TSS Reports Third Quarter 2025 Financial Results
TSS (Nasdaq:TSSI) reported Q3 2025 results and updated 2025 outlook on November 13, 2025. Q3 revenues were $41.9M, down 40% YoY, with Procurement $31.1M (-49%) and Systems Integration $9.2M (+20%). Q3 adjusted EBITDA was $1.5M, down 66%, and net loss was $1.5M (diluted EPS $(0.06)).
YTD through nine months, revenue was $184.8M, up 88%; procurement $154.3M (+100%); systems integration $26.1M (+78%). YTD gross profit was $21.0M (+39%) and adjusted EBITDA was $10.7M (+59%); YTD net income was $3.0M (diluted EPS $0.11).
Management cited operational changes at a new factory that reduced Q3 rack volumes but expects higher rack volumes and stronger Q4 results; full-year 2025 adjusted EBITDA outlook raised to +50% to +75% vs 2024.
TSS (Nasdaq:TSSI) ha riportato i risultati del terzo trimestre 2025 e aggiornato la prospettiva per il 2025 il 13 novembre 2025. I ricavi del Q3 sono stati di 41,9 milioni di dollari, -40% anno su anno, con Procurement a 31,1 milioni (-49%) e Systems Integration a 9,2 milioni (+20%). L’EBITDA rettificato del Q3 è stato di 1,5 milioni, -66%, e la perdita netta è stata di 1,5 milioni di dollari (EPS diluito -0,06$).
YTD fino a nove mesi, i ricavi sono stati di 184,8 milioni (+88%); procurement 154,3 milioni (+100%); systems integration 26,1 milioni (+78%). Il margine lordo YTD è di 21,0 milioni (+39%) e l’EBITDA rettificato è di 10,7 milioni (+59%); l’utile netto YTD è di 3,0 milioni (EPS diluito 0,11$).
La direzione ha citato cambiamenti operativi in una nuova fabbrica che hanno ridotto i volumi dei rack nel Q3, ma si aspetta volumi più alti e risultati più forti nel Q4; la guidance per l’intero 2025 sull’EBITDA rettificato è stata aumentata da +50% a +75% rispetto al 2024.
TSS (Nasdaq:TSSI) informó los resultados del tercer trimestre de 2025 y actualizó las perspectivas para 2025 el 13 de noviembre de 2025. Los ingresos del Q3 fueron de 41,9 millones de dólares, con una caída del 40% interanual, con Procurement 31,1 millones (-49%) y Systems Integration 9,2 millones (+20%). El EBITDA ajustado del Q3 fue de 1,5 millones, -66%, y la pérdida neta fue de 1,5 millones (EPS diluido -0,06$).
YTD hasta nueve meses, los ingresos fueron de 184,8 millones (+88%); procurement 154,3 millones (+100%); systems integration 26,1 millones (+78%). El beneficio bruto YTD fue de 21,0 millones (+39%) y el EBITDA ajustado fue de 10,7 millones (+59%); el ingreso neto YTD fue de 3,0 millones (EPS diluido 0,11$).
La dirección citó cambios operativos en una nueva fábrica que redujeron los volúmenes de racks en el Q3, pero espera volúmenes mayores y resultados más fuertes en el Q4; la perspectiva de EBITDA ajustado para todo 2025 se elevó de +50% a +75% frente a 2024.
TSS(Nasdaq:TSSI)는 2025년 11월 13일 2025년 3분기 실적을 발표하고 2025년 전망치를 업데이트했습니다. 3분기 매출은 4,190만 달러로 전년 대비 -40%였고, 조달(Procurement) 3,110만 달러(-49%), 시스템 통합 920만 달러(+20%)였습니다. 3분기 조정 EBITDA는 150만 달러로 -66%였고, 순손실은 150만 달러(희석 EPS -0.06달러)였습니다.
연간 누적(YTD) 9개월 기준으로 매출은 1억 8,480만 달러(+88%); 조달 1억 5,430만 달러(+100%); 시스템 통합 2,610만 달러(+78%)였습니다. 연간 누적 총이익은 2,100만 달러(+39%)이고 조정 EBITDA는 1,070만 달러(+59%)였으며 YTD 순이익은 300만 달러(희석 EPS 0.11달러)였습니다.
