TSS Reports Second Quarter 2025 Revenue of $44.0 Million, Up 262%
TSS Inc. (Nasdaq:TSSI), a data center services company specializing in AI infrastructure integration, reported exceptional Q2 2025 financial results. The company achieved revenue of $44.0 million, marking a 262% year-over-year increase, driven by strong procurement and systems integration performance.
Key highlights include procurement revenues up 572% to $33.0 million, systems integration revenues increasing 91% to $9.5 million, and Adjusted EBITDA growing 103% to $4.0 million. The company's Georgetown facility is now fully operational, enabling enhanced AI rack integration capabilities.
Based on strong H1 2025 performance, TSS has raised its full-year 2025 Adjusted EBITDA growth outlook from 50% to at least 75% compared to 2024, reflecting confidence in continued momentum and market demand for AI-driven systems.
TSS Inc. (Nasdaq:TSSI), un'azienda di servizi per data center specializzata nell'integrazione di infrastrutture AI, ha riportato risultati finanziari eccezionali per il secondo trimestre 2025. La societ脿 ha raggiunto un fatturato di 44,0 milioni di dollari, segnando un aumento del 262% rispetto all'anno precedente, grazie a una forte performance nel procurement e nell'integrazione di sistemi.
I punti salienti includono un incremento del 572% nei ricavi da procurement, arrivati a 33,0 milioni di dollari, un aumento del 91% nei ricavi da integrazione di sistemi, che hanno raggiunto 9,5 milioni di dollari, e un EBITDA rettificato cresciuto del 103%, pari a 4,0 milioni di dollari. La struttura di Georgetown 猫 ora pienamente operativa, permettendo una maggiore capacit脿 di integrazione di rack AI.
Basandosi sulle solide performance del primo semestre 2025, TSS ha rivisto al rialzo le previsioni di crescita dell'EBITDA rettificato per l'intero anno 2025, portandole da un 50% a almeno il 75% rispetto al 2024, riflettendo fiducia nel continuo slancio e nella domanda di mercato per sistemi basati sull'intelligenza artificiale.
TSS Inc. (Nasdaq:TSSI), una empresa de servicios para centros de datos especializada en la integraci贸n de infraestructuras de IA, report贸 resultados financieros excepcionales en el segundo trimestre de 2025. La compa帽铆a alcanz贸 unos ingresos de 44,0 millones de d贸lares, lo que representa un incremento del 262% interanual, impulsado por un s贸lido desempe帽o en adquisiciones e integraci贸n de sistemas.
Los aspectos destacados incluyen un aumento del 572% en ingresos por adquisiciones, llegando a 33,0 millones de d贸lares, un incremento del 91% en ingresos por integraci贸n de sistemas, que alcanzaron los 9,5 millones de d贸lares, y un EBITDA ajustado que creci贸 un 103%, hasta 4,0 millones de d贸lares. La instalaci贸n de Georgetown ya est谩 completamente operativa, lo que permite mejorar las capacidades de integraci贸n de racks de IA.
Bas谩ndose en el s贸lido desempe帽o del primer semestre de 2025, TSS ha elevado su previsi贸n de crecimiento del EBITDA ajustado para todo el a帽o 2025, de un 50% a al menos un 75% en comparaci贸n con 2024, reflejando confianza en el impulso continuo y la demanda del mercado de sistemas impulsados por IA.
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TSS Inc. (Nasdaq:TSSI), une entreprise de services de centres de donn茅es sp茅cialis茅e dans l'int茅gration d'infrastructures d'IA, a annonc茅 des r茅sultats financiers exceptionnels pour le 2e trimestre 2025. La soci茅t茅 a r茅alis茅 un chiffre d'affaires de 44,0 millions de dollars, soit une augmentation de 262 % par rapport 脿 l'ann茅e pr茅c茅dente, port茅e par une forte performance dans les achats et l'int茅gration de syst猫mes.
Les points cl茅s incluent une hausse de 572 % des revenus li茅s aux achats, atteignant 33,0 millions de dollars, une augmentation de 91 % des revenus d'int茅gration de syst猫mes 脿 9,5 millions de dollars, et un EBITDA ajust茅 en croissance de 103 % 脿 4,0 millions de dollars. L'installation de Georgetown est d茅sormais pleinement op茅rationnelle, permettant d'am茅liorer les capacit茅s d'int茅gration des racks IA.
Sur la base des solides performances du premier semestre 2025, TSS a revu 脿 la hausse ses pr茅visions de croissance de l'EBITDA ajust茅 pour l'ensemble de l'ann茅e 2025, passant de 50 % 脿 au moins 75 % par rapport 脿 2024, refl茅tant la confiance dans la dynamique continue et la demande du march茅 pour les syst猫mes pilot茅s par l'IA.
