One Stop Systems Inc. (OSS) is having a pretty good Thursday. The Escondido, California-based company announced $10.5 million in fresh awards from the U.S. Navy and a major defense contractor to support the P-8A Poseidon Reconnaissance Aircraft program, and investors responded by pushing shares up nearly 9% before the opening bell.

What They're Building

One Stop Systems will deliver rugged data storage units that support C5ISR mission capabilities aboard the P-8A Poseidon. Think hot-swappable NVMe flash storage canisters designed for rapid, secure data offload while the aircraft is airborne. The company expects these awards to generate revenue starting in 2026 and continuing into 2027.

The Bigger Picture

This marks OSS's largest aggregate orders tied to the P-8A platform to date. CEO Mike Knowles noted that the company has now "secured more than $65 million in total contracted revenue associated with this mission-critical aircraft to-date, including over $23 million awarded since the beginning of 2025."

A Short Squeeze Setup?

Here's where it gets interesting. Short interest in OSS recently jumped from 1.95 million to 2.43 million shares, representing 10.86% of publicly available shares. With average daily volume around 3.12 million shares, shorts could theoretically cover their positions in roughly one day. That's the kind of setup that can amplify upside moves if momentum builds.

Price Action: OSS shares traded at $9.10 in Thursday's premarket session, up 8.98%.