경영진은 새 공장에서의 운영 변화로 3분기 랙 물량이 감소했지만, 4분기에는 더 높은 랙 물량과 더 강한 실적을 기대한다고 밝혔으며, 2025년 전체 조정 EBITDA 전망은 2024년 대비 +50%에서 +75%로 상향되었습니다.
TSS (Nasdaq:TSSI) a publié les résultats du T3 2025 et mis à jour les perspectives pour 2025 le 13 novembre 2025. Les revenus du T3 se sont élevés à 41,9 millions de dollars, en baisse de 40% sur un an, avec Procurement à 31,1 millions (-49%) et Systems Integration à 9,2 millions (+20%). L’EBITDA ajusté du T3 s’est élevé à 1,5 million, en baisse de 66%, et la perte nette a été de 1,5 million (EPS dilué -0,06$).
YTD jusqu’à neuf mois, le chiffre d’affaires s’est élevé à 184,8 millions (+88%); Procurement 154,3 millions (+100%); Systems Integration 26,1 millions (+78%). Le bénéfice brut YTD est de 21,0 millions (+39%) et l’EBITDA ajusté de 10,7 millions (+59%); le résultat net YTD est de 3,0 millions (EPS dilué 0,11$).
La direction a cité des changements opérationnels dans une nouvelle usine qui ont réduit les volumes de racks au T3, mais elle s’attend à des volumes plus élevés et à des résultats du T4 plus solides; les perspectives annuelles 2025 de l’EBITDA ajusté ont été relevées de +50% à +75% par rapport à 2024.
TSS (Nasdaq:TSSI) hat am 13. November 2025 die Ergebnisse für das dritte Quartal 2025 gemeldet und die Aussichten für 2025 aktualisiert. Der Umsatz im Q3 betrug 41,9 Mio. USD, YoY -40%, mit Procurement 31,1 Mio. USD (-49%) und Systems Integration 9,2 Mio. USD (+20%). Das im Q3 bereinigte EBITDA betrug 1,5 Mio. USD, -66%, und der Nettogewinn betrug -1,5 Mio. USD (verwässertes EPS -0,06 USD).
YTD bis neun Monate betrug der Umsatz 184,8 Mio. USD, +88%; Procurement 154,3 Mio. USD (+100%); Systems Integration 26,1 Mio. USD (+78%). YTD-Bruttogewinn 21,0 Mio. USD (+39%) und bereinigtes EBITDA 10,7 Mio. USD (+59%); YTD-Nettoeinkommen 3,0 Mio. USD (verwässertes EPS 0,11 USD).
Die Geschäftsleitung nannte betriebliche Änderungen in einem neuen Werk, die die Rack-Volumina im Q3 reduzierten, rechnet aber mit höheren Rack-Volumina und stärkeren Q4-Ergebnissen; die Jahresprognose für das bereinigte EBITDA 2025 wurde gegenüber 2024 um +50% bis +75% angehoben.
TSS (ناسداك:TSSI) أعلنت عن نتائج الربع الثالث من عام 2025 وتحديث التوقعات لعام 2025 في 13 نوفمبر 2025. بلغ الإيرادات للربع الثالث 41.9 مليون دولار، بانخفاض 40% على أساس سنوي، مع Procurement عند 31.1 مليون دولار (-49%) وSystems Integration عند 9.2 مليون دولار (+20%). بلغ EBITDA المعدل للربع الثالث 1.5 مليون دولار، بانخفاض 66%، وكانت الخسارة الصافية 1.5 مليون دولار (EPS مخفف -0.06 دولار). حتى تسعة أشهر (YTD)، وصل الإيرادات إلى 184.8 مليون دولار، بارتفاع 88%؛ Procurement 154.3 مليون دولار (+100%)؛ Systems Integration 26.1 مليون دولار (+78%). الربح الإجمالي YTD 21.0 مليون دولار (+39%) وEBITDA المعدل 10.7 مليون دولار (+59%); صافي الدخل YTD 3.0 مليون دولار (EPS مخفف 0.11 دولار). أشارت الإدارة إلى تغييرات تشغيلية في مصنع جديد أدت إلى انخفاض أحجام الرفوف في الربع الثالث لكنها تتوقع أحجام رفوف أعلى ونتائج أقوى في الربع الرابع؛ تم رفع التوقع لعام 2025 لأداء EBITDA المعدل بنسبة +50% إلى +75% مقارنة بعام 2024.
