Systems i teg atio eve ue g ew 46% yea -ove -yea
Facilities ma ageme t eve ue g ew 84%
Reductio i total eve ues eflects shift f om lowe ma gi p ocu eme t busi ess to highe ma gi systems i teg atio a d facilities ma ageme t busi ess li es
The compa y bega deployi g capital fo its pla ed $17 millio i vestme t i eadi ess fo the ext ge e atio of AI data ce te tech ology, which is expected to co ve t i to highe systems i teg atio eve ues begi i g i the thi d qua te of 2026
“Systems i teg atio eve ue ep ese ted 39% of total eve ues i the qua te , compa ed with just 22% i the p io yea qua te . Ove time, we expect g owth i Systems I teg atio will co ti ue to outpace the othe segme ts of ou busi ess give the st o g dema d sig als we a e seei g a d ou p ove ability to add ess complex tech ology eeds,” said Da yll Dewa , CEO of TSS, I c.
(All compa iso s a e to Seco d Qua te 2025)
Reve ues of $35.1 millio , dow 20%, with g owth i highe ma gi busi ess li es
P ocu eme t eve ues of $18.2 millio , dow 45%
Systems I teg atio eve ues of $13.9 millio , up 46%
Facilities Ma ageme t eve ues of $2.7 millio , up 84%
Ope ati g lease i come of $0.3 millio as we bega wa ehouse ope atio s May 1, 2026 usi g ou p eviously idle fo me Rou d Rock i teg atio facility
G oss p ofit of $8.0 millio , up 11%
P e-tax i come up 19% o favo able leve agi g of expe se st uctu e
Net i come of $1.4 millio a d Diluted EPS of $0.05, compa ed to et i come of $1.5 millio a d Diluted EPS of $0.06 afte full tax p ovisio , followi g Q4 2025 emoval of valuatio allowa ce o defe ed tax asset
Adjusted EBITDA of $4.5 millio , up 12%, eflecti g a shift i total eve ues to highe ma gi systems i teg atio
(All compa iso s a e to the Fi st Six Mo ths of 2025)
Reve ues of $90.5 millio , dow 37%, with g owth skewed towa ds highe ma gi busi ess li es
P ocu eme t eve ues of $58.2 millio , dow 53%
Systems I teg atio eve ues of $28.0 millio , up 65%
Facilities Ma ageme t eve ues of $4.0 millio , up 44%
G oss p ofit of $16.8 millio , up 2%
P e-tax i come of $4.5 millio , dow o ly 1% despite compa iso to eco d p ocu eme t eve ues i the p io yea pe iod
Net i come of $3.7 millio a d Diluted EPS of $0.13 compa ed to et i come of $4.5 millio a d Diluted EPS of $0.17 afte full tax p ovisio , followi g Q4 2025 emoval of valuatio allowa ce o defe ed tax asset
Adjusted EBITDA of $9.8 millio , up 5%, eflecti g a shift i total eve ues to highe ma gi systems i teg atio
Dewa co cluded, “Looki g ahead, we expect the seco d half of this yea to be st o ge tha the fi st half with accele ated g owth i Systems I teg atio as we co ti ue to see st o g dema d ac oss ou busi ess. We mai tai ou 2026 outlook fo Adjusted EBITDA to be at the uppe e d of ou $20 millio to $22 millio a ge.
The Compa y will co duct a co fe e ce call at 5 p.m. Easte time today. To pa ticipate o the co fe e ce call, please dial 888-506-0062 toll f ee f om the U.S. o Ca ada. Othe i te atio al calle s may access the call at 1-973-528-0011. The eve t ID is 473873. I vesto s may also access a live audio webcast of this co fe e ce call a d eplay the call fo o e yea followi g the webcast at https://www.webcaste 5.com/Webcast/Page/2294/54255.
Adjusted EBITDA is a suppleme tal fi a cial measu e ot defi ed u de Ge e ally Accepted Accou ti g P i ciples (GAAP). We defi e Adjusted EBITDA as et i come (loss) befo e et i te est expe se a d ba k facto i g costs, i come taxes, dep eciatio a d amo tizatio , impai me t loss o goodwill a d othe i ta gibles, stock-based compe satio , a d ce tai ext ao di a y items. We p ese t Adjusted EBITDA because we believe this suppleme tal measu e of ope ati g pe fo ma ce is helpful i compa i g ou ope ati g esults ac oss epo ti g pe iods o a co siste t basis by excludi g items that may o could have a disp opo tio ately positive o egative impact o ou esults of ope atio s i a y pa ticula pe iod. We also use Adjusted EBITDA as a facto i evaluati g the pe fo ma ce of ce tai ma ageme t pe so el whe dete mi i g i ce tive compe satio .
