TSS, Inc. reported fourth‑quarter revenue of $60.9 million, a 22% year‑over‑year increase from $50 million in Q4 2024. The figure surpassed the consensus estimate of $42.2 million by 44%, driven largely by a 79% jump in Systems Integration revenue to $14.2 million and a 7% rise in Procurement revenue to $43.2 million. Facilities Management revenue also grew 118% to $3.5 million, reflecting strong demand for high‑density AI infrastructure.
Diluted earnings per share for the quarter were $0.41, up 411% from $0.08 in Q4 2024 and beating the consensus estimate of $0.0051 by $0.4049. The sharp EPS gain was supported by a 57% increase in gross profit to $11.3 million and disciplined cost management, which helped preserve margins despite higher operating expenses.
Full‑year 2025 results showed revenue of $245.7 million, a 66% increase from $148.1 million in 2024, and diluted EPS of $0.56, up 133% from $0.24. Gross margin for the year was 13.2%, and the company ended 2025 with cash reserves of $85.5 million, underscoring its strong balance sheet.
For 2026, TSS guided adjusted EBITDA of $20 million to $22 million. Management highlighted a conservative outlook that reflects supply‑chain uncertainties, but also noted that the company expects to double AI rack‑integration volumes, citing an extended multi‑year agreement with its dominant OEM customer and the ramp‑up of its Georgetown facility.
The market reacted strongly, with the stock surging 18% in pre‑market trading and 8% during the day. The rally was driven by the earnings beat, the robust growth in the high‑margin Systems Integration segment, the extended customer contract, and the positive 2026 outlook.
CEO Darryll Dewan said the results surpassed the upper end of the company’s 2025 outlook and that the Georgetown facility ramped in Q4, positioning the company for solid growth in 2026.
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