One Stop Systems, Inc. (OSS): Business Model Canvas [Dec-2025 Updated]

As an analyst who has seen a few tech cycles, the real story for One Stop Systems, Inc. right now isn't just about rugged hardware; it's about capturing the massive shift to High-Performance Edge Compute (HPeC) for defense and critical commercial uses. You need to see the mechanics behind their ambition, especially with a sales pipeline reportedly exceeding $1 billion and a recent $12.5 million capital raise in September 2025 to fuel this transition, all while guiding for $63 million to $65 million in total revenue for the year. To really understand how One Stop Systems, Inc. plans to convert that backlog into cash-especially given their customer-funded development grew 118% in 2024-you need a clear map of their operations. Below, I've distilled the entire Business Model Canvas for One Stop Systems, Inc. so you can see exactly where the value is being created and captured.

One Stop Systems, Inc. (OSS) - Canvas Business Model: Key Partnerships

You're looking at the backbone of One Stop Systems, Inc.'s revenue visibility for 2025, which is heavily anchored in defense sector partnerships. The company's strategy pivot to augment commercial business with defense work is showing up in large, multi-year contract wins.

The Cooperative Research and Development Agreement (CRADA) with U.S. Special Operations Command (USSOCOM), announced in May 2025, positions One Stop Systems, Inc. directly in the development of High Performance edge Computer (HPeC) solutions for austere maritime environments. This strategic alignment validates the company's technology in rugged enterprise computing.

The defense vertical was already a significant portion of the business, representing 24% of total revenue as of January 2025. This has been substantially reinforced by major bookings throughout the year.

Here's a look at the quantifiable defense wins that feed the 2025 revenue guidance of $63 million to $65 million consolidated:

Partnership/Program	Contract Value (USD)	Volume/Scope	Expected Revenue Recognition
Defense Technology Firm (April 2025)	$6.5 million (Record Contract)	80 high-performance servers and FPGA systems	Throughout 2025
U.S. Navy P-8A Poseidon Program (July 2025)	$5 million	61 rugged, military-grade storage systems	Throughout 2025
U.S. Navy P-8A Program (Total to Date)	Over $45 million	Total contracted revenue for the mission-critical aircraft	Multi-year extension signed for 8 more years

The combined value of the April and July defense contracts alone accounted for just over 19% of the company's full-year 2025 revenue expectations at the time of the July announcement. The OSS segment revenue guidance for the full year 2025 is set between $30 million to $32 million.

For strategic alliances with GPU/accelerator chip providers like NVIDIA and Intel, and OEM agreements with large enterprise firms like IBM and Lenovo, specific financial contribution or contract values directly tied to One Stop Systems, Inc.'s 2025 revenue are not publicly itemized in the same manner as the direct defense contracts. However, the broader ecosystem shows activity; for instance, in September 2025, NVIDIA announced a $5 billion investment in Intel, taking just under 5% of Intel's stock to co-develop chips for PCs and data centers.

The component suppliers for ruggedized server and storage hardware are integrated into the cost of goods sold, but no specific supplier contract values are disclosed. The focus remains on the gross margin performance of the underlying segments.

Channel partners for international distribution are primarily represented by the Bressner segment. This segment's performance in Q3 2025 showed a gross margin percentage of 24.6%, compared to 23.1% in Q1 2025. The Bressner segment revenue grew by $2.3 million year-over-year in Q3 2025, with $1.7 million attributed to core business strength.

• OSS segment gross margin targeted in the mid-30s to low to mid-40s percentage range for Q4 2025.
• The company reported Q3 2025 consolidated revenue of $18.8 million.
• The company raised full-year 2025 consolidated revenue guidance to $63 million to $65 million.

One Stop Systems, Inc. (OSS) - Canvas Business Model: Key Activities

You're looking at the core engine of One Stop Systems, Inc. (OSS), which is all about building specialized, high-performance hardware for tough environments. This isn't off-the-shelf stuff; it's about engineering for the edge, specifically where AI and machine learning need data center-class power without the data center.

