- Achieved eco d qua te ly Systems I teg atio eve ue, eflecti g co ti ued g owth i AI a d high-pe fo ma ce computi g i f ast uctu e dema d
- Secu ed a seve -yea lease fo app oximately 380,000 squa e feet of additio al wa ehouse space i Geo getow , Texas, expa di g supply chai capacity a d flexibility to suppo t g owi g custome volumes
- P og essed build-out fo eadi ess to i teg ate a d deploy ext ge e atio of AI tech ology, with the build-out completed sho tly afte qua te -e d
“Ou eco d Systems I teg atio eve ue fo the qua te eflects the i vestme t a d st ategic focus o positio i g TSS fo co ti ued g owth as a i teg ato of AI a d high-pe fo ma ce computi g i f ast uctu e,” said Da yll Dewa , CEO of TSS. “With eve ue i this segme t g owi g 75% yea -ove -yea , we a e expe ie ci g the be efits of this st ategic focus as we scale ou i teg atio capabilities, execute i c easi gly complex custome deployme ts a d expa d ou ole i the AI a d high-pe fo ma ce computi g i f ast uctu e ma ket. Ou seve -yea lease fo app oximately 380,000 squa e feet of additio al wa ehouse space i Geo getow , Texas, is a othe impo ta t milesto e, expa di g ou capacity to suppo t g owi g custome volumes a d la ge i f ast uctu e deployme ts while helpi g add ess supply chai challe ges. We believe ou i vestme ts i ext-ge e atio platfo m eadi ess fo Systems I teg atio a d co ti ued developme t of ou P ocu eme t a d Facilities Ma ageme t capabilities positio us well to pu sue additio al eve ue oppo tu ities a d delive p ofitable g owth i 2027 a d beyo d.”
(All compa iso s a e to Thi d Qua te 2025)
- Reve ues of $50.1 millio , up 20%, with g owth i highe -ma gi Systems I teg atio
- P ocu eme t eve ues of $32.4 millio , up 4%
- Systems I teg atio eve ues of $16.1 millio , up 75%
- Facilities Ma ageme t eve ues of $1.1 millio , dow 30%
- Ope ati g lease i come of $0.4 millio
- G oss p ofit of $8.6 millio , up 86%
- P e-tax i come of $1.5 millio , a imp oveme t of $2.9 millio compa ed to ($1.4) millio i the p io yea qua te
- Net i come of $1.1 millio a d Diluted EPS of $0.04 afte full tax p ovisio , followi g the fou th qua te 2025 emoval of the valuatio allowa ce o the defe ed tax asset, compa ed to a et loss of $1.5 millio a d Diluted EPS of ($0.06)
- Adjusted EBITDA of $4.7 millio , up 225%
(All compa iso s a e to the fi st i e mo ths of 2025)
- Reve ues of $140.5 millio , dow 24%, eflecti g lowe P ocu eme t eve ue compa ed with the p io -yea pe iod, pa tially offset by g owth i highe -ma gi Systems I teg atio a d Facilities Ma ageme t
- P ocu eme t eve ues of $90.6 millio , dow 41% i compa iso to eco d P ocu eme t eve ues i 2025
- Systems I teg atio eve ues of $44.1 millio , up 68%
- Facilities Ma ageme t eve ues of $5.1 millio , up 17%
- G oss p ofit of $25.4 millio , up 21%
- Reflects allocatio of dep eciatio to COGS of $3.0 millio i the cu e t pe iod compa ed to $1.6 millio i the p io yea pe iod
- P e-tax i come of $6.0 millio , up 91%
- Net i come of $4.9 millio a d Diluted EPS of $0.16 afte full tax p ovisio , compa ed to et i come of $3.0 millio a d Diluted EPS of $0.11
- Adjusted EBITDA of $14.5 millio , up 35%, eflecti g a shift i total eve ues to highe -ma gi Systems I teg atio
Dewa co cluded, “Buildi g o the g owth we delive ed i Systems I teg atio i the thi d qua te a d cu e t visibility i to ou pipeli e, we a ticipate fu the g owth i the fou th qua te . We a e aisi g ou 2026 outlook fo Adjusted EBITDA to a a ge of $21 millio to $23 millio .”
Adjusted EBITDA is a o -GAAP fi a cial measu e. The Compa y has ot p ovided a eco ciliatio of its Adjusted EBITDA outlook to et i come, the most di ectly compa able GAAP measu e, fo the easo s desc ibed u de “About No -GAAP Fi a cial Measu es” below.
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 1-888-506-0062 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 384673. 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/2294/54666.
Adjusted EBITDA is a suppleme tal fi a cial measu e ot defi ed u de U.S. ge e ally accepted accou ti g p i ciples (“GAAP”). We defi e Adjusted EBITDA as et i come (loss) befo e i te est expe se, et of i te est i come, ba k facto i g fees, 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 loss o sale o disposal of assets. 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 et i come, the most di ectly compa able 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 without u easo able effo ts 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. 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, i come tax expe se, losses o sale o disposal of assets, a d othe adjustme ts. The u available i fo matio could have a sig ifica t impact o the Compa y’s futu e GAAP et i come.
