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Date
Wednesday, Nov. 5, 2025 at 10 a.m. ET
Call participants
President & CEO — Mike Knowles
CFO — Dan Gabel
Operator
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Takeaways
Consolidated revenue -- $18.8 million for the third quarter of 2025, up 36.9% year-over-year and rising from $14.1 million in the second quarter.
One Stop Systems (OSS +22.35%) segment revenue -- Rose 43.4% year-over-year in Q3 2025; expected to reach $30 million to $32 million for the full year 2025, representing a 22%-30% annual increase for 2025.
Bresner segment revenue -- Grew by $2.3 million year-over-year, with $600,000 attributed to FX and $1.7 million from core business strength.
Gross margin (consolidated) -- 35.7% in the third quarter of 2025, compared to the prior year's 32% (excluding last year's $6.1 million inventory charge) in Q3 2024.
One Stop Systems segment gross margin -- 45.6%, up 2.4 percentage points from an adjusted 43.2% in the prior year, due to a more profitable product mix.
Bresner segment gross margin -- 26% gross margin, a rise of 400 basis points from the prior year, also attributed to product mix improvement.
Operating expenses -- $6.1 million, a 22% increase, primarily from increased R&D spending.
GAAP net income -- $300,000, or 1 cent per diluted share for Q3 2025; turnaround from a $6.8 million net loss in the prior year quarter.
Non-GAAP net income -- $700,000, or 3 cents per diluted share (non-GAAP) for Q3 2025; compared to a non-GAAP net loss of $6.4 million in Q3 2024.
Adjusted EBITDA -- Adjusted EBITDA was $1.2 million in the third quarter of 2025, compared to an adjusted EBITDA loss of $6 million in the prior year's third quarter.
Full-year 2025 consolidated revenue guidance -- Raised consolidated revenue guidance for full-year 2025 to $63 million to $65 million, up from $59 million to $61 million; company expects positive annual EBITDA.
Cash & short-term investments -- $6.5 million as of September 30, 2025, with $1 million borrowed from a $2 million credit facility.
Direct offering -- Raised $12.5 million in gross proceeds after quarter-end, enhancing working capital and enabling disciplined M&A in 2026.
Trailing twelve-month book-to-bill ratio -- 1.4 for the One Stop Systems segment, reflecting positive bookings momentum.
PA Poseidon contracted platform revenue -- Exceeded $50 million in lifetime revenue, with ongoing order expectations from the U.S. Navy and a Defense Prime into 2026.
Medical imaging program -- Five-year expected program value above $25 million, with potential for broader expansion with the OEM customer.
Commercial aerospace award -- $1.5 million initial order from a Canadian integrator, expected to contribute up to $6 million in revenue over the next three years.
Saffron Federal System award -- Initial $5,000 contract awarded in September, with more than $3 million in additional orders anticipated as of September 2025, initiating a new defense contractor relationship.
Product roadmap -- Planned November launches for two new Gen six systems targeting greater processing capability and efficiency.
Summary
Management signaled rising exposure to defense and commercial AI opportunities, underpinned by product innovation and expansion into regulated markets such as commercial aerospace and healthcare. Backlog coverage is sufficient to meet raised 2025 revenue guidance, with incremental bookings supporting 2026 growth. The recent $12.5 million capital raise, completed after Q3 2025, positions the company to support its working capital ramp and provides strategic M&A flexibility beginning next year. Bookings and customer engagement momentum span both the Americas and Europe, with Bresner division growth bolstered by industrial recovery and favorable foreign exchange effects.
“We have everything in backlog we need to achieve our guidance for 2025,” President & CEO Knowles said, framing government shutdown effects as solely related to timing and not demand.
The Ponto GPU expansion product is undergoing evaluation with data center customers, indicating entry into high-performance compute infrastructure markets.
Core One Stop Systems segment revenue growth is targeted at 20%-30% in 2026, with expected gross margins in the mid-thirties to low- to mid-forties-percent range for 2025.
