One Stop Systems revenue jumps 70% as AI defense pivot drives record margins

One Stop Systems (NASDAQ:OSS) reported a transformative fourth quarter for the fiscal year ended December 31, 2025, marked by explosive top-line growth and a significant shift in its corporate structure.

The provider of high-performance edge computing modules saw revenue from continuing operations climb to $12 million, a 70.2% increase year-over-year.

The company achieved a record quarterly gross margin of 58.5%, a milestone driven by a favorable product mix heavily weighted toward specialized AI defense and autonomous vehicle applications.

Net income from continuing operations for the quarter was $2 million, or $0.08 per diluted share.

This operational strength was bolstered by the successful closing of the Bressner divestiture on December 30, 2025.

The $22.4 million sale resulted in $8.2 million in income from discontinued operations, including the gain on the sale, effectively cleaning the company's balance sheet of non-core assets.

OSS exits 2025 in its strongest liquidity position to date, holding $31.2 million in cash and $45.3 million in working capital.

Management noted that the proceeds from the Bressner sale provide the necessary capital to accelerate R&D for its next-generation "AI on the Fly" platforms, which are seeing increased adoption in military and industrial sectors requiring high-compute power in rugged environments.

Looking ahead to 2026, One Stop Systems issued optimistic guidance, projecting revenue growth of 20% to 25%.