Cash flow generation is inconsistent, characterized by extreme swings in operating cash flow, including a -12.98 OCF/NI ratio observed in 2025Q3.
| Cash from Operations | -1.11M | -6.29M | -108.1K | -439.68K | -7.81M | 5.62M | -250.17K | 2.37M | -3.91M | -381.77K | -273.22K | 445.51K |
| Operating CF Margin % | - | -19.53% | -0.2% | -0.72% | -10.78% | 9.07% | -0.48% | 4.07% | -10.56% | -1.39% | -1.45% | 3.13% |
| Operating CF Growth % | 76.99% | -5719.15% | 75.41% | 94.37% | -238.83% | 2347.48% | -110.53% | 160.74% | -924.09% | -39.73% | -161.33% | - |
| Net Income | 6.59M | 5.09M | -13.63M | -6.72M | -2.23M | 2.33M | -6.54K | -900.34K | -1.14M | 96.62K | -184.44K | 16.65K |
| Depreciation & Amortization | 922.8K | 992.28K | 1.42M | 1.08M | 1.05M | 1.48M | 1.61M | 1.66M | 1.35M | 836.27K | 437.04K | 156.94K |
| Stock-Based Compensation | 763.52K | 1.82M | 1.99M | 2.35M | 1.99M | 1.7M | 724.38K | 649.47K | 527.34K | 160.06K | 77.65K | 52.21K |
| Deferred Taxes | -1.74K | 0 | 28.08K | -95.5K | 3.78M | -63.58K | -663.77K | -112.74K | -1.49M | -416.61K | -230.8K | -145.5K |
| Other Non-Cash Items | -1.76M | -8.23M | 7.35M | 4.89M | 917.34K | -644.41K | 947.02K | 2M | 152.58K | 253.1K | 757.66K | 116.11K |
| Working Capital Changes | -2.69M | -5.96M | 2.74M | -1.94M | -13.32M | 822.09K | -2.86M | -921.52K | -3.31M | -1.31M | -1.13M | 249.1K |
| Change in Receivables | -2.19M | -7.36M | -190.34K | 3.1M | -6.25M | 2.33M | 4.29M | -1.17M | -2.56M | -254.01K | -1.58M | -27.63K |
| Change in Inventory | 694.16K | 674.69K | 658.3K | 962.46K | -9.55M | -3.46M | -2.63M | -1.01M | 46.79K | -1.7M | 69.83K | 155.47K |
| Change in Payables | -1.5M | 761.29K | 926.23K | -3.41M | 2.52M | 1.08M | -3.15M | 424.57K | -1.46M | 1.28M | 140.83K | -40.58K |
| Cash from Investing | 9.82M | 20.5M | 4.19M | 1.52M | 3.91M | -15.11M | -818.79K | -2.39M | -5.91M | -425.48K | -138.01K | -194.42K |
| Capital Expenditures | -116.8K | -114.6K | -362.75K | -821.75K | -529.91K | -563.82K | -820.34K | -2.39M | -623.17K | -425.48K | -206.32K | -194.42K |
| CapEx % of Revenue | 0.42% | 0.36% | 0.66% | 1.35% | 0.73% | 0.91% | 1.58% | 4.09% | 1.68% | 1.55% | 1.09% | 1.37% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 1.54K | 1.05K | -5.32M | 750K | 68.31K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 17.4M | 17.4M | 0 | 0 | 125K | 0 | 0 | 0 | 34.45K | 0 | 0 | 0 |
| Cash from Financing | 11.16M | 12.07M | -1.18M | -171.34K | 1.95M | 8.43M | 2.11M | 2.92M | 11.9M | 978.77K | 400.36K | -226.02K |
| Debt Issued (Net) | 0 | 0 | -954.94K | -1.35M | 2.25M | -348.48K | 2.61M | 518.64K | -5.56M | 123.27K | 382.79K | -242.47K |
| Equity Issued (Net) | 12.26M | 12.59M | 237.75K | 62.42K | 42.16K | 9.59M | 181.89K | 2.54M | 17.8M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.11M | -518.78K | -466.76K | 1.12M | -342.69K | -811.38K | -684.88K | -132.02K | -341.57K | 855.5K | 17.57K | 16.46K |
| Net Change in Cash | 20.05M | 26.58M | 2.75M | 936.75K | -1.99M | -1.22M | 1.13M | 2.91M | 2.09M | 171.52K | -10.88K | 25.07K |
| Free Cash Flow | -1.23M | -6.4M | -470.85K | -1.26M | -8.34M | 5.06M | -1.07M | -11.36K | -4.53M | -807.25K | -479.54K | 251.09K |
| FCF Margin % | -4.39% | -19.88% | -0.86% | -2.07% | -11.51% | 8.16% | -2.06% | -0.02% | -12.24% | -2.93% | -2.54% | 1.76% |
| FCF Growth % | 64.82% | -1260.31% | 62.67% | 84.87% | -264.78% | 572.56% | -9324.32% | 99.75% | -461.51% | -68.34% | -290.98% | - |
| FCF per Share | -0.05 | -0.28 | -0.02 | -0.06 | -0.42 | 0.26 | -0.06 | -0.00 | -0.36 | -0.07 | -0.05 | 0.06 |
