TSS, Inc. (TSSI) Market Cap
TSS, Inc. has a market capitalization of $375.6M.
Price: $13.38
▼ -1.11 (-7.66%)
Market Cap: 375.63M
NASDAQ · time unavailable
CEO: Darryll E. Dewan
Sector: Technology
Industry: Information Technology Services
IPO Date: 2005-09-29
Website: https://tssiusa.com
TSS, Inc. (TSSI) - Company Information
Market Cap: 375.63M|Sector: Technology
Company Profile
TSS, Inc. provides services for the planning, design, deployment, maintenance, and refurbishment of end-user and enterprise systems, including the mission-critical facilities in the United States. The company operates through two segments, Facilities and Systems Integration. It offers a single source solution for enabling technologies in data centers, operations centers, network facilities, server rooms, security operations centers, communications facilities, and the infrastructure systems. The company also provides technology consulting, design and engineering, project management, systems integration, systems installation, facilities management, and IT procurement and reseller services. It serves IT OEM equipment, technology, and service companies; private sector businesses; and government or commercial end users. The company was formerly known as Fortress International Group, Inc. and changed its name to TSS, Inc. in June 2013. TSS, Inc. was incorporated in 2004 and is headquartered in Round Rock, Texas.
Analyst Sentiment
From 2 Active Polls
1Y Forecast: $15.00
▲ +12.1% Potential Upside
Consensus Target Metrics
Low Bound
$15
Median
$15
High Bound
$15
Average
$15
Price & Moving Averages
🎯 Wall Street Analyst Intelligence Report
1-Year structural target targets, chart projections, and sentiment maps.
Consensus Trend Projection
Trailing closures vs. 12-month metrics map.
Analyst Vote Distribution
Aggregate institutional coverage sentiment weights.
📊 Historical Valuation Multiples
Real-time Trailing Twelve Month (TTM) momentum side-by-side with discrete quarterly metrics.
| Fiscal Quarter | TTM | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|---|---|---|---|---|
| Period Ending | Trailing 12M | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 |
| Market Cap ($M) | 376 | 304 | 165 | 424 | 675 | 184 | 262 | 158 | 49 |
| Enterprise Value ($M) | 350 | 279 | 122 | 394 | 682 | 189 | 271 | 115 | 44 |
| Price to Earnings Ratio (P/E) | 21.71 | 33.44 | 3.40 | -70.76 | 113.71 | 15.41 | 34.22 | 14.90 | 8.66 |
| Price/Earnings-to-Growth Ratio (PEG) | — | — | 0.07 | — | — | 0.16 | — | 0.03 | — |
| Price to Sales Ratio (P/S) | 1.86 | 5.50 | 2.72 | 10.12 | 15.34 | 1.86 | 5.23 | 2.25 | 3.99 |
| Price to Book Ratio (P/B) | 3.98 | 3.87 | 2.16 | 6.68 | 70.72 | 19.56 | 36.69 | 20.60 | 9.42 |
| Price to Free Cash Flow Ratio (P/FCF) | -19.66 | -19.69 | 10.48 | -17.05 | 124.22 | 31.86 | -9.23 | 4.09 | -8.08 |
| Enterprise Value to Sales (EV/Sales) | — | 5.03 | 2.00 | 9.42 | 15.51 | 1.91 | 5.42 | 1.64 | 3.64 |
| Enterprise Value to EBITDA (EV/EBITDA) | 24.46 | 66.02 | 18.48 | 930.12 | 221.36 | 43.78 | 92.05 | 28.76 | 24.39 |
| Debt to Equity Ratio | -1.80 | 0.51 | 0.54 | 0.65 | 4.62 | 3.51 | 4.58 | 0.51 | 0.79 |
⚡ TSSI Growth Runway Model
🟢 Initial high growth rate - forecast is based on a long term bell curve % growth rateMulti-Stage Discounted Cash Flow Sandbox
Growth runway slowdown
This value provides a time window for the growth rate to decline beyond Stage 1 toward the terminal rate. Longer windows are most useful for companies with high growth starting conditions or strong competitive advantages. This option stretches out the growth rate slowdown across 5, 10, or 15-year steps. A high-growth starting condition (exceeding a 25% initial growth rate) automatically applies a curve decay to simulate realistic, rapid market saturation.Terminal growth rate
With long-term inflation between 3-5%, revenue must grow by that baseline to maintain flat real-world market share. This value sets the permanent terminal growth rate to factor into the valuation beyond the growth slowdown runway toward maturity.3-Stage Financial Runway Horizon
🧠 Perpetuity Horizon Engine (Stage 3: Post-2035)
📘 Full Research Report
AI-Generated Research: This report is for informational purposes only.
