One Stop Systems, Inc. Q1 FY2026 earnings call

• 2026 started strongly with significant year-over-year growth in revenue and profitability.
• Sale of Bresner subsidiary in December 2025 unlocked value, simplified structure, strengthened balance sheet.
• First quarter revenue $8.1 million, up 55% y/y, growth in defense and commercial.
• Nearly $15 million in new bookings in the quarter with a book-to-bill ratio of 1.8.
• Customer-funded development increased 145% y/y in Q1.
• Introduced next-generation PCIe Gen 6 product portfolio in Q4 2025.
• Q1 gross margin 51.6%, adjusted EBITDA positive, record free cash flow from continuing operations.

In the first quarter, total revenue was $8.1 million, an increase of 55% year over year. Defense market highlights include increased shipments to support the PA Poseidon aircraft and work on prototype compute systems for U.S. Army combat vehicles. Commercial side saw increased demand from a medical imaging OEM with shipments of liquid-cooled server platforms. Revenue contribution from defense and commercial not specified individually but both contributed to the growth.

• Maintain 2026 guidance with revenue growth in the range of 20% to 25%.
• Expect gross margins of approximately 40%.
• Expect positive EBITDA while continuing to invest in key areas.
• Supply chain dynamics, like longer lead times for certain components including memory, are considered but guidance is maintained.

• Longer lead times for certain components, including memory, may impact the timing of certain shipments throughout the year.

Q: Scott Searle from Roth Capital asked about business mix in the quarter, supply chain headwinds, and defense activities.

A: Dan talked about mix with growth in multiple areas including customer-funded development and production with higher margin production mix. Dan also discussed supply chain with memory and other components having extended lead times, pricing passed to customers. Mike expanded on defense activities noting no distraction from ongoing military activities and opportunities from conflict operations.

Q: Eric Martinuzzi from Lake Streets asked about guidance philosophy and booking pull forward.

A: Management said guidance remains cautious due to supply chain but Q1 strong performance boosts confidence, and bookings had a combination of pull forward and new wins.

Q: Brian Kinslinger from Alliance Global Partners asked about robotics, aerospace, and medical imaging programs.

A: On robotics, transitioning to production in 2026; commercial aerospace deliveries started; medical imaging program has production forecast and tech refresh explored; autonomous maritime expected to have production orders this year