TSS ( (TSSI) ) has released its Q3 earnings. Here is a breakdown of the information TSS presented to its investors.
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TSS, Inc., a data center services company based in Georgetown, Texas, specializes in integrating AI and high-performance computing infrastructure, offering related services to support digital transformation. In its third quarter of 2025, TSS reported a significant year-to-date revenue increase of 88%, reaching $184.8 million, despite a challenging quarter with a 40% drop in quarterly revenues compared to the previous year. The company attributes this to a strong performance in its Systems Integration segment, which saw a 20% increase in revenues, although overall quarterly results were impacted by lower-than-expected rack volumes and operational adjustments.
Key financial metrics for the third quarter include a gross profit of $4.6 million, a net loss of $1.5 million, and a diluted EPS of ($0.06), reflecting a decline from the previous year’s net income of $2.6 million and EPS of $0.10. Year-to-date highlights show a robust growth trajectory with procurement revenues doubling and systems integration revenues increasing by 78%, contributing to a 59% rise in adjusted EBITDA.
Looking ahead, TSS anticipates a strong fourth quarter with improved results in Systems Integration and Facilities Management, despite potential challenges from a government shutdown affecting procurement orders. The company has updated its full-year 2025 adjusted EBITDA outlook to reflect a growth range of 50% to 75% compared to 2024, with expectations of continued revenue and EBITDA growth into 2026.