📰 Market News & Coverage
15 Stories AvailableReal-time institutional reporting and market updates for TSSI.
TSS to Participate in Two Investor Conferences
Singular Research One-on-One Invitational Conference on June 15 Planet MicroCap Las Vegas 2026 Investor Conference on June 17 GEORGETOWN, TX / ACCESS Newswire / June 4, 2026 / 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 announced that management will participate in two upcoming conferences in June: Singular Research One-on-One Invitational Conference Date: Monday, June 15, 2026 Time: 4 PM PT Webinar: https://register.gotowebinar.com/register/5694306304769645406 If you would like to book 1x1 investor meetings with TSS, and to gain access to the Singular Research conference 2026, please make sure you are registered here: Registration. Planet MicroCap Las Vegas 2026 Investor Conference Powered by MicroCapClub Date: Wednesday, June 17, 2026 Time: 2:30 PM PT Webcast: https://event.summitcast.com/view/bpjo3VVjZ25pp6SXpUua92/guest_book?session_id=a72eupfy697sZ5277SvsjZ If you would like to book 1x1 investor meetings with TSS, and to attend the Planet MicroCap Las Vegas 2026, please make sure you are registered here: REGISTER.
Do Options Traders Know Something About TSS Stock We Don't?
Investors need to pay close attention to TSSI stock based on the movements in the options market lately.
TSS Stock Jumps 11% After Hours: Here's What Is Going On
TSS Inc. shares surged 11.15% in after-hours trading following insider sale filings and continued momentum.
Is TSS Inc (TSSI) Overvalued After 3.6% Rally? GF Value Says Overvalued
On May 22, 2026, TSS Inc (TSSI) shares rose 3.6% today, reaching a current price of $12.00. Despite this uptick, the stock has experienced significant volatilit
TSS: Business Improved, Same Core Problem
TSS delivered a 44% revenue decline, but higher-margin Systems Integration revenue surged 88%, driving gross margin expansion from 9% to 18%. Despite operational improvements, TSSI remains almost entirely dependent on a single customer (Dell), representing 99% of revenue, amplifying concentration risk. Management highlighted a $17 million CapEx request from Dell, signaling a deepening partnership and continued AI rack integration demand.
TSS Q1 Earnings Call Highlights
TSS NASDAQ: TSSI reported a sharp year-over-year decline in first-quarter revenue as procurement activity normalized from unusually high levels a year earlier, but executives said growth in the company's higher-margin systems integration business helped support profitability and reinforced its 2026 outlook.
TSS, Inc. (TSSI) Q1 2026 Earnings Call Transcript
TSS, Inc. (TSSI) Q1 2026 Earnings Call Transcript
TSS to Present at the 21st Annual Needham Technology, Media & Consumer Conference
GEORGETOWN, TX / ACCESS Newswire / May 8, 2026 / 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, is scheduled to present at the 21st Annual Needham Technology, Media & Consumer Conference on Thursday, May 14, 2026 at 10:15 a.m. Eastern Time.