The primary activity is the Design and manufacture rugged AI/ML compute solutions. One Stop Systems, Inc. designs and manufactures Enterprise Class compute and storage products built to enable rugged AI, sensor fusion, and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to harsh and challenging applications, whether they are on land, sea or in the air. OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. For instance, their solutions are used in autonomous trucking and farming, as well as aircraft, drones, ships, and vehicles within the defense industry. This focus is validated by the strong performance in their core segment; for Q3 2025, the OSS segment revenue increased 43.4% year-over-year, reaching $9.3 million.

A critical, and perhaps de-risking, activity is Customer-funded development for new defense and commercial programs. This shows customers are investing upfront in One Stop Systems, Inc.'s capabilities. In 2024, customer-funded development revenue grew by a massive 118% to $3.7 million. We see this continuing into 2025; for example, an initial $500,000 development-phase order in March 2025 for a medical imaging OEM transitioned into a $2 million production contract, with an anticipated total program value of at least $25 million over the next five years. Also, their success on the P-8A program has resulted in over $45 million in total contracted revenue to date.

The company's strategic focus is heavily tied to its Strategic transition to High-Performance Edge Compute (HPeC). One Stop Systems, Inc. implemented this transition to capture the growing HPeC market for AI, ML, autonomy, and sensor fusion at the edge. They are moving squarely into high-performance rugged systems, which is reflected in their 2025 guidance where the OSS segment is expected to grow over 20% year-over-year, with the latest raised guidance suggesting growth between 22%-30%.

Underpinning the product delivery is the Engineering and integration of complex hardware platforms. This involves delivering specialized compact products for demanding applications. For example, the recent Navy contract requires the delivery of 61 military-spec data storage units for the P-8A Poseidon Reconnaissance Aircraft, and the medical imaging contract involves 65 advanced liquid-cooled 3U-SDS systems. The gross margin on the OSS segment reflects the complexity and value added, hitting 45.5% in Q1 2025 and 45.6% in Q3 2025.

Finally, a key operational activity is Managing a sales pipeline exceeding $1 billion. One Stop Systems, Inc. has a strengthened sales pipeline that exceeds $1 billion. Management explicitly links future performance to this pipeline, expecting revenue and profitability to improve at a higher rate in the second half of 2025 based on current trends and this expanding sales pipeline.

Here's a quick look at the 2025 financial expectations tied to these activities:

Metric	2025 Full Year Guidance (Raised)	Q3 2025 Actual
Consolidated Revenue	$63 million to $65 million	$18.8 million
OSS Segment Revenue	$30 million to $32 million	$9.26 million
OSS Segment YoY Growth	22% to 30%	43.4%
Consolidated Gross Margin	Expected to be positive (implied by EBITDA positive)	35.7%

The company's focus on execution is clear, aiming for consolidated EBITDA break-even for the full year of 2025.

You can see the operational focus through these recent bookings and contract milestones:

• Q1 2025 OSS segment bookings: $10.4 million.
• Medical Imaging Contract Value: $2 million production order.
• P-8A Navy Contract Value: Around $5 million announced in July 2025.
• Expected 2025 OSS segment book-to-bill ratio: On the order of 1.2x.

Finance: review the cash burn rate against the $9.1 million cash and short-term investments as of March 31, 2025, by next Tuesday.

One Stop Systems, Inc. (OSS) - Canvas Business Model: Key Resources

You're looking at the core assets One Stop Systems, Inc. (OSS) relies on to power its rugged AI/ML edge solutions. These aren't just line items; they are the tangible and intangible things that make their value proposition possible.

Proprietary intellectual property in ruggedization and liquid cooling

One Stop Systems, Inc. builds its foundation on specialized design capabilities for harsh environments. This includes their best-in-class PCIe technologies and proprietary liquid cooling solutions, which are critical for deploying datacenter-class compute performance at the edge.

