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ESCONDIDO, Calif. - One Stop Systems, Inc. (NASDAQ:OSS), a company specializing in high-performance edge computing (HPeC) for AI and machine learning, has reported a year of sequential revenue growth for every quarter of 2024, according to a shareholder letter released today. The company, currently valued at $43 million in market capitalization, has outlined its strategic transition and growth expectations for 2025. According to InvestingPro data, OSS stock has experienced significant volatility, with a year-to-date decline of nearly 40%.
In 2024, One Stop Systems focused on reshaping its business to capitalize on the increasing demand for intelligent, real-time processing across various industries, including defense, aerospace, and commercial applications. While the company maintains strong liquidity with a current ratio of 3.93 and more cash than debt on its balance sheet, InvestingPro analysis indicates challenges with gross profit margins at 14.11%. The company’s strategic pivot towards high-margin opportunities and a comprehensive go-to-market strategy has resulted in an expanded order volume and a sales pipeline now exceeding $1 billion.
The company’s customer-funded development revenue, a key indicator of future growth, surged by 118% to $3.7 million in 2024. These development programs, particularly in military and commercial applications, are expected to transition to production orders and sales in 2025.
One Stop Systems has also seen a rise in adoption within the defense market, securing demand from U.S. Army programs, a renewal for the U.S. Navy P-8 program, and a new design win with a leading defense contractor in Asia. The U.S. Army’s potential funding for a rugged 360-degree Situational Awareness system could result in orders exceeding $200 million over the next three to five years, with additional support and refresh opportunities.
The commercial sector is also promising, with initial contracts for datacenter solutions and potential multi-year opportunities worth $200 million. The company’s Bressner segment in Europe is expected to see rising demand throughout 2025.
One Stop Systems anticipates a book-to-bill ratio of 1.2x for the OSS segment in 2025, signaling accelerating momentum. The company forecasts consolidated revenue of $59 to $61 million for the full year, with the OSS segment contributing approximately $30 million, indicating over 20% year-over-year growth. EBITDA break-even is expected for the full year of 2025, with a more significant improvement in revenue and profitability in the second half of the year.
Despite global economic uncertainties and the potential impact of tariffs on the supply chain, One Stop Systems remains optimistic about its growth trajectory. The company’s leadership expressed confidence in the strategic investments made in 2023 and 2024, which they believe have laid a solid foundation for scaling the business and seizing revenue opportunities. For deeper insights into OSS’s financial health and growth potential, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which transform complex Wall Street data into actionable intelligence.
This article is based on a press release statement from One Stop Systems, Inc.
In other recent news, One Stop Systems reported its fourth-quarter 2024 financial results, which showed a net loss wider than anticipated by analysts. The company posted an earnings per share (EPS) of -$0.12, missing the forecasted -$0.04, and revenue came in at $15.14 million, below the expected $15.97 million. Despite a 15.1% year-over-year increase in revenue, the results led to investor concerns. On a positive note, One Stop Systems secured a $500,000 contract to supply advanced servers for a medical imaging OEM, which could potentially lead to over $25 million in sales over five years. The company anticipates stronger performance in the latter half of 2025, projecting consolidated revenue between $59 million and $61 million for the year. Additionally, One Stop Systems is optimistic about growth opportunities in AI and machine learning applications. The company is also navigating challenges such as government budget delays affecting order fulfillment. Analyst firms like AGP and Lake Street Capital Markets are closely monitoring these developments.
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