TSS Reports First Quarter 2026 Financial Results
Total Revenue of $55.3 Million Systems Integration Revenue Increased 88% Year-Over-Year Refines Full-Year 2026 Outlook; Now Expects Adjusted EBITDA Toward High End of $20 to $22 Million Range GEORGETOWN, TX / ACCESS Newswire / May 7, 2026 / 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 first quarter ended March 31, 2026. "We delivered strong growth in our higher margin Systems Integration business in the first quarter, with revenue increasing 88% year over year, driven by strong customer demand and solid operational execution with growth particularly high in our AI activities," said Darryll Dewan, CEO of TSS, Inc. "Total revenue comparisons were affected by record high volumes in the first quarter of last year in our lower-margin Procurement business, which can vary from quarter to quarter.
TSS to Host First Quarter 2026 Earnings Conference Call on May 7, 2026
GEORGETOWN, TX / ACCESS Newswire / May 1, 2026 / 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, will report its 2026 first quarter financial results on Thursday, May 7, 2026. The Company will conduct a conference call at 5 p.m.
TSS, Inc. Appoints Chief Strategy Officer and Chief Technology Officer to Accelerate Growth in AI-Driven Infrastructure
Technology Veterans Matt Wallace and David Hull Join TSS Executive Team GEORGETOWN, TX / ACCESS Newswire / April 28, 2026 / 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 announced the appointments of Matt Wallace as Chief Strategy Officer (CSO) and David Hull as Chief Technology Officer (CTO). Both executives bring distinguished careers of nearly five decades of combined service and deep expertise in AI infrastructure, cloud-to-edge and enterprise technology markets that are driving unprecedented demand for TSS's services.
Insider Selling: TSS (NASDAQ:TSSI) COO Sells $228,651.39 in Stock
TSS Inc. (NASDAQ: TSSI - Get Free Report) COO Karl Todd Marrott sold 15,213 shares of the stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $15.03, for a total transaction of $228,651.39. Following the completion of the sale, the chief operating officer directly owned 274,923 shares of
TSS (NASDAQ:TSSI) COO Sells $357,139.96 in Stock
TSS Inc. (NASDAQ: TSSI - Get Free Report) COO Karl Todd Marrott sold 23,636 shares of the business's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $15.11, for a total transaction of $357,139.96. Following the transaction, the chief operating officer directly owned 251,287 shares in the company,
TSS (NASDAQ:TSSI) CFO Sells $375,000.00 in Stock
TSS Inc. (NASDAQ: TSSI - Get Free Report) CFO Daniel Chism sold 25,000 shares of TSS stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $15.00, for a total transaction of $375,000.00. Following the sale, the chief financial officer directly owned 338,215 shares in the company,
TSS (NASDAQ:TSSI) CEO Sells $750,000.00 in Stock
TSS Inc. (NASDAQ: TSSI - Get Free Report) CEO Darryll Dewan sold 50,000 shares of the company's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $15.00, for a total value of $750,000.00. Following the completion of the sale, the chief executive officer directly owned 554,471 shares in
Related Companies in Technology
📊 AI Financial Analysis
Powered by StockMarketInfo"Headline (2026-03-31 / Q1): Revenue $55.3M, Net Income $2.28M, EPS $0.08. YoY (vs 2025-03-31): Revenue -44.1% and Net Income -23.6% (net margin ~4.1% vs ~3.0% prior-year). QoQ (vs 2025-12-31): Revenue -9.2% and Net Income -81.3% (net margin ~4.1% vs ~20.0% in Q4). Profitability was resilient in the gross line (gross margin ~15.9% vs ~15.8% QoQ), but earnings fell sharply QoQ due to a step down in operating and pre-tax earnings quality. Over the four-quarter span, margins were volatile: Q3 and Q1 were weaker (negative operating income in Q3, modest profitability thereafter), while Q4 showed an unusually high net margin (~20%), likely driven by non-operating/tax items (tax expense was negative in Q4). Cash flow turned negative in the latest quarter: operating cash flow was -$14.9M and free cash flow was -$15.5M, despite positive net income—indicating working-capital/other non-cash pressures. Balance sheet strength improved meaningfully: cash rose to ~$66.0M (from ~$85.5M in Q4) and total assets declined to $153.6M. Total shareholder returns appear very strong given price momentum: 1-year price change +110.9%. No dividends were paid; buybacks were ~0 in Q1 and slightly negative in prior quarters, so the return is primarily capital appreciation."
