UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _______ Commission File Number 001-38371 One Stop Systems, Inc. (Exact name of Registrant as specified in its Charter) Delaware 33-0885351 (State or o ...

Core Insights - One Stop Systems, Inc. achieved significant growth in 2025, with revenue increasing by over 70% year-over-year, gross margins reaching a record 58.5%, and a positive net income of $2 million from continuing operations [1][27][31] - The company has transitioned to a pure-play provider of ruggedized AI compute platforms, focusing on high-performance solutions for defense and commercial markets [2][3] - The sale of the subsidiary Bressner for $22.4 million has strengthened the company's balance sheet and allowed for a more focused operational strategy [4][28] Financial Performance - In Q4 2025, total revenue was $12 million, up from $7 million in the same quarter last year, driven by increased demand for custom server products and data storage for defense customers [29] - Gross margin for Q4 was a record 58.5%, significantly higher than the previous year's 9.4%, attributed to a favorable product mix and operational efficiencies [27][30] - The company ended 2025 with $33.4 million in cash and cash equivalents, no debt, and total liabilities of only $6.8 million, marking the strongest balance sheet in its history [28][33] Operational Developments - One Stop Systems, Inc. secured over $65 million in contracted revenue associated with the P-8 Poseidon program, with $10.5 million in new awards from the U.S. Navy [6][7] - The company is expanding its partnerships, including a growing relationship with Safran Federal Systems, which is expected to generate over $7 million in cumulative production orders over the next five years [8][12] - New engagements in commercial sectors, such as robotics and aerospace, are also emerging, with significant orders expected to contribute to future revenue [12][14][16] Market Trends - The demand for high-performance compute solutions is expanding across both defense and commercial markets, driven by the integration of AI, machine learning, and sensor processing capabilities [21][22] - The company is well-positioned to capitalize on these trends, with expectations of revenue growth between 20% to 25% in 2026, supported by a robust pipeline of opportunities [22][24] - The focus on rugged, high-performance compute infrastructure is critical as military platforms increasingly adopt AI-enabled systems for enhanced situational awareness and decision-making [11][21] Strategic Outlook - One Stop Systems, Inc. plans to continue investing in research and development, targeting R&D expenses at approximately 10% to 12% of annual sales for 2026 [19][31] - The company is actively exploring M&A opportunities to enhance its technology platform and expand its customer base, with a focus on strategic alignment [46][47] - The operational strategy includes managing supply chain dynamics to ensure timely conversion of customer demand into revenue, with expectations of a more balanced revenue recognition throughout 2026 [34][22]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved revenue of $12 million, a 70.2% increase year-over-year from $7 million, and a significant rise from $9.3 million in Q3 2025 [24][25] - Gross margins reached a record 58.5%, up from 9.4% in the prior year quarter, primarily due to a favorable product mix and operational efficiency [23][25] - The company reported net income from continuing operations of $2 million or $0.08 per diluted share, compared to a net loss of $3.4 million or $0.16 per share in the prior year quarter [26][27] Business Line Data and Key Metrics Changes - The revenue growth was driven by higher sales of custom server products for defense customers, data storage products for a defense prime customer, and compute products for medical and autonomous maritime applications [25] - The company expects to maintain a gross margin target in the mid-thirties to mid-forties on a sustaining basis, with variability based on product mix and program life cycle [26] Market Data and Key Metrics Changes - The company secured over $65 million in total contracted revenue associated with the P-8 Poseidon program, with $23 million awarded since the beginning of 2025 [8] - A follow-on production order from Safran Federal Systems was received, bringing the total order value to approximately $1.9 million, with expectations of generating over $7 million in cumulative production orders over the next five years [9] Company Strategy and Development Direction - The company completed the sale of its subsidiary Bressner for $22.4 million, allowing it to focus on high-margin, high-growth rugged compute opportunities [3][4] - The strategic focus is on delivering high-performance compute solutions for defense and commercial markets, particularly in AI and machine learning applications [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and visibility into the pipeline for 2026, despite potential delays in decision-making due to ongoing military actions [35] - The company anticipates revenue growth of 20%-25% for 2026, with gross margins around 40% and positive EBITDA [21][28] Other Important Information - The company ended 2025 with a strong balance sheet, including $33.4 million in cash equivalents and no debt, positioning it well for future growth and potential acquisitions [24][22] - Research and development expenditures are expected to be around 10%-12% of annual sales in 2026, reflecting a decrease from 2025 due to one-time investments [44] Q&A Session Summary Question: Visibility into 2026 guidance and impact of military actions - Management indicated strong visibility and a robust pipeline for 2026, with some delays in contracting due to current military actions but no anticipated impact on full-year guidance [33][35] Question: Operating expenses and R&D investments - Operating expenses are expected to decrease in 2026, with R&D expenditures projected to be 10%-12% of revenue, and a higher proportion of R&D in the first half of the year [44] Question: M&A activity and opportunities - The company is actively evaluating M&A opportunities, focusing on hardware and software capabilities that align with its strategy, but will not rush into any deals [46][48] Question: Sales growth and headcount - Management believes current investments in the sales force can support the projected growth rates without significant additional hiring [57] Question: Customer-funded development and new customers - The company expects a mix of existing and new customers for customer-funded development, with some awards already announced that will convert to revenue throughout the year [58]

One Stop Systems (NasdaqCM:OSS) Q4 2025 Earnings call March 18, 2026 10:00 AM ET Company ParticipantsDan Gabel - CFOMike Knowles - President and CEOConference Call ParticipantsBrian Kinstlinger - Director of Research and Senior Technology AnalystEric Martinuzzi - Senior Research AnalystScott Searle - Managing Director and Senior Research AnalystOperatorDay, and welcome to the One Stop Systems, Inc. fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Later, ...