- Year-to-date revenue +88% through nine months
- Procurement revenue +100% year-to-date
- Year-to-date Adjusted EBITDA +59% ($10.7M)
- Systems Integration revenue +78% year-to-date
- Company raised full-year 2025 adjusted EBITDA outlook to +50%–+75% vs 2024
- Q3 revenue declined 40% to $41.9M
- Q3 adjusted EBITDA down 66% to $1.5M
- Q3 procurement revenue down 49% to $31.1M
- Q3 net loss $(1.5M) and diluted EPS $(0.06)
Insights
TSS shows strong year-to-date growth but weak Q3; company expects a fourth-quarter operational rebound.
TSS, Inc. reported
The third quarter contrasts sharply: quarterly revenues of
The key business mechanism is diversification across Procurement, Systems Integration and Facilities Management, with Procurement driving the YTD revenue surge (
Operational execution and factory scaling determine whether YTD gains convert to sustained profitability.
TSS achieved strong YTD topline growth driven by Procurement while Systems Integration and Facilities Management showed mixed quarterly performance; gross profit rose YTD to
Third-quarter execution issues—lower rack volumes and a new factory with costs not yet matched by revenue—drove the quarter's profit decline. Management reports process changes and materially higher rack volumes in
Year-to-date revenue of
2025 Outlook Updated to Reflect Growth Investments
GEORGETOWN, TX / ACCESS Newswire / November 13, 2025 / TSS, Inc. (Nasdaq:TSSI), a data center services company that integrates AI and other high-performance computing infrastructure and software and provides related data center services, today reported results for its third quarter ended September 30, 2025.
"Our year-to-date revenue growth of
Third Quarter 2025 Financial Highlights:
(All comparisons are to Third Quarter 2024 unless otherwise noted)
Revenues of
$41.9 million , down40% Procurement revenues of
$31.1 million , down49% Systems Integration revenues of
$9.2 million , up20% Facilities Management revenues of
$1.6 million , down19%
Gross profit of
$4.6 million , down41% Reflects current year allocation of depreciation to COGS
Net loss of
$1.5 million compared to net income of$2.6 million in Q3 2024Diluted EPS of (
$0.06) compared to$0.10 Adjusted EBITDA of
$1.5 million , down66%
Year-to-Date 2025 Financial Highlights
(All comparisons are to the First Nine Months of 2024 unless otherwise noted)
Revenues of
$184.8 million , up88% Procurement revenues of
$154.3 million , up100% Systems Integration revenues of
$26.1 million , up78% Facilities Management revenues of
$4.4 million , down32%
Gross profit of
$21.0 million , up39% Net income of
$3.0 million , down27% Diluted EPS of
$0.11 , down from$0.16 Adjusted EBITDA of
$10.7 million , up59%
Fourth Quarter Outlook
Dewan added, "Two years of rapid growth, a focus on operational excellence and strong relationships with key partners have driven our performance year-to-date. We expect elevated performances from Procurement although the government shutdown may impact pipeline orders closing in the calendar year. Systems Integration and Facilities Management should both have stronger results in the fourth quarter, resulting in a strong rebound in quarterly EBITDA. Accordingly, we are updating our full year 2025 Adjusted EBITDA outlook to a range between
The Company will conduct a conference call at 5 p.m. Eastern time today. To participate on the conference call, please dial 877-545-0523 toll free from the U.S. or Canada. Other international callers may access the call at 1-973-528-0016. The event ID number is 370784. Investors may also access a live audio webcast of this conference call and replay the call for one year following the webcast, at https://www.webcaster5.com/Webcast/Page/2294/53175.
