One Stop Systems, Inc. (Nasdaq: OSS) grew third-quarter revenue 35.9% to $12.6 million and raised its full-year 2026 growth target to roughly 40%, up from its prior 25% to 30% range. As a result, the rugged edge-AI computing company enters the final quarter of the year with stronger demand across commercial and defense markets and a pipeline of large orders it expects to close in Q4.

Key Points

• Q3 2026 revenue from continuing operations rose 35.9% to $12.6 million, up from $9.3 million a year earlier.
• OSS raised 2026 revenue growth guidance to about 40%, from 25% to 30%.
• Non-GAAP net income reached $0.3 million, or $0.01 per diluted share.
• Year-to-date book-to-bill stands at 1.46x, and management expects several multimillion-dollar orders in Q4.

Commercial Customers Drive the Beat at One Stop Systems (OSS)

Commercial customers powered much of the quarter. Specifically, OSS ramped production for a commercial aerospace customer’s in-flight entertainment systems and shipped more units to a medical imaging OEM that uses its hardware for breast cancer screening. In addition, a new customer building autonomous energy nodes for compute payloads began taking initial deliveries.

Meanwhile, defense demand held firm. OSS increased sales supporting the P-8A Poseidon reconnaissance aircraft and continued to supply military applications on naval vessels and aircraft. CEO Mike Knowles said the results came in ahead of expectations and pointed to growing demand for the company’s Enterprise Class compute products, broader customer diversification and higher average order values.

The quarter also builds on a busy year for OSS. Earlier in 2026, the company landed an edge-AI win in an alternative-energy data center buildout, secured a production order as its rugged AI servers powered commercial robotics growth, and joined a defense partnership supporting the U.S. Army’s Integrated Vision System. Just two days before earnings, OSS also announced qualification with a Tier 1 global computing platform provider.

Margins, Profitability and Cash

Gross margin came in at 42.6%, down from 45.6% a year ago, mainly because of product mix. On a GAAP basis, OSS posted a $0.6 million loss from continuing operations, or $(0.02) per share, roughly in line with last year. However, the non-GAAP picture improved, with net income of $0.3 million versus about $31,000 in Q3 2025.

Adjusted EBITDA rose 33.7% to $0.3 million. Excluding $0.5 million in bad debt tied to a former customer’s bankruptcy and $0.4 million in legal fees, adjusted EBITDA would have reached about $1.2 million, or nearly 10% of revenue.

Through nine months, revenue climbed 48.3% to $30.0 million. OSS ended September with $18.9 million in cash, equivalents and short-term investments. Notably, year-to-date operating cash outflow included a $6.25 million legal settlement paid in Q2 and a $7.8 million inventory build ahead of expected demand.

What Comes Next for OSS

For full-year 2026, OSS now targets about 40% revenue growth, gross margin of roughly 40% to 42%, and adjusted EBITDA of $0.5 million to $1.0 million. Management said customer order timing weighed on Q3 bookings, but it expects several large orders to land in the fourth quarter and sees opportunities building for 2027. At the same time, the company flagged supply risk in memory components and uncertainty around the federal budget.

OSS is a component of the PRISM AI Datacenter and Infrastructure Index, which tracks small- and micro-cap companies building the compute, networking and energy backbone behind AI. Consequently, today’s raised outlook adds another data point that demand for AI infrastructure is reaching beyond hyperscale data centers and into rugged edge deployments across aerospace, healthcare and defense.

The post One Stop Systems Lifts 2026 Growth Outlook to 40% as Q3 Revenue Jumps 36% appeared first on PRISM MarketView.

COMTEX_1001910205/2927/2026-10-28T09:22:46