One Stop Systems Q4 revenue misses; expects 2026 revenue growth of 20%-25%

One Stop Systems

18/03/2026 12:10

Overview

U.S. rugged AI hardware maker's Q4 revenue rose 70% yr/yr but missed analyst expectations

Company posted net income from continuing operations of $2 mln, reversing a loss last year

Record Q4 gross margin of 58.5% driven by higher defense and medical shipments

Outlook

OSS expects 2026 revenue growth of 20% to 25%

Company sees 2026 gross margin of approximately 40%

OSS expects positive EBITDA and adjusted EBITDA for 2026

Result Drivers

DEFENSE DEMAND - Higher shipments of custom server and data storage products to defense customers drove revenue growth

MEDICAL & AUTONOMOUS APPLICATIONS - Shipments of server products to a medical device customer and for an autonomous maritime application contributed to revenue

PROFITABLE PRODUCT MIX - Record gross margin was due to a more profitable mix of products and the non-recurrence of a prior-year contract loss charge

Company press release: ID:nGNXf2HTK

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$12 mln
$15.86 mln (3 Analysts)
Q4 Gross Margin
58.50%
Q4 Operating Expenses
$5.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the computer hardware peer group is "buy"

Wall Street's median 12-month price target for One Stop Systems Inc is $9.00, about 15.8% below its March 17 closing price of $10.69

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)