TSS (NASDAQ:TSSI) Posts Earnings Results

TSS (NASDAQ:TSSI) announced its quarterly earnings data on Wednesday. The company reported $0.41 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of $60.91 million for the quarter. TSS had a net margin of 6.16% and a return on equity of 55.11%.

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 TSS stock opened at $12.73 on Friday. The firm has a market cap of $367.13 million, a PE ratio of 24.02 and a beta of 2.12. The company has a quick ratio of 1.35, a current ratio of 1.52 and a debt-to-equity ratio of 0.30. TSS has a twelve month low of $5.63 and a twelve month high of $31.94. The business has a 50-day moving average price of $9.55 and a 200 day moving average price of $12.14.

Hedge Funds Weigh In On TSS

Several large investors have recently modified their holdings of TSSI. California State Teachers Retirement System acquired a new position in TSS during the second quarter worth $33,000. Bank of America Corp DE purchased a new stake in shares of TSS in the fourth quarter worth $40,000. BNP Paribas Financial Markets purchased a new stake in TSS during the 2nd quarter valued at approximately $45,000. Ameritas Investment Partners Inc. purchased a new stake in shares of TSS during the second quarter worth $54,000. Finally, Legal & General Group Plc acquired a new stake in TSS in the 2nd quarter valued at about $59,000.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on TSSI. Loop Capital set a $15.00 target price on TSS in a report on Monday, December 1st. Zacks Research raised shares of TSS to a “hold” rating in a research report on Tuesday, February 17th. Weiss Ratings reissued a “hold (c-)” rating on shares of TSS in a research report on Monday, December 29th. Finally, Wall Street Zen downgraded shares of TSS from a “hold” rating to a “strong sell” rating in a research report on Saturday, November 15th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, TSS currently has a consensus rating of “Hold” and a consensus price target of $17.75.

About TSS

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.