Bresner segment models for 5% annual growth and stable gross margin entering 2026, with order timing set to keep fourth quarter revenue flat versus third quarter.
Elevated R&D investment in 2025 is anticipated to moderate in 2026 as new product initiatives reach market launch.
Industry glossary
Book-to-bill ratio: Metric indicating the ratio of orders received (bookings) to units shipped and billed (billings) within a specific period; a value above 1 signals growth in demand and backlog.
Gen six systems: Refers to sixth-generation PCI Express (PCIe Gen 6) platform technology, enabling higher data transfer speeds and improved computing performance for edge and data center markets.
Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, excluding certain non-recurring or non-cash items to reflect core operational profitability.
SWAP C: Size, Weight, Power, and Cost; key criteria in military and edge-compute hardware design stipulating product compactness, efficiency, and affordability for field operations.
Full Conference Call Transcript
Mike Knowles: Thank you, Andrew. Good morning, everyone. Thank you for joining today's call. One Stop Systems, Inc. delivered a strong third quarter with significant consolidated revenue growth, higher gross margin, and positive EBITDA net income. Our third quarter and year-to-date performance underscore the solid foundation we have built as we capitalize on increasing demand from both defense and commercial customers for our rugged enterprise-class compute solutions. Since implementing several strategic actions in 2023 and 2024 to reposition One Stop Systems, Inc. for growth, we have seen continual improvements in our financial and operating results.
These actions included strengthening our leadership team of proven defense industry executives, launching a multiyear strategic plan, rebuilding our go-to-market approach, expanding our sales pipeline, and driving higher gross margins. As a result, we have experienced positive bookings momentum over the past twelve months, translating into increased sales and positive operating leverage. I am extremely proud of what our teams have accomplished and believe we are well-positioned for continued growth and strong profitability in the remainder of 2025 and into 2026. We continue to pursue strategic growth opportunities that leverage our high-performance edge compute solution to meet the growing demands of AI, machine learning, autonomy, and sensor fusion at the edge.
Our pipeline is expanding across leading defense organizations and advanced commercial enterprises that seek trusted, proven partners like One Stop Systems, Inc. On a trailing twelve-month basis, our One Stop Systems, Inc. segment had a book-to-bill ratio of 1.4. After a historic level of bookings in the second quarter, third-quarter trends reflected expected quarter-to-quarter variability. Our growing pipeline and customer engagement activities remain strong across both defense and commercial markets. Our second-quarter performance also reflects our continued focus on fulfilling recent awards, investing in next-generation product development, and advancing new program opportunities that are expected to contribute to positive bookings growth in 2026 and 2027.
Overall, we are tracking ahead of our plan in product development, which gives us confidence in our long-term growth trajectory. During the third quarter, we continued to support and increase our exposure on the PA Poseidon reconnaissance aircraft. To date, we have recognized lifetime contracted revenue over $50 million on the PA platform. In addition, we had previously announced a five-year sole-source supplier agreement and a five-year extension support, which involves equipping the PA aircraft and ground-based stations with high-capacity flash storage systems, spare flash storage canisters, and related support services. We expect continued orders from both the U.S. Navy and our Defense Prime customer into 2026.
Another highlight is our growing relationship with the leading medical imaging OEM, underscoring the growing relevance of our compute and storage solutions in healthcare. We believe there are opportunities to expand our presence with this customer beyond the current five-year expected program value of over $25 million. Additional booking highlights include the September announcement of an initial $5,000 contract with Saffron Federal System, with additional orders expected totaling over $3 million. While smaller in size, this award establishes a new relationship with one of the world's leading high-technology defense contractors, and we see meaningful opportunity to expand this partnership over time.
In October, we announced an initial $1.5 million order from a Canadian-based integrator of passenger cabin systems for the commercial aerospace industry. We expect this platform to contribute approximately $6 million in total revenue over the next three years. This award highlights the growing demand for high-performance compute in the commercial aerospace sector, an increasingly important component of our commercial market strategy. Across our pipeline, demand remains strong, supported by growing interest in our enterprise-class compute solutions. While the ongoing government shutdown may impact the timing of near-term bookings, we view this as a timing issue, not a demand issue. As a result, we expect defense-related bookings to improve as conditions normalize, though timing may remain uncertain.
