OSS Stock Forecast & Price Target

One Stop Systems Inc has demonstrated significant improvement in its core gross margin, registering at 45.9%, a notable increase of 1350 basis points quarter-over-quarter, resulting in a consolidated gross margin of 33.7%, exceeding previous forecasts and enhancing overall profitability. The company is experiencing stabilization in its core OSS business, which grew approximately 15% sequentially to $6.4 million, reflecting successful diversification efforts and positioning for future growth. Furthermore, the company's five-year opportunity pipeline has expanded to $1 billion, driven by a strengthening demand for AI and ML applications, indicating a robust revenue growth trajectory supported by new program wins and a diversifying customer base.

One Stop Systems Inc. is expected to report revenue of $12.5 million for the upcoming quarter, falling short of the $13 million consensus, indicating persistent revenue challenges with a projection of losses per share at $0.04, in line with previous forecasts. The company's overall outlook for 2024 reflects a decrease in sales, adjusted EBITDA, and earnings per share, forecasting $61.3 million, a negative $900,000, and a loss of $0.05, compared to earlier estimates that were more optimistic. Contributing to this negative outlook, the company experienced a 28% year-over-year decline in sales, driven by a notable absence of media-related revenue and slow commercialization of new wins amid governmental budget constraints, suggesting a challenging operational environment moving forward.