Adjusted EBITDA may ot be compa able to simila ly titled measu es epo ted by othe compa ies. Adjusted EBITDA, while p ovidi g useful i fo matio , should ot be co side ed i isolatio o as a alte ative to et i come o cash flows as dete mi ed u de GAAP. Co siste t with Regulatio G u de the U.S. fede al secu ities laws, Adjusted EBITDA has bee eco ciled to the ea est GAAP measu e; this eco ciliatio is located u de the headi g “Adjusted EBITDA Reco ciliatio ” followi g the Co solidated Stateme ts of Ope atio s i cluded i this p ess elease. The Compa y is u able to p ovide a eco ciliatio of fo wa d-looki g Adjusted EBITDA to GAAP et i come because ce tai eco cili g items a e outside the Compa y’s co t ol o ca ot be easo ably p edicted without u easo able effo ts. These items may i clude stock-based compe satio expe se, fluctuatio s i p evaili g i te est ates a d the esulti g impacts o ba k facto i g fees, i te est expe se a d i te est i come, a d othe adjustme ts that may be mate ial.
TSS specializes i simplifyi g the complex. The TSS missio is to st eamli e the i teg atio a d deployme t of high-pe fo ma ce computi g i f ast uctu e a d softwa e, e su i g that e d use s quickly eceive a d efficie tly utilize the ecessa y tech ology. K ow fo flexibility, the compa y builds, i teg ates, a d deploys custom, high-volume solutio s that empowe data ce te s a d catalyze the digital t a sfo matio of ge e ative AI a d othe leadi g-edge tech ologies esse tial fo mode computi g, data, a d busi ess eeds. TSS’ eputatio is built o passio a d expe ie ce, quality, a d fast time to value. As t usted pa t e s of the wo ld’s leadi g data ce te tech ology p ovide s, the compa y ma ages a d deploys billio s of dolla s i tech ology each yea . Fo mo e i fo matio , visit www.tssiusa.com.
This p ess elease may co tai “fo wa d-looki g stateme ts” — that is, stateme ts elated to futu e — ot past — eve ts, pla s, a d p ospects. I this co text, fo wa d-looki g stateme ts may add ess matte s such as ou expected futu e busi ess a d fi a cial pe fo ma ce, a d ofte co tai wo ds such as “guida ce,” “fo ecast,” “p ospects,” “expects,” “a ticipates,” “i te ds,” “pla s,” “believes,” “seeks,” “should,” o “will.” Fo wa d-looki g stateme ts by thei atu e add ess matte s that a e, to diffe e t deg ees, u ce tai . Pa ticula u ce tai ties that could adve sely o positively affect ou futu e esults i clude: we may ot have sufficie t esou ces to fu d ou busi ess a d may eed to issue debt o equity to obtai additio al fu di g; ou elia ce o a sig ifica t po tio of ou eve ues f om a limited umbe of custome s a d ou ability to dive sify ou custome base; isks elati g to ope ati g i a highly competitive i dust y; isks elati g to supply chai challe ges; isk elated to cha ges i labo ma ket co ditio s; isks elated to the impleme tatio of a ew e te p ise esou ce IT system; isks elated to the developme t of ou p ocu eme t se vices busi ess; isks elati g to apid tech ological, st uctu al, a d competitive cha ges affecti g the i dust ies we se ve; isks i volved i p ope ly ma agi g complex p ojects; isks elati g to the possible ca cellatio of custome co t acts o sho t otice; isks elati g to ou ability to co ti ue to impleme t ou st ategy, i cludi g havi g sufficie t fi a cial esou ces to ca y out that st ategy; a d othe isks a d u ce tai ties disclosed i ou fili gs with the Secu ities a d Excha ge Commissio , i cludi g the A ual Repo t o Fo m 10-K fo the fiscal yea e ded Decembe 31, 2025. These u ce tai ties may cause ou actual futu e esults to be mate ially diffe e t tha those exp essed i ou fo wa d-looki g stateme ts. We do ot u de take to update ou fo wa d-looki g stateme ts.
Hayde IR TSS, I c.