We also continue to see signs of stabilization in our European markets that are served by our Bresner operating unit. Recent bookings and revenue within our Bresner segment have been in line with our targets, and Bresner remains on track to achieve higher sales and profitability for 2025 as compared to last year's results. Looking ahead, we believe One Stop Systems, Inc. is uniquely positioned to capitalize on multiyear growth opportunities driven by accelerating adoption of artificial intelligence, machine learning, autonomy, and sensor fusion at the edge. As these requirements become increasingly central to defense and commercial innovation, customers are turning to trusted partners like One Stop Systems, Inc. with proven expertise in rugged enterprise-class compute solutions.
In support of this, we increased R&D investments in 2025 to capitalize on emerging opportunities we see developing within our markets. Our high-wattage, high-density expansion project products such as Ponto are currently under evaluation with several potential commercial customers. As we focus on delivering high-density, high-wattage GP that address the growing need for performance-intensive compute and data-rich environments, we are also encouraged by recent traction in commercial aerospace, highlighted by our recent award, which underscores how One Stop Systems, Inc. technology is extending into new regulated markets where reliability and compute performance are critical.
Looking ahead, we expect to further broaden our commercial product lineup with the planned launch of two new Gen six systems in November, designed to bring even greater processing capability and efficiency to our customers. Together, these innovative initiatives demonstrate how we are executing on our strategy to leverage our rugged enterprise-class engineering heritage into fast-growing commercial segments driven by AI and data-centric workloads. We continue to execute against the growing pipeline in both commercial and defense markets. We recently attended the Association of the U.S. Army or AUSA Conference in Washington, D.C., and introduced a newly developed portfolio of products that leverage the advanced compute and low latency advantages of commercial data centers.
In addition, we showcased our wide array of scalable AIML sensor fusion and autonomy compute solutions, delivering leading compute and latency capability and advantaged size, weight, power, and cost, or SWAP C. These solutions generated strong interest and multiple new engagements across army and OEM programs.
Operator: We also recently attended the NVIDIA GTC Conference in Washington, D.C.
Mike Knowles: Where we highlighted One Stop Systems, Inc.'s expanding capabilities in high-performance GPU and AI accelerator expansion systems. Our participation at GTC reinforced One Stop Systems, Inc.'s growing presence within the AI compute ecosystem, where our technology complements leading platforms from NVIDIA, Broadcom, and Stereo Labs. The conference provided valuable engagement with commercial and government customers exploring next-generation architectures for AI, machine learning, and data analytics at the edge, and further validated the role One Stop Systems, Inc. can play in enabling high-bandwidth, low-latency compute for commercial applications. The visibility and relationships we are developing through these engagements are creating meaningful opportunities to expand our role on next-generation platforms.
For example, our delivery of a rugged compute solution for combat vehicles for the U.S. Army remains under test and evaluation, which is expected to continue for the remainder of the year. We are encouraged by the growing number of multiyear platforms we now support, adding to our portfolio that includes the likes of the P-8 for the U.S. Navy, medical imaging platform, and the autonomous maritime program for leading defense prime in Asia. Pursuing these types of recurring programmatic opportunities remains central to our long-term strategy. To accelerate our growth initiatives, we strengthened our balance sheet after quarter-end through a registered direct offering, raising approximately $12.5 million in gross proceeds.
This enhanced financial position, combined with improving fundamentals, provides the flexibility to fund operations, pursue strategic opportunities, and capitalize on expanding global demand. Looking ahead, our solid execution and year-to-date performance give us the confidence to raise our full-year 2025 consolidated revenue guidance range from $59 million to $61 million to $63 million to $65 million while reaffirming our expectation to achieve positive annual EBITDA. I am pleased with how 2025 is shaping up. Our turnaround strategies are progressing faster than expected, reflecting strong demand and operational execution. As we look ahead, we remain focused on accelerating growth, expanding profitability, and creating long-term value for our shareholders.
