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One Stop Systems, Inc. (NASDAQ:OSS) Sees Upgrade and Impressive Q3 2025 Earnings

  • Alliance Global Partners upgraded NASDAQ:OSS to a "Buy" rating with a new price target of $8.50.
  • OSS reported a Q3 2025 earnings per share of $0.03, significantly beating the Zacks Consensus Estimate.
  • The company's Q3 revenue was $18.76 million, a 37% year-over-year increase, with a consolidated gross margin of 35.7%.

One Stop Systems, Inc. (NASDAQ:OSS) is a prominent player in the field of rugged Enterprise Class computing, focusing on AI, machine learning, autonomy, and sensor processing at the edge. The company has recently caught the attention of Alliance Global Partners, which upgraded OSS to a "Buy" rating on November 5, 2025. At the time of this announcement, OSS was trading at approximately $5.74, with a new price target set at $8.50, up from the previous target of $8.

The upgrade by Alliance Global Partners coincided with OSS's Q3 2025 earnings call, where the company reported impressive financial results. OSS's earnings per share reached $0.03, significantly surpassing the Zacks Consensus Estimate of $0.01. This marks a substantial improvement from the previous year's loss of $0.30 per share, resulting in an earnings surprise of 200%. The company's revenue for the quarter was $18.76 million, exceeding expectations by 15.78% and showing a notable increase from the $13.7 million reported in the same quarter last year.

OSS's strong performance in Q3 2025 is further highlighted by a 37% year-over-year increase in consolidated revenue, reaching $18.76 million. The OSS segment alone saw a revenue increase of 43.4%, amounting to $9.3 million, with a gross margin of 45.6% for the quarter. This growth, coupled with a consolidated gross margin of 35.7%, resulted in a positive net income and an Adjusted EBITDA of $1.2 million for the third quarter. Reflecting this strong performance, OSS has raised its full-year consolidated revenue guidance for 2025 to a range of $63 to $65 million.

The stock's current price of $5.74 reflects a significant increase of 21.50%, with a rise of $1.02 today. During the trading day, OSS fluctuated between a low of $5.08 and a high of $5.79. Over the past year, the stock has reached a high of $7.20 and a low of $1.85. The company's market capitalization stands at approximately $125.7 million, with a trading volume of 1,161,986 shares on the NASDAQ exchange.