One Stop Systems, Inc. (OSS) | Investment Case

1. Company Snapshot

1.a. Company Description

One Stop Systems, Inc.designs, manufactures, and markets high-performance computing modules and systems for edge deployments in the United States and internationally.Its systems are built using the graphical processing unit and solid-state flash technologies.

The company provides custom servers, data acquisition platforms, compute accelerators, solid-state storage arrays, PCIe expansion products, and system I/O expansion systems, as well as edge optimized industrial and panel PCs. It also offers ruggedized mobile tablets and handhelds that meet the specialized requirement for devices deployed at the edge in a diverse set of environmental conditions.The company sells its products to multinational companies, governmental agencies, military contractors, and technology providers through its website, web store, direct sales team, and original equipment manufacturer focused sales, as well as through a network of resellers and distributors.One Stop Systems, Inc.

was founded in 1998 and is headquartered in Escondido, California.

Show Full description

1.b. Last Insights on OSS

The recent 3 months performance of One Stop Systems, Inc. was negatively impacted by a quarterly loss of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.01. This earnings miss was a significant deviation from the company's previous year's earnings of $0.01 per share. Despite reporting consolidated year-over-year revenue growth for Q4 2024, the company's transformation strategy to higher-growth markets has yet to yield significant results. The company's management expects double-digit consolidated revenue growth in 2025, driven by anticipated OSS segment revenue of over 20%, but this growth is still uncertain.

1.c. Company Highlights

Last Price	6.98
Change Percentage	6.40%
Open	6.58
Previous Close	6.56
Market Cap ( Millions)	150
Volume	913944
Year High	7.2
Year Low	1.85
M A 50	5.42
M A 200	4.28

FCF Yield	-2.11%
Dividend Yield	0.00%
ROE	-50.84%
Debt / Equity	20.91%
Net Debt / EBIDTA	23.89%
Price To Book	5.78
Price Earnings Ratio	-10.82
Price To FCF	-47.41
Price To sales	2.72
EV / EBITDA	-11.82

2. OSS Posts Strong Q3 with Revenue Growth and Improved Profitability

OSS delivered a robust third quarter with consolidated revenue growth of 36.9% year-over-year, driven by strong demand for its rugged Enterprise Class compute solutions. The OSS segment saw revenue growth of 43.4%. Gross margins expanded, supporting positive quarterly EBITDA in both operating segments and positive GAAP net income at a consolidated level. EPS came in at $0.03, beating estimates of $0.01. The strong financial performance underscores the solid foundation OSS has built, capitalizing on increasing demand from both defense and commercial customers.

Publication Date: Nov -26

                                    📋 Highlights
                                    Revenue Growth::
                                                Consolidated revenue increased 36.9% YoY, with OSS segment up 43.4% due to strong demand for rugged compute solutions.
Profitability::
                                                Achieved positive EBITDA in both operating segments and GAAP net income at consolidated level, supported by 2023-2024 strategic margin improvements.
Balance Sheet Strength::
                                                Raised $12.5 million via registered direct offering post-Q3, enhancing flexibility for growth and M&A pursuits in 2026.
Order Momentum::
                                                OSS segment reported 1.4 book-to-bill ratio, with $12.5 million in backlog and multiyear contracts (e.g., U.S. Navy, defense primes) extending into 2026.

                                

Operational Highlights

The company's operational momentum is evident in its expanding pipeline across leading defense organizations and advanced commercial enterprises. The OSS segment had a book-to-bill ratio of 1.4 on a trailing 12-month basis, indicating strong demand. OSS is tracking ahead of its plan in product development milestones, with confidence in its long-term growth trajectory. Recent highlights include growing relationships with leading medical imaging OEMs and expanding capabilities in high-performance GPU and AI accelerator expansion systems.

Growth Prospects

OSS expects continued orders from both the U.S. Navy and its defense prime customer into 2026. The company is also poised to benefit from its participation in multiyear platforms, including the P-8 for the U.S. Navy and the Autonomous Maritime program for a leading defense prime in Asia. With a strong product lineup and solid pipeline of opportunities, OSS is well-positioned for growth in 2026, targeting sustained EBITDA profitability and continued growth in the core OSS segment at 20-30% per annum.

Valuation

With a P/S Ratio of 1.8 and an EV/EBITDA of -7.73, the market appears to be pricing in significant growth expectations. Analysts estimate revenue growth at 10.7% next year. The company's ROE and ROIC are currently negative, at -50.84% and -44.96%, respectively, but are expected to improve as the business scales. The recent registered direct offering, which raised $12.5 million, will support working capital needs and provide a runway for positive cash flow in Q4, potentially accelerating plans for disciplined M&A in 2026.

