One Stop Systems, Inc. (OSS) is a key developer and producer of high-performance computing (HPC) modules and systems, specifically tailored for demanding ...
One Stop Systems, Inc. (OSS) is a leading developer of high-performance computing (HPC) solutions tailored for edge environments where reliability and performance are critical. The company specializes in ruggedized servers, compute accelerators, high-speed storage arrays, PCIe expansion systems, and industrial/panel PCs, all engineered around advanced GPU and solid-state flash technologies. ...One Stop Systems, Inc. (OSS) is a leading developer of high-performance computing (HPC) solutions tailored for edge environments where reliability and performance are critical. The company specializes in ruggedized servers, compute accelerators, high-speed storage arrays, PCIe expansion systems, and industrial/panel PCs, all engineered around advanced GPU and solid-state flash technologies. OSS serves a diverse clientele including multinational corporations, government entities, defense contractors, and technology providers, distributing products through direct sales, online channels, OEM partnerships, and a network of resellers. In terms of financials, OSS has a market cap of approximately $327.9 million, with a gross profit margin of 61.1% but negative operating margins, indicating ongoing investments in R&D (18.2% of revenue) and SG&A (55.3% of revenue). The company has a debt-to-equity ratio of 0.035, reflecting a conservative capital structure. Key leadership includes CEO Michael Knowles, appointed in June 2023, and the company was founded by Stephen D. Cooper and Mark Gunn in 1998. With 56 employees, OSS maintains a lean operation, focusing on high-value niche markets. Despite recent losses, the company's focus on AI transportables and edge computing positions it for growth in expanding sectors like autonomous vehicles, defense systems, and industrial IoT. OSS continues to innovate, aiming to provide mission-critical compute solutions that operate reliably in challenging conditions.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$32.2M
-41.1%
+15.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$5.1M
+137.3%
-1308.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+46.5%
+229.7%
-20.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-10.5%
+57.0%
-886.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+15.8%
+163.4%
-1115.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-6.4M
-1260.3%
-118.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-19.9%
-2209.5%
-116.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
3.2%
-69.4%
+13.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
9.13x
+132.4%
-68.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day and welcome to the One Stop Systems Second Quarter 2026 Conference Call and Webcast. [Operator Instructions] As a reminder, this call is being recorded. As part of the discussion today, the representatives from OSS will be making certain forward-looking statements regarding the company's future financial and operating results, including those relating to revenue growth, as well as business plans, bookings, the company's multiyear strategy, business objectives, and expectations. These statements are based on the company's current beliefs and expectations and should not be regarded as a representation by OSS that any of its plans and expectations will be achieved. Please be advised that these forward-looking statements are covered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and that OSS desires to avail itself of the protections of the safe harbor for these statements. Please also be advised that actual results could differ materially from those stated or implied by the forward-looking statements due to certain risks and uncertainties, including those described in the company's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and recent press releases. Please read these reports and other future filings that OSS will make with the SEC. OSS disclaims any duty to update or revise its forward-looking statements except as required by applicable law. It is now my pleasure to turn the conference over to OSS President and CEO, Mr. Mike Knowles. Please go ahead, sir.
Michael Knowles: Thank you, Sylvie. Good morning, everyone, and thank you for joining today's call. We believe our second quarter performance builds upon the strong start we established in the first quarter and demonstrates the continued success of our multi-year strategic growth plan and growing demand for rugged enterprise-class compute at the edge. In fact, our year-over-year rate in revenue for the second quarter accelerated from what we delivered in the first quarter, and we achieved the strongest quarterly bookings result in our history. Before discussing our second quarter performance in greater detail, I want to remind everyone that our second quarter results reflect the opportunistic sale of our wholly owned subsidiary, Bressner, in December of 2025 for proceeds of $22.4 million. As a result, Bressner's historical financial results are now reported as discontinued operations, and the results are not yet available. The results we are discussing today reflect the performance of the remaining core OSS business. Today, OSS is a pure-play provider of ruggedized AI and high-performance compute platforms for edge applications. We entered 2026 as a more focused and scalable company, fully aligned around delivering market-leading, enterprise-class compute solutions to defense and commercial customers. We believe our performance during the first half of 2026 is already …