Evidence of this IP strength includes:

• Leveraging engineering expertise to design a ruggedized Liquid Cooling System for a commercial autonomous truck customer, with an initial prototype order valued at $300,000.
• Securing a pilot project to provide a liquid immersion-cooled data storage system for a U.S. intelligence agency mobile ground station application.
• Designing and manufacturing ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software.

Specialized engineering talent for AI/ML at the edge

The ability to deliver high-performance compute and storage products for AI, machine learning, and sensor processing in demanding, rugged applications is directly tied to the skill of the engineering team. This talent is focused on integrating the latest data center performance into compact, deployable hardware platforms.

Multi-year platform wins providing predictable revenue visibility

The strategic focus on establishing OSS as a platform incumbent on large, multi-year programs is showing traction, moving the revenue mix toward more predictable streams. This is a key shift for One Stop Systems, Inc.

Here's a look at the platform win metrics as of late 2025:

Metric	Value/Amount	Context/Date
Expected 2025 Consolidated Revenue Guidance (Raised)	$63 million to $65 million	As of Q3 2025
Expected OSS Segment Revenue for Full Year 2025	Approximately $30 million to $32 million	As of Q3 2025
Commercial Aerospace Platform Initial Order Value	$1.5 million	October 2025
Commercial Aerospace Platform Expected 3-Year Revenue	Approximately $6.0 million	From October 2025 award
Potential Datacenter Pipeline Opportunity	$200 million	Multi-year pipeline
Customer Funded Development Revenue (2024 Growth)	118% increase to $3.7 million	2024 figure
Expected OSS Segment Book-to-Bill Ratio (2025)	On the order of 1.2x	Expected for 2025

The company reported a consolidated revenue of $18.8 million for the third quarter of 2025, a 37% year-over-year increase.

Financial capital, including $12.5 million raised in a September 2025 offering

Strengthening the balance sheet was a clear action taken to fund growth initiatives. This capital injection provides flexibility moving into the end of 2025.

The key financial figures related to this strengthening are:

• Gross proceeds from the Registered Direct Offering completed on October 1, 2025: approximately $12.5 million.
• Cash and short-term investments as of September 30, 2025: $6.5 million.
• Total working capital as of September 30, 2025: $23.1 million.
• The company expected to be EBITDA positive on a consolidated basis for the full year of 2025.

The Bressner Technology acquisition for European market access

The European market access is anchored by the acquisition of Bressner Technology GmbH, which happened back in November 2018, but remains a core resource today. Bressner, based in Gröbenzell, Germany, acts as the specialized high-performance computing supplier for the region.

The structure and scale of this European resource include:

• Bressner provides manufacturing, test, sales, and marketing services for customers throughout Europe and the Middle East.
• The subsidiary has over 700 customers throughout Europe.
• Major OEM customers include Novartis, Ipsotek, Intel, Rohde & Schwarz, and BMW.
• The initial acquisition consideration in 2018 included €4,725,000 in cash and 106,463 newly-issued restricted shares of OSS common stock.

The Bressner segment is off to a good start in 2025 with anticipated rising demand throughout the year, following a weaker economy in Europe in 2024.

One Stop Systems, Inc. (OSS) - Canvas Business Model: Value Propositions

You're looking at the core offerings that One Stop Systems, Inc. (OSS) brings to its demanding customer base, primarily in defense and specialized commercial sectors. These aren't just features; they are quantified solutions to extreme operational problems.

Data center performance brought to harsh, challenging edge environments

One Stop Systems, Inc. (OSS) delivers the latest data center performance to applications on land, sea, or in the air, meaning you get high-end processing power where traditional servers fail. This capability is reflected in the financial performance of the segment driving this work. For the third quarter of 2025, the OSS segment revenue hit $9.3 million, showing a 43.4% increase year-over-year. The gross margin for this segment in the same period was 45.6%. This segment is central to the company's overall financial picture, with management previously expecting approximately $30 million in OSS segment revenue for the full year 2025.

