From The Motley Fool · Motley Fool Transcribing · · 1m 50s
OSS Q3 2026 Earnings Report Highlights Growth
OSS boosts 2026 revenue outlook to 40% with expanded multiyear programs and healthcare defense contracts.
In brief
OSS boosts 2026 revenue outlook to 40% with expanded multiyear programs and healthcare defense contracts. OSS raised full-year 2026 revenue growth guidance to 40% from 25% to 30% after 35.9% Q3 revenue increase driven by healthcare, aerospace and defense contracts. Originally reported by The Motley Fool.
Q3 Revenue Growth
Revenue from continuing operations increased 35.9% year over year to $12.6 million.
Nine-Month Revenue
Nine-month revenue reached $30 million, a 48% increase compared to prior year.
Full Year Revenue Guidance
Raised full-year 2026 revenue growth outlook to 40% from previous range of 25% to 30%.
Book-to-Bill Ratio
Year-to-date book-to-bill ratio reached 1.46, indicating strong demand.
Average Order Size
Average order size nearly tripled since 2023, reflecting shift to larger platform engagements.
Multiyear Programs
Multiyear programs increased from one three years ago to 14 currently supported.
Gross Margin
Q3 gross margin at 42.6%, down from 45.6% in prior year quarter.
Adjusted EBITDA
Q3 adjusted EBITDA at $300,000 including $544,000 bad debt and $394,000 legal costs.
Cash and Investments
Cash and investments totaled $18.9 million as of Sept. 30, 2026 with zero debt.
Inventory Investment
Inventory at $13.7 million reflecting $7.8 million investment for supply chain constraints.
Bressner Divestiture
Received $22.4 million from sale of subsidiary Bressner in Dec. 2025.
Commercial Robotics Program
Secured $2.2 million initial production order with projected $10 million to $15 million over five years.
Intelligence Platform Award
Awarded $8.4 million for compute platform with estimated $44 million potential over four years.
Operating Expenses
Operating expenses increased 33.7% year over year to $6.2 million.
Stock-Based Compensation
Stock-based compensation increased $470,000 due to higher grant date fair value.
P-8A Poseidon Program
Continued to provide revenue through production and sustainment cycles for Navy aircraft.
What to remember
OSS raised full-year 2026 revenue growth guidance to 40% from 25% to 30% after 35.9% Q3 revenue increase driven by healthcare, aerospace and defense contracts.
