How did OSS's Q4 earnings surprise investors?

One Stop Systems' (OSS) Q4 2024 earnings report surprised investors with a revenue beat and an earnings miss, reflecting both positive and negative aspects of the company's performance. 1. **Revenue Beat Expectations**: - OSS reported a consolidated revenue of $15.1 million for Q4 2024, surpassing the estimated $15.00 million. - This marked a 15.1% year-over-year increase in revenue, driven by growth in both the OSS and Bressner segments. 2. **Earnings Miss Expectations**: - The company reported a net loss of $(0.15) per share for Q4 2024, significantly below the estimated EPS of $(0.02). - This resulted in an earnings surprise of -1,300%, indicating a substantial miss of investor expectations. 3. **Gross Margin Decline**: The gross margin decreased to 15.7% in Q4 2024, down from 33.7% in the prior year quarter, impacted by a $1.2 million charge related to contract losses. 4. **Increased Net Loss**: The net loss for the quarter increased to $3.1 million, compared to a net loss of $278,000 in the same period last year. 5. **Operating Expenses Rise**: Operating expenses increased by 15.1% year-over-year to $5.5 million for Q4 2024. Overall, while OSS exceeded revenue expectations, the earnings miss and significant decline in gross margin contributed to a challenging quarter for investors. The company's strategic shifts and future growth prospects in high-margin markets may offer optimism, but the near-term financials reflect ongoing pressures.