One Stop Systems Inc (NASDAQ:OSS) shares are trading lower Thursday afternoon. The retreat follows a historic rally that pushed the AI defense specialist to a new 52-week high earlier in the session.

Profit-Taking Hits AI Defense Play

The downside move primarily reflects aggressive profit-taking. On Wednesday, the stock skyrocketed 57.47% to close at $15.38.

Massive Q1 Earnings Beat

The volatility comes after OSS reported blowout first-quarter results. Revenue from continuing operations jumped 55% to $8.1 million. This easily cleared the $7 million analyst consensus. The company reported adjusted earnings per share of one cent, beating the expected four-cent loss per share.

Defense and Aerospace Momentum

Growth stems from stronger sales of data storage systems for the P-8A program. OSS also secured a $10.5 million award from the U.S. Navy. Total bookings reached nearly $15 million, resulting in a robust 1.8 book-to-bill ratio.

Bullish 2026 Revenue Outlook

Management expects 2026 revenue growth between 20% and 25%. The company forecasts sales of $38.6 million to $40.3 million.

OSS Stock: Key Technical Levels To Watch

Even with Thursday's drop, OSS is still in a strong longer-term uptrend: the stock is trading 51.5% above its 20-day SMA, 60.7% above its 50-day SMA, and 102% above its 200-day SMA.

RSI is the key momentum tell right now, sitting at 78.84.

Trend structure still leans bullish, with the 20-day SMA above the 50-day SMA and a golden cross (50-day SMA above the 200-day SMA) that occurred in June.

  • Key Resistance: $16.27
  • Key Support: $9.20

OSS Stock Price Activity: One Stop Systems shares were down 3.26% at $14.83 at the time of publication on Thursday, according to Benzinga Pro data.

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