One Stop Systems (OSS) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, March 18, 2026 astatine 10:16 AM CDT 30 min read

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Wednesday, March 18, 2026 astatine 10 a.m. ET

• President & CEO — Michael Knowles

• CFO — Daniel Gabel

• Operator

Michael Knowles: Thank you, Sylvie. Good morning, everyone, and convey you for joining today’s call. 2025 was a defining twelvemonth for One Stop Systems, Inc. and reflects the palmy execution of a multiyear strategy to reposition the institution astir high-performance, ruggedized compute platforms that alteration artificial intelligence, instrumentality learning, and sensor processing astatine the edge. During the year, we saw that strategy construe into meaningful fiscal and operational progress. The spot of our show passim 2025 besides created an accidental to instrumentality an important strategical measurement for the company. In December, we completed the opportunistic merchantability of our wholly owned subsidiary Bressner and received proceeds of $22.4 million, taxable to last closing moving superior balances.

One Stop Systems, Inc. acquired Bressner connected October 31, 2018 for astir $5.6 million, and we judge this transaction unlocks important worth for One Stop Systems, Inc.’s shareholders. While Bressner had been an important portion of our history, the advancement we made crossed One Stop Systems, Inc.’s halfway concern positioned america to measure this plus from a presumption of strength. When we received an charismatic connection for the business, we viewed it arsenic a compelling accidental to unlock that value, simplify our operating structure, fortify our equilibrium sheet, and ore our resources connected the higher-margin, higher-growth, rugged enterprise-class compute opportunities that are driving the adjacent signifier of One Stop Systems, Inc.’s growth.

As a reminder, pursuing the transaction, Bressner’s humanities fiscal results are present reported arsenic discontinued operations, and the results we are discussing contiguous bespeak the show of the halfway One Stop Systems, Inc. business. This modulation efficaciously positions One Stop Systems, Inc. contiguous arsenic a pure-play supplier of ruggedized AI compute platforms for borderline applications. As a result, One Stop Systems, Inc. enters 2026 arsenic a much focused institution centered wholly connected delivering high-performance compute solutions for some defence and commercialized markets.

With that strategical instauration successful place, we exited 2025 with a beardown 4th fourth performance, including gross maturation of much than 70% year-over-year, grounds quarterly gross margins of 58.5%, and affirmative nett income from continuing operations of $2 million. These results bespeak increasing request for our exertion crossed some defence and commercialized markets, arsenic good arsenic the benefits of operational improvements and merchandise absorption we person implemented implicit the past respective years. So with that context, I would similar to locomotion done respective of the cardinal developments that drove our show successful 2025 and sermon wherefore we are excited astir the opportunities up successful 2026 and beyond.