Revenue growth remains highly volatile, with a 34.2% contraction in 2026Q1 and persistent operating losses resulting in a -8.3% operating margin.
| Sales/Revenue | 28.03M | 32.22M | 54.69M | 60.9M | 72.42M | 61.98M | 51.9M | 58.31M | 37.03M | 27.54M | 18.88M | 14.23M |
| Revenue Growth % | -48.39% | -41.1% | -10.19% | -15.91% | 16.84% | 19.44% | -11% | 57.47% | 34.46% | 45.87% | 32.67% | - |
| Cost of Goods Sold | 13.05M | 17.23M | 46.98M | 42.94M | 52.02M | 42.34M | 35.46M | 38.91M | 25.69M | 18.87M | 13.37M | 10.25M |
| COGS % of Revenue | - | 53.47% | 85.89% | 70.52% | 71.83% | 68.31% | 68.33% | 66.72% | 69.39% | 68.54% | 70.8% | 72% |
| Gross Profit | 14.98M | 14.99M | 7.72M | 17.95M | 20.4M | 19.64M | 16.43M | 19.4M | 11.33M | 8.66M | 5.51M | 3.98M |
| Gross Margin % | 53.44% | 46.53% | 14.11% | 29.48% | 28.17% | 31.69% | 31.67% | 33.28% | 30.61% | 31.46% | 29.2% | 28% |
| Gross Profit Growth % | - | 94.22% | -57.01% | -11.98% | 3.86% | 19.5% | -15.3% | 71.18% | 30.82% | 57.15% | 38.41% | - |
| Operating Expenses | 17.08M | 18.37M | 21.08M | 25.88M | 18.83M | 17.89M | 16.86M | 20.18M | 14.51M | 9.11M | 5.73M | 3.79M |
| OpEx % of Revenue | - | 57.02% | 38.53% | 42.49% | 26% | 28.87% | 32.49% | 34.61% | 39.19% | 33.1% | 30.37% | 26.62% |
| Selling, General & Admin | 13.36M | 13.92M | 16.98M | 15.92M | 14.09M | 13.86M | 12.54M | 13.64M | 10.51M | 6.43M | 4.13M | 2.69M |
| SG&A % of Revenue | - | 43.22% | 31.04% | 26.14% | 19.45% | 22.36% | 24.16% | 23.39% | 28.38% | 23.34% | 21.9% | 18.92% |
| Research & Development | 4.9M | 5.44M | 4.1M | 4.33M | 4.74M | 4.03M | 4.32M | 4.84M | 4M | 2.69M | 1.6M | 1.1M |
| R&D % of Revenue | - | 16.88% | 7.49% | 7.11% | 6.55% | 6.51% | 8.32% | 8.31% | 10.81% | 9.76% | 8.47% | 7.7% |
| Other Operating Expenses | -1.18M | -992.28K | 0 | 5.63M | 0 | 0 | 0 | 1.7M | 0 | 30.44K | 5.36K | -6.37K |
| Operating Income | -2.11M | -3.38M | -13.36M | -7.92M | 1.57M | 1.75M | -424.28K | -779.02K | -3.18M | -450.44K | -219.86K | 195.11K |
| Operating Margin % | -7.51% | -10.49% | -24.42% | -13.01% | 2.17% | 2.82% | -0.82% | -1.34% | -8.58% | -1.64% | -1.16% | 1.37% |
| Operating Income Growth % | - | 74.7% | -68.58% | -605.2% | -10.23% | 511.76% | 45.54% | 75.47% | -605% | -104.87% | -212.68% | - |
| EBITDA | -2.17M | -2.39M | -11.94M | -5.6M | 2.62M | 3.23M | 1.18M | 876.27K | -2.13M | 386.84K | 217.18K | 352.06K |
| EBITDA Margin % | -7.76% | -7.41% | -21.83% | -9.2% | 3.62% | 5.21% | 2.28% | 1.5% | -5.75% | 1.4% | 1.15% | 2.47% |
| EBITDA Growth % | 83.04% | 80.01% | -113.02% | -314.01% | -18.87% | 173.01% | 34.92% | 141.18% | -650.12% | 78.12% | -38.31% | - |
| D&A (Non-Cash Add-back) | -69.49K | 992.28K | 1.42M | 2.32M | 1.05M | 1.48M | 1.61M | 1.66M | 1.05M | 837.27K | 437.04K | 156.94K |
| EBIT | -2.16M | -3.38M | -12.83M | -5.67M | 2.36M | 3.47M | -59.51K | -497.52K | -2.9M | -420K | -214.5K | 188.75K |
| Net Interest Income | 514.08K | 276.26K | 403.63K | 427.18K | 75.36K | -282.76K | -132.4K | -14.45K | -65.69K | -199.26K | -152.88K | -128.37K |
| Interest Income | 502.42K | 278.79K | 477.75K | 544.96K | 237.75K | 244.38K | 418.38K | 151.11K | 0 | 0 | 0 | 0 |
| Interest Expense | -11.66K | 2.52K | 74.12K | 117.77K | 162.39K | 527.14K | 550.77K | 165.56K | 65.69K | 199.26K | 152.88K | 128.37K |
| Other Income/Expense | 564.48K | 292.57K | 448.98K | 2.13M | 626.21K | 1.19M | -186.01K | 115.93K | 206.19K | -168.82K | -147.51K | -134.74K |
| Pretax Income | -1.54M | -3.09M | -12.91M | -5.79M | 2.19M | 2.94M | -610.29K | -663.09K | -2.97M | -619.25K | -367.37K | 60.38K |
| Pretax Margin % | -5.5% | -9.58% | -23.6% | -9.51% | 3.03% | 4.74% | -1.18% | -1.14% | -8.02% | -2.25% | -1.95% | 0.42% |
| Income Tax | 59.12K | 11.31K | 726.5K | 927.13K | 4.42M | 605.67K | -603.74K | 237.25K | -1.4M | -402.72K | -182.94K | 43.73K |
| Effective Tax Rate % | -3.84% | -0.37% | -5.63% | -16.02% | 201.57% | 20.61% | 98.93% | -35.78% | 47.04% | 65.03% | 49.8% | 72.42% |
| 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 |
| Net Margin % | 23.5% | 15.79% | -24.93% | -11.03% | -3.08% | 3.76% | -0.01% | -1.54% | -3.07% | 0.35% | -0.98% | 0.12% |
| Net Income Growth % | 146.01% | 137.32% | -103.01% | -201.3% | -195.55% | 35747.51% | 99.27% | 20.76% | -1276.03% | 152.39% | -1207.73% | - |
| Net Income (Continuing) | -1.6M | -3.1M | -13.63M | -6.72M | -2.23M | 2.33M | -6.54K | -900.34K | -1.57M | -216.54K | -184.44K | 16.65K |
| Discontinued Operations | 0 | 8.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 500 | 500 | 436.84K | 0 | 0 |
| EPS (Diluted) | 0.27 | 0.22 | -0.65 | -0.32 | -0.11 | 0.12 | -0.00 | -0.06 | -0.09 | 0.01 | -0.02 | 0.00 |