3. NewsRoom

SiTime (NASDAQ:SITM) and One Stop Systems (NASDAQ:OSS) Financial Contrast

Nov -29

Source: defenseworld.net

Does One Stop Systems (OSS) Have the Potential to Rally 42.86% as Wall Street Analysts Expect?

Nov -27

Source: zacks.com

OSS Expands Best-In-Class High Performance Compute Portfolio with the Launch of PCIe Gen 6 Product Line at SC25

Nov -18

Source: globenewswire.com

OSS to Demonstrate Best-In-Class High Performance Compute Portfolio at SC25

Nov -11

Source: globenewswire.com

One Stop Systems, Inc. (OSS) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

One Stop Systems, Inc. (OSS) Q3 Earnings and Revenues Beat Estimates

Nov -05

Source: zacks.com

One Stop Systems Reports Q3 2025 Results

Nov -05

Source: globenewswire.com

Critical Review: One Stop Systems (NASDAQ:OSS) & Star Group (NYSE:SGU)

Nov -01

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.40%)

6. Segments

Bressner

Expected Growth: 15.4%

Growing demand for high-performance storage solutions, increasing adoption of AI and ML applications, and rising need for low-latency storage in industries such as finance, healthcare, and gaming are driving the growth of the PCIe-based flash storage market.

One Stop Systems

Expected Growth: 15.4%

Growing demand for AI and high-performance computing solutions in military, aerospace, and other industries drives One Stop Systems' growth, fueled by increasing adoption of advanced technologies and rising need for efficient data storage and processing.

7. Detailed Products

GPU Accelerators

High-performance GPU accelerators designed for AI, deep learning, and high-performance computing applications

Flash Storage Arrays

High-performance flash storage arrays for high-capacity and low-latency storage needs

Composable Infrastructure

Scalable and flexible composable infrastructure solutions for data centers and cloud environments

NVMe-oF Storage

High-performance NVMe-oF storage solutions for low-latency and high-bandwidth storage needs

GPU Appliances

Pre-configured GPU appliances for AI, deep learning, and high-performance computing applications

Custom Solutions

Custom-designed solutions for specific industry or application needs

8. One Stop Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

One Stop Systems, Inc. faces moderate threat from substitutes due to the availability of alternative storage solutions.

Bargaining Power Of Customers

The company's customers have limited bargaining power due to the specialized nature of its products and services.

Bargaining Power Of Suppliers

One Stop Systems, Inc. has a moderate level of dependence on its suppliers, which could impact its operations in case of supply chain disruptions.

Threat Of New Entrants

The company operates in a niche market with high barriers to entry, making it difficult for new entrants to compete effectively.

Intensity Of Rivalry

The industry in which One Stop Systems, Inc. operates is highly competitive, with several established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	9.66%
Debt Cost	3.95%
Equity Weight	90.34%
Equity Cost	10.33%
WACC	9.71%
Leverage	10.70%

11. Quality Control: One Stop Systems, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Quantum

A-Score: 4.4/10

Value: 10.0

Growth: 1.0

Quality: 5.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

Identiv

A-Score: 4.4/10

Value: 8.4

Growth: 3.6

Quality: 6.3

Yield: 0.0

Momentum: 4.5

Volatility: 3.7

1-Year Total Return ->

Stratasys

A-Score: 4.3/10

Value: 8.6

Growth: 2.3

Quality: 3.5

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

One Stop Systems

A-Score: 3.9/10

Value: 7.4

Growth: 0.6

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Strong Global Entertainment

A-Score: 3.4/10

Value: 6.6

Growth: 2.6

Quality: 6.3

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

3D Systems

A-Score: 3.0/10

Value: 8.4

Growth: 0.7

Quality: 3.8

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

40.39%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.71%

One Stop Systems, Inc. - US68247W1099

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OSS

1.c. Company Highlights

Lower Growth

Lower Quality

Medium Volatility

Earnings Beats

Revenues Beats

Average Quality

Earnings Miss

Revenues Miss

Cheaper

Strong Momentum

More Volatile

2. OSS Posts Strong Q3 with Revenue Growth and Improved Profitability

Operational Highlights

Growth Prospects

Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.40%)

6. Segments

Bressner

Expected Growth: 15.4%

One Stop Systems

Expected Growth: 15.4%

7. Detailed Products

GPU Accelerators

Flash Storage Arrays

Composable Infrastructure

NVMe-oF Storage

GPU Appliances

Custom Solutions

8. One Stop Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: One Stop Systems, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.98$

Current Price

6.98$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA