Overview

• US rugged compute provider's Q1 revenue rose 55% yr/yr, beating analyst expectations

• Company posted non-GAAP net income after a loss last year; gross margin improved to 51.6%

• Q1 bookings nearly $15 mln, with book-to-bill ratio of 1.8x supporting growth outlook

Outlook

• Company expects 2026 revenue growth of 20% to 25%

• Company sees 2026 gross margin of approximately 40%

• Company anticipates positive EBITDA and adjusted EBITDA for 2026

Result Drivers

• DEFENSE AND MEDICAL SALES - Higher sales to a defense prime customer for data storage and prototype compute systems, and to a medical imaging OEM for liquid-cooled servers drove revenue growth

• MARGIN IMPROVEMENT - Gross margin rose due to a more profitable mix, engineering efficiencies in customer-funded programs, and improved manufacturing absorption from higher production volume

• BOOKINGS MOMENTUM - Nearly $15 mln in Q1 bookings and a book-to-bill ratio of 1.8x reflected increased demand and customer engagement

Company press release: ID:nGNX1RKvqs

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$8.10 mln	$7 mln (3 Analysts)
Q1 Gross Margin		51.60%
Q1 Operating Expenses		$4.80 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $13.00, about 33.1% above its May 5 closing price of $9.77

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