- One Stop Systems (OSS, Financial) reported a 3.1% year-over-year decline in Q1 2025 revenue, totaling $12.3 million.
- Consolidated gross margin improved to 32.6%, up 320 basis points from the previous year.
- Despite a net loss of $2.0 million, the company expects to achieve EBITDA break-even for the full year 2025.
One Stop Systems, Inc. (OSS), a frontrunner in rugged Enterprise Class compute solutions, announced its financial results for the first quarter ending March 31, 2025. The company recorded consolidated revenue of $12.3 million, marking a 3.1% decrease compared to Q1 2024. However, OSS demonstrated significant profitability enhancements, with gross margin escalating to 32.6%, a 320 basis point increase from the previous year.
The OSS segment reported revenue of $5.2 million with an impressive gross margin of 45.5%, reflecting an 11.3 percentage point improvement from the previous year. This performance is attributed to a more profitable product mix, particularly with higher-margin data storage units. The segment also boasted robust bookings of $10.4 million, suggesting potential revenue growth in upcoming quarters.
Despite encountering a net loss of $2.0 million, or $(0.09) per share, compared to a loss of $1.3 million in the same quarter last year, OSS remains optimistic. The company maintains its full-year 2025 revenue guidance of $59 to $61 million, with the OSS segment alone anticipated to drive approximately $30 million in revenue—over 20% year-over-year growth. Management is confident in achieving EBITDA break-even by year-end.
Operating expenses increased by 19.2% to $5.9 million, largely due to higher marketing and R&D investments. Even so, OSS’s strategic direction towards securing multi-year contracts in both commercial and defense sectors underpins management's optimism for future financial improvements and enhanced market positioning.
