One Stop Systems Q2 2025 Earnings Call Transcript

One Stop Systems reported Q2 2025 earnings, with CFO Daniel Gabel and CEO Michael Knowles discussing revenue growth, business plans, bookings, and multiyear strategy. Forward-looking statements were made regarding business objectives and expectations. Actual results may differ due to certain risks and uncertainties, as outlined in the company's most recent annual report on Form 10-K.

One Stop Systems, Inc. (NASDAQ: OSS) reported its second-quarter (Q2) 2025 earnings, highlighting significant growth in revenue and bookings, alongside strategic initiatives and forward-looking statements regarding future prospects. The earnings call, held on August 7, 2025, featured discussions between CFO Daniel Gabel and CEO Michael Knowles, who provided insights into the company's performance and plans.

Key Financial Highlights

Revenue Growth: One Stop Systems reported a 6.9% increase in revenue to $14.1 million, compared to $13.2 million in the same period last year [4]. This growth was driven by higher revenues from custom server products for defense customers, data storage products for a U.S. government customer, and the initiation of server shipments to a medical device customer.

Bookings and Gross Margin: The company achieved one of the highest levels of bookings in its history, totaling $25.4 million, with a book-to-bill ratio of 2.3. The gross margin for the OSS segment improved to 41.3%, contributing to a consolidated gross margin of 31.3% [4].

Net Loss: Despite the revenue growth, One Stop Systems reported a net loss of $2 million for the quarter, an improvement from the previous year's loss [3].

Strategic Initiatives and Forward-Looking Statements

Product Launches and Partnerships: The company launched Ponto, the world's first PCIe Gen 5 GPU expansion platform, targeting the growing composable infrastructure market. Additionally, One Stop Systems secured a record $6.5 million contract for high-performance servers and systems for military environments, and received new awards from the US Navy and a leading defense contractor [2].

Segment Performance: The OSS segment is expected to see significant growth, while the Bresner segment is anticipated to remain stable. The pipeline for the OSS segment suggests continued growth at a similar rate, outpacing that of the Bresner segment, which will grow at a more historical rate [2].

Market Opportunities: CEO Michael Knowles noted that the company is adapting its product lines to meet the demands of higher wattage GPUs and AI accelerators. Strategic partnerships with AI software vendors are also expected to contribute to revenue growth in 2026 [2].

Risks and Uncertainties

The company remains cautious in its guidance due to the significant ramp-up required in the second half of the year and uncertainty regarding the timing of government funding and program releases, which could affect future revenue streams [2].

Conclusion

One Stop Systems reported a strong Q2 2025, marked by revenue growth, high bookings, and strategic initiatives. While the company faces challenges such as supply chain execution and uncertain government funding, the forward-looking statements indicate optimism for future growth, particularly in the OSS segment. Investors should closely monitor the company's progress and consider the outlined risks and uncertainties.

References

[1] https://seekingalpha.com/article/4811692-one-stop-systems-inc-oss-q2-2025-earnings-call-transcript
[2] https://finance.yahoo.com/news/one-stop-systems-inc-oss-072408113.html
[3] https://simplywall.st/stocks/us/tech/nasdaq-oss/one-stop-systems/news/one-stop-systems-second-quarter-2025-earnings-revenues-beat
[4] https://www.globenewswire.com/news-release/2025/08/07/3129204/0/en/One-Stop-Systems-Reports-Q2-2025-Results.html