Revenue Growth
QoQ revenue fell -9.2% (from $60.9M to $55.3M) and YoY revenue declined -44.1% (from $98.96M to $55.35M), indicating a weaker run-rate despite stable gross margin.
Profitability
Net income decreased sharply QoQ (-81.3%) while improving gross margin remained steady (~15.9%); net margin rose YoY (~4.1% vs ~3.0%) but was far below the unusually high Q4 net margin (~20%). EPS declined to $0.08 from $0.49 in Q4.
Cash Flow Quality
Despite positive net income, latest quarter cash generation was negative: operating cash flow -$14.9M and free cash flow -$15.5M. This contrasts with positive FCF in Q4 (~$15.8M), suggesting pressure from working capital/other items.
Leverage & Balance Sheet
Balance sheet liquidity remains solid with high current ratios (~2.18) and net cash position (net debt -$38.7M). Total assets declined to $153.6M from $184.9M QoQ, with equity at $78.7M.
Shareholder Returns
Price momentum is strong: 1y_change +110.9%. No dividends; buybacks were not meaningful in Q1, so total return is primarily capital appreciation.
Analyst Sentiment & Valuation
Analyst consensus target is $15 vs current price $14.91 (roughly flat upside). Sentiment appears supportive due to strong 1-year momentum, but valuation looks near consensus rather than deep undervaluation.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Fundamentals Overview
So What? TSSI’s Q1 2026 shows a sharply improved profitability profile driven by a structural mix shift into higher-margin AI systems integration. Systems integration grew 88% YoY to $14.1M, representing 25% of revenue (vs 8% a year ago) and lifting systems integration gross margin by ~1,500 bps to 37.5%. Consolidated gross margin climbed to 15.9% (from 9.3%), despite EPS falling to $0.08 as procurement normalized and taxes stepped up after federal DTA valuation allowance reversal. Operationally, management is scaling Georgetown and repurposing Round Rock to support an OEM customer, while pursuing throughput gains by shortening rack validation test time—potentially up to a ~2x volume effect at current load. The key growth lever is a planned ~$17M customer-funded CapEx program targeted for completion in Q3. Full-year adjusted EBITDA guidance remains $20M–$22M, with management expecting the high end given momentum and an agreement offering downside protection.
