One Stop Systems (OSS)

For context, I have had this post sitting in drafts for a long time (about a week after I wrote my first piece on GSIT) but I didn't know what exactly I wanted to do with the analysis and write-ups. Unfortunately, within that time the stock ran up past my near-term price target, and I closed the trade. I am letting it breathe a bit now, though I still believe in its long-term value (transactions below).

One Stop Systems (OSS)

One Stop Systems (OSS) is a net-cash microcap building the "rugged edge data center" for defense and industrial AI.

Financial Performance

Revenue Milestones

• In 2022, OSS's revenue was $72.4 million, a 17% increase from the prior year (2021).

• 2023 saw revenues decline 15.9% to $60.9 million. This was mainly due to a major media customer winding down its program. Without that customer, revenue would have grown about 4% year over year.

• In the first nine months of 2024, sales dipped 17% to $39.6 million, still feeling the pinch from the media customer's exit and softer demand in Europe.