About Non-GAAP Financial Measures
Adjusted EBITDA is a supplemental financial measure not defined under Generally Accepted Accounting Principles (GAAP). We define Adjusted EBITDA as net income (loss) before net interest expense, income taxes, depreciation and amortization, impairment loss on goodwill and other intangibles, stock-based compensation, and certain extraordinary items. We present Adjusted EBITDA because we believe this supplemental measure of operating performance is helpful in comparing our operating results across reporting periods on a consistent basis by excluding items that may or could have a disproportionately positive or negative impact on our results of operations in any particular period. We also use Adjusted EBITDA as a factor in evaluating the performance of certain management personnel when determining incentive compensation.
Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with Regulation G under the U.S. federal securities laws, Adjusted EBITDA has been reconciled to the nearest GAAP measure; this reconciliation is located under the heading "Adjusted EBITDA Reconciliation" following the Consolidated Statements of Operations included in this press release.
About TSS, Inc.
TSS specializes in simplifying the complex. The TSS mission is to streamline the integration and deployment of high-performance computing infrastructure and software, ensuring that end users quickly receive and efficiently utilize the necessary technology. Known for flexibility, the company builds, integrates, and deploys custom, high-volume solutions that empower data centers and catalyze the digital transformation of generative AI and other leading-edge technologies essential for modern computing, data, and business needs. TSS' reputation is built on passion and experience, quality, and fast time to value. As trusted partners of the world's leading data center technology providers, the company manages and deploys billions of dollars in technology each year. For more information, visit www.tssiusa.com.
Forward Looking Statements
This press release may contain "forward-looking statements" -- that is, statements related to future -- not past -- events, plans, and prospects. In this context, forward-looking statements may address matters such as our expected future business and financial performance, and often contain words such as "guidance," "prospects," "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect our future results include: we may not have sufficient resources to fund our business and may need to issue debt or equity to obtain additional funding; our reliance on a significant portion of our revenues from a limited number of customers and our ability to diversify our customer base; risks relating to operating in a highly competitive industry; risks relating to supply chain challenges; risk related to changes in labor market conditions; risks related to the implementation of a new enterprise resource IT system; risks related to the development of our procurement services business; risks relating to rapid technological, structural, and competitive changes affecting the industries we serve; risks involved in properly managing complex projects; risks relating to the possible cancellation of customer contracts on short notice; risks relating to our ability to continue to implement our strategy, including having sufficient financial resources to carry out that strategy; and other risks and uncertainties disclosed in our filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2024. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Contacts:
Hayden IR | TSS, Inc. |
-- Tables Follow -
TSS, Inc.
Consolidated Balance Sheets
(In thousands except par values)
September 30, 2025 | December 31, 2024 | |||||||
(unaudited) | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 70,696 | $ | 23,222 | ||||
Contract and other receivables, net | 14,785 | 16,203 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 2,353 | 851 | ||||||
Inventories, net | 11,321 | 17,673 | ||||||
Prepaid expenses and other current assets | 1,176 | 248 | ||||||
