TSS Reports Second Quarter 2025 Revenue of $44.0 Million, Up 262%
TSS Reports Second Quarter 2025 Revenue of $44.0 Million, Up 262%
Georgetown Facility Fully Operational, Positioning Company to Accelerate Through AI Infrastructure Boom
Upward Revision to 2025 Outlook Reflects Confidence in Continued Momentum
GEORGETOWN, TX / ACCESS Newswire / August 6, 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 second quarter ended June 30, 2025
"In the second quarter, we delivered substantial year-over-year growth across key financial metrics, including a 262% increase in revenue, a 103% increase in Adjusted EBITDA and strong positive operating cash flow, commented Darryll Dewan, CEO of TSS, Inc. "Total revenue for the first half of 2025 exceeded total revenue in the second half of 2024. These results reflect strong operational execution and the growing leverage in our business model. Our Georgetown facility is now fully operational across all capabilities, enabling us to integrate more racks featuring the latest advanced AI technologies, shorten delivery timelines and serve a large share of the market.
"The outlook for our industry remains exceptionally strong, and demand across our core markets-particularly in data center infrastructure and AI rack integration-continues to accelerate, reinforcing our belief that we are in a significant and sustained growth cycle. With the strategic groundwork in place, we are positioned to scale capacity and address complexity to capitalize on opportunities before us and meet the growing demand for advanced, AI-driven systems."
Second Quarter 2025 Financial Highlights:
(All comparisons are to Second Quarter 2024)
Revenues of $44.0 million, up 262%
Procurement revenues of $33.0 million, up 572%
Systems Integration revenues of $9.5 million, up 91%
Facilities Management revenues of $1.5 million, down 35%; sequentially up $0.2 million from Q1 2025
Gross profit of $7.8 million, up 72%
Net income of $1.5 million, up $0.1 million
Diluted EPS of $0.06 compared to $0.06
Adjusted EBITDA of $4.0 million, up 103%
Year-to-Date 2025 Financial Highlights
(All comparisons are to the First Six Months of 2024 unless otherwise noted)
Revenues of $142.9 million, up 410%
Procurement revenues of $123.2 million, up 645%
Systems Integration revenues of $17.0 million, up 140%
Facilities Management revenues of $2.8 million, down 37%
Gross profit of $17.0 million, up 135%
Net income of $4.5 million, up 215%
Diluted EPS of $0.17, up 183% from $0.06
Adjusted EBITDA of $9.3 million, up 278%
2025 Outlook
"Given the strength of our first-half performance and increasing visibility into the second half of the year, we are raising our full-year 2025 Adjusted EBITDA outlook from at least 50% growth to at least 75% growth compared to 2024," Dewan continued. "The foundational pieces of our business are in place, and we believe a full wave of demand is still ahead. We will continue to position ourselves to grow our business organically, while exploring potential strategic opportunities."
The Company will conduct a conference call at 5 p.m. Eastern time today. To participate on the conference call, please dial 888-506-0062 toll free from the U.S. or Canada. Other international callers may access the call at 1-973-528-0011. The event ID number is 664241.
Investors may also access a live audio webcast of this conference call and replay the call until August 6, 2026 at https://www.webcaster4.com/Webcast/Page/2294/52763
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
James Carbonara (646) 755-7412
Brett Maas (646) 536-7331
[email protected]
TSS, Inc.
Danny Chism, CFO
(512) 310-4908
[email protected]
-- Tables Follow -
TSS, Inc.
