TSS, Inc. Reports Record 2025 Financial Results and Bullish 2026 Outlook

Strong Growth Driven by AI and Data Center Demand; Major Customer Agreement Extended

GEORGETOWN, TEXAS – March 11, 2026 – TSS, Inc. (Nasdaq: TSSI), a leading provider of high-performance computing integration and data center services, announced outstanding results for its fourth quarter and full year ended December 31, 2025. The company significantly exceeded previous guidance, driven by surging demand for AI and cloud infrastructure solutions.

Key Financial Highlights – Fourth Quarter and Full Year 2025

• Full Year Revenue: \$245.7 million, up 66% year-over-year
• Fourth Quarter Revenue: \$60.9 million, up 22% from Q4 2024
• Diluted EPS: \$0.56 for the year (up 133% from \$0.24 in 2024); \$0.41 for Q4 (up from \$0.08 in Q4 2024)
• Net Income: \$15.1 million for the year (up 153% from \$6.0 million in 2024)
• Adjusted EBITDA: \$18.6 million for 2025, an increase of 83%
• Gross Profit: \$32.4 million for the year, up 45%

Segment Performance

• Procurement Revenues: \$197.5 million for 2025, up 68%
• Systems Integration Revenues: \$40.3 million, up 78% as rack volumes ramped at the new Georgetown facility
• Facilities Management Revenues: \$7.9 million, down 1%, indicating stabilization in this segment

Notably, Q4 systems integration revenues soared 79% year-over-year to \$14.2 million, while facilities management revenues experienced significant growth of 118% to \$3.5 million for the quarter.

Business and Strategic Highlights

• Major Customer Agreement Extended: In December 2025, TSS amended and extended its long-term AI rack integration agreement with its largest customer for an additional two years, effective November 1, 2025. This extension addresses unanticipated circumstances and reinforces the strength of TSS’s strategic partnership.
• Georgetown Facility Ramp: The new facility came online mid-year and was a key driver of Q4 and full-year growth, positioning TSS for further expansion in 2026.
• Balance Sheet Strength: At year end, TSS reported \$85.5 million in cash and cash equivalents, up from \$23.2 million a year prior, and total assets of \$184.9 million (up from \$96.6 million). Stockholders’ equity rose to \$76.6 million.

2026 Outlook – Aggressive Growth Expected

CEO Darryll Dewan provided a bullish outlook for 2026, highlighting:

• TSS is projecting record growth in its Systems Integration business, anticipating a doubling of rack integration volumes as its largest partner expects to double its AI infrastructure deployments.
• Adjusted EBITDA guidance for 2026: \$20 million to \$22 million, reflecting the company’s confidence in profitable scaling.
• Forecasts remain conservative due to ongoing supply chain volatility, particularly in memory components, but actual customer activity is already trending above initial estimates.

Risks and Considerations for Investors

• TSS’s strong reliance on a few large customers, particularly one major partner, could increase revenue concentration risk if relationships change or contracts are cancelled.
• Supply chain volatility, component shortages, and memory price increases could impact the company’s ability to deliver completed rack systems and meet growth targets.
• The company’s rapid growth is capital intensive, as evidenced by increased property, equipment, and higher accounts payable. Long-term debt rose to \$18 million from \$8.2 million in 2024, indicating increased leverage.
• Facilities Management revenues were down year-over-year, and growth in this segment is expected to be more conservative.

Why This News is Price Sensitive

• The 66% surge in revenues and 133% increase in EPS signal robust business momentum, likely to attract investor attention and re-rate the stock.
• The extension of the key AI rack integration contract with TSS’s largest customer de-risks future cash flows and underpins management’s aggressive 2026 outlook.
• TSS’s ability to capture a significant share of the accelerating AI infrastructure buildout positions the company as a potential high-growth play in a sector with strong tailwinds.

Conference Call Details

TSS will host a conference call at 8:30 a.m. Eastern time. US and Canada investors can dial 888-506-0062 (event ID 233478), with international access at 1-973-528-0011. A webcast and one-year replay are available at this link.

About TSS, Inc.

TSS specializes in simplifying the integration and deployment of high-performance computing infrastructure for data centers, focusing on generative AI and advanced technologies. Its reputation centers on flexible, rapid, and high-quality solutions, managing billions of dollars in IT deployments annually.

www.tssiusa.com

Disclaimer: This article is for informational purposes only and is not investment advice. Forward-looking statements are subject to risks and uncertainties, including but not limited to supply chain challenges, customer concentration, and competitive pressures. Please consult the company’s filings with the SEC and your financial advisor before making investment decisions.

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