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One Stop Systems Q3 revenue rises on customer expansion, order value

By Reuters News


Overview

  • Rugged compute hardware maker's Q3 revenue rose 35.9% yr/yr, driven by new and existing customers

  • Adjusted EPS for Q3 improved to $0.01 from $0.00 a year earlier

  • Company raised 2026 revenue growth guidance to about 40% on strong Q3 sales and orders


Outlook

  • OSS raises 2026 revenue growth guidance to about 40%, up from 25%-30% previously

  • Company expects 2026 gross margin of 40%-42%

  • OSS forecasts 2026 adjusted EBITDA between $0.5 mln and $1.0 mln


Result Drivers

  • CUSTOMER EXPANSION - Co said Q3 revenue growth was driven by new customers and higher production volumes with existing customers across healthcare, aerospace, and data center markets

  • ORDER VALUE - Co attributed revenue growth to higher average order values and increased customer diversification

  • PRODUCT MIX - Co said lower gross margin was mainly due to product mix, partially offset by improved manufacturing absorption


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Gross Margin

42.60%

Q3 Operating Expenses

$6.20 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the computer hardware peer group is "buy"

  • Wall Street's median 12-month price target for One Stop Systems Inc is $19.00, about 181.1% above its October 27 closing price of $6.76

  • The stock recently traded at 84 times the next 12-month earnings vs. a P/E of 243 three months ago


Reuters Recommended Reads

  • Oct 26 - Canada's Celestica Q3 revenue jumps 83% on higher customer demand, operating leverage; raises 2026 outlook

  • Oct 27 - Ultra Clean Q3 revenue beats expectations

  • Oct 28 - Extreme Networks Q1 revenue beats estimates on Platform ONE demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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