TSS Inc. (Nasdaq:TSSI), ein auf die Integration von KI-Infrastrukturen spezialisiertes Rechenzentrumsdienstleistungsunternehmen, meldete herausragende Finanzergebnisse f眉r das 2. Quartal 2025. Das Unternehmen erzielte einen Umsatz von 44,0 Millionen US-Dollar, was einem Anstieg von 262 % im Jahresvergleich entspricht, angetrieben durch starke Leistungen im Einkauf und der Systemintegration.
Zu den wichtigsten Highlights z盲hlen ein Umsatzanstieg im Beschaffungsbereich um 572 % auf 33,0 Millionen US-Dollar, ein Anstieg der Ums盲tze aus der Systemintegration um 91 % auf 9,5 Millionen US-Dollar sowie ein um 103 % gewachsenes bereinigtes EBITDA von 4,0 Millionen US-Dollar. Die Anlage in Georgetown ist nun vollst盲ndig betriebsbereit und erm枚glicht verbesserte Integrationsm枚glichkeiten f眉r KI-Racks.
Aufgrund der starken Leistung im ersten Halbjahr 2025 hat TSS seine Prognose f眉r das bereinigte EBITDA-Wachstum im Gesamtjahr 2025 von 50 % auf mindestens 75 % gegen眉ber 2024 nach oben korrigiert, was das Vertrauen in den anhaltenden Schwung und die Marktnachfrage nach KI-gesteuerten Systemen widerspiegelt.
- Revenue surged 262% year-over-year to $44.0 million in Q2 2025
- Procurement revenues increased dramatically by 572% to $33.0 million
- Systems Integration revenues grew 91% to $9.5 million
- Adjusted EBITDA rose 103% to $4.0 million
- Georgetown facility now fully operational across all capabilities
- Raised full-year 2025 Adjusted EBITDA growth outlook from 50% to 75%
- Strong positive operating cash flow achieved
- Facilities Management revenues declined 35% year-over-year to $1.5 million
- Diluted EPS remained flat at $0.06 despite significant revenue growth
Insights
TSS delivers explosive Q2 growth with 262% revenue increase and raises 2025 guidance, signaling strong momentum in AI infrastructure market.
TSS's Q2 2025 results showcase remarkable growth across key metrics. Revenue surged
The company's profitability metrics are equally impressive. Gross profit increased
Year-to-date performance amplifies this growth story with revenue up
Strategically, the fully operational Georgetown facility represents a significant operational milestone. This expanded capacity enables TSS to integrate more AI racks, reduce delivery times, and capture greater market share in the rapidly expanding AI infrastructure sector. The company's ability to scale while maintaining profitability demonstrates the operating leverage in their business model.
The exceptional growth rates suggest TSS is in the early stages of capitalizing on secular tailwinds in AI infrastructure deployment. With the first half of 2025 revenue already exceeding total revenue from the second half of 2024, TSS is showing accelerating momentum in a market where demand continues to outpace supply.
Georgetown Facility Fully Operational, Positioning Company to Accelerate Through AI Infrastructure Boom
Upward Revision to 2025 Outlook Reflects Confidence in Continued Momentum
GEORGETOWN, TX / / August 6, 2025 / TSS, Inc. (Nasdaq:TSSI), a data center services company that integrates AI and other high-performance computing infrastructure and software and provides related data center services, today reported results for its second quarter ended June 30, 2025.
"In the second quarter, we delivered substantial year-over-year growth across key financial metrics, including a
"The outlook for our industry remains exceptionally strong, and demand across our core markets-particularly in data center infrastructure and AI rack integration-continues to accelerate, reinforcing our belief that we are in a significant and sustained growth cycle. With the strategic groundwork in place, we are positioned to scale capacity and address complexity to capitalize on opportunities before us and meet the growing demand for advanced, AI-driven systems."
Second Quarter 2025 Financial Highlights:
(All comparisons are to Second Quarter 2024)
Revenues of
$44.0 million , up262% Procurement revenues of
$33.0 million , up572% Systems Integration revenues of
$9.5 million , up91% Facilities Management revenues of
$1.5 million , down35% ; sequentially up$0.2 million from Q1 2025
Gross profit of
$7.8 million , up72% Net income of
$1.5 million , up$0.1 million Diluted EPS of
$0.06 compared to$0.06 Adjusted EBITDA of
$4.0 million , up103%
Year-to-Date 2025 Financial Highlights
(All comparisons are to the First Six Months of 2024 unless otherwise noted)
Revenues of
$142.9 million , up410% Procurement revenues of
$123.2 million , up645% Systems Integration revenues of
$17.0 million , up140% Facilities Management revenues of
$2.8 million , down37%
Gross profit of
$17.0 million , up135% Net income of
$4.5 million , up215% Diluted EPS of
$0.17 , up183% from$0.06 Adjusted EBITDA of
$9.3 million , up278%
2025 Outlook
"Given the strength of our first-half performance and increasing visibility into the second half of the year, we are raising our full-year 2025 Adjusted EBITDA outlook from at least
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 664241.
