One Stop Systems, Inc. recently announced its financial results for the fourth quarter and the full year ended December 31, 2024, highlighting a notable shift towards growth in higher-margin markets. The company recorded a consolidated revenue of $15.1 million for Q4 2024, reflecting a year-over-year increase of 15.1% compared to $13.2 million in Q4 2023. This growth can be attributed to both the OSS and Bressner segments, with the OSS segment achieving a 10% increase in revenue driven by sales to defense and commercial customers.
Financial Highlights for Q4 2024
- Consolidated revenue stood at $15.1 million, a 15.1% increase year-over-year.
- Bressner segment revenues grew by $1.3 million, while OSS reported a Y/Y increase of $642,000.
- A contract loss charge of $1.2 million impacted overall gross margins, net income, and adjusted EBITDA.
The overall gross margin percentage for Q4 was 15.7%, a decrease from 33.7% in the same quarter last year. Excluding one-time charges, the gross margin improved to 23.8%. Segment-wise, the OSS segment’s gross margin was reported at 9.4% compared to 45.9% a year prior, while Bressner maintained a margin of 21.2%.
2024 Full Year Overview
For the entire year, One Stop Systems reported a consolidated revenue of $54.7 million, down from $60.9 million in 2023, marking a 10.2% decrease primarily due to the loss of a major media customer and a slowdown in economic activity in Germany impacting Bressner. The company also recorded total net losses of $13.6 million for 2024, compared to a loss of $6.7 million in 2023.
Operational Changes and Future Outlook
Management noted significant strides in transforming the business model, focusing on higher-growth sectors. They anticipate double-digit revenue growth in 2025, with OSS segment revenues expected to exceed 20% growth. The outlook for EBITDA in 2025 is expected to break even, with expectations for improved profitability in the latter half of the year.
Key Financial Metrics
| Entity | Q4 2024 Revenue | % of Net Revenue | Q4 2023 Revenue | % of Net Revenue | % Change |
|---|---|---|---|---|---|
| OSS | $7,042,613 | 46.5% | $6,401,047 | 48.7% | 10.0% |
| Bressner | $8,097,533 | 53.5% | $6,754,161 | 51.3% | 19.9% |
| Total | $15,140,146 | 100.0% | $13,155,209 | 100.0% | 15.1% |
Looking ahead, the company is set to hold a conference call to discuss these results further, with insights into their performance and future strategies being shared. A replay of the call will be available for review.