TSS Reports Explosive Q1 2025 Growth Driven by AI Integration Services

TSS Reports First Quarter 2025 Revenue of $99.0 Million, Up 523% EPS of $0.12, Up from $0.00

ROUND ROCK, Texas, May 15, 2025 (Newswire.com) - TSS, Inc. (NASDAQ:TSSI), a data center services company that provides AI and high-performance computing integration, deployment and related services, today reported results for its first quarter ended March 31, 2025. "We are off to a strong start in 2025, with exponential increases in both our top and bottom lines, driven by robust growth in our Procurement and Systems Integration segments, including incremental contribution from AI rack integration services," commented Darryll Dewan, CEO of TSS. "For the first quarter, revenue was up 523%, diluted earnings per share were $0.12 compared to just over breakeven and Adjusted EBITDA increased more than tenfold compared to the year ago quarter." "Looking ahead, we are confident in the continued growth of our core businesses and expect some acceleration in the AI rack integration services revenues beginning in the second quarter. Our focus on innovation and operational excellence positions us to deliver sustained value to our customers and shareholders. We remain excited about the opportunities ahead as we build on our momentum in Systems Integration and Procurement." Dewan continued, "On May 7, we began production at our new facility, and we remain on track to have that facility fully operational across all capabilities inJune. At full capacity, this new facility enables us to integrate several times the number of data center racks we can currently integrate in our legacy Round Rock facility. The outlook for growth of our industry is exceptionally strong. We have a solid operational foundation in place and with capacity expansion progressing according to plan, we are confident in our ability to capitalize on these opportunities, deliver profitable growth, generate positive cash from operations and drive enduring value for our shareholders." Dewan concluded, "We are highly optimistic about our growth prospects for 2025 and beyond. Just last week, we began initial production at our new facility. We expect production volumes will grow in the second quarter and continue to ramp throughout the remainder of 2025 and into 2026. Based on our current visibility, and within the ever-changing geopolitical environment, we continue to expect total revenue in the first half of 2025 to exceed total revenue in the second half of 2024. For the full year 2025, we continue to expect Adjusted EBITDA to be at least 50% higher than 2024. "In light of the demanding and rapidly advancing AI computing environment, our new facility is a strong differentiator. Our team has done an exceptional job getting the building outfitted, including significant power resources available. This marks the beginning of a new and exciting chapter for TSS." Quarterly Conference Call Details The Company will conduct a conference call at 5 p.m. Eastern time today. To participate on the conference call, please dial (888) 506-0062 toll free from the U.S. or Canada. Other international callers may access the call at 1-(973) 528-0011. The event ID number is 903946. Investors may also access a live audio webcast of this conference call and replay the call until May 15, 2026 at https://www.webcaster4.com/Webcast/Page/2294/52472. About Non-GAAP Financial Measures Adjusted EBITDA is a supplemental financial measure not defined under Generally Accepted Accounting Principles (GAAP). We define Adjusted EBITDA as net income (loss) before net interest expense, income taxes, depreciation and amortization, impairment loss on goodwill and other intangibles, stock-based compensation, and certain extraordinary items. We present Adjusted EBITDA because we believe this supplemental measure of operating performance is helpful in comparing our operating results across reporting periods on a consistent basis by excluding items that may or could have a disproportionately positive or negative impact on our results of operations in any particular period. We also use Adjusted EBITDA as a factor in evaluating the performance of certain management personnel when determining incentive compensation. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with Regulation G under the U.S. federal securities laws, Adjusted EBITDA has been reconciled to the nearest GAAP measure; this reconciliation is located under the heading "Adjusted EBITDA Reconciliation" following the Consolidated Statements of Operations included in this press release. About TSS, Inc. TSS specializes in simplifying the complex. The TSS mission is to streamline the integration and deployment of high-performance computing infrastructure and software, ensuring that end users quickly receive and efficiently utilize the necessary technology. Known for flexibility, the company builds, integrates, and deploys custom, high-volume solutions that empower data centers and catalyze the digital transformation of generative AI and other leading-edge technologies essential for modern computing, data, and business needs. TSS' reputation is built on passion and experience, quality, and fast time to value. As trusted partners of the world's leading data center technology providers, the company manages and deploys billions of dollars in technology each year. For more information, visit www.tssiusa.com. Forward Looking Statements This press release may contain "forward-looking statements" -- that is, statements related to future -- not past -- events, plans, and prospects. In this context, forward-looking statements may address matters such as our expected future business and financial performance, and often contain words such as "guidance," "prospects," "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect our future results include: we may not have sufficient resources to fund our business and may need to issue debt or equity to obtain additional funding; our reliance on a significant portion of our revenues from a limited number of customers and our ability to diversify our customer base; risks relating to operating in a highly competitive industry; risks relating to supply chain challenges; risk related to changes in labor market conditions; risks related to the implementation of a new enterprise resource IT system; risks related to the development of our procurement services business; risks relating to rapid technological, structural, and competitive changes affecting the industries we serve; risks involved in properly managing complex projects; risks relating to the possible cancellation of customer contracts on short notice; risks relating to our ability to continue to implement our strategy, including having sufficient financial resources to carry out that strategy; and other risks and uncertainties disclosed in our filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2024. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

