One Stop Systems (OSS) Q1 2026 earnings summary

Executive summary

• Revenue grew 55% year-over-year to $8.1 million in Q1 2026, driven by strong demand in defense and commercial markets and higher production and development volume.

• Gross margin improved to 51.6%, up from 45.5% in the prior year, due to favorable product mix, engineering efficiencies, and operational improvements.

• Bookings reached nearly $15 million in Q1 2026, with a record book-to-bill ratio of 1.8x, nearly matching total bookings for all of 2023.

• Completed the sale of Bressner subsidiary in December 2025 for $22.4 million, focusing on core high-performance edge computing solutions.

• Net cash provided by continuing operations was $4 million, strengthening the balance sheet.

Financial highlights

• Q1 2026 revenue was $8.1 million, up from $5.2 million in Q1 2025.

• Gross profit was $4.17 million (51.6% margin), up from $2.37 million (45.5% margin) year-over-year.

• GAAP net loss from continuing operations was $0.4 million ($0.01 per share), improved from a $2.3 million loss ($0.11 per share) last year.

• Non-GAAP net income from continuing operations was $0.3 million ($0.01 per share), compared to a $1.7 million loss ($0.08 per share) last year.

• Adjusted EBITDA was $0.2 million, versus a loss of $1.6 million in the prior year quarter.

• Cash, cash equivalents, and short-term investments totaled $34.4 million as of March 31, 2026, with no debt outstanding.

• Working capital was $44.7 million at quarter-end.

Outlook and guidance

• Reaffirmed 2026 guidance: revenue growth of 20%-25%, gross margin of approximately 40%, and positive EBITDA.

• Guidance remains cautious due to ongoing supply chain risks, particularly with memory and CPU components.

• Management is focused on acquiring new customer orders, expanding in commercial and military markets, and controlling costs.

• Sufficient liquidity is expected to meet working capital needs for at least the next twelve months.