TSS Reports First Quarter 2025 Revenue of $99.0 Million, Up 523% EPS of $0.12, Up from $0.00
TSS Inc (NASDAQ:TSSI) reported strong Q1 2025 results with revenue reaching $99.0 million, a 523% increase year-over-year. The company's performance was driven by significant growth in Procurement ($90.2M, up 676%) and Systems Integration ($7.5M, up 253%) segments, particularly from AI rack integration services. Net income rose to $3.0 million from $15,000, with diluted EPS of $0.12.
The company recently began production at its new facility on May 7, which will significantly increase data center rack integration capacity. Management expects continued growth, with H1 2025 revenue projected to exceed H2 2024, and full-year 2025 Adjusted EBITDA anticipated to be at least 50% higher than 2024.
TSS Inc (NASDAQ:TSSI) ha riportato risultati solidi nel primo trimestre 2025 con un fatturato che ha raggiunto 99,0 milioni di dollari, registrando un aumento del 523% rispetto all'anno precedente. Le performance dell'azienda sono state trainate da una crescita significativa nei segmenti Procurement (90,2 milioni di dollari, +676%) e Systems Integration (7,5 milioni di dollari, +253%), in particolare grazie ai servizi di integrazione rack per l'intelligenza artificiale. L'utile netto 猫 salito a 3,0 milioni di dollari rispetto a 15.000 dollari, con un utile per azione diluito di 0,12 dollari.
La societ脿 ha recentemente avviato la produzione presso il nuovo stabilimento il 7 maggio, che aumenter脿 significativamente la capacit脿 di integrazione rack per data center. La direzione prevede una crescita continua, con un fatturato nel primo semestre 2025 destinato a superare quello del secondo semestre 2024, e un EBITDA rettificato per l'intero anno 2025 atteso almeno del 50% superiore rispetto al 2024.
TSS Inc (NASDAQ:TSSI) report贸 s贸lidos resultados en el primer trimestre de 2025 con ingresos que alcanzaron los 99,0 millones de d贸lares, un aumento del 523% interanual. El desempe帽o de la compa帽铆a fue impulsado por un crecimiento significativo en los segmentos de Procurement (90,2 millones de d贸lares, +676%) e Integraci贸n de Sistemas (7,5 millones de d贸lares, +253%), especialmente por los servicios de integraci贸n de racks para IA. El ingreso neto aument贸 a 3,0 millones de d贸lares desde 15,000 d贸lares, con una ganancia diluida por acci贸n de 0,12 d贸lares.
La empresa inici贸 recientemente la producci贸n en su nueva planta el 7 de mayo, lo que incrementar谩 significativamente la capacidad de integraci贸n de racks para centros de datos. La direcci贸n espera un crecimiento continuo, con ingresos en el primer semestre de 2025 que superar谩n los del segundo semestre de 2024, y un EBITDA ajustado para todo el a帽o 2025 que se anticipa al menos un 50% superior al de 2024.
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TSS Inc (NASDAQ:TSSI) a annonc茅 de solides r茅sultats pour le premier trimestre 2025 avec un chiffre d'affaires atteignant 99,0 millions de dollars, soit une augmentation de 523 % par rapport 脿 l'ann茅e pr茅c茅dente. La performance de l'entreprise a 茅t茅 port茅e par une croissance significative dans les segments Procurement (90,2 M$, +676 %) et Systems Integration (7,5 M$, +253 %), notamment gr芒ce aux services d'int茅gration de racks pour l'intelligence artificielle. Le b茅n茅fice net est pass茅 脿 3,0 millions de dollars contre 15 000 dollars, avec un BPA dilu茅 de 0,12 $.