Rugged Enterprise Class compute for AI, ML, and sensor fusion

The value here is enabling Artificial Intelligence (AI), Machine Learning (ML), and sensor processing workloads at the edge without compromise. This focus is translating directly into significant defense contract wins. For instance, One Stop Systems, Inc. (OSS) announced a record $6.5 million contract in April 2025 to deliver 80 high-performance servers and Field-Programmable Gate Array (FPGA) systems for a mobile intelligence platform supporting U.S. Department of Defense programs. Furthermore, total contracted revenue to support the P-8A Poseidon platform alone has reached over $45 million. The company's strong order intake is also evidenced by a book-to-bill ratio above 2, suggesting high visibility into future revenue execution.

Custom-engineered, liquid-cooled systems for high reliability

While specific liquid-cooling deployment numbers aren't public, the high reliability is quantified by the long-term nature of the platform agreements. You see this in the renewal for the Virginia Class Submarine PCIe infrastructure, which OSS has been operating under since 2010, with a recent renewal supporting the program for at least another 10 years. The commitment to high-reliability, custom solutions is a key part of securing these multi-year positions.

Here's a quick look at the financial context surrounding the OSS segment as of late 2025:

Metric	Value (Q3 2025)	Context/Guidance (FY 2025)
OSS Segment Revenue	$9.3 million	Expected $\sim$$30 million for the full year
OSS Segment Gross Margin	45.6%	Targeted in the mid-30s to low 40s on a sustained basis
Consolidated Revenue Guidance	N/A	Raised to $63 to $65 million
Consolidated Financial Goal	N/A	EBITDA break-even for the full year 2025

Long-term supply chain stability for multi-year defense programs

The value proposition here is mitigating risk for defense primes by offering a stable supply base, which is crucial given the current environment. This stability is demonstrated by contract structures. For example, the P-8A Poseidon contract renewal included a 5-year support contract under an existing $36 million, 5-year sole-source supplier agreement. The company is actively pursuing these platform opportunities to create more predictable and scalable revenue streams.

Accelerated time-to-deployment for complex military and commercial systems

The ability to rapidly deploy complex systems is evidenced by the expected shipment timelines for new awards. The record $6.5 million contract mentioned earlier had expected shipments to commence in 2025 and contribute to revenue throughout that year. Furthermore, customer-funded development revenue grew by 118% in 2024, showing success in establishing new revenue streams that likely feed into faster deployment cycles for future platforms. As of October 31, 2025, the stock price was $5.00, with a market capitalization of $122 million.

• Focus on designing One Stop Systems, Inc. (OSS) into key platforms to become the incumbent supplier.
• Expanding the number of One Stop Systems, Inc. (OSS) systems integrated into existing customer platforms.
• New proprietary PCIe Gen5 platforms like Ponto are expected to boost average selling prices starting in 2026.

Finance: draft 13-week cash view by Friday.

One Stop Systems, Inc. (OSS) - Canvas Business Model: Customer Relationships

You're looking at how One Stop Systems, Inc. (OSS) builds and maintains the deep ties that fuel its revenue, especially as it pushes for platform incumbency. The relationships here aren't just transactional; they are embedded engineering partnerships, which is key for a company focused on rugged, specialized compute.

Dedicated, collaborative development via agreements like the USSOCOM CRADA

The relationship with the U.S. Special Operations Command (USSOCOM) is a prime example of this deep collaboration. One Stop Systems, Inc. announced entering a Cooperative Research and Development Agreement (CRADA) with USSOCOM in May 2025 to create advanced, durable High Performance edge Computer (HPeC) solutions. This isn't just a sale; it's a joint effort to enhance situational awareness and decision-making for Special Operations Forces (SOF) in maritime operations. The CRADA leverages OSS's expertise in Enterprise Class compute systems designed for extreme conditions, aligning with USSOCOM's strategic initiative for cognitive dominance. This type of agreement is an important pillar in the company's strategy to forge relationships across all branches of the U.S. Department of Defense.

