OSS Earnings Prediction
The chart below shows how OSS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OSS sees a +2.06% change in stock price 10 days leading up to the earnings, and a -7.38% change 10 days following the report. On the earnings day itself, the stock moves by -0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
OSS Key Earning Data
OSS Earnings Analysis
Positive
Quarterly Revenue Growth: OSS returned to consolidated year-over-year revenue growth for the fourth quarter and sequential consolidated growth for every quarter in 2024.
Defense Market Growth: OSS segment growth in defense markets was driven by new and existing customers, including demand from the U.S. Army and Navy.
Customer-Funded Revenue Surge: Customer-funded development revenue increased by 118% in 2024 to $3.7 million, indicating potential for larger future revenues.
Book-to-Bill Ratio Improvement: The annual book-to-bill ratio for the OSS segment improved to 1.14, with expectations for a ratio of 1.2 in 2025.
Rising Demand for OSS Solutions: Market interest in OSS solutions has strengthened, with increasing requests for information and proposals.
2025 Revenue Projections: Projected consolidated revenue for 2025 is expected to be between $59 million to $61 million, with OSS segment revenue expected to grow over 20%.
EBITDA Breakeven Expectations: OSS expects to be EBITDA breakeven for the full year of 2025, with anticipated revenue and profitability improvements in the second half of the year.
Healthcare Order Potential: A new order from a healthcare customer is expected to develop into significant production orders over the next five years.
Composable Infrastructure Opportunity: OSS has a $200 million multiyear pipeline opportunity in composable infrastructure for data centers, indicating strong future growth potential.
Defense Contract Success: The company successfully delivered a rugged situational awareness system to the U.S. Army, with potential production orders exceeding $200 million over three to five years.
Negative
Contract Losses Impact: OSS incurred a charge of $1.2 million in Q4 2024 related to contract losses, negatively impacting financials.
Inventory Charge Impact: OSS faced $7.1 million in inventory charges due to obsolete and slow-moving inventory, affecting gross margin and net income.
Declining Gross Margin: Consolidated gross margin for Q4 2024 was 15.7%, significantly down from 33.7% in the prior year, indicating a less profitable revenue mix.
OSS Segment Margin Decline: OSS segment gross margin dropped to 9.4% in Q4 2024 from 45.9% a year ago, reflecting challenges in profitability.
Net Loss Increase: The company reported a GAAP net loss of $3.1 million in Q4 2024, compared to a net loss of $278,000 in the prior year, indicating worsening financial performance.
Non-GAAP Net Loss Decline: Non-GAAP net loss for Q4 2024 was $2.6 million, a decline from a non-GAAP net income of $219,000 in the same period last year.
Q4 2024 EBITDA Decline: Adjusted EBITDA for Q4 2024 was a loss of $2.3 million, compared to a positive adjusted EBITDA of $322,000 in the prior year, showing a significant downturn in operational performance.
OSS FAQs
How does OSS typically perform around its earnings report dates?
OSS's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +2.06% change leading up to the report and a -7.38% change in the 10 days following the release.
