One Stop Systems Reports Q4 2024 Results

Core Insights - The company reported consolidated revenue growth for Q4 2024, with a year-over-year increase of 15.1%, reaching $15.1 million compared to$13.2 million in Q4 2023, driven by growth in both OSS and Bressner segments [4][10][18] - Management anticipates double-digit consolidated revenue growth in 2025, with OSS segment revenue expected to exceed 20% growth and aims for EBITDA break-even for the year [1][18] Financial Performance - OSS segment revenue increased by 10% year-over-year, primarily due to higher sales from defense and commercial customers, contributing $7.04 million in Q4 2024 [4][5] - Bressner segment revenue grew by 19.9$8.1 million in Q4 2024 [4][5] - For the full year 2024, consolidated revenue was $54.7 million, a decrease of 10.2$60.9 million in 2023, largely due to the loss of a former media customer [10][11] Profitability Metrics - The consolidated gross margin for Q4 2024 was 15.7%, down from 33.7% in the prior year, with a gross margin of 23.8% when excluding one-time charges [6][12] - The company reported a net loss of $3.1 million, or$(0.15) per share, compared to a net loss of $278,000, or$(0.01) per share, in the prior year [8][34] - Adjusted EBITDA for Q4 2024 was a loss of $2.3 million, including$1.2 million in one-time charges, compared to adjusted EBITDA of $322,000 in the prior year [8][17] Operational Adjustments - The company took a$1.2 million charge related to contract losses for a customer-funded development contract, which impacted gross margin and net income [4][10] - Total operating expenses increased by 15.1% to $5.5 million, primarily due to higher general and administrative costs [7][34] Cash and Working Capital - As of December 31, 2024, the company reported cash and short-term investments of$10.0 million, down from $11.8 million a year earlier, with total working capital of$24.0 million [9][33] - The reduction in cash was mainly due to the repayment of $1 million in notes payable [9] Future Outlook - The company expects consolidated revenue for 2025 to be between$59 million and $61 million, with OSS segment revenue projected at approximately$30 million [18] - Management anticipates improved revenue and profitability in the second half of 2025 based on current trends and an expanding sales pipeline [18]