• The USSOCOM CRADA focuses on AI and ML computing solutions for rugged, edge environments.
• The collaboration supports USSOCOM's strategic initiative for enhancing SOF capabilities.
• This defense sector alignment is part of a broader strategy to expand relationships across the U.S. Armed Forces.

Deep, multi-year platform incumbent status with key customers

One Stop Systems, Inc. is actively executing a strategy to move beyond one-off sales and establish itself as a platform incumbent on large, multi-year programs across both defense and commercial sectors. This focus is intended to drive long-term value by building a strong, multi-year backlog and increasing predictable, recurring revenue. For instance, the company is pursuing a potential $200 million multi-year pipeline opportunity within the composable infrastructure/datacenter market, which saw an initial contract for 100 units announced in 2024. Furthermore, as of October 2025, One Stop Systems announced a New Multi-Year Platform Award for Commercial Passenger Cabin Systems. The goal for the OSS segment in 2025 was to achieve a book-to-bill ratio on the order of 1.2x, signaling accelerating momentum toward these platform wins.

Here's a look at the scale of the customer pipeline and recent contract activity:

Customer/Market Focus	Metric/Value	Status/Timeline
Composable Infrastructure/Datacenter Pipeline	Potential value of $200 million	Multi-year opportunity being pursued
Commercial Passenger Cabin Systems	New Multi-Year Platform Award	Announced October 2025
U.S. Navy P-8A Poseidon Program	$5 million contract secured	Revenue recognized throughout 2025
OSS Segment Book-to-Bill Ratio (Expected)	On the order of 1.2x	For the full year 2025

Personal assistance and high-touch support for custom OEM solutions

For custom OEM solutions, the relationship requires a high-touch approach, which is evident in the transition from development to volume production. The company's Customer funded development revenue grew by 118% in 2024 to $3.7 million, showing that customers are investing significant upfront resources in tailoring OSS technology. This development work is the foundation for the personal assistance needed to integrate complex, rugged Enterprise Class compute into unique platforms. General industry data suggests that 73% of consumers expect companies to understand their unique needs, and for OSS, this translates to deep engineering support to ensure their hardware meets the exact, often extreme, operational requirements of the customer's final product. This level of engagement is what solidifies the platform incumbent status.

Transitioning development programs to volume production contracts

The success of the customer relationship model is validated when development programs convert into predictable, high-volume revenue streams. A concrete example is the medical imaging OEM relationship. One Stop Systems, Inc. secured an initial $500,000 development order in March 2025, which then transitioned to a $2 million production contract in July 2025. This specific contract is expected to result in a total program value of at least $25 million over the next five years. This transition, which involves delivering 65 advanced liquid-cooled 3U-SDS systems, demonstrates the successful movement from an R&D partnership to a sustained volume production commitment. This is the desired outcome for the multi-year strategy, moving from initial development investment to recurring, high-value shipments.

The financial results for 2025 reflect this strategy, with the company raising its full-year consolidated revenue guidance to $63 million to $65 million as of November 2025, up from prior guidance of $59 million to $61 million. The OSS segment revenue guidance was also raised to $30 million to $32 million.

One Stop Systems, Inc. (OSS) - Canvas Business Model: Channels

You're looking at how One Stop Systems, Inc. (OSS) gets its specialized, rugged compute solutions into the hands of defense and commercial clients as of late 2025. The channel strategy clearly splits between the high-performance, direct-sales-heavy OSS segment and the distribution-focused Bressner segment.

The direct sales force targets the U.S. Department of Defense and large Original Equipment Manufacturers (OEMs). This is where the high-margin, custom server products and data storage solutions for defense and government customers land. For the nine months ended September 30, 2025, the OSS segment revenue was a key driver, with the third quarter alone hitting $9.3 million, representing a 43.4% year-over-year increase. Management expects the full-year 2025 OSS segment revenue to land between $30 million and $32 million, which is an anticipated annual growth rate of 22% to 30%. This segment's success is also reflected in the overall company book-to-bill ratio of 2.3 for the first half of 2025, showing strong future revenue visibility.

