One Stop Systems (OSS) secured a $1.2 million pre‑production order from a new U.S. defense prime contractor, a win that expands the company’s presence in the Army’s next‑generation vision and sensor programs and positions OSS for larger production opportunities as the Army modernizes its vehicle fleet.
The order calls for a GPU‑accelerated video/sensor concentrator, an intelligent PCIe switch, and a GPU‑accelerated crew computer, all housed in a SWaP‑optimized, passively cooled chassis designed for ground combat environments. The systems will be integrated into the Stryker, Bradley, and Abrams platforms, and prototype delivery is slated for three to six months after testing and integration at the U.S. Army Ground Vehicle Systems Center in Warren, Michigan.
OSS’s Q3 2025 results reflected the impact of the contract win. Revenue rose 36.9% to $18.8 million, beating analyst estimates of $16.24 million by $2.56 million (a 15.8% beat). The increase was driven by stronger demand in the defense segment and a more profitable product mix, which also helped lift gross margin to 35.7% from –12.5% in Q3 2024. Adjusted EBITDA swung to a positive $1.2 million from a $6 million loss a year earlier, a turnaround attributed to the elimination of prior‑year inventory charges and improved operational leverage. Management raised full‑year 2025 revenue guidance to $63–$65 million, up from the previous $60–$62 million range, signaling confidence in sustained demand for OSS’s rugged compute solutions.
CEO Mike Knowles said the contract “validates the performance, ruggedization, and technical maturity of our platforms” and that it “strengthens our position to compete for larger production opportunities as the Army pursues next‑generation vision, sensor distribution and sensor processing technologies.” He added that the sale of Bressner Technology for $22.4 million has created a more focused, cash‑rich business with no debt, positioning OSS to invest in high‑margin AI and edge computing markets.
Analysts noted that the 10% market‑reaction surge reflected the market’s recognition of OSS’s growing defense footprint and the strategic importance of the new prime partnership. The win also underscores the company’s ability to secure high‑value contracts in a sector that is actively modernizing its vehicle fleet, reinforcing investor confidence in OSS’s long‑term growth trajectory.
The contract win, combined with the divestiture of Bressner and the company’s focus on defense and AI‑enabled edge computing, signals a clear strategic pivot toward high‑margin, high‑impact defense solutions. OSS’s ability to deliver rugged, GPU‑accelerated systems that meet the Army’s stringent requirements positions it well for future opportunities as the U.S. military continues to upgrade its combat vehicles.
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