James Ca bo a a (646) 755-7412 Da y Chism, CFOB ett Maas (646) 536-7331 (512) 310-4908
Cu e t Assets: | Cash a d cash equivale ts | $ | 67,679 | $ | 85,510 | Co t act a d othe eceivables, et | 14,320 | 12,501 | Costs a d estimated ea i gs i excess of billi gs o u completed co t acts | 205 | 3,011 | I ve to ies, et | 16,962 | 15,966 | Rest icted cash | 1,811 | – | P epaid expe ses a d othe cu e t assets | 1,944 | 1,642 | Total cu e t assets | 102,921 | 118,630 | P ope ty a d equipme t, et | 45,901 | 38,076 | Lease ight-of-use asset | 14,569 | 15,294 | Goodwill | 780 | 780 | Defe ed tax asset, et of valuatio allowa ce | 7,242 | 7,917 | Othe assets | 3,908 | 4,238 | Total assets | $ | 175,321 | $ | 184,935 | Cu e t Liabilities: | Accou ts payable | $ | 38,295 | $ | 46,362 | Acc ued expe ses a d othe cu e t liabilities | 14,814 | 6,273 | Defe ed eve ues, cu e t | 2,793 | 13,928 | Lo g-te m debt, cu e t | 4,161 | 4,010 | Lease liabilities, cu e t | 2,117 | 1,994 | Total cu e t liabilities | 62,180 | 72,567 | No -cu e t Liabilities: | Lo g-te m debt, o -cu e t | 11,919 | 14,004 | Lease liabilities, o -cu e t | 20,568 | 21,629 | Defe ed eve ues, o -cu e t | 255 | – | Othe o -cu e t liabilities | 103 | 100 | Total o -cu e t liabilities | 32,845 | 35,733 | Total liabilities | 95,025 | 108,300 | Commitme ts a d Co ti ge cies | Stockholde s’ Equity: | P efe ed stock | – | – | Commo stock | 3 | 3 | Additio al paid-i capital | 121,795 | 121,842 | Accumulated deficit | (41,502 | ) | (45,210 | ) | Total stockholde s’ equity | 80,296 | 76,635 | Total liabilities a d stockholde s’ equity | $ | 175,321 | $ | 184,935 |
Reve ues | P ocu eme t | $ | 18,249 | $ | 33,002 | $ | 58,229 | $ | 123,179 | Facilities ma ageme t | 2,723 | 1,482 | 4,013 | 2,780 | System i teg atio | 13,880 | 9,486 | 27,956 | 16,970 | Ope ati g lease i come | 289 | – | 289 | – | Total eve ues | 35,141 | 43,970 | 90,487 | 142,929 | Cost of eve ues | Cost of eve ues | 25,908 | 36,155 | 71,512 | 125,904 | Cost of eve ues – dep eciatio | 989 | 618 | 1,925 | 618 | Cost of lease ope atio s | 235 | – | 235 | – | Total cost of eve ues | 27,132 | 36,773 | 73,672 | 126,522 | G oss P ofit | 8,009 | 7,197 | 16,815 | 16,407 | Ope ati g Expe ses: | Selli g, ge e al a d admi ist ative | 5,560 | 4,735 | 11,082 | 9,622 | Dep eciatio a d amo tizatio | 320 | 226 | 626 | 436 | Ba k facto i g fees | 510 | 859 | 1,214 | 2,327 | Loss o sale o disposal of assets | 17 | – | 17 | – | Total ope ati g expe ses | 6,407 | 5,820 | 12,939 | 12,385 | I come f om ope atio s | 1,602 | 1,377 | 3,876 | 4,022 | I te est expe se | 322 | – | 655 | – | I te est i come | (565 | ) | (175 | ) | (1,290 | ) | (558 | ) | Othe expe se (i come) | – | – | (1 | ) | – | P e-tax i come | 1,845 | 1,552 | 4,512 | 4,580 | I come tax expe se | 413 | 69 | 804 | 118 | Net i come | $ | 1,432 | $ | 1,483 | $ | 3,708 | $ | 4,462 | Ea i gs pe commo sha e – Basic | $ | 0.05 | $ | 0.06 | $ | 0.13 | $ | 0.19 | Ea i gs pe commo sha e – Diluted | $ | 0.05 | $ | 0.06 | $ | 0.13 | $ | 0.17 |
Net i come | $ | 1,432 | $ | 1,483 | $ | 3,708 | $ | 4,462 | I te est expe se | 322 | – | 655 | – | Ba k facto i g fees | 510 | 859 | 1,214 | 2,327 | I te est i come | (565 | ) | (175 | ) | (1,290 | ) | (558 | ) | Dep eciatio a d amo tizatio | 1,309 | 844 | 2,551 | 1,054 | I come tax expe se | 413 | 69 | 804 | 118 | EBITDA | $ | 3,421 | $ | 3,080 | $ | 7,642 | $ | 7,403 | Stock based compe satio | 1,049 | 930 | 2,099 | 1,851 | Loss o sale o disposal of assets | 17 | — | 17 | – |
