TSS Inc
OTC:TSSI
TSS Inc
TSS, Inc. engages in the provision of comprehensive services for the planning, design, development and maintenance of mission-critical facilities and information infrastructure as well as integration services. The company is headquartered in Round Rock, Texas and currently employs 67 full-time employees. The company went IPO on 2010-04-01. The firm operates through two segments: facilities and systems integration. The facilities segment is involved in the design, project management and maintenance of data center and mission-critical business operations. The systems integration segment integrates information technology (IT) equipment for original equipment manufacturer (OEM) vendors and customers to be used inside data center environments, including modular data centers. The company provides a single-source solution for enabling technologies in data centers, operation centers, network facilities, server rooms, and security operations centers, among others. Its services consist of technology consulting, design and engineering, project management, systems integration, system installations, facilities management, and IT reseller services.
TSS, Inc. engages in the provision of comprehensive services for the planning, design, development and maintenance of mission-critical facilities and information infrastructure as well as integration services. The company is headquartered in Round Rock, Texas and currently employs 67 full-time employees. The company went IPO on 2010-04-01. The firm operates through two segments: facilities and systems integration. The facilities segment is involved in the design, project management and maintenance of data center and mission-critical business operations. The systems integration segment integrates information technology (IT) equipment for original equipment manufacturer (OEM) vendors and customers to be used inside data center environments, including modular data centers. The company provides a single-source solution for enabling technologies in data centers, operation centers, network facilities, server rooms, and security operations centers, among others. Its services consist of technology consulting, design and engineering, project management, systems integration, system installations, facilities management, and IT reseller services.
Mixed Q3 Results: Q3 revenue declined year-over-year to $41.9 million, mainly due to a sharp drop in procurement services revenue and operational challenges, but non-procurement revenues rose 13%.
Strong Full-Year Growth: Year-to-date revenue is up 88%, and adjusted EBITDA is up 59%, highlighting robust demand for AI and high-performance computing infrastructure.
AI & Rack Integration Momentum: Systems integration revenue grew 20% year-over-year, though Q3 rack volume was below expectations due to operational delays, with a rebound forecasted for Q4.
EBITDA Guidance: Full-year 2025 adjusted EBITDA is expected to grow 50% to 75% over 2024, with initial 2026 guidance for 40% to 50% EBITDA growth.
Strategic Expansion: Recent capital raise strengthens the balance sheet, supports M&A, and positions TSS to pursue new opportunities beyond its primary OEM customer.
Operational Challenges Addressed: Q3 saw higher costs from power upgrades and process improvements, but management expects these investments to boost future growth and operational efficiency.
End Market Diversification: TSS highlighted growing enterprise demand beyond hyperscalers and plans to expand its customer mix and services portfolio.
