TSS ( (TSSI) ) has released its Q1 earnings. Here is a breakdown of the information TSS presented to its investors.
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TSS, Inc., based in Round Rock, Texas, is a data center services company specializing in AI and high-performance computing integration, deployment, and related services.
In its first quarter of 2025, TSS reported a significant surge in revenue and earnings, marking a promising start to the year. The company achieved a revenue of $99 million, reflecting a 523% increase compared to the previous year, alongside an earnings per share of $0.12, up from breakeven.
Key financial highlights include a remarkable growth in Procurement revenues, which soared by 676% to $90.2 million, and Systems Integration revenues, which increased by 253% to $7.5 million. Despite a 40% decline in Facilities Management revenues, the company saw its gross profit rise by 239% to $9.2 million. Net income also saw a substantial increase, reaching $3 million from just $15,000 the previous year. Adjusted EBITDA grew more than tenfold to $5.2 million.
Looking forward, TSS is optimistic about its growth trajectory, driven by its new facility that began production in May and is expected to be fully operational by June. The company anticipates accelerated growth in its AI rack integration services and is poised to capitalize on industry opportunities with its expanded capacity, aiming for sustained profitability and shareholder value.