OSS logo

OSS

One Stop Systems, Inc.
$7.18SellTarget $1.03Report: Jan 02, 2026TechnologyComputer HardwareTurnaround Candidate

Price History

Pelican View
Current$7.18-85.6%
Rec: SellConviction: Low
Entry Target
N/A
N/A
Fair Value
$1.03
(86% below current)
Stop Loss
N/A
N/A
Position Size
None
Time Horizon
N/A

Key Metrics

Market Data
52 Week High$12.75
52 Week Low$1.85
Avg. 3 Month Volume1.77M
Efficiency
LTM Gross Margin29.0%
LTM EBITDA Margin-8.3%
LTM EBIT Margin-10.1%
LTM Operating Margin-10.5%
LTM ROA-17.7%
LTM ROE-26.1%
LTM ROIC-24.4%
LTM ROCE-20.5%
Capital Structure
Market Cap (MM)$213.3M
Enterprise Value (MM)$213.3M
Shares Outstanding21.95M
Total Debt (MM)$6.50M
Cash & Equivalents (MM)$6.51M
LTM Net Debt (MM)$-0.01M
LTM Net Debt/EBITDA0.0x
Growth
TTM Rev. Growth14.3%
Last 3-Yr Rev. CAGR-5.7%
Last 3-Yr EBITDA CAGRN/A
Last 3-Yr EPS CAGRN/A
Valuation
Street Target Price$9.00
LTM EV/Revenue3.5x
LTM EV/Gross Profit12.2x
LTM EV/EBIT-34.9x
LTM EV/EBITDA-42.8x
LTM P/E-30.9x
LTM EV/FCF-27.7x
LTM P/FCF-27.7x
LTM P/TB5.1x
LTM P/B8.1x
Dividend YieldN/A
Payout Ratio0.0%
About the Company

One Stop Systems, Inc. (OSS) designs, manufactures, and markets specialized enterprise-class high-performance compute, high-speed switch fabrics, and storage hardware and software. The company focuses on edge applications for artificial intelligence (AI)/machine learning (ML), sensor processing, sensor fusion, and autonomy. OSS's products are ruggedized to perform in harsh environments and are targeted at platforms that move, such as planes, trucks, ships, submarines, and mobile datacenters. The company operates through two primary segments: OSS, which focuses on ruggedized edge computing systems, and Bressner Technology GmbH, which operates as a system integrator and distributor in the European market.

Revenue Generation

OSS generates revenue primarily through the sale of products and customer-funded development. Product revenue is derived from the sale of standard and custom-built high-performance computing systems, including servers, flash storage, GPU acceleration, networking, and PCIe data acquisition I/O expansion. Revenue is recognized primarily upon shipment for products. Customer-funded development revenue relates to performance obligations satisfied over time, where the customer receives benefits as the company performs. Sales channels include direct sales teams, e-commerce, OEM-focused sales, government sales, and a network of resellers and distributors. Key geographic markets include the United States, Asia, and the Europe, Middle East, and Africa (EMEA) region.

Investment Thesis
Executive SummaryOne Stop Systems is attempting a strategic pivot from legacy media to high-margin defense AI transportables, a narrative the market has rewarded with a 90% relative strength alpha over the last year. However, our variant perception is that this operational success is a mirage masking a structural cash burn paradox, where the company consumed $7.7 million in free cash flow TTM and relies on aggressive equity dilution to survive. We conclude the stock is fundamentally overvalued, with a fair value of $1.03 representing 85% downside from current levels.

Recent Activity

2025-11-19-5.04%
Lynrock Lake entities amended Schedule 13G showing reduced ownership to 6.6%.
2025-11-05+22.03%
EPS Beat/Miss: +200.0% - Actual: $0.03 - Estimated: $0.01 Revenue Beat/Miss: -0.4% - Actual: $18,756,199 - Estimated: $18,827,760
2025-08-08+10.51%
EPS Beat/Miss: +40.0% - Actual: $-0.07 - Estimated: $-0.05 Revenue Beat/Miss: -12.1% - Actual: $14,108,585 - Estimated: $16,052,680

Valuation Table

MethodImplied ValueWeightWeighted Value
DCF$0.7050%$0.35
Comps$2.3820%$0.48
NLV$0.1110%$0.01
Price Targets$7.5020%$1.50
Total Weighted$2.34