International distribution is primarily handled through the Bressner segment. This channel is critical for geographic reach, as revenue from customers with non-U.S. billing addresses represented approximately 63% of One Stop Systems, Inc.'s total revenue for the three and six month periods ended June 30, 2025. The Bressner segment saw its revenue increase by 8.7% for the three months ended June 30, 2025.

Direct engagement with government agencies is a core function of the OSS segment sales team, securing program wins for rugged AI and sensor processing. The company's strategy is to establish itself as a platform incumbent on large, multi-year programs within the defense market. Specific wins are highlighted by the Q2 2025 revenue being driven by higher sales to a defense customer and a US government customer. Furthermore, One Stop Systems, Inc. secured a $500,000 deal with Safran Federal System in Q3 2025.

Specialized sales teams focus on vertical markets beyond defense, such as medical imaging, autonomous trucking, and commercial aerospace, which fall under the OSS segment's commercial market strategy. For instance, an initial $1.5 million order from a Canadian integrator in October 2025 is expected to contribute approximately $6 million in total revenue over the next three years from the commercial aerospace sector.

Here's a quick look at the segment revenue performance that reflects these channel activities for the most recently reported quarter:

Channel/Segment Focus	Metric/Period	Financial Number (USD)
OSS Segment Revenue (Defense/OEM/Gov Focus)	Q3 2025 Revenue	$9.3 million
Bressner Segment Revenue (International Distribution)	Q3 2025 Revenue	Approximately $9.5 million (Calculated as $18.8M Consolidated - $9.3M OSS)
Consolidated Revenue (Total Channels)	Q3 2025 Revenue	$18.8 million
OSS Segment Revenue (Defense/OEM/Gov Focus)	Q1 2025 Revenue	$5.2 million
International Revenue Share (Bressner Proxy)	Six Months Ended June 30, 2025	63% of total revenue

The overall channel execution is driving the upward revision of the full-year 2025 consolidated revenue guidance to between $63 million and $65 million.

The key sales indicators for the direct and specialized teams include:

• Customer-funded development revenue grew by 118% in 2024, reaching $3.7 million.
• Strong bookings in Q1 2025 for the OSS segment totaled $10.4 million.
• The company secured a $1.5 million order from a Canadian integrator in October 2025.
• The company is pursuing a potential $200 million multi-year pipeline opportunity in the composable infrastructure/datacenter market.

Finance: draft 13-week cash view by Friday.

One Stop Systems, Inc. (OSS) - Canvas Business Model: Customer Segments

You're looking at the core customer groups One Stop Systems, Inc. (OSS) serves as of late 2025, based on their latest reported performance through the third quarter of 2025. The company is clearly executing a strategy focused on high-reliability, ruggedized Enterprise Class compute solutions for demanding environments.

U.S. Defense and Aerospace (e.g., U.S. Navy P-8A, USSOCOM)

This segment appears to be a primary driver, with significant contract activity reported throughout 2025. The company is executing against multi-year platform positions, which suggests a degree of revenue predictability.

• Lifetime contracted revenue on the P-8A Poseidon platform exceeds $50 million.
• In July 2025, One Stop Systems secured a $3.9 million order from a U.S. defense contractor to support the P-8A Poseidon Reconnaissance Aircraft.
• A February 2025 contract renewal for the P-8A program was valued at approximately $4 million, including a 5-year support extension.
• In April 2025, a record $6.5 million contract was announced to deliver 80 high-performance servers for a mobile intelligence platform supporting U.S. military operations.
• A September 2025 contract with Safran Federal Systems was for $500,000, with potential for over $3 million in cumulative sales over the next five years.
• A February 2025 renewal also included a $2 million contract to upgrade PCIe infrastructure for sonar sensor processing on the Virginia Class Submarine.

