TSS Inc
NASDAQ:TSSI
TSS Inc
TSS, Inc. engages in the provision of comprehensive services for the planning, design, development and maintenance of mission-critical facilities and information infrastructure as well as integration services. The company is headquartered in Round Rock, Texas and currently employs 67 full-time employees. The company went IPO on 2010-04-01. The firm operates through two segments: facilities and systems integration. The facilities segment is involved in the design, project management and maintenance of data center and mission-critical business operations. The systems integration segment integrates information technology (IT) equipment for original equipment manufacturer (OEM) vendors and customers to be used inside data center environments, including modular data centers. The company provides a single-source solution for enabling technologies in data centers, operation centers, network facilities, server rooms, and security operations centers, among others. Its services consist of technology consulting, design and engineering, project management, systems integration, system installations, facilities management, and IT reseller services.
TSS, Inc. engages in the provision of comprehensive services for the planning, design, development and maintenance of mission-critical facilities and information infrastructure as well as integration services. The company is headquartered in Round Rock, Texas and currently employs 67 full-time employees. The company went IPO on 2010-04-01. The firm operates through two segments: facilities and systems integration. The facilities segment is involved in the design, project management and maintenance of data center and mission-critical business operations. The systems integration segment integrates information technology (IT) equipment for original equipment manufacturer (OEM) vendors and customers to be used inside data center environments, including modular data centers. The company provides a single-source solution for enabling technologies in data centers, operation centers, network facilities, server rooms, and security operations centers, among others. Its services consist of technology consulting, design and engineering, project management, systems integration, system installations, facilities management, and IT reseller services.
Results: Revenue of $245.7 million in 2025, adjusted EBITDA $18.6 million (record), net income $15.1 million and diluted EPS $0.56 — all well above 2024.
Beat: Adjusted EBITDA topped prior guidance (company had guided to a $15M–$17M foundation and higher ranges), with full-year EBITDA of $18.6M exceeding the prior high end.
Customer deal: The company amended and extended its long-term AI rack integration agreement with its largest customer to reflect additional power/infrastructure costs and extended the term — management called this a validation of execution and durability.
Ramp & capacity: Georgetown, TX rack-integration capacity came online and meaningfully ramped in Q4; management expects 2026 volumes could double 2025 levels and is already discussing further capacity expansion.
Tax / one-time items: A $7.6M income tax benefit resulted from releasing the valuation allowance on deferred tax assets; a $7.9M DTA now sits on the balance sheet; future effective tax rate is expected around 21%–22% in 2026.
Guidance: 2026 adjusted EBITDA guidance of $20M–$22M (management called this conservative given supply-chain volatility and deal timing).
Risks / headwinds: Memory shortages and supply-chain volatility can affect timing; forecasting rack volumes remains difficult because deal sizes and timing are lumpy.