L'entreprise a r茅cemment commenc茅 la production dans sa nouvelle installation le 7 mai, ce qui augmentera consid茅rablement la capacit茅 d'int茅gration des racks pour centres de donn茅es. La direction s'attend 脿 une croissance continue, avec un chiffre d'affaires au premier semestre 2025 pr茅vu pour d茅passer celui du second semestre 2024, et un EBITDA ajust茅 pour l'ensemble de l'ann茅e 2025 anticip茅 d'au moins 50 % sup茅rieur 脿 celui de 2024.
TSS Inc (NASDAQ:TSSI) meldete starke Ergebnisse f眉r das erste Quartal 2025 mit einem Umsatz von 99,0 Millionen US-Dollar, was einem Anstieg von 523 % im Jahresvergleich entspricht. Die Leistung des Unternehmens wurde durch erhebliches Wachstum in den Segmenten Beschaffung (90,2 Mio. USD, +676 %) und Systemintegration (7,5 Mio. USD, +253 %) angetrieben, insbesondere durch AI-Rack-Integrationsdienste. Der Nettogewinn stieg von 15.000 USD auf 3,0 Millionen USD, mit einem verw盲sserten Gewinn je Aktie von 0,12 USD.
Das Unternehmen hat am 7. Mai die Produktion in seiner neuen Anlage aufgenommen, die die Kapazit盲t f眉r die Integration von Data-Center-Racks erheblich erh枚hen wird. Das Management erwartet ein anhaltendes Wachstum, wobei der Umsatz im ersten Halbjahr 2025 den des zweiten Halbjahres 2024 眉bertreffen soll und das bereinigte EBITDA f眉r das Gesamtjahr 2025 voraussichtlich mindestens 50 % h枚her ausfallen wird als 2024.
- Revenue surged 523% YoY to $99.0M in Q1 2025
- Net income increased significantly to $3.0M from $15,000
- Procurement segment revenue up 676% to $90.2M
- Systems Integration revenue grew 253% to $7.5M
- Adjusted EBITDA rose to $5.2M from $475,000
- New facility began production, promising several times more integration capacity
- Facilities Management revenue declined 40% to $1.3M
- Operations subject to 'ever-changing geopolitical environment' risks
Insights
TSS reports extraordinary 523% revenue growth driven by AI rack integration, with substantial EPS improvement and capacity expansion underway.
TSS has delivered an exceptional quarter with revenue soaring
The gross profit increase of
The Adjusted EBITDA jump from
Management's outlook indicates H1 2025 revenue will exceed H2 2024, with projected
The
ROUND ROCK, TEXAS / / May 15, 2025 / TSS, Inc. (NASDAQ:TSSI), a data center services company that provides AI and high-performance computing integration, deployment and related services, today reported results for its first quarter ended March 31, 2025.
"We are off to a strong start in 2025, with exponential increases in both our top and bottom lines, driven by robust growth in our Procurement and Systems Integration segments, including incremental contribution from AI rack integration services," commented Darryll Dewan, CEO of TSS. "For the first quarter, revenue was up
"Looking ahead, we are confident in the continued growth of our core businesses and expect some acceleration in the AI rack integration services revenues beginning in the second quarter. Our focus on innovation and operational excellence positions us to deliver sustained value to our customers and shareholders. We remain excited about the opportunities ahead as we build on our momentum in Systems Integration and Procurement."
Dewan continued, "On May 7, we began production at our new facility, and we remain on track to have that facility fully operational across all capabilities inJune. At full capacity, this new facility enables us to integrate several times the number of data center racks we can currently integrate in our legacy Round Rock facility. The outlook for growth of our industry is exceptionally strong. We have a solid operational foundation in place and with capacity expansion progressing according to plan, we are confident in our ability to capitalize on these opportunities, deliver profitable growth, generate positive cash from operations and drive enduring value for our shareholders."