Growth Catalysts
- AI-related infrastructure demand; systems integration accelerating as customers scale deployments for AI services/servers
- Mix shift: systems integration rose to 25% of revenue (from 8% in Q1 2025), driving margin expansion and profitability
- Georgetown, Texas facility scaling: completing more Rack integrations in 2026 than all of 2025; remaining capacity supports additional growth
- Operational throughput improvements via reducing rack validation test time (targeting faster validation; potentially ~cut in half for up to ~2x volume at current load)
- Higher-margin AI rack integration economics benefiting from renegotiated long-term agreement (rate increases tied to prior CapEx recovery and power availability)
Business Development
- Multiyear agreement referenced as providing revenue visibility, downside protection, expanding capacity/capabilities, and supporting the 2026 adjusted EBITDA range
- Largest OEM customer: Round Rock facility dedicated to warehousing AI rack material starting May 1, and primary AI systems integration customer requested ~$17 million additional CapEx
- Customer reimbursement/enablement: Q4 2025 included ~$800k accelerated enablement cost recognition reimbursed by one customer (impacting Q1 comparability)
Financial Highlights
- Revenue $55.3M in Q1 2026 (vs $99.0M Q1 2025); systems integration $14.1M (+88% YoY) and procurement $40.0M (-56% YoY)
- Adjusted EBITDA $5.3M (+1% YoY vs $5.2M); gross margin 15.9% (vs 9.3% in Q1 2025) reflecting lower-reliance on low-yielding services
- Systems integration gross margin 37.5% (+1,500 bps YoY from 22.1%); procurement gross margin 6.7% (-110 bps YoY vs prior-year)
- Facilities management gross margin 64.7% (vs 40.9% prior-year), driven by more internal resources vs subcontractors
- EPS diluted $0.08 vs $0.12 prior-year; net income $2.3M (-24% YoY) driven by normalized procurement activity and higher recorded income tax expense
- Tax: Q1 effective tax rate 14.7% of pretax income (vs 1.6% prior-year); management expects ~26% in Q2–Q4 and ~22.7% full-year, subject to discrete items
- Working capital: net working capital +$2M to $48.1M; cash uses included ~$20M to pay A/P and accrued expenses
Capital Funding
- Share repurchases related to employee restricted stock tax obligations: $1.4M in Q1
- Long-term debt repayment: $1.0M in Q1
- Additional planned CapEx: ~$17M requested by primary AI systems integration customer; expected to be completed in Q3 and put into use shortly thereafter
Strategy & Ops
- Georgetown capacity ramp: opened <1 year ago; began flowing orders 6–7 months ago; expanded Rack integration throughput and facility readiness
- Round Rock facility optimization: moved rack integration ops 9 miles north (Round Rock idle), then dedicated Round Rock to warehousing AI rack material for largest OEM customer; service began May 1
- Operational bottleneck focus: engaging latest AI technology and working with customer test sequencing to reduce rack validation test time
- Leadership additions aligned to scaling: Matt Wallace (Chief Strategy Officer) and David Ho (Chief Technology Officer)
Market Outlook
- Full-year adjusted EBITDA outlook: $20M–$22M; management expects results at the high end
- Guidance implied to be conservative relative to integration demand exceeding outlook inputs (Q&A); no explicit revised numerical revenue/gross margin guidance provided
- CapEx deployment timeline: assets added between now and the third quarter; expected operational use relatively quickly after completion in Q3
Risks & Headwinds
- Procurement revenue remains inherently variable and can fluctuate quarter-to-quarter based on customer ordering patterns and deployment cycles (Q1 procurement down 56% YoY)
- Margin volatility from procurement mix (blended margins fluctuate depending on procurement activity)
- Rack validation/testing time from customer test sequencing can constrain throughput; management targets acceleration but it remains a near-term operational dependency
- Tax volatility risk: full-year effective tax rate of ~22.7% may be affected by future discrete items
- Downside protection structure: revenue uplift may be limited until weekly volume/guaranteed minimum thresholds are exceeded
Q&A: Analyst Interest
- CapEx details: management clarified the ~$17M investment is not a new facility, but upgrades tied to technology requiring higher power and more cooling. They guided for completion during Q3 (with possible minor variance) and quick ramp to utilization thereafter, structured around customer upfront spending and multi-year returns.
- Guidance conservatism and constraints: management stated demand for integration exceeds the volume embedded in outlook, but guidance is set conservatively to avoid “over-skipping” productivity/throughput assumptions. They emphasized forecasting conservatism rather than being unable to meet demand due to capacity/labor constraints.
- Throughput/validation testing impact: management described rack validation as a coordinated test sequence across all components, analogous to validating a multi-cylinder engine. They indicated that cutting validation time by half could enable ~2x volume on current load, and they are working with the customer and AI tools to accelerate evaluation.
Sentiment: POSITIVE
Note: This summary was synthesized by AI from the TSSI Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.
📋 Official Regulatory 10-K / 10-Q SEC Filings
Direct authenticated documentation links to audited SEC database reports for TSSI.