| FCF Conversion (FCF/Net Income) | -0.19x | -1.24x | 0.01x | 0.07x | 3.50x | 2.41x | 38.23x | -2.64x | 3.44x | -3.95x | 1.48x | 26.76x |
| Interest Paid | 40.02K | 53.12K | 85.03K | 113.16K | 54.4K | 120.43K | 301.21K | 129.55K | 41.14K | 167.25K | 151.99K | 107.35K |
| Taxes Paid | 566.23K | 696.56K | 468.21K | 558.33K | 107.06K | 174.66K | 344.18K | 8.78K | 7.63K | 49.51K | 800 | 800 |
Lumpy project-based revenue volatility
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios frequently swinging into extreme negative territory, such as the -12.98 observed in 2025Q3, indicating that reported earnings are not currently backed by actual cash generation.
The persistent divergence between net income and operating cash flow suggests that accruals and non-cash adjustments are heavily influencing the bottom line. Investors should monitor whether this disconnect stems from aggressive revenue recognition on long-term contracts or simply the timing of milestone payments that fail to align with operational cash outflows.
Based on the provided cash flow data, OSS exhibits a highly inconsistent free cash flow trajectory, with margins fluctuating wildly between 49.9% in 2026Q1 and -19.8% in 2025Q3, reflecting the underlying instability of a business model that relies on lumpy, project-based hardware deliveries rather than recurring revenue.
The inability to maintain positive free cash flow suggests that the company's current scale is insufficient to absorb the costs of its specialized engineering requirements. This volatility warrants further investigation into whether the recent positive FCF in 2026Q1 is a sustainable trend or merely a temporary artifact of working capital timing.
According to historical cash flow filings, working capital changes are the primary driver of quarterly cash fluctuations, with a notable $3.4M inflow in 2026Q1 contrasting sharply with a $4.0M outflow in 2025Q3, highlighting the company's extreme sensitivity to the timing of customer payments and inventory procurement cycles.
These dramatic swings in working capital suggest that the company lacks the leverage to dictate payment terms, leaving it vulnerable to the procurement schedules of its larger defense and industrial clients. Such reliance on working capital management to fund operations may indicate that the core business is not yet self-sustaining.
As evidenced by the quarterly cash flow data, stock-based compensation remains a consistent non-cash expense, often exceeding $500K per quarter, which effectively masks the true economic cost of talent retention in a business that is currently struggling to generate consistent positive operating cash flow from its core operations.
The consistent use of stock-based compensation suggests that the company is utilizing equity to preserve cash, which may be a necessary strategy given the current lack of operational profitability. Analysts should be wary of how these adjustments impact the perceived quality of earnings and whether they are being used to offset the lack of cash-based margin expansion.
Quick answers to the most common questions about buying OSS stock.
One Stop Systems, Inc. (OSS) generated $-6.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
One Stop Systems, Inc. (OSS) reported negative free cash flow of $6.4M in 2025, indicating capital requirements exceeded cash from operations.
One Stop Systems, Inc. (OSS) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.