Finally, I want to thank our entire team for their innovation and relentless focus on delivering results for our customers and shareholders. So with this overview, I would like to now turn the call over to Dan. Dan?
Dan Gabel: Thank you, Mike, and good morning to everyone on today's call. Our Q3 results reflect a number of important financial milestones. One, we achieved robust top-line growth, increasing revenue year over year by 36.9% at a consolidated level and by 43.4% for the One Stop Systems, Inc. segment. This growth reflects strong demand for our products, as well as our ability to execute on that demand to meet our customers' needs. Two, we achieved positive quarterly EBITDA in both of our operating segments and positive GAAP net income at a consolidated level. These results were supported by strong gross margins, reflecting the value that customers place on our differentiated technology.
After the quarter closed, we also strengthened our balance sheet by securing $12.5 million of gross proceeds through a registered direct offering of common stock. This offering strengthens our balance sheet, provides flexibility around working capital to support our growth, and positions us to pursue a disciplined M&A strategy in 2026 and beyond. We believe the company is in a strong position, and with a solid backlog of orders, we are on track to achieve our increased full-year guidance and to execute on our robust growth and profitability objectives. Now for a quick overview of Q3 2025 financial performance.
Operator: For the third quarter, we reported consolidated revenue of $18.8 million compared to $13.7 million last year,
Dan Gabel: and $14.1 million for the 2025 second quarter. The 36.9% year-over-year increase in consolidated revenue was a result of approximately $2.8 million of higher OFS segment revenue and $2.3 million of higher Bresner segment revenue. Third-quarter sales were above our expectation, and we expect continued strength in both revenue and profitability in 2025. Consolidated gross margin in the third quarter was 35.7%. As a reminder, gross margin in the prior year quarter included a $6.1 million inventory charge in our One Stop Systems, Inc. segment. Excluding the inventory charge, gross margin for the 2024 third quarter was 32%.
On a segment basis, gross margin for the company's One Stop Systems, Inc. segment improved to 45.6% compared to gross margin adjusted for the inventory charge of 43.2% for the same period a year ago. The 2.4 percentage point increase was primarily due to a more profitable mix of products shipped this year. Year to date, One Stop Systems, Inc. segment gross margin has benefited from both operational efficiency and a favorable product mix. We continue to expect some level of variability in gross margins quarter to quarter based on absorption, product mix, and program life cycle. On a sustained basis, we continue to target One Stop Systems, Inc. segment margins in the mid-thirties to low to mid-forties.
In 2025, we anticipate One Stop Systems, Inc. segment margins in the upper end of that range. The company's Bresner segment had a gross margin percentage of 26% in the third quarter. The 400 basis point increase from the same period last year was primarily due to a more profitable mix of products shipped in the quarter. Total third-quarter operating expenses increased 22% to $6.1 million. This increase was predominantly attributable to higher R&D expenditures, reflecting targeted investment in new product development. For the third quarter, the company reported GAAP net income of $300,000 or 1¢ per diluted share compared to a net loss of $6.8 million or $0.32 per share in the prior year quarter.
Operator: The company reported non-GAAP net income of $700,000 or 3¢ per share
Dan Gabel: compared to a non-GAAP net loss of $6.4 million or 30¢ per share in the prior year quarter. Adjusted EBITDA, a non-GAAP metric, was $1.2 million compared to an adjusted EBITDA loss of $6 million in the prior year third quarter. Turning to the balance sheet. As of September 30, 2025, One Stop Systems, Inc. had total cash and short-term investments of $6.5 million and $1 million of borrowings outstanding on our $2 million revolving line of credit. After the third quarter ended, One Stop Systems, Inc. completed a registered direct offering with participation from certain new and existing institutional investors, resulting in gross proceeds of approximately $12.5 million before deducting placement agent commissions and other offering expenses.
