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TSS (TSSI) investor relations material

TSS Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary6 Aug, 2025

Executive summary

  • Q2 2025 revenue surged 262% year-over-year to $44M, driven by procurement and AI-enabled systems integration growth.

  • Georgetown, TX facility became fully operational, supporting rapid scaling and a multi-year AI integration contract.

  • First half 2025 revenues exceeded all of 2024's second half, with diluted EPS tripling and adjusted EBITDA more than tripling year-over-year.

  • Company remains highly dependent on a single US-based OEM customer, accounting for 98-99% of revenues and receivables.

  • Raised full-year 2025 adjusted EBITDA growth outlook from at least 50% to at least 75% over 2024.

Financial highlights

  • Q2 2025 consolidated revenue was $44M (+262% YoY); procurement revenue up 572% to $33M; systems integration up 91% to $9.5M.

  • Adjusted EBITDA for Q2 2025 was $4M, up 103% year-over-year.

  • Net income for Q2 2025 was $1.5M, with diluted EPS steady at $0.06; YTD net income $4.5M, diluted EPS $0.17.

  • Gross margin for Q2 2025 was 17.8%, down from 37.3% in Q2 2024, but up from 9.3% in Q1 2025.

  • Cash, cash equivalents, and restricted cash at June 30, 2025 totaled $41.8M, up from $23.2M at year-end 2024.

Outlook and guidance

  • Full-year 2025 adjusted EBITDA growth guidance raised to at least 75% over 2024, with current performance seen as a floor.

  • Multi-year AI rack integration contract expected to sustain elevated systems integration revenues for several years.

  • Management expects continued strong performance and robust growth in AI infrastructure demand for the remainder of 2025 and beyond.

  • Discrete facilities management projects expected to increase in the second half of 2025.

  • Plans to pursue organic growth and explore strategic opportunities.

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Frequently asked questions

TSS Inc. is a technology services company that provides infrastructure and data center solutions. The company specializes in the design, deployment, and management of data centers, as well as offering consulting services related to IT infrastructure, energy efficiency, and system integration. TSS serves clients across various industries, including telecommunications, financial services, and government, helping them optimize their data center operations and IT environments for enhanced performance and reliability. The company is headquartered in Round Rock, Texas, USA, and its shares are listed on the OTCQB.

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