One Stop Systems, Inc. (NASDAQ:OSS) shares are trading higher Wednesday after the company reported fourth-quarter financial results.One Stop Systems shares are climbing with conviction. Why are OSS shares rallying?Q4 Results: EPS Beat, Revenue MissOne Stop Systems reported adjusted earnings per share of 10 cents, beating the consensus estimate of 4 cents. In addition, it reported revenue of $11.98 million, missing the consensus the estimate of $15.85 million, and representing 70.2% year-over-year increase.T ...

Fourth quarter of 2025 revenue increased 70.2% year-over-year to $12.0 million, with record quarterly gross margin of 58.5% Net income from continuing operations of $2.0 million for 2025 fourth quarter Positive defense and commercial market demand is expected to support another strong year of revenue growth in 2026 ESCONDIDO, Calif., March 18, 2026 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. ("OSS" or the "Company") (Nasdaq: OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), ...

Core Viewpoint - One Stop Systems, Inc. (OSS) will release its fourth quarter 2025 financial results on March 18, 2026, and will hold a conference call to discuss these results [1]. Company Overview - One Stop Systems, Inc. is a leader in rugged Enterprise Class compute solutions for artificial intelligence (AI), machine learning (ML), and sensor processing at the edge [3]. - The company designs and manufactures products that enable rugged AI, sensor fusion, and autonomous capabilities, delivering data center performance in challenging environments [3]. Product Offerings - OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software, utilized across various industries such as autonomous trucking, farming, and defense [4]. - The company's solutions address the entire AI workflow, from data acquisition to deep learning and large-scale inference, and have achieved many industry firsts for industrial OEM and government customers [5]. Market Position - OSS operates in the rapidly growing segment of the multi-billion-dollar edge computing market, providing AI-enabled solutions that require high performance in demanding environments [5].

Core Insights - Amdocs has announced CES26, the latest evolution of its Customer Experience Suite, aimed at enhancing operations for communications and media companies [1] - CES26 is integrated into Amdocs' agentic operating system, aOS, and introduces an end-to-end, agent-driven BSS-OSS-Network suite [1] - The new suite is designed to help service providers simplify operations, scale faster, and progress towards autonomous, intent-driven networks [1] Company Overview - Amdocs is a leading provider of software and services specifically tailored for communications and media companies [1] - The introduction of CES26 marks a significant advancement in Amdocs' offerings, aligning with the industry's shift towards automation and improved customer experience [1] Industry Implications - The launch of CES26 reflects a broader trend in the telecommunications industry towards the adoption of AI-led solutions for customer, billing, ordering, and network operations [1] - The focus on autonomous, intent-driven networks indicates a shift in operational strategies among service providers, aiming for greater efficiency and responsiveness [1]

Core Viewpoint - One Stop Systems Inc. (OSS) has announced $10.5 million in new awards from the U.S. Navy and a major defense contractor, boosting its stock in premarket trading [1] Group 1: Contract Details - OSS will provide rugged data storage units for the P-8A Poseidon Reconnaissance Aircraft, featuring hot-swappable NVMe flash storage canisters for rapid data offload [2] - The revenue from these awards is expected to contribute to OSS's financials in 2026 and 2027 [2] Group 2: Program Milestone - The recent awards mark OSS's largest aggregate orders related to the P-8A platform, with total contracted revenue exceeding $65 million, including over $23 million awarded since the start of 2025 [3] Group 3: Market Activity - Short interest in OSS has increased from 1.95 million to 2.43 million shares, representing 10.86% of publicly available shares, indicating a potential for price volatility [3] - In premarket trading, OSS shares rose to $9.10, reflecting an 8.98% increase [4]

Core Insights - One Stop Systems, Inc. (OSS) has secured new contracts totaling $10.5 million from the U.S. Navy and a major U.S.-based defense contractor for the P-8A Poseidon Reconnaissance Aircraft, bringing its lifetime contracted revenue on the P-8A platform to over $65 million, with more than $23 million awarded since the start of 2025 [1][3] Group 1: Contract Details - The contract involves the delivery of rugged data storage units designed for the C5ISR mission capabilities onboard the P-8A Poseidon, featuring hot-swappable canisters of high-capacity NVMe flash storage for secure data offload and analysis in challenging airborne environments [2] - These latest awards represent the largest aggregate orders to date for the P-8A platform, reinforcing OSS's role in this critical military program [3] Group 2: Company Overview - OSS specializes in rugged Enterprise Class compute and storage products for AI, machine learning, and sensor processing at the edge, catering to demanding applications across various industries, including defense [4][5] - The company’s products include ruggedized servers, compute accelerators, and flash storage arrays, which are utilized in sectors such as autonomous trucking, farming, and military applications [5][6] Group 3: Market Position - OSS's solutions address the entire AI workflow, from data acquisition to deep learning and inference, positioning the company as a key player in the rapidly growing edge computing market [6]