For the nine months ended September 30, 2025, One Stop Systems, Inc. used $4.9 million in cash from operating activities compared to operating cash flow of $2.1 million for the nine months ended September 30, 2024. The change from the prior year period was primarily due to the timing of working capital, particularly receivables associated with our revenue ramp, partially offset by higher net income. As Mike mentioned, the company has increased its 2025 full-year financial guidance due to stronger-than-expected bookings over the trailing twelve months. We now anticipate consolidated revenue of $63 million to $65 million for the full year 2025 compared to prior guidance of $59 million to $61 million.
We expect One Stop Systems, Inc. segment revenue in the range of $30 million to $32 million, representing a 22% to 30% increase in annual One Stop Systems, Inc. segment revenue. And we expect the company to achieve positive EBITDA at a consolidated level. As we move through the final quarter of the year, we remain focused on disciplined execution, including managing our supply chain and achieving our planned production ramp. We also remain focused on continuing to drive growth by investing in our technology and securing new platform opportunities. I look forward to updating you on our success. This completes our prepared remarks. Operator, please open the call to questions.
Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star key followed by the number one. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star key followed by the number two. If you are using a speakerphone, please lift the handset before pressing any keys. Your first question is from Brian Kinstlinger from Alliance Global Partners. Please go ahead.
Brian Kinstlinger: Great. Thanks so much and solid results. As we think about the uptick of revenue in the second half of the year, how should investors think about the seasonality going forward for core One Stop Systems, Inc. in light of the strong bookings execution but also as we think about the government shutdown?
Dan Gabel: Yeah. I'll start with the seasonality, and then Mike can talk a little bit more about the government shutdown. So in general, we've seen this consistent pattern where we tend to see higher revenues in the second half of the year just based on timing of bookings. You know, as the government goes into the holiday period, you can see a bit of a slowdown in bookings, and so just the timing of that tends to drive second-quarter revenue or second-half revenue higher than first half. We'd expect that to continue as we go into 2026.
Probably, you know, a somewhat moderated ramp compared to what we saw in 2025, but still somewhat of a ramp as we go through the year.
Mike Knowles: Yep. Brian, and, you know, with the strong bookings we've had this year, and as we close out the year, we'll expect to be starting next year with a little bit more backlog. So we think while we had a fairly decent-sized ramp this year, as Dan mentioned, we hopefully, that backlog and the way we will process will soften that. A bunch of that will be dependent on the government shutdown here. As we may have noted prior, we have everything in backlog we need to achieve our guidance for 2025. And bookings that we are making now will further support that and/or build into backlog for next year.
And main bookings that are affected for us by the government shutdown are anticipated sole-source awards. So we won't be losing opportunity. We'll just be affected by time.
Brian Kinstlinger: Got it. And then maybe you can update us on the data center market opportunity and the advancements you're making? I mean, that market has seen unprecedented demand in the last few months. And then maybe also, at a high level, touch on the situational awareness technology procurement evaluation by the army. I don't know if that's been able to progress given the government shutdown, but that was something obviously of importance to the company.
Mike Knowles: Yeah. Great, Brian. Thanks. Yeah. On the data center side, as we had noted prior and in the remarks here, we launched Ponto, which is a bigger version of our standard 4U GPU expansion solution. And so that product's under evaluation by a couple of customers, specifically in these kind of data center markets where they're looking for this opportunity for big GPU and compute expansion. So we've got product in that market. We've got outreach. We've got interest. We have people testing. So we'll look through the end of this year and into the first half of next year to likely and hopefully see that transition into awards and backlog.
And then as we noted in this call, we'll be augmenting that with bringing forward some of the new PCI Gen six and some of the other new technologies that'll be launching into those data center architectures. So we'll be well-positioned with multiple products across that to leverage into that market. On the army situational awareness side, that testing continues on. As you noted, yes. Anything that had been going on now has stalled as a result of the government shutdown. So we'll be losing time on their evaluation as they went through. Things are progressing and tracking well. The army is also seeing how they could use our distributed compute system for that solution in multiple other ways.
So it's created other opportunities that we will look to prosecute coming into 2026 and beyond to leverage our position in the technology across those. So we'll look for hopefully more news on that in the coming year and where that could progress to.