For the nine months ended September 30, 2025, consolidated revenue was $45.12 million, with the OSS segment revenue for the third quarter alone reaching $9.3 million, a 43.4% increase year-over-year.

Commercial OEMs in medical imaging and healthcare

One Stop Systems, Inc. is successfully transitioning from pilot phases to volume production with key Original Equipment Manufacturers (OEMs) in this space, indicating deepening commercial relationships. The focus here is on ruggedized, enterprise-class compute for advanced imaging.

Here's a look at the specific medical imaging contract progression:

Date Announced	Initial Order Value	System Provided	Projected Total Program Value (Over 5 Years)
March 2025	$500,000	4U, short-depth-server (SDS) with Enterprise Class NVIDIA GPUs for Breast Scanning technology.	Over $25 million.
July 2025	$2 million	65 advanced liquid-cooled 3U-SDS systems for volume production.	At least $25 million.

The July 2025 contract represented a move from pilot to volume production, following the initial March 2025 order.

Industrial and commercial aerospace companies

While specific revenue breakdowns for this category are less detailed than Defense or Medical in the latest reports, there is clear evidence of activity and impact. The company is pursuing platform opportunities in this sector as well. For instance, the first quarter of 2025 saw consolidated revenue of $12.3 million, which was impacted by lower volume of shipments to a commercial aerospace customer. Also, One Stop Systems announced a new Multi-Year Platform Award for Commercial Passenger Cabin Systems in October 2025.

Research institutions and data centers requiring high-performance computing

This customer group is served by the core technology that supports the defense and medical segments-ruggedized, high-performance compute and data storage solutions. The company's overall OSS segment revenue for Q3 2025 was $9.3 million, driven by demand for custom server products and data storage solutions. The company raised its full-year 2025 consolidated revenue guidance to between $63 million and $65 million, with expected OSS segment revenue of approximately $30 million. This growth reflects demand across all its target markets, including those needing data center-class performance in non-traditional environments.

Finance: draft 13-week cash view by Friday.

One Stop Systems, Inc. (OSS) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving One Stop Systems, Inc. (OSS) operations as they push toward their 2025 guidance. The cost structure is heavily weighted toward the direct costs of building their specialized, rugged compute hardware, plus the necessary overhead to support high-end engineering and sales growth.

For the first quarter of 2025, total operating expenses hit $5.9 million, which represented a year-over-year increase of 19.2%. This jump shows increased investment in the operational side of the business as they pursue their targets.

Let's break down the key cost components using the latest available detailed annual figures from 2024 as a proxy for the structure, alongside the Q1 2025 performance metrics where available.

Cost Component	2024 Annual Amount (USD)	Q1 2025 Data Point
Cost of Goods Sold (COGS)	$46,976,000	Calculated COGS for Q1 2025 was approximately $8.29 million (based on $12.3M revenue and 32.6% gross margin)
Operating Expenses (Total)	Not explicitly stated for 2024 Annual Total	$5.9 million for Q1 2025, up 19.2% YoY
Research and Development (R&D) Expenses	$4,097,000	Part of the increased OpEx; focused on platforms like PCIe Gen5/6
Sales, General, and Administrative (SG&A) Expenses	$16,978,000	Supports growth strategy and sales pipeline development

Cost of Goods Sold (COGS) for hardware components and manufacturing is the single largest expense category, as expected for a hardware-centric business. The 2024 annual COGS was $46.98 million. However, the gross margin improved significantly in Q1 2025 to a consolidated 32.6%, with the OSS segment hitting 45.5%. This margin improvement suggests better component sourcing or a more profitable mix of products shipping, which directly lowers the effective COGS percentage relative to revenue.

