One Stop Systems raised its 2026 revenue growth guidance to approximately 40% after third-quarter revenue from continuing operations rose 35.9% to $12.6 million. The company previously forecast growth of 25% to 30%.

Key Takeaways

  • Third-quarter revenue increased from $9.3 million a year earlier, while the loss from continuing operations widened to $0.6 million.
  • Gross margin fell to 42.6% from 45.6%, primarily because of product mix.
  • Management expects full-year adjusted EBITDA of $0.5 million to $1.0 million.

One Stop Systems third-quarter results

The company said revenue growth in the quarter ended September 30, 2026, reflected new customers and higher production volumes for some existing customers. Initial deliveries for autonomous energy nodes, increased commercial aerospace deliveries and higher medical imaging sales contributed to the increase.

The loss from continuing operations was $0.6 million, or $0.02 per diluted share, compared with $0.4 million, or $0.02 per share, a year earlier. Adjusted EBITDA from continuing operations, a non-GAAP measure, was $0.3 million, up from $0.2 million.

Quarterly operating expenses rose 33.7% to $6.2 million. They included $0.5 million in bad debt expense related to a former customer’s bankruptcy and $0.4 million in legal fees connected to a previously disclosed settlement.

The results exclude Bressner Technology as a discontinued operation. One Stop Systems completed the Bressner divestiture on December 30, 2025.

Nine-month revenue and cash use

Revenue from continuing operations for the first nine months of 2026 rose to $30.0 million from $20.2 million a year earlier. The loss from continuing operations widened to $8.3 million from $5.1 million.

Cash used in continuing operations increased to $12.4 million from $5.9 million. The 2026 figure included a $6.25 million legal settlement paid in the second quarter and a $7.8 million increase in inventories to support expected revenue growth.

Cash, cash equivalents and short-term investments totaled $18.9 million at September 30, compared with $31.2 million at December 31, 2025.

Full-year outlook and orders

Alongside its higher revenue growth forecast, management expects a full-year gross margin of approximately 40% to 42% and adjusted EBITDA of $0.5 million to $1.0 million. These are forecasts, not reported results.

The company attributed the higher growth outlook to stronger-than-expected third-quarter sales and orders. Its year-to-date book-to-bill ratio was 1.46 times, and CEO Mike Knowles said he expected several multimillion-dollar orders to close in the fourth quarter.

One Stop Systems said it was monitoring potential component supply constraints, including memory, and the federal government budget outlook, either of which could affect results.

Next milestone

One Stop Systems scheduled a results conference call and question-and-answer session for October 28, 2026, at 10 a.m. ET.

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