[Management View]
One Stop Systems (OSS) reported consolidated revenue of $18.8 million for Q3 2025, up 36.9% YoY. The company highlighted strategic priorities including expanding its product lineup, increasing exposure to defense and commercial AI opportunities, and leveraging its high-performance edge compute solutions.

[Outlook]
OSS raised its full-year 2025 consolidated revenue guidance to $63 million to $65 million, up from $59 million to $61 million. The company expects positive annual EBITDA and plans to support its working capital ramp and pursue strategic M&A in 2026.

[Financial Performance]
- Consolidated revenue: $18.8 million, up 36.9% YoY
- One Stop Systems segment revenue: Rose 43.4% YoY
- Bresner segment revenue: Grew by $2.3 million YoY
- Gross margin: 35.7%, up from 32% in Q3 2024
- Operating expenses: $6.1 million, up 22%
- GAAP net income: $300,000, turnaround from a $6.8 million net loss
- Non-GAAP net income: $700,000, compared to a non-GAAP net loss of $6.4 million
- Adjusted EBITDA: $1.2 million, compared to an adjusted EBITDA loss of $6 million

[Q&A Highlights]
Question 1: How should investors think about the seasonality going forward for core One Stop Systems, Inc. in light of the strong bookings execution but also as we think about the government shutdown?
Answer: We tend to see higher revenues in the second half of the year due to the timing of bookings. The government shutdown may affect the timing of bookings, but we have everything in backlog needed to achieve our guidance for 2025. Sole-source awards may be delayed but not lost.

Question 2: Can you update us on the data center market opportunity and the advancements you're making?
Answer: We launched Ponto, a bigger version of our 4U GPU expansion solution, which is under evaluation by customers in the data center market. We expect to see this transition into awards and backlog by the first half of next year. The army situational awareness technology procurement evaluation continues, though it is stalled due to the government shutdown.

Question 3: What was behind the strong performance of the One Stop Systems, Inc. segment in Q3, and what are the expectations for the final quarter of the year for Bresner?
Answer: Bresner's performance was driven by recovery in industrial end markets and favorable FX. We expect Bresner's Q4 revenue to be flat to Q3. The One Stop Systems, Inc. segment's strong performance was due to higher demand and execution on larger projects.

Question 4: How will the $12.5 million raised in the direct offering be deployed?
Answer: The cash will support our working capital ramp and be used for a disciplined M&A strategy in 2026. We expect positive cash flow in Q4.

Question 5: What is the impact of the government shutdown on your operations and backlog?
Answer: Major organizations are shut down, affecting planned awards. We can still make deliveries and receive payments for existing contracts. We have visibility through the first half of next year, and as long as bookings are received by the end of Q2 2026, we can convert them to revenue.

Question 6: Is the core One Stop Systems, Inc. business expected to be EBITDA positive in 2026?
Answer: We believe the One Stop Systems, Inc. segment can grow at 20%-30% annually, supporting positive EBITDA in 2026. This would accelerate our plans, but we are confident in achieving this based on our pipeline and performance.

Question 7: Are commercial opportunities accelerating due to the government shutdown?
Answer: We are seeing movement in commercial opportunities, particularly in data centers, medical imaging, and commercial aerospace. We expect these opportunities to come to fruition in 2026.

[Sentiment Analysis]
Analysts were positive about OSS's strong financial performance and strategic initiatives. Management expressed confidence in achieving growth targets and navigating the government shutdown's impact.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------------|-----------------|-----------------|
| Consolidated Revenue | $18.8 million | $13.7 million |
| One Stop Systems Segment Rev. | $30M-$32M (FY) | N/A |
| Bresner Segment Revenue | $2.3 million YoY| N/A |
| Gross Margin | 35.7% | 32% |
| Operating Expenses | $6.1 million | N/A |
| GAAP Net Income | $300,000 | -$6.8 million |
| Non-GAAP Net Income | $700,000 | -$6.4 million |
| Adjusted EBITDA | $1.2 million | -$6 million |

[Risks and Concerns]
- Government shutdown affecting the timing of bookings and awards
- Variability in gross margins due to product mix and program life cycle
- Dependence on defense and commercial AI market demand

[Final Takeaway]
One Stop Systems (OSS) delivered strong financial results in Q3 2025, with significant revenue growth and improved profitability. The company raised its full-year revenue guidance and is well-positioned for continued growth in 2026. Despite the government shutdown, OSS remains confident in achieving its targets, supported by a strong backlog and strategic initiatives in both defense and commercial markets.