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TSSI

TSS, Inc.

TSSI

TSS, Inc. • NASDAQ
$9.63 ▲ 2.45% (+0.23)
Market Cap $231.28 M
52w High $31.94
52w Low $5.63
Dividend Yield 0%
P/E 50.68
Volume 1.14M
Outstanding Shares 24.02M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $41.883M ▼ $5.566M ▼ $-1.497M ▼ -3.574% ▼ $-0.064 ▼ $-165K ▼
Q2-2025 $43.97M ▼ $5.579M ▲ $1.483M ▼ 3.373% ▲ $0.063 ▼ $3.255M ▼
Q1-2025 $98.959M ▲ $5.097M ▲ $2.979M ▲ 3.01% ▼ $0.13 ▲ $4.323M ▲
Q4-2024 $50.025M ▼ $4.458M ▲ $1.913M ▼ 3.824% ▲ $0.087 ▼ $2.948M ▼
Q3-2024 $70.068M $4.093M $2.646M 3.776% $0.12 $4.002M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $70.696M ▲ $165.412M ▲ $102.002M ▼ $63.41M ▲
Q2-2025 $36.836M ▲ $139.47M ▲ $129.932M ▲ $9.538M ▲
Q1-2025 $27.339M ▲ $113.539M ▲ $104.148M ▲ $9.391M ▲
Q4-2024 $23.222M ▼ $96.568M ▲ $89.43M ▲ $7.138M ▼
Q3-2024 $46.448M $67.282M $59.628M $7.654M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-1.497M ▼ $-18.429M ▼ $-6.427M ▲ $58.716M ▲ $33.86M ▲ $-24.856M ▼
Q2-2025 $1.483M ▼ $16.336M ▼ $-10.906M ▲ $9.067M ▲ $9.497M ▲ $5.43M ▼
Q1-2025 $2.979M ▲ $20.637M ▲ $-14.873M ▼ $-1.647M ▼ $4.117M ▲ $5.764M ▲
Q4-2024 $1.913M ▼ $-21.649M ▼ $-6.717M ▼ $5.14M ▲ $-23.226M ▼ $-28.366M ▼
Q3-2024 $2.646M $38.627M $-45K $-445K $38.137M $38.582M

Revenue by Products

Product Q4-2023Q1-2024Q2-2024Q3-2024
Facilities Management
Facilities Management
 $0 ▲$0 ▲$0 ▲$0 ▲
Procurement Services
Procurement Services
 $0 ▲$0 ▲$0 ▲$60.00M ▲
Systems Integration
Systems Integration
 $0 ▲$0 ▲$0 ▲$10.00M ▲
Integration Services
Integration Services
 $0 ▲$0 ▲$0 ▲$0 ▲
Maintenance
Maintenance
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement TSS has shifted from years of very modest, mostly break-even results to a clearly more profitable profile in the most recent year. Revenue has grown meaningfully off a small base, with better conversion of sales into profit, suggesting that higher AI-related work is starting to scale. Margins still look thin but moving in the right direction, which is normal for a services business that is just ramping volume in a new specialty. The main question is whether this recent step-up in earnings is sustainable as AI infrastructure demand and the company’s key customer relationship evolve.

Balance Sheet

Balance Sheet The company remains small and relatively lean, with a compact asset base that has recently expanded as it invests to support AI data center work. Cash levels look reasonable for a business of this size but not abundant, so careful working-capital and project management will matter. Debt has risen from effectively none to a noticeable, but not extreme, level, indicating that growth is being partly funded with borrowing. Equity has turned clearly positive, reflecting improved profitability, but the balance sheet does not yet have large buffers, leaving the company more sensitive to any business slowdown or major project issues.

Cash Flow

Cash Flow TSS’s cash generation has been somewhat up and down over the past few years, which is typical for a project-driven services business. More recently, operating cash flow has turned solidly positive, and even after investment spending, free cash flow has been positive as well. Capital spending has ticked up as the company funds capacity and facility improvements, but so far this has not overwhelmed cash generation. The key watch item is whether cash inflows remain steady as the business scales and whether payment terms with its big customer remain favorable.

Competitive Edge

Competitive Edge TSS occupies a narrow but important niche: integrating complex, high-power, AI-focused data center racks and modular data centers. Its long operating history and deep technical know-how in high-density, liquid-cooled systems give it a specialized skill set that not every integrator can easily replicate. The large, purpose-built facility in Texas strengthens its ability to handle high-volume, next-generation AI hardware integration. However, the company is heavily dependent on one major OEM customer for essentially all of its revenue, which is both a strength (tight partnership, visibility) and a major risk (high concentration, limited bargaining power). Its small size versus larger IT service providers also means it must continue to differentiate through speed, flexibility, and technical depth.

Innovation and R&D

Innovation and R&D Innovation at TSS is centered on process, engineering, and infrastructure design rather than classic, lab-based R&D. The company has built strong capabilities in direct liquid cooling and immersion cooling, as well as in configuring GPU-heavy AI racks and modular data centers tailored for AI and edge computing. It actively publishes thought-leadership on future data center and AI trends, signaling a focus on staying ahead of industry shifts in power density, cooling, and deployment models. Future innovation seems likely to focus on more advanced cooling, AI-optimized modular units, and tooling that speeds up integration and deployment. The main risk is that technology and vendor standards can evolve quickly, so TSS will need to keep investing in skills and facility upgrades to remain a preferred partner.

Summary

TSS, Inc. is a small, specialized technology services firm that appears to be pivoting successfully into the high-growth AI and high-performance computing infrastructure space. Its recent financials show a clear improvement in revenue and profitability, backed by more stable, positive cash flow, though from a modest base and with limited balance sheet cushions. The company’s edge lies in its deep partnership with a major OEM, its expertise in high-density and liquid-cooled systems, and its large, purpose-built integration facility. At the same time, the extreme dependence on a single customer, the small scale of the business, and the need to keep investing in advanced infrastructure and skills are key structural risks. Going forward, the story hinges on whether TSS can sustain AI-driven growth, maintain its key partnership, and gradually broaden its customer base while managing debt and execution risk carefully.

NEWS

November 20, 2025 · 12:50 PM UTC

TSS, Inc. Unveils 2026 Trends in High Performance Computing and Data Center Technology

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November 13, 2025 · 4:10 PM UTC

TSS Strengthens AI and High-Performance Computing Strategy with Appointment of Technology Industry Veteran Vivek Mohindra to Board of Directors

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November 13, 2025 · 4:05 PM UTC

TSS Reports Third Quarter 2025 Financial Results

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October 30, 2025 · 9:00 AM UTC

TSS to Host Third Quarter 2025 Financial Results Conference Call on November 13, 2025

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