TSS (NASDAQ:TSSI) Releases Quarterly Earnings Results

TSS (NASDAQ:TSSI) released its quarterly earnings results on Thursday. The company reported $0.05 EPS for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.03), FiscalAI reports. TSS had a return on equity of 19.71% and a net margin of 7.44%.The business had revenue of $35.14 million for the quarter.

Here are the key takeaways from TSS’s conference call:

• Higher-margin businesses continued to grow strongly: systems integration revenue increased 46% year over year and facilities management revenue rose 84%, driving an 11% increase in gross profit and a 12% increase in Adjusted EBITDA despite lower total revenue.
• Management expects procurement revenue to return to its historical $30 million–$40 million quarterly range in Q3 and reaffirmed full-year Adjusted EBITDA guidance toward the upper end of $20 million–$22 million, with the second half expected to be stronger than the first.
• TSS is investing approximately $17 million to expand power and cooling capacity for NVIDIA’s Vera Rubin platform, with most of the investment expected to be completed by mid-September and to begin contributing revenue primarily in Q4.
• Second-quarter revenue declined 20% to $35.1 million because procurement revenue fell 45% to $18.2 million, highlighting the volatility of customer ordering and infrastructure deployment timing, even as the company’s higher-margin revenue mix improved.
• Net income decreased to $1.4 million, or $0.05 per diluted share, from $1.5 million, or $0.06, as the company began recognizing a fuller income-tax burden following the removal of its deferred-tax valuation allowance.

TSS Stock Down 19.1%

TSSI stock traded down $2.28 during trading hours on Friday, reaching $9.68. 3,259,177 shares of the stock were exchanged, compared to its average volume of 770,652. The firm’s 50-day moving average is $11.31 and its 200-day moving average is $11.69. TSS has a 12 month low of $6.87 and a 12 month high of $21.77. The company has a market cap of $271.76 million, a price-to-earnings ratio of 20.17 and a beta of 2.09. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.18 and a quick ratio of 1.99.

Insider Transactions at TSS

In other news, Director Peter H. Woodward sold 200,000 shares of TSS stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $16.07, for a total value of $3,214,000.00. Following the sale, the director directly owned 983,521 shares in the company, valued at $15,805,182.47. This trade represents a 16.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Kieran Brennan sold 10,000 shares of TSS stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $16.00, for a total transaction of $160,000.00. Following the completion of the sale, the senior vice president owned 271,333 shares in the company, valued at $4,341,328. This trade represents a 3.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 310,000 shares of company stock valued at $4,922,000. 15.97% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On TSS

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TSSI. Bank of America Corp DE bought a new stake in TSS in the fourth quarter valued at approximately $40,000. NewEdge Advisors LLC boosted its holdings in TSS by 536.7% in the 1st quarter. NewEdge Advisors LLC now owns 141,686 shares of the company’s stock valued at $1,112,000 after purchasing an additional 119,432 shares during the period. Goldman Sachs Group Inc. grew its position in TSS by 40.0% during the first quarter. Goldman Sachs Group Inc. now owns 60,540 shares of the company’s stock worth $475,000 after buying an additional 17,310 shares in the last quarter. JPMorgan Chase & Co. bought a new position in shares of TSS in the second quarter worth $249,000. Finally, Legal & General Group Plc acquired a new position in shares of TSS in the 2nd quarter valued at approximately $59,000.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on TSSI shares. Weiss Ratings lowered TSS from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, June 17th. Wall Street Zen raised shares of TSS from a “strong sell” rating to a “sell” rating in a research note on Saturday. Finally, Needham & Company LLC reduced their price target on shares of TSS from $16.00 to $13.00 and set a “buy” rating for the company in a report on Friday. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $16.17.

TSS News Roundup

Here are the key news stories impacting TSS this week:

• Positive Sentiment: Management highlighted a strategic shift toward higher-margin services: systems integration revenue increased 46% year over year and represented 39% of total revenue, up from 22% a year earlier. Facilities management revenue also grew 84%. TSS Reports Second Quarter 2026 Financial Results
• Positive Sentiment: TSS maintained its full-year adjusted EBITDA outlook toward the upper end of its $20 million-$22 million range. Its approximately $17 million investment in next-generation AI data-center technology is expected to be substantially ready by September and begin supporting higher systems-integration revenue in the third quarter. TSS Maintains EBITDA Outlook as Vera Rubin Buildout Nears Completion
• Neutral Sentiment: Needham lowered its price target from $16 to $13 but retained a “Buy” rating, implying continued confidence in TSS’s AI infrastructure opportunity while reflecting more cautious near-term expectations. Needham Lowers TSS Price Target
• Negative Sentiment: Second-quarter adjusted earnings were $0.05 per share, below the $0.08 consensus estimate and down from $0.06 a year earlier. Revenue totaled $35.14 million, with the overall decline reflecting TSS’s transition away from lower-margin procurement revenue. TSS Misses Second-Quarter Earnings and Revenue Estimates

TSS Company Profile

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.