Consolidated Balance Sheets
(In thousands except par values)
June 30, 2025 | December 31, 2024 | |||
(unaudited) | ||||
Current Assets: | ||||
Cash and cash equivalents | $ | 36,836 | $ | 23,222 |
Contract and other receivables, net | 13,997 | 16,203 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 4,418 | 851 | ||
Inventories, net | 14,589 | 17,673 | ||
Prepaid expenses and other current assets | 1,055 | 248 | ||
Total current assets | 70,895 | 58,197 | ||
Property and equipment, net | 35,288 | 8,591 | ||
Lease right-of-use asset | 22,939 | 24,213 | ||
Goodwill | 780 | 780 | ||
Restricted cash | 5,000 | - | ||
Other assets | 4,568 | 4,787 | ||
Total assets | $ | 139,470 | $ | 96,568 |
Current Liabilities: | ||||
Accounts payable and accrued expenses | $ | 82,020 | $ | 53,340 |
Deferred revenues, current | 3,333 | 2,613 | ||
Lease liabilities, current | 1,891 | 966 | ||
Total current liabilities | 87,244 | 56,919 | ||
Non-current Liabilities: | ||||
Long-term debt, non-current | 19,541 | 8,200 | ||
Lease liabilities, non-current | 22,648 | 23,540 | ||
Deferred revenues, non-current | 499 | 771 | ||
Total non-current liabilities | 42,688 | 32,511 | ||
Total liabilities | 129,932 | 89,430 | ||
Commitments and Contingencies | ||||
Stockholders' Equity: | ||||
Preferred stock | - | - | ||
Common stock | 3 | 3 | ||
Additional paid-in capital | 76,058 | 74,200 | ||
Treasury stock, at cost | (10,650 | ) | (6,730 | ) |
Accumulated deficit | (55,873 | ) | (60,335 | ) |
Total stockholders' equity | 9,538 | 7,138 | ||
Total liabilities and stockholders' equity | $ | 139,470 | $ | 96,568 |
TSS, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands except per-share values)
Three Months Ended June 30, | Six Month Ended June 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Revenues: | ||||||||||||
Procurement | $ | 33,002 | $ | 4,914 | $ | 123,179 | $ | 16,538 | ||||
Facilities management | 1,482 | 2,285 | 2,780 | 4,431 | ||||||||
Systems integration | 9,486 | 4,960 | 16,970 | 7,083 | ||||||||
Total revenues | 43,970 | 12,159 | 142,929 | 28,052 | ||||||||
Cost of revenues | 36,155 | 7,623 | 125,904 | 20,802 | ||||||||
Gross profit | 7,815 | 4,536 | 17,025 | 7,250 | ||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative | 4,735 | 2,719 | 9,622 | 5,108 | ||||||||
Depreciation and amortization | 844 | 117 | 1,054 | 188 | ||||||||
Total operating expenses | 5,579 | 2,836 | 10,676 | 5,296 | ||||||||
Income from operations | 2,236 | 1,700 | 6,349 | 1,954 | ||||||||
Interest expense | 859 | 378 | 2,327 | 706 | ||||||||
Interest income | (175 | ) | (106 | ) | (558 | ) | (205 | ) | ||||
Other expense | - | - | - | - | ||||||||
Pre-tax income | 1,552 | 1,428 | 4,580 | 1,453 | ||||||||
Income taxes | 69 | 26 | 118 | 36 | ||||||||
Net income | $ | 1,483 | $ | 1,402 | $ | 4,462 | $ | 1,417 | ||||
Earnings per common share - Basic | $ | 0.06 | $ | 0.06 | $ | 0.19 | $ | 0.06 | ||||
Earnings per common share - Diluted | $ | 0.06 | $ | 0.06 | $ | 0.17 | $ | 0.06 | ||||
TSS, Inc.
Adjusted EBITDA Reconciliation (GAAP to non-GAAP)
(In thousands, unaudited)
Three Months Ended June 30, | Six Month Ended June 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Net income | $ | 1,483 | $ | 1,402 | $ | 4,462 | $ | 1,417 | ||||
Interest expense, net | 684 | 272 | 1,769 | 501 | ||||||||
Depreciation and amortization | 844 | 117 | 1,054 | 188 | ||||||||
Income tax provision | 69 | 26 | 118 | 36 | ||||||||
EBITDA | $ | 3,080 | $ | 1,817 | $ | 7,403 | $ | 2,142 | ||||
Stock based compensation | 930 | 155 | 1,851 | 305 | ||||||||
Adjusted EBITDA | $ | 4,010 | $ | 1,972 | $ | 9,254 | $ | 2,447 | ||||
SOURCE: TSS, Inc.
View the original press release on ACCESS Newswire
L.Diaz--RTC
