TSS (NASDAQ:TSSI) Releases Quarterly Earnings Results

TSS (NASDAQ:TSSI) posted its quarterly earnings data on Wednesday. The company reported $0.41 earnings per share for the quarter, FiscalAI reports. The firm had revenue of $60.91 million for the quarter. TSS had a net margin of 2.08% and a return on equity of 21.81%.

Here are the key takeaways from TSS’s conference call:

• Delivered a strong FY2025 financial performance with revenue up 66% to $245.7M, adjusted EBITDA of $18.6M (up 83%) and net income of $15.1M, beating prior guidance.
• Signed an amended and extended multi-year agreement with the largest customer that raises pricing to recoup power and infrastructure investments and extends the term by two years, increasing revenue visibility.
• Georgetown rack-integration ramp materially improved in Q4 and management expects to roughly double rack volumes in 2026, is discussing further capacity expansion, and plans to pursue strategic partnerships and M&A to capture AI infrastructure demand.
• Reported several one-time and accounting-driven items that boosted 2025 results—notably a $7.6M tax benefit from reversing a DTA valuation allowance and $0.8M accelerated revenue—while consolidated gross margin was pressured by new depreciation allocations and higher power-related costs.
• Balance sheet and cash flow strengthened: $85.5M unrestricted cash, operating cash flow >$30M, $32.7M CapEx funded, and net working capital improved to $46.1M, providing flexibility to fund growth.

TSS Price Performance

Shares of TSSI stock traded up $2.82 during mid-day trading on Wednesday, reaching $13.87. The stock had a trading volume of 5,976,759 shares, compared to its average volume of 1,195,391. The company has a market cap of $400.07 million, a P/E ratio of 70.44 and a beta of 2.12. The company has a current ratio of 1.52, a quick ratio of 1.35 and a debt-to-equity ratio of 0.30. TSS has a 12-month low of $5.63 and a 12-month high of $31.94. The business has a 50-day simple moving average of $9.34 and a 200 day simple moving average of $12.14.

Insider Activity at TSS

In related news, Director Peter H. Woodward sold 21,700 shares of the stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $8.30, for a total value of $180,110.00. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 18.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On TSS

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in shares of TSS by 31.2% in the third quarter. Vanguard Group Inc. now owns 1,240,958 shares of the company’s stock valued at $22,474,000 after purchasing an additional 294,971 shares during the last quarter. Millennium Management LLC raised its position in shares of TSS by 81.9% during the 4th quarter. Millennium Management LLC now owns 865,350 shares of the company’s stock worth $6,118,000 after purchasing an additional 389,497 shares during the last quarter. Geode Capital Management LLC raised its position in shares of TSS by 8.3% during the 4th quarter. Geode Capital Management LLC now owns 539,359 shares of the company’s stock worth $3,814,000 after purchasing an additional 41,536 shares during the last quarter. Value Aligned Research Advisors LLC lifted its stake in TSS by 6.8% in the 4th quarter. Value Aligned Research Advisors LLC now owns 460,510 shares of the company’s stock valued at $3,256,000 after buying an additional 29,247 shares in the last quarter. Finally, UBS Group AG lifted its stake in TSS by 188.1% in the 4th quarter. UBS Group AG now owns 316,456 shares of the company’s stock valued at $2,237,000 after buying an additional 206,600 shares in the last quarter.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Wall Street Zen downgraded shares of TSS from a “hold” rating to a “strong sell” rating in a research report on Saturday, November 15th. Loop Capital set a $15.00 price target on TSS in a research note on Monday, December 1st. Weiss Ratings reiterated a “hold (c-)” rating on shares of TSS in a research report on Monday, December 29th. Finally, Zacks Research raised TSS to a “hold” rating in a report on Tuesday, February 17th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $17.75.

TSS Company Profile

TSS, Inc offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc, formerly known as Fortress International Group, Inc, is based in Columbia, United States.