MeritValue

ONE STOP SYSTEMS, INC.

OSSdata completeness 88%9 fiscal years on file
The thesis, from the filings

ONE STOP SYSTEMS, INC. earns about -14% on invested capital, but has diluted owners by 19% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$62M1$72.4M2$60.9M3$24.6M4$32.2M4
Net income$2.33M5−$2.23M6−$6.72M7−$13.6M8$5.09M8
Operating cash flow$5.62M9−$7.81M10−$439,67911−$108,09811−$6.55M12
Capital expenditure$563,81513$529,90814$821,75315$228,25816$114,59616
Free cash flow (derived)$5.06M9−$8.34M10−$1.26M11−$336,35611−$6.67M12
Total debt$7.46M17$6.72M18———
Cash & equivalents$5.1M19$3.11M20$4.05M21$4.04M22$31.2M22
Diluted shares19.5M19.7M20.9M21.4M23.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$19.83
your share of equity
Profit it earned you last year
$2.19
Free cash flow it threw off
−$2.87
Debt you’d be carrying
—

10 shares is a claim on $19.83 of net worth that earned you $2.19 and generated −$2.87 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-14% avg · 5y
FY21 6%FY22 2%FY23 -13%FY24 -52%FY25 -16%

It earned an average -14% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+19% shares · 5y

Share count is up 19% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$3.13
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000950170-23-009473 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-24-034668 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000950170-25-041974 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001193125-26-114051 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0000950170-23-009473 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0000950170-24-034668 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0000950170-25-041974 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001193125-26-114051 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0000950170-23-009473 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0000950170-24-034668 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0000950170-25-041974 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2025-12-31 · accession 0001193125-26-114051 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  13. 10-K · period ending 2021-12-31 · accession 0000950170-23-009473 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0000950170-24-034668 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0000950170-25-041974 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001193125-26-114051 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001564590-22-011679 (LongTermDebtCurrent)
  18. 10-K · period ending 2022-12-31 · accession 0000950170-24-034668 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2021-12-31 · accession 0000950170-23-009473 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2022-12-31 · accession 0000950170-24-034668 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2023-12-31 · accession 0000950170-25-041974 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2024-12-31 · accession 0001193125-26-114051 (CashAndCashEquivalentsAtCarryingValue)