First Quarter 2025 Financial Highlights:
(All comparisons are to First Quarter 2024)
Revenues of
$99.0 million , up523% Procurement revenues of
$90.2 million , up676% Systems Integration revenues of
$7.5 million , up253% Facilities Management revenues of
$1.3 million , down40%
Gross profit of
$9.2 million , up239% Net income of
$3.0 million , up from$15,000 Diluted EPS of
$0.12 , up from$0.00 Adjusted EBITDA of
$5.2 million , up from$475,000
2025 Outlook
Dewan concluded, "We are highly optimistic about our growth prospects for 2025 and beyond. Just last week, we began initial production at our new facility. We expect production volumes will grow in the second quarter and continue to ramp throughout the remainder of 2025 and into 2026. Based on our current visibility, and within the ever-changing geopolitical environment, we continue to expect total revenue in the first half of 2025 to exceed total revenue in the second half of 2024. For the full year 2025, we continue to expect Adjusted EBITDA to be at least
"In light of the demanding and rapidly advancing AI computing environment, our new facility is a strong differentiator. Our team has done an exceptional job getting the building outfitted, including significant power resources available. This marks the beginning of a new and exciting chapter for TSS."
Quarterly Conference Call Details
The Company will conduct a conference call at 5 p.m. Eastern time today. To participate on the conference call, please dial (888) 506-0062 toll free from the U.S. or Canada. Other international callers may access the call at 1-(973) 528-0011. The event ID number is 903946.
Investors may also access a live audio webcast of this conference call and replay the call until May 15, 2026 at .
About Non-GAAP Financial Measures
Adjusted EBITDA is a supplemental financial measure not defined under Generally Accepted Accounting Principles (GAAP). We define Adjusted EBITDA as net income (loss) before net interest expense, income taxes, depreciation and amortization, impairment loss on goodwill and other intangibles, stock-based compensation, and certain extraordinary items. We present Adjusted EBITDA because we believe this supplemental measure of operating performance is helpful in comparing our operating results across reporting periods on a consistent basis by excluding items that may or could have a disproportionately positive or negative impact on our results of operations in any particular period. We also use Adjusted EBITDA as a factor in evaluating the performance of certain management personnel when determining incentive compensation.
Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with Regulation G under the U.S. federal securities laws, Adjusted EBITDA has been reconciled to the nearest GAAP measure; this reconciliation is located under the heading "Adjusted EBITDA Reconciliation" following the Consolidated Statements of Operations included in this press release.
About TSS, Inc.
TSS specializes in simplifying the complex. The TSS mission is to streamline the integration and deployment of high-performance computing infrastructure and software, ensuring that end users quickly receive and efficiently utilize the necessary technology. Known for flexibility, the company builds, integrates, and deploys custom, high-volume solutions that empower data centers and catalyze the digital transformation of generative AI and other leading-edge technologies essential for modern computing, data, and business needs. TSS' reputation is built on passion and experience, quality, and fast time to value. As trusted partners of the world's leading data center technology providers, the company manages and deploys billions of dollars in technology each year. For more information, visit .
Forward Looking Statements
This press release may contain "forward-looking statements" -- that is, statements related to future -- not past -- events, plans, and prospects. In this context, forward-looking statements may address matters such as our expected future business and financial performance, and often contain words such as "guidance," "prospects," "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect our future results include: we may not have sufficient resources to fund our business and may need to issue debt or equity to obtain additional funding; our reliance on a significant portion of our revenues from a limited number of customers and our ability to diversify our customer base; risks relating to operating in a highly competitive industry; risks relating to supply chain challenges; risk related to changes in labor market conditions; risks related to the implementation of a new enterprise resource IT system; risks related to the development of our procurement services business; risks relating to rapid technological, structural, and competitive changes affecting the industries we serve; risks involved in properly managing complex projects; risks relating to the possible cancellation of customer contracts on short notice; risks relating to our ability to continue to implement our strategy, including having sufficient financial resources to carry out that strategy; and other risks and uncertainties disclosed in our filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2024. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Contacts:
Hayden IR
James Carbonara (646-755-7412)
Brett Maas (646-536-7331)
[email protected]
TSS, Inc.
