TSS (TSSI) Planet MicroCap Las Vegas 2026 summary

Business overview and strategy

• Transitioned from designing/building data centers to focusing on computer rack integration for data centers, with ancillary procurement and facilities management activities.

• Primary revenue comes from a single ODM customer, representing 99% of revenues, with a strategic focus on diversifying the customer base and expanding service offerings.

• Raised $55 million in August 2024 to pursue growth opportunities, including M&A and expanding into new services such as inter-rack cabling and data center services.

• Signed a new long-term agreement with the main customer in September 2024, later enhanced and extended by two years, ensuring multi-year revenue visibility.

• Uplisted to Nasdaq in November 2024 and relocated to a larger, higher-capacity facility in May 2025 to support AI rack integration growth.

Financial performance and business mix

• Guided 2025 EBITDA to $20–$22 million, trending toward the upper end, with strong performance in systems integration and facilities management.

• Procurement is the largest revenue stream but lowest margin (6–7%), while systems integration and facilities management deliver higher margins (35% and 50%, respectively).

• Q1 2025 saw a revenue drop due to an unusually high procurement quarter in Q1 2024 ($90 million), but underlying business fundamentals remained strong.

• Adjusted EBITDA increased year-over-year despite tough comps, and reversal of a deferred tax asset valuation allowance in Q4 2025 doubled reported net income.

• Maintains a strong balance sheet with less than 1x leverage and significant cash, using cash to pay down procurement-related liabilities.

Growth initiatives and operational developments

• Actively pursuing M&A to diversify revenue and expand into new customer segments, with disciplined approach to valuation and deal selection.

• Added executives with deep M&A and industry experience to drive growth and execute on diversification strategies.

• Facility in Georgetown, TX, now offers 213,000 sq ft and 15 MW of power, with potential to scale up to 40 MW, supporting future expansion.

• Can triple current production volume in the new facility, but would need a second site for additional large customers due to exclusivity with the primary customer.

• Awarded 2024 Best Deployment Partner by Dell Technologies, highlighting operational excellence and industry recognition.