Brian Kinstlinger: Great. I got some more questions, but I'll get back in the queue and ask some more after.
Mike Knowles: Alright. Thank you, Brian. Thanks, Brian.
Operator: Your next question is from Eric Martinuzzi from Lake Street. Please go ahead.
Eric Martinuzzi: Yes. It was good to see the One Stop Systems, Inc. segment come back so strong there. There was a terrific recovery. Obviously, that was something that you guys have been... That was outperformance versus at least what I was estimating for the third quarter. Can you tell us what was behind that? And then if there were any, you know, pull forwards out of Q4 or maybe point us in a direction for where we expect the final quarter of the year for Bresner?
Dan Gabel: Yeah. Bresner's been performing strong. We've seen some nice recovery in their industrial end market. And, you know, expect continued strength as we go through the year. FX has been a tailwind to Bresner segment revenue. In the third quarter, you know, they grew by about $2.3 million, about $600,000 of that was due to FX. The other $1.7 million was growth on a constant currency basis, just really based on strength in their end markets and some of the larger projects that they've been executing on. And so we continue to see Bresner performing well and see strength as we close out the year and go into '26.
Mike Knowles: Yeah. Eric, I just add. Right? Yeah. The economy has been fully recovered across the EU and Germany to the growth expectations they had at the start of the year. But Bresner has been able to find some strength in its markets to keep them on our targets and on our plans for the year. And they've seen some pockets of people generating some bigger orders, which has helped keep them on plan through the year.
Eric Martinuzzi: Okay. Well, let me just sequentially then, is it your expectation that we're in line to do better with the final quarter of the year?
Dan Gabel: Yeah. I would model so there are a few shipments in Bresner that are going to be right on the cusp between this year and next year. So where those fall will kind of impact Q4. But I would model Q4 as being basically flat to Q3 for Bresner.
Eric Martinuzzi: Gotcha. Okay. And then you talked about the registered direct offering that closed on October 1 and the $12.5 million of gross cash raised. Just curious to know how are we, at least here in the near term, how are we deploying the cash? Are you sitting on it? Are you investing in inventory? Sales channel investments? Can you tell us?
Dan Gabel: Yeah. Absolutely. So, the cash raised did a couple of things for us. One, it supported our working capital ramp. We're going through this growth phase. So you can see that in our results this quarter, particularly in AR. So we have, I think, good visibility towards collecting that AR this year. Expect that as we go into Q4, we'll see a positive cash flow. We'll have a number of shipments that will be going out between November and December. So where those shipments fall within that range will somewhat impact where our cash flow is for Q4, but I do expect that it'll be positive.
And then in terms of the tax rate, so as we support the working capital ramp, we're using it for that. But then, you know, the company is generating positive EBITDA, will be generating positive cash flow. So then we'd look to redeploy that cash raised towards a disciplined M&A strategy as we go into 2026. Yeah. Thanks for taking my questions.
Eric Martinuzzi: Alright.
Mike Knowles: Eric.
Operator: The next question is from Scott Searle from ROTH Capital. Please go ahead.
Scott Searle: Hey, good morning. Thanks for taking my questions. Congrats on the quarter, guys. Hey, Mike, maybe just to get some clarifications. On the government shutdown, I want to understand a little bit better about what's still operating and what isn't. It sounds like some larger sole-source opportunities might just be delayed from a timing standpoint. But I'm just kind of wondering what you're able to do in concert with government entities at the current time. And I think given the backlog you've talked about in the past, you felt pretty good for the next six months or so.
I'm wondering if that still holds and when the shutdown becomes a little bit more concerning for you as you start to look into 2026.
Mike Knowles: Yeah. Thanks, Scott, for your question. So what we're seeing today generally is major organizations are shut down and really not responding. So any contract awards or deliveries we need to make, if the government is using a third-party services independent company, we're still able to operate with them. And so we still have some of that ongoing. We still can make deliveries to the customers, and the government is set up to pay for delivery on stuff that's under contract. So deliveries we have planned for this quarter through defense primes and/or directly to the end services will be able to ship and deliver those, and we should be able to get payment for those under standard payment timings.