Investors may also access a live audio webcast of this conference call and replay the call until August 6, 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)
June 30, 2025 | December 31, 2024 | |||||||
(unaudited) | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 36,836 | $ | 23,222 | ||||
Contract and other receivables, net | 13,997 | 16,203 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 4,418 | 851 | ||||||
Inventories, net | 14,589 | 17,673 | ||||||
Prepaid expenses and other current assets | 1,055 | 248 | ||||||
Total current assets | 70,895 | 58,197 | ||||||
Property and equipment, net | 35,288 | 8,591 | ||||||
Lease right-of-use asset | 22,939 | 24,213 | ||||||
Goodwill | 780 | 780 | ||||||
Restricted cash | 5,000 | - | ||||||
Other assets | 4,568 | 4,787 | ||||||
Total assets | $ | 139,470 | $ | 96,568 | ||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 82,020 | $ | 53,340 | ||||
Deferred revenues, current | 3,333 | 2,613 | ||||||
Lease liabilities, current | 1,891 | 966 | ||||||
Total current liabilities | 87,244 | 56,919 | ||||||
Non-current Liabilities: | ||||||||
Long-term debt, non-current | 19,541 | 8,200 | ||||||
Lease liabilities, non-current | 22,648 | 23,540 | ||||||
Deferred revenues, non-current | 499 | 771 | ||||||
Total non-current liabilities | 42,688 | 32,511 | ||||||
Total liabilities | 129,932 | 89,430 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity: | ||||||||
Preferred stock | - | - | ||||||
Common stock | 3 | 3 | ||||||
Additional paid-in capital | 76,058 | 74,200 | ||||||
Treasury stock, at cost | (10,650 | ) | (6,730 | ) | ||||
Accumulated deficit | (55,873 | ) | (60,335 | ) | ||||
Total stockholders' equity | 9,538 | 7,138 | ||||||
Total liabilities and stockholders' equity | $ | 139,470 | $ | 96,568 | ||||
TSS, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands except per-share values)
Three Months Ended June 30, | Six Month Ended June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenues: | ||||||||||||||||
Procurement | $ | 33,002 | $ | 4,914 | $ | 123,179 | $ | 16,538 | ||||||||
Facilities management | 1,482 | 2,285 | 2,780 | 4,431 | ||||||||||||
Systems integration | 9,486 | 4,960 | 16,970 | 7,083 | ||||||||||||
Total revenues | 43,970 | 12,159 | 142,929 | 28,052 | ||||||||||||
Cost of revenues | 36,155 | 7,623 | 125,904 | 20,802 | ||||||||||||
Gross profit | 7,815 | 4,536 | 17,025 | 7,250 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 4,735 | 2,719 | 9,622 | 5,108 | ||||||||||||
Depreciation and amortization | 844 | 117 | 1,054 | 188 | ||||||||||||
Total operating expenses | 5,579 | 2,836 | 10,676 | 5,296 | ||||||||||||
Income from operations | 2,236 | 1,700 | 6,349 | 1,954 | ||||||||||||
Interest expense | 859 | 378 | 2,327 | 706 | ||||||||||||
Interest income | (175 | ) | (106 | ) | (558 | ) | (205 | ) | ||||||||
Other expense | - | - | - | - | ||||||||||||
Pre-tax income | 1,552 | 1,428 | 4,580 | 1,453 | ||||||||||||
Income taxes | 69 | 26 | 118 | 36 | ||||||||||||
Net income | $ | 1,483 | $ | 1,402 | $ | 4,462 | $ | 1,417 | ||||||||
Earnings per common share - Basic | $ | 0.06 | $ | 0.06 | $ | 0.19 | $ | 0.06 | ||||||||
Earnings per common share - Diluted | $ | 0.06 | $ | 0.06 | $ | 0.17 | $ | 0.06 | ||||||||
TSS, Inc.
Adjusted EBITDA Reconciliation (GAAP to non-GAAP)
(In thousands, unaudited)
Three Months Ended June 30, | Six Month Ended June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net income | $ | 1,483 | $ | 1,402 | $ | 4,462 | $ | 1,417 | ||||||||
Interest expense, net | 684 | 272 | 1,769 | 501 | ||||||||||||
Depreciation and amortization | 844 | 117 | 1,054 | 188 | ||||||||||||
Income tax provision | 69 | 26 | 118 | 36 | ||||||||||||
EBITDA | $ | 3,080 | $ | 1,817 | $ | 7,403 | $ | 2,142 | ||||||||
Stock based compensation | 930 | 155 | 1,851 | 305 | ||||||||||||
Adjusted EBITDA | $ | 4,010 | $ | 1,972 | $ | 9,254 | $ | 2,447 | ||||||||
SOURCE: TSS, Inc.
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FAQ
What was TSS Inc's (TSSI) revenue growth in Q2 2025?
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