TSS Stock Soars 94% This Week After Q1 Earnings And AI Growth Outlook - TSS (NASDAQ:TSSI)

Shares of TSS Inc TSSI surged 75.7% on Friday to $15.61, capping a 94% gain for the week, after the data center services company reported explosive first-quarter results and a bullish outlook driven by AI-related demand. What To Know: Revenue for the first-quarter 2025 skyrocketed 523% year-over-year to $99 million, with procurement sales up 676% and systems integration revenue up 253%, fueled by growing demand for AI rack integration. Net income rose to $3 million from just $15,000 in the first-quarter of 2024, and diluted EPS jumped to 12 cents from breakeven. Adjusted EBITDA surged to $5.2 million from $475,000. Read Also: Meta Platforms Stock Dips On AI Rollout Delay Amid Internal Turmoil: Report CEO Darryll Dewan highlighted the company's momentum in high-performance computing and AI integration, noting strong performance across core segments and a promising outlook for continued growth. TSS recently launched production at a new facility set to dramatically increase rack integration capacity by June, supporting rising AI infrastructure needs. Looking ahead, TSS expects H1 2025 revenue to exceed H2 2024 and projects full-year Adjusted EBITDA to grow at least 50% over last year. Read Also: This Week's Best Short Squeeze Options Trade How To Buy TSSI Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in TSS's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. According to data from Benzinga Pro, TSSI has a 52-week high of $18.26 and a 52-week low of $5.63. TSSITSS Inc$16.0981.4%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.16Growth99.07Quality-Value11.60Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

TSS stock soars 41% as AI integration boosts Q1 earnings By Investing.com

Investing.com -- TSS, Inc. (NASDAQ:TSSI), a data center services company, reported a substantial increase in first-quarter earnings and revenue, driven by strong growth in its AI rack integration services. The company's stock surged 41.6% following the announcement. For the quarter ended March 31, 2025, TSS reported earnings per share of $0.12, a significant improvement from breakeven in the same period last year. Revenue skyrocketed 523% YoY to $99 million, fueled by exponential growth in the Procurement and Systems Integration segments. The company's Procurement revenues soared 676% to $90.2 million, while Systems Integration revenues jumped 253% to $7.5 million. However, Facilities Management revenues declined 40% to $1.3 million. CEO Darryll Dewan commented, "We are off to a strong start in 2025, with exponential increases in both our top and bottom lines, driven by robust growth in our Procurement and Systems Integration segments, including incremental contribution from AI rack integration services." TSS began production at its new facility on May 7, which is expected to significantly increase the company's data center rack integration capacity. The facility is on track to be fully operational across all capabilities in June. Looking ahead, TSS anticipates continued growth in its core businesses and expects some acceleration in AI rack integration services revenues beginning in the second quarter. The company projects total revenue in the first half of 2025 to exceed that of the second half of 2024, and expects Adjusted EBITDA for the full year 2025 to be at least 50% higher than 2024. Dewan concluded, "We are highly optimistic about our growth prospects for 2025 and beyond. Our new facility marks the beginning of a new and exciting chapter for TSS."