially as the government approaches the holiday period. This pattern is expected to continue into 2026, albeit with a moderated ramp compared to 2025. The government shutdown may affect the timing of bookings, but OSS has sufficient backlog to meet its 2025 guidance.
Q: Can you update us on the data center market opportunity and the advancements you’re making? A: OSS has launched Ponto, a larger version of its GPU expansion solution, which is under evaluation by several customers in the data center market. The company is also introducing new technologies like PCI Gen 6 to enhance its offerings. On the army situational awareness side, testing continues, although the government shutdown has stalled some evaluations.
Q: What was behind the strong performance of the Bresner segment, and what are the expectations for the final quarter of the year? A: Bresner’s strong performance was driven by recovery in industrial markets and favorable FX impacts. The segment grew by $2.3 million, with $600,000 due to FX. For the fourth quarter, Bresner is expected to perform similarly to the third quarter, with some shipments potentially impacting the timing of revenue recognition.