Total current assets | 100,331 | 58,197 | ||||||
Property and equipment, net | 39,063 | 8,591 | ||||||
Lease right-of-use asset | 15,835 | 24,213 | ||||||
Goodwill | 780 | 780 | ||||||
Restricted cash | 5,000 | - | ||||||
Other assets | 4,403 | 4,787 | ||||||
Total assets | $ | 165,412 | $ | 96,568 | ||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 48,591 | $ | 53,340 | ||||
Deferred revenues, current | 11,700 | 2,613 | ||||||
Long-term debt, current | 4,906 | - | ||||||
Lease liabilities, current | 813 | 966 | ||||||
Total current liabilities | 66,010 | 56,919 | ||||||
Non-current Liabilities: | ||||||||
Long-term debt, non-current | 18,989 | 8,200 | ||||||
Lease liabilities, non-current | 16,640 | 23,540 | ||||||
Deferred revenues, non-current | 363 | 771 | ||||||
Total non-current liabilities | 35,992 | 32,511 | ||||||
Total liabilities | 102,002 | 89,430 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity: | ||||||||
Preferred stock | - | - | ||||||
Common stock | 3 | 3 | ||||||
Additional paid-in capital | 132,401 | 74,200 | ||||||
Treasury stock, at cost | (11,624 | ) | (6,730 | ) | ||||
Accumulated deficit | (57,370 | ) | (60,335 | ) | ||||
Total stockholders' equity | 63,410 | 7,138 | ||||||
Total liabilities and stockholders' equity | $ | 165,412 | $ | 96,568 | ||||
TSS, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands except per-share values)
Three Months Ended September 30, | Nine Month Ended September 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenues: | ||||||||||||||||
Procurement | $ | 31,101 | $ | 60,484 | $ | 154,280 | $ | 77,022 | ||||||||
Facilities management | 1,591 | 1,954 | 4,371 | 6,384 | ||||||||||||
Systems integration | 9,191 | 7,630 | 26,161 | 14,713 | ||||||||||||
Total revenues | 41,883 | 70,068 | 184,812 | 98,119 | ||||||||||||
Cost of revenues | 36,221 | 62,181 | 162,125 | 82,982 | ||||||||||||
Cost of revenues - depreciation | 1,027 | - | 1,645 | - | ||||||||||||
Total cost of revenues | 37,248 | 62,181 | 163,770 | 82,982 | ||||||||||||
Gross profit | 4,635 | 7,887 | 21,042 | 15,137 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 5,238 | 3,885 | 14,860 | 8,993 | ||||||||||||
Depreciation and amortization | 328 | 208 | 764 | 397 | ||||||||||||
Total operating expenses | 5,566 | 4,093 | 15,624 | 9,390 | ||||||||||||
Income (loss) from operations | (931 | ) | 3,794 | 5,418 | 5,747 | |||||||||||
Interest expense | 954 | 1,309 | 3,281 | 2,015 | ||||||||||||
Interest (income) | (434 | ) | (168 | ) | (992 | ) | (374 | ) | ||||||||
Other (income) | (4 | ) | (13 | ) | (4 | ) | (13 | ) | ||||||||
Pre-tax income (loss) | (1,447 | ) | 2,666 | 3,133 | 4,119 | |||||||||||
Income taxes | 50 | 20 | 168 | 56 | ||||||||||||
Net income (loss) | $ | (1,497 | ) | $ | 2,646 | $ | 2,965 | $ | 4,063 | |||||||
Earnings (loss) per common share - Basic | $ | (0.06 | ) | $ | 0.12 | $ | 0.12 | $ | 0.18 | |||||||
Earnings (loss) per common share - Diluted | $ | (0.06 | ) | $ | 0.10 | $ | 0.11 | $ | 0.16 | |||||||
TSS, Inc.
Adjusted EBITDA Reconciliation (GAAP to non-GAAP)
(In thousands, unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||
Net income (loss) | $ | (1,497 | ) | $ | 2,646 | $ | 2,965 | $ | 4,063 | |||||
Interest expense, net | 520 | 1,128 | 2,289 | 1,628 | ||||||||||
Depreciation and amortization | 1,355 | 208 | 2,409 | 397 | ||||||||||
Income tax provision | 50 | 20 | 168 | 56 | ||||||||||
EBITDA | $ | 428 | $ | 4,002 | $ | 7,831 | $ | 6,144 | ||||||
Stock based compensation | 1,030 | 299 | 2,881 | 604 | ||||||||||
Adjusted EBITDA | $ | 1,458 | $ | 4,301 | $ | 10,712 | $ | 6,748 | ||||||
SOURCE: TSS, Inc.
View the original press release on ACCESS Newswire
FAQ
What were TSS (TSSI) results for Q3 2025 and how did revenue compare to Q3 2024?
What is TSS's year-to-date revenue and Adjusted EBITDA through nine months of 2025?
Why did TSS say Q3 2025 Systems Integration volumes miss expectations?
What full-year 2025 guidance did TSS update on November 13, 2025?
How did Procurement and Systems Integration perform year-to-date for TSS in 2025?
Did TSS report net income or a loss in Q3 2025 and what was diluted EPS?
