One Stop Systems, Inc.

Good day and welcome to the One Stop Systems Inc. 3rd Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. As a reminder, this call is being recorded. As part of the discussion today, the representatives from OSS will be making certain forward-looking statements regarding the company's future financial and operating results. including those relating to revenue growth, as well as business plans, bookings, the company's multi-year strategy, business objectives, and expectations. These statements are based on the company's current beliefs and expectations and should not be regarded as a representation by OSS that any of its plans or expectations will be achieved. Please be advised that these forward-looking statements are covered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. and that OSS desires to avail itself of the protections of the safe harbor for these statements. Also, please be advised that the actual results could differ materially from those stated or implied by the forward-looking statements due to certain risks and uncertainties, including those described in the company's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and recent press releases. Please read these reports and other future filings that OSS will make with the SEC. OSS disclaims any duty to update or revise its forward-looking statements, except as required by applicable law. It is now my pleasure to turn the conference over to OSS's President and CEO, Mr. Mike Knowles. Please go ahead, sir.

Thank you, Andrew.

Good morning, everyone, and thank you for joining today's call. OSS 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 underscored the solid foundation we have built as we capitalized 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 OSS 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 multi-year strategic plan, rebuilding our go-to-market approach, expanding our sales pipeline, and driving higher gross margins. As a result, we have experienced positive booking momentum over the past 12 months, translating into increased sales and positive operating leverage. I'm extremely proud of what our teams have accomplished and believe we're 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 OSS. On a trailing 12-month basis, our OSS segment had a book-to-fill 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 booking growth in 2026 and 2027. Overall, we are tracking ahead of our plan and product development milestones, which gives us confidence in our long-term growth trajectory. During the third quarter, we continue to support and increase our exposure on the P-8 Poseidon Recreation 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 supply 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 $500,000 contract with Saffron Federal Systems, 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 for 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, since OSS remains the sole source provider on affected platforms. 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 OSS is uniquely positioned to capitalize on multi-year 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 OSS 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 products, such as Ponto, are currently under evaluation with several potential commercial customers, as we focus on delivering high-density, high-wattage GPU and AI accelerator solutions that address the growing need for performance-intensive compute in data-rich environments. We're also encouraged by recent traction in commercial aerospace, highlighted by our recent award, which underscores how OSS 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 6 systems in November, designed to bring even greater processing capability and efficiency to our customers. Together, these 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 a 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 AI-ML sensor fusion and autonomy compute solutions, delivering leading compute and latency capability and advantaged size, weight, power, and cost, or SWAP-Cs. These solutions generated strong interest and multiple new engagements across Army and OEM programs. We also recently attended the NVIDIA GTC conference in Washington, D.C., where we highlighted OSS's expanding capabilities in high-performance GPU and AI accelerator expansion systems. Our participation at GTC reinforced OSS's growing presence within the AI compute ecosystem, where our technology complements leading platforms from NVIDIA, Broadcom, and Stereolabs. 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 OSS can play in enabling high bandwidth, low latency compute for commercial applications. The visibility and relationships we're 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 multi-year platforms we now support, adding to our portfolio that includes the likes of the P-8 for the U.S. Navy, the 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 opportunity, 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'm 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 dedication, innovation, and relentless focus on delivering results for our customers and shareholders. So with this overview, I'd like to now turn the call over to Dan. Dan?