TSS, Inc

TSS Inc (NASDAQ: TSSI) operates as a data center services provider specializing in the integration of high-performance computing infrastructure and software. Its business is structured across three segments: Procurement, Systems Integration, and Facilities Management.

Key Business and Financial Updates:

• Robust Revenue Momentum: In the second quarter of 2025, TSS, Inc. delivered exceptional year-over-year growth across its core financial metrics. Total revenue surged 262% to USD 44.0 million, driven primarily by procurement revenues, which grew 572% to USD 33.0 million. Systems Integration revenues also advanced strongly, rising 91% to USD 9.5 million, while Facilities Management revenues declined 35% year-over-year to USD 1.5 million but showed sequential improvement over the previous quarter. Gross profit expanded 72% to USD 7.8 million, supporting net income of USD 1.5 million, consistent with the prior year’s EPS of USD 0.06. Adjusted EBITDA more than doubled, climbing 103% to USD 4.0 million.
• First-Half 2025 Performance: For the first six months of 2025, the company achieved USD 142.9 million in revenue, a 410% increase compared to the same period in 2024. This growth was led by procurement revenues of USD 123.2 million, up 645%, alongside a 140% increase in Systems Integration revenues to USD 17.0 million. Facilities Management revenues declined 37% year-over-year to USD 2.8 million. Gross profit rose 135% to USD 17.0 million, while net income advanced 215% to USD 4.5 million. Diluted EPS grew significantly to USD 0.17 from USD 0.06, reflecting stronger profitability, and Adjusted EBITDA surged 278% to USD 9.3 million.
• Operational Strength and Expansion: The company’s operational execution has been a major contributor to its accelerating performance. Its Georgetown facility is now fully operational, enabling integration of more AI-powered racks, faster delivery timelines, and broader market coverage. This infrastructure investment enhances TSS’s ability to address increasing demand from data center infrastructure and AI rack integration markets, establishing the company as a scalable solutions provider in an expanding industry cycle.
• Raised Outlook for 2025: On the back of strong first-half results and growing visibility into the remainder of the year, management raised its full-year 2025 guidance. The company now expects Adjusted EBITDA to grow by at least 75% compared to 2024, up from its earlier guidance of 50% growth. With strong fundamentals, sustained demand drivers, and a scalable platform, TSS plans to expand its business organically while continuing to evaluate strategic opportunities to reinforce long-term growth.

Technical Observation (on the daily chart):

TSSI stock has entered a corrective phase after peaking above USD 28 in July, now consolidating around USD 13.50. The bearish crossover of the 21-day and 50-day moving averages signals continued downside risk, while the RSI near 39 indicates the stock is approaching oversold territory. Overall, the short-term outlook remains bearish, though oversold conditions could spark a technical rebound if buying momentum returns. 

TSS, Inc. delivered outstanding second-quarter and first-half 2025 results, showcasing explosive revenue growth, strong profitability, and improved cash flow, driven largely by surging procurement and systems integration demand. With its Georgetown facility fully operational, the company is well-positioned to capitalize on accelerating adoption of AI-driven data center infrastructure. Backed by robust industry tailwinds and proven execution, management raised its full-year outlook, projecting at least 75% Adjusted EBITDA growth, underscoring confidence in sustained momentum and long-term expansion opportunities. 

As per the above-mentioned price action, important financial updates, momentum in the stock over the last three months, and technical indicators analysis, a ‘Buy’ rating has been given for TSS, Inc (NASDAQ: TSSI) at the closing price of USD 14.40, as of September 09,2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is September 09,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.