So the biggest effect for us really at the end of this year is just planned awards we were intended to get. So yeah. We'll have some backlog to start in the first half of next year. So if the with that number will be fairly high if we can get the government bookings in when the government reopens. But as long as realistically, as long as those bookings get in here before the end of Q2 next year, we still have plenty of time and runway to convert that to revenue. So we've got some runway to watch and plan where that goes.
Scott Searle: Great. That clarification really helps to see that we got visibility then through the first half. Looking to the fourth quarter and the guidance, it really implies that the core One Stop Systems, Inc. is either flat to up $2 million, so you're starting to get to new highs in terms of the business, which I guess brings sustained EBITDA profitability with it. So I guess as we're looking into 2026 now, is that sustainable? And are you thinking about the core One Stop Systems, Inc. business now being EBITDA positive for the year, which is, I think, well ahead of prior expectations? Just want some clarification on the early thoughts there.
Mike Knowles: Yeah. I'll let Dan follow up on it too. But in general, as we've kind of highlighted, we believe based on our pipeline and everything we've been looking at that the core One Stop Systems, Inc. segment has this opportunity to grow at 20% to 30% a year. And so the bookings this year, the pipeline for next year, how we've been performing still gives us confidence that we should see growth into 2026 for the One Stop Systems, Inc. segment in that range. Clearly, that opportunity would give us the opportunity to get One Stop Systems, Inc. into the positive EBITDA range next year. That actually would be accelerating our plans a little bit.
But given where we are and how we're performing, the opportunity, I think it would be our intent that if bookings can play through and the timing can work out correctly, to try to accelerate that plan and work into that. Because we are now kind of at that nexus point where the revenue inside of One Stop Systems, Inc. segment would support that kind of outcome. Dan, anything?
Dan Gabel: Yeah. No. The only thing I'd add, you know, just kind of reiterating that high-level parameters for '26. Revenue growth, that 20% to 30% that we've been targeting. Gross margins for the One Stop Systems, Inc. segment, we continue to see it in that mid-thirties to low to mid-forties range for the segment. OpEx, we would see as being roughly flattish, but we did make some one-time investments to accelerate our R&D in '25. So I think you'll see some moderation or normalization of R&D expenditures as we go into 2026. And then Bresner segment, you know, we model growth in the range of 5% a year and stable gross margin.
Scott Searle: Gotcha. And lastly, if I could, Mike, just kind of looking at the opportunity pipeline, certainly been a lot of government and military opportunities, but commercial as well now kind of given the slowdown. With the current government infrastructure, are some more of those commercial opportunities kind of accelerating to the forefront? I think you referenced some in-flight entertainment opportunities and commercial aviation. But are there some bigger things that we should be thinking about in the 2026 time frame on the commercial side? Thanks.
Mike Knowles: Yeah. I think it's just with what we said in the earnings call here was we're seeing that movement. We've got some product placement, right? That was all about trying to continue to advance the commercial side of the strategy. You know, we're probably a little bit slow to where we thought some commercial opportunity would have shown up. And so we're thinking that hopefully that we'll start to see that coming to fruition in 2026 where we thought we might have seen it closer to the back end of 2025. But we're positioned well, I think, now with the products. We've got contacts and engagements across a number of fronts as we mentioned.
Not only in and around data centers, but around medical imaging and some of the work we were doing with commercial aerospace. So starting to see some of that expansion. And as long as the economy and the investments in those markets continue to go, I think we'll start to see us be able to operate in those markets.
Scott Searle: Great. Thanks so much.
Mike Knowles: Alright. Thank you, Scott. Thank you.
Operator: Ladies and gentlemen, as a reminder, should you have any questions, please press the star key followed by the number one. We will pause a moment for further questions. There are no further questions at this time.
Mike Knowles: Andrew, that completes our remarks for today. We appreciate everybody's support of the company and the questions. You can end the conference call.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.