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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.
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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