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’s 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 co tai s “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, i cludi g ou 2026 Adjusted EBITDA outlook, a d ofte co tai wo ds such as “guida ce,” “fo ecast,” “outlook,” “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; isks 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 elated to ou ability to effectively utilize ou expa ded wa ehouse a d i teg atio facilities a d ou elated lease obligatio s; 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 a d subseque t Qua te ly Repo ts o Fo m 10-Q. 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. Fo wa d-looki g stateme ts speak o ly as of the date of this p ess elease, a d we do ot u de take to update ou fo wa d-looki g stateme ts, except as equi ed by law.
| Hayde IR | TSS, I c. | James Ca bo a a (646) 755-7412 | Da y Chism, CFO | B ett Maas (646) 536-7331 | (512) 310-4908 | tssi@hayde i .com | dchism@tssiusa.com |
Cu e t Assets: | Cash a d cash equivale ts | $ | 53,965 | $ | 85,510 | Co t act a d othe eceivables, et | 13,852 | 12,501 | Costs a d estimated ea i gs i excess of billi gs o u completed co t acts | 254 | 3,011 | I ve to ies, et | 12,405 | 15,966 | Rest icted cash | 1,811 | – | P epaid expe ses a d othe cu e t assets | 1,876 | 1,642 | Total cu e t assets | 84,163 | 118,630 | P ope ty a d equipme t, et | 50,964 | 38,076 | Lease ight-of-use asset | 14,184 | 15,294 | Goodwill | 780 | 780 | Defe ed tax asset, et of valuatio allowa ce | 6,922 | 7,917 | Othe assets | 3,744 | 4,238 | Total assets | $ | 160,757 | $ | 184,935 | Cu e t Liabilities: | Accou ts payable | $ | 34,426 | $ | 46,362 | Acc ued expe ses a d othe cu e t liabilities | 4,001 | 6,273 | Defe ed eve ues, cu e t | 2,138 | 13,928 | Lo g-te m debt, cu e t | 4,239 | 4,010 | Lease liabilities, cu e t | 2,184 | 1,994 | Total cu e t liabilities | 46,988 | 72,567 | No -cu e t Liabilities: | Lo g-te m debt, o -cu e t | 10,859 | 14,004 | Lease liabilities, o -cu e t | 19,989 | 21,629 | Defe ed eve ues, o -cu e t | 348 | – | Othe o -cu e t liabilities | 97 | 100 | Total o -cu e t liabilities | 31,293 | 35,733 | Total liabilities | 78,281 | 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 | 122,826 | 121,842 | Accumulated deficit | (40,353 | ) | (45,210 | ) | Total stockholde s’ equity | 82,476 | 76,635 | Total liabilities a d stockholde s’ equity | $ | 160,757 | $ | 184,935 |
Reve ues | P ocu eme t | $ | 32,396 | $ | 31,101 | $ | 90,625 | $ | 154,280 | Facilities ma ageme t | 1,119 | 1,591 | 5,132 | 4,371 | Systems i teg atio | 16,112 | 9,191 | 44,068 | 26,161 | Ope ati g lease i come | 433 | – | 722 | – | Total eve ues | 50,060 | 41,883 | 140,547 | 184,812 | Cost of eve ues | Cost of eve ues | 39,955 | 36,221 | 111,467 | 162,125 | Cost of eve ues – dep eciatio | 1,120 | 1,027 | 3,045 | 1,645 | Cost of lease ope atio s | 353 | – | 588 | – | Total cost of eve ues | 41,428 | 37,248 | 115,100 | 163,770 | G oss p ofit | 8,632 | 4,635 | 25,447 | 21,042 | Ope ati g expe ses: | Selli g, ge e al a d admi ist ative | 6,114 | 5,238 | 17,196 | 14,860 | Dep eciatio a d amo tizatio | 356 | 328 | 982 | 764 | Ba k facto i g fees | 718 | 833 | 1,932 | 3,160 | Loss o sale o disposal of assets | 285 | – | 302 | – | Total ope ati g expe ses | 7,473 | 6,399 | 20,412 | 18,784 | I come (loss) f om ope atio s | 1,159 | (1,764 | ) | 5,035 | 2,258 | I te est expe se | 310 | 121 | 965 | 121 | I te est i come | (633 | ) | (434 | ) | (1,923 | ) | (992 | ) | Othe expe se (i come) | (5 | ) | (4 | ) | (6 | ) | (4 | ) | P e-tax i come (loss) | 1,487 | (1,447 | ) | 5,999 | 3,133 | I come tax expe se | 338 | 50 | 1,142 | 168 | Net i come (loss) | $ | 1,149 | $ | (1,497 | ) | $ | 4,857 | $ | 2,965 | Ea i gs (loss) pe commo sha e – basic | $ | 0.04 | $ | (0.06 | ) | $ | 0.17 | $ | 0.12 | Ea i gs (loss) pe commo sha e – diluted | $ | 0.04 | $ | (0.06 | ) | $ | 0.16 | $ | 0.11 |
Net i come (loss) | $ | 1,149 | $ | (1,497 | ) | $ | 4,857 | $ | 2,965 | I te est expe se | 310 | 121 | 965 | 121 | Ba k facto i g fees | 718 | 833 | 1,932 | 3,160 | I te est i come | (633 | ) | (434 | ) | (1,923 | ) | (992 | Dep eciatio a d amo tizatio | 1,476 | 1,355 | 4,027 | 2,409 | I come tax expe se | 338 | 50 | 1,142 | 168 | EBITDA | $ | 3,358 | $ | 428 | $ | 11,000 | $ | 7,831 | Stock-based compe satio | 1,102 | 1,030 | 3,201 | 2,881 | Loss o sale o disposal of assets | 285 | – | 302 | – |
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