Research and Development (R&D) for new platforms like PCIe Gen5 is a critical, though smaller, fixed cost driver. The 2024 R&D spend was $4.097 million. This spending is directly tied to maintaining their technology leadership, such as the unveiling of the PCIe Gen5 expansion system in March 2025 and the PCIe 6.0 solutions in November 2025. You need to track customer-funded development, which was $3.7 million in 2024, as this offsets internal R&D cash burn.

Sales, General, and Administrative (SG&A) costs to support growth were $16.978 million in 2024. This line item covers the infrastructure needed to manage the business and drive the sales pipeline, which management noted was exceeding $1 billion in potential opportunities. This spending is necessary to convert that pipeline into the expected $59-$61 million in 2025 consolidated revenue.

Labor costs for specialized engineering and technical staff are embedded within both R&D and SG&A, but they represent the core human capital expense. The overall increase in Operating Expenses by 19.2% in Q1 2025 likely reflects hiring or increased compensation for these specialized roles needed to develop and support the next-generation compute platforms.

Here's a look at the historical context for the major expense buckets (in thousands of USD):

• R&D Expenses in 2024: $4,097
• R&D Expenses in 2023: $4,331
• SG&A Expenses in 2024: $16,978
• SG&A Expenses in 2023: $15,916
• Total Operating Expenses in Q1 2025: $5,900

The company is clearly spending to grow, but the margin improvement in Q1 2025 suggests they are getting better leverage on their COGS spend. Finance: draft 13-week cash view by Friday.

One Stop Systems, Inc. (OSS) - Canvas Business Model: Revenue Streams

You're looking at the engine room of One Stop Systems, Inc. (OSS) right now-how they actually bring in the money. It's a mix of hard product sales, long-term commitments, and upfront development cash, which is typical for defense and specialized tech suppliers.

The core of the revenue comes from product sales, specifically their ruggedized servers and storage solutions. For the third quarter of 2025, consolidated revenue hit $18.8 million. This performance was strong enough that One Stop Systems, Inc. raised its full-year 2025 revenue guidance to a range between $63 million and $65 million.

The business model relies heavily on securing multi-year defense and commercial platform contracts. These provide a stable revenue base. For instance, the company has historically received over $45 million+ in total contracted revenue supporting the U.S. Navy's P-8A program alone. More recently, in July 2025, they announced a new $5 million contract for P-8A data storage units, and another award of $3.9 million for the same platform in July 2025. Furthermore, renewals in February 2025 included approximately $4 million for P-8A radar sensor processing.

A key indicator of future production revenue is the customer-funded development stream. This area showed explosive growth, increasing by 118% in 2024, reaching $3.7 million. These development relationships are what you expect to transition into larger production orders one to two years later, so that 2024 growth is a leading indicator for 2025 and beyond.

Revenue streams are clearly segmented, which helps you see where the immediate dollars are coming from and where the future growth is being seeded. Here's a look at the segment performance based on the Q3 2025 results, where the total revenue was $18.8 million.

Revenue Stream Segment	Q3 2025 Revenue (Approximate)	Year-over-Year Growth Context
OSS Segment (Ruggedized Servers/Storage)	$9.3 million	Increased 43.4%
Bressner Segment (European Sales)	$9.5 million (Inferred)	Increased 31.1%

Sales from the European Bressner segment are a distinct revenue component. While the OSS segment is driven by defense and AI/ML, the Bressner segment sales are tied to the European economy, which has seen some softness, though Q3 2025 showed a strong 31.1% increase. To be fair, the Bressner segment is where most of the company's operating leverage comes from because it is profitable.

You can track the key revenue drivers that feed into the overall numbers:

• Product sales of ruggedized servers and storage (Q3 2025: $18.8 million).
• Multi-year platform contracts (P-8A total historical value: over $45 million+).
• Customer-funded development revenue (grew 118% in 2024 to $3.7 million).
• Full-year 2025 consolidated revenue guidance: $63 million to $65 million.
• Sales from the European Bressner segment, which grew 31.1% in Q3 2025.

Finance: draft 13-week cash view by Friday.