One Stop Systems (OSS) shares surged Wednesday after the company reported first-quarter 2026 earnings that blew past expectations. The stock hit a new 52-week high, up 57.47% to $15.38 at the time of publication.

One Stop Systems Earnings Snapshot

The company reported revenue from continuing operations growth of 55% to $8.1 million, beating the consensus estimate of $7 million. The growth was driven by stronger sales of data storage systems for the P-8A program, higher demand for liquid-cooled servers from a medical imaging OEM, and defense-related prototype compute systems for combat vehicle vision applications.

Customer-funded development revenue grew 145% year over year, reflecting deeper engagement in next-generation AI and defense programs. Adjusted EPS came in at one cent, versus the consensus estimate of a loss of four cents.

Gross margin improved to 51.6% from 45.5% a year earlier, thanks to a favorable revenue mix, greater engineering efficiencies in funded development programs, and better manufacturing absorption from higher volumes.

Contract Wins

New bookings totaled nearly $15 million, resulting in a 1.8 book-to-bill ratio. Demand was notably strong from defense customers, including the U.S. Navy, and commercial aerospace clients.

The company won a $10.5 million set of new awards from the U.S. Navy and a defense contractor, bringing the cumulative program value to over $65 million to date. In aerospace, it secured a $1.1 million order with potential to scale up to $6.5 million over five years. In robotics, it signed a contract expected to generate around $2 million in 2026 and between $10 million and $15 million over five years. Additionally, a new energy data center customer placed an initial order of over $500,000, with total long-term potential estimated at up to $10 million.

Outlook

For 2026, the company expects 20% to 25% revenue growth, gross margins around 40%, and positive EBITDA, while noting potential supply chain pressures on component availability. One Stop Systems sees sales of $38.659 million to $40.270 million, versus analyst estimates of $38.974 million.

One Stop Systems Price Action

One Stop Systems shares were up 57.47% at $15.38 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to market data.