Danny Chism, CFO
(512) 310-4908
[email protected]
-- Tables Follow -
TSS, Inc.
Consolidated Balance Sheets
(In thousands except par values)
March 31, 2025 | December 31, 2024 | |||||||
(unaudited) | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 27,339 | $ | 23,222 | ||||
Contract and other receivables, net | 11,061 | 16,203 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,778 | 851 | ||||||
Inventories, net | 20,396 | 17,673 | ||||||
Prepaid expenses and other current assets | 508 | 248 | ||||||
Total current assets | 61,082 | 58,197 | ||||||
Property and equipment, net | 23,276 | 8,591 | ||||||
Lease right-of-use asset | 23,667 | 24,213 | ||||||
Goodwill | 780 | 780 | ||||||
Other assets | 4,734 | 4,787 | ||||||
Total assets | $ | 113,539 | $ | 96,568 | ||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 66,214 | $ | 53,340 | ||||
Deferred revenues, current | 4,337 | 2,613 | ||||||
Lease liabilities, current | 1,654 | 966 | ||||||
Total current liabilities | 72,205 | 56,919 | ||||||
Non-current Liabilities: | ||||||||
Long-term debt, non-current | 8,200 | 8,200 | ||||||
Lease liabilities, non-current | 23,062 | 23,540 | ||||||
Deferred revenues, non-current | 681 | 771 | ||||||
Total non-current liabilities | 31,943 | 32,511 | ||||||
Total liabilities | 104,148 | 89,430 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity: | ||||||||
Preferred stock | - | - | ||||||
Common stock | 3 | 3 | ||||||
Additional paid-in capital | 75,128 | 74,200 | ||||||
Treasury stock, at cost | (8,384 | ) | (6,730 | ) | ||||
Accumulated deficit | (57,356 | ) | (60,335 | ) | ||||
Total stockholders' equity | 9,391 | 7,138 | ||||||
Total liabilities and stockholders' equity | $ | 113,539 | $ | 96,568 | ||||
TSS, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands except per-share values)
Three Months Ended March 31, | ||||||||
2025 | 2024 | |||||||
Revenues: | ||||||||
Procurement | $ | 90,177 | $ | 11,623 | ||||
Facilities management | 1,298 | 2,146 | ||||||
System integration | 7,484 | 2,123 | ||||||
Total revenues | 98,959 | 15,892 | ||||||
Cost of revenue | 89,749 | 13,178 | ||||||
Gross profit | 9,210 | 2,714 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 4,887 | 2,389 | ||||||
Depreciation and amortization | 210 | 72 | ||||||
Total operating expenses | 5,097 | 2,461 | ||||||
Income from operations | 4,113 | 253 | ||||||
Interest expense | 1,468 | 328 | ||||||
Interest income | (383 | ) | (100 | |||||
Other expense | - | - | ||||||
Pre-tax income | 3,028 | 25 | ||||||
Income taxes | 49 | 10 | ||||||
Net income | $ | 2,979 | $ | 15 | ||||
Earnings per common share - Basic | $ | 0.13 | $ | - | ||||
Earnings per common share - Diluted | $ | 0.12 | $ | - | ||||
TSS, Inc.
Adjusted EBITDA Reconciliation (GAAP to non-GAAP)
(In thousands, unaudited)
Three Months Ended March 31, | |||||||||
2025 | 2024 | ||||||||
Net income | $ | 2,979 | $ | 15 | |||||
Interest expense, net | 1,085 | 228 | |||||||
Depreciation and amortization | 210 | 72 | |||||||
Income tax provision | 49 | 10 | |||||||
EBITDA | $ | 4,323 | $ | 325 | |||||
Stock based compensation | 921 | 150 | |||||||
Adjusted EBITDA | $ | 0.12 | $ | 475 | |||||
SOURCE: TSS, Inc.
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FAQ
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When did TSS Inc open its new facility and what impact will it have?
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