One Stop Systems raised its 2026 revenue-growth outlook after reporting stronger-than-expected third-quarter sales and orders. Revenue from continuing operations grew 35.9% year over year, with growth led by commercial customers in healthcare, aerospace and specialized data-center applications, alongside the company’s established defense business.
Management now expects revenue growth of approximately 40% for 2026, up from its previous range of 25% to 30%. It also reported a year-to-date book-to-bill ratio of 1.46, indicating that orders received exceeded revenue recognized over that period.
Key details
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Third-quarter revenue rose to $12.6 million from $9.3 million a year earlier. The company attributed the increase to new customers and higher production volumes from some existing customers.
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Commercial demand contributed to the growth. The company cited initial deliveries to a customer developing autonomous energy nodes to power computing equipment, increased production deliveries for an aerospace customer’s in-flight entertainment systems, and higher sales to a medical-imaging original equipment manufacturer.
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The 2026 growth outlook was lifted to about 40%. Management said stronger-than-expected third-quarter sales and orders prompted the increase from its earlier 25%–30% expectation.
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The year-to-date book-to-bill ratio was 1.46. Management said third-quarter bookings were affected by the timing of customer orders, but expects several large, multimillion-dollar orders to close in the fourth quarter. It also pointed to potential opportunities in both defense and commercial markets.
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Adjusted EBITDA was $0.3 million, up 33.7% year over year. The quarter included $0.5 million in bad-debt expense tied to the bankruptcy of a former customer and $0.4 million in legal expenses related to a previously announced settlement with another former customer. Management said adjusted EBITDA would have been about $1.2 million, or nearly 10% of revenue, excluding those two costs.
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The former Bressner business is excluded from the reported continuing operations. One Stop Systems sold all of Bressner Technology GmbH’s assets and operations on December 30, 2025, and classified the business and related assets and liabilities as discontinued operations.
Plain-English implications
The higher growth outlook reflects stronger sales and orders than management had expected, while the reported book-to-bill ratio shows order intake outpaced recognized revenue year to date. The quarter’s adjusted EBITDA was held down by the bad-debt and legal expenses identified by management; its higher figure excluding those costs is a company-presented measure, not the reported quarter result.