TSS Reports Second Quarter 2025 Revenue of $44.0 Million, Up 262%

About this update from Tss, Inc.

Georgetown Facility Fully Operational, Positioning Company to Accelerate Through AI Infrastructure Boom Upward Revision to 2025 Outlook Reflects Confidence in Continued Momentum GEORGETOWN, TX / ACCESS Newswire / August 6, 2025 / TSS, Inc. (Nasdaq:TSSI), a data center services company that integrates AI and other high-performance computing infrastructure and software and provides related data center services, today reported results for its second quarter ended June 30, 2025 . "In the second quarter, we delivered substantial year-over-year growth across key financial metrics, including a 262% increase in revenue, a 103% increase in Adjusted EBITDA and strong positive operating cash flow, commented Darryll Dewan , CEO of TSS, Inc. "Total revenue for the first half of 2025 exceeded total revenue in the second half of 2024. These results reflect strong operational execution and the growing leverage in our business model. Our Georgetown facility is now fully operational across all capabilities, enabling us to integrate more racks featuring the latest advanced AI technologies, shorten delivery timelines and serve a large share of the market. "The outlook for our industry remains exceptionally strong, and demand across our core markets-particularly in data center infrastructure and AI rack integration-continues to accelerate, reinforcing our belief that we are in a significant and sustained growth cycle. With the strategic groundwork in place, we are positioned to scale capacity and address complexity to capitalize on opportunities before us and meet the growing demand for advanced, AI-driven systems." Second Quarter 2025 Financial Highlights :(All comparisons are to Second Quarter 2024) Revenues of $44.0 million , up 262% Procurement revenues of $33.0 million , up 572% Systems Integration revenues of $9.5 million , up 91% Facilities Management revenues of $1.5 million , down 35%; sequentially up $0.2 million from Q1 2025 Gross profit of $7.8 million , up 72% Net income of $1.5 million , up $0.1 million Diluted EPS of $0.06 compared to $0.06 Adjusted EBITDA of $4.0 million , up 103% Year-to-Date 2025 Financial Highlights (All comparisons are to the First Six Months of 2024 unless otherwise noted) Revenues of $142.9 million , up 410% Procurement revenues of $123.2 million , up 645% Systems Integration revenues of $17.0 million , up 140% Facilities Management revenues of $2.8 million , down 37% Gross profit of $17.0 million , up 135% Net income of $4.5 million , up 215% Diluted EPS of $0.17 , up 183% from $0.06 Adjusted EBITDA of $9.3 million , up 278% 2025 Outlook "Given the strength of our first-half performance and increasing visibility into the second half of the year, we are raising our full-year 2025 Adjusted EBITDA outlook from at least 50% growth to at least 75% growth compared to 2024," Dewan continued. "The foundational pieces of our business are in place, and we believe a full wave of demand is still ahead. We will continue to position ourselves to grow our business organically, while exploring potential strategic opportunities." 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 664241. Investors may also access a live audio webcast of this conference call and replay the call until August 6, 2026 at https://www.webcaster4.com/Webcast/Page/2294/52763 . 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. Contacts: Hayden IRJames Carbonara (646) 755-7412 Brett Maas (646) 536-7331 [email protected] TSS, Inc. Danny Chism , CFO(512) 310-4908 [email protected] -- Tables Follow - TSS, Inc. Consolidated Balance Sheets (In thousands except par values) June 30 , 2025 December 31 , 2024 (unaudited) Current Assets: Cash and cash equivalents $ 36,836 $ 23,222 Contract and other receivables, net 13,997 16,203 Costs and estimated earnings in excess of billings on uncompleted contracts 4,418 851 Inventories, net 14,589 17,673 Prepaid expenses and other current assets 1,055 248 Total current assets 70,895 58,197 Property and equipment, net 35,288 8,591 Lease right-of-use asset 22,939 24,213 Goodwill 780 780 Restricted cash 5,000 - Other assets 4,568 4,787 Total assets $ 139,470 $ 96,568 Current Liabilities: Accounts payable and accrued expenses $ 82,020 $ 53,340 Deferred revenues, current 3,333 2,613 Lease liabilities, current 1,891 966 Total current liabilities 87,244 56,919 Non-current Liabilities: Long-term debt, non-current 19,541 8,200 Lease liabilities, non-current 22,648 23,540 Deferred revenues, non-current 499 771 Total non-current liabilities 42,688 32,511 Total liabilities 129,932 89,430 Commitments and Contingencies Stockholders' Equity: Preferred stock - - Common stock 3 3 Additional paid-in capital 76,058 74,200 Treasury stock, at cost (10,650 ) (6,730 ) Accumulated deficit (55,873 ) (60,335 ) Total stockholders' equity 9,538 7,138 Total liabilities and stockholders' equity $ 139,470 $ 96,568 TSS, Inc. Unaudited Condensed Consolidated Statements of Operations (In thousands except per-share values) Three Months Ended June 30 , Six Month Ended June 30 , 2025 2024 2025 2024 Revenues: Procurement $ 33,002 $ 4,914 $ 123,179 $ 16,538 Facilities management 1,482 2,285 2,780 4,431 Systems integration 9,486 4,960 16,970 7,083 Total revenues 43,970 12,159 142,929 28,052 Cost of revenues 36,155 7,623 125,904 20,802 Gross profit 7,815 4,536 17,025 7,250 Operating expenses: Selling, general and administrative 4,735 2,719 9,622 5,108 Depreciation and amortization 844 117 1,054 188 Total operating expenses 5,579 2,836 10,676 5,296 Income from operations 2,236 1,700 6,349 1,954 Interest expense 859 378 2,327 706 Interest income (175 ) (106 ) (558 ) (205 ) Other expense - - - - Pre-tax income 1,552 1,428 4,580 1,453 Income taxes 69 26 118 36 Net income $ 1,483 $ 1,402 $ 4,462 $ 1,417 Earnings per common share - Basic $ 0.06 $ 0.06 $ 0.19 $ 0.06 Earnings per common share - Diluted $ 0.06 $ 0.06 $ 0.17 $ 0.06 TSS, Inc. Adjusted EBITDA Reconciliation (GAAP to non-GAAP) (In thousands, unaudited) Three Months Ended June 30 , Six Month Ended June 30 , 2025 2024 2025 2024 Net income $ 1,483 $ 1,402 $ 4,462 $ 1,417 Interest expense, net 684 272 1,769 501 Depreciation and amortization 844 117 1,054 188 Income tax provision 69 26 118 36 EBITDA $ 3,080 $ 1,817 $ 7,403 $ 2,142 Stock based compensation 930 155 1,851 305 Adjusted EBITDA $ 4,010 $ 1,972 $ 9,254 $ 2,447 SOURCE: TSS, Inc. View the original press release on ACCESS Newswire

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