| EPS Growth % | 144.24% | 133.85% | -103.13% | -190.91% | -191.67% | - | 99.33% | 34.22% | - | 144.04% | - | - |
| EPS (Basic) | - | 0.23 | -0.65 | -0.32 | -0.11 | 0.13 | -0.00 | -0.06 | -0.09 | 0.01 | -0.02 | 0.00 |
| Diluted Shares Outstanding | 24.68M | 23.21M | 20.95M | 20.85M | 19.73M | 19.5M | 16.51M | 15.15M | 12.59M | 11.42M | 9.54M | 4.19M |
| Basic Shares Outstanding | 24.68M | 22.4M | 20.95M | 20.85M | 19.73M | 18.31M | 16.51M | 15.15M | 12.59M | 11.42M | 8.47M | 4.21M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Lumpy project-based revenue volatility
As reported in recent financial filings, OSS experienced a significant 34.2% revenue contraction in 2026Q1, highlighting the inherent instability of a business model heavily reliant on lumpy, project-based design wins rather than a consistent, recurring revenue stream across its specialized ruggedized compute and edge hardware segments.
The sharp decline in top-line performance suggests that the company's reliance on specific government and industrial program cycles creates extreme sensitivity to timing. Without a diversified base of recurring revenue, the company appears vulnerable to prolonged periods of underperformance when major design wins reach their end-of-life.
Based on the provided income statement data, OSS maintains a gross margin profile that frequently exceeds 30%, suggesting that the company's specialized engineering niche in ruggedized PCIe expansion provides a degree of pricing power that generic industrial hardware competitors struggle to replicate in the current market.
While gross margins remain relatively healthy, the inability to translate this value-add into consistent operating profitability indicates that the current revenue scale is insufficient to absorb the fixed costs of specialized engineering. Investors should monitor whether the company can transition toward repeatable product platforms to improve margin stability.
According to the historical income statement, OSS consistently reports negative operating margins, with the most recent quarter showing an -8.3% margin, which indicates that the company's fixed SG&A and R&D expenses are currently scaling faster than the gross profit generated by its hardware sales.
The persistent operating losses suggest that the company is struggling to achieve the necessary volume to leverage its high-cost engineering talent. Unless the company can significantly increase its revenue base, the current cost structure appears to be a structural drag on bottom-line performance.
As evidenced by the 2025Q4 data, where net income reached $8.9M despite an operating loss, the company's reported net income is frequently decoupled from core operational performance, likely due to one-time non-operating gains that mask the underlying unprofitability of the business's primary hardware operations.
The significant discrepancy between operating and net margins warrants caution, as it suggests that headline earnings may not reflect the true cash-generating capability of the business. Analysts should strip out these non-recurring items to assess the core earnings power, which appears to be consistently negative.
Based on the reported figures, the primary risk to the investment thesis is the company's inability to achieve consistent profitability after 25 years, which may indicate that the niche ruggedized compute market is too small or too fragmented to support a standalone, publicly traded hardware entity.
Short-sellers would likely focus on the persistent cash burn and the reliance on non-operating items to bolster the bottom line. The lack of revenue growth, combined with high fixed costs, suggests that the company may face significant challenges in achieving long-term operational viability without a major strategic pivot.
Quick answers to the most common questions about buying OSS stock.
For fiscal year 2025, One Stop Systems, Inc. (OSS) reported total revenue of $32.2M. This represents a 126.4% increase compared to $14.2M in 2015.
One Stop Systems, Inc. (OSS) is profitable, generating $5.1M in net income for the fiscal year ending 2025 with a net profit margin of 15.8%.
One Stop Systems, Inc. (OSS) reported an operating income of $-3.4M, resulting in an operating profit margin of -10.5%. This margin reflects the operational efficiency of the business before interest and taxes.
One Stop Systems, Inc. (OSS) generated $15.0M in gross profit for the year, representing a gross profit margin of 46.5%. This demonstrates the company's core pricing power and production efficiency.