TSS, Inc.
- Open
- 7.90
- Day high
- 8.21
- Day low
- 7.78
- Prev close
- 7.82
- Volume
- 468K
- Mkt cap
- $227M
- P/E (TTM)
- 13.1
- EPS (TTM)
- $0.62
- P/B
- 2.8
- P/S
- 1.2
- Yield
- —
- Per share
- —
TSS, Inc. (TSSI) is a Technology company listed on NASDAQ. The stock is down 37% over the past year. Drillr has 1 published research article covering TSSI.
TSS, Inc. (TSSI) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TSSI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 13, 2026 | $0.06 | $0.05 | -16.6% | $35M | -25.4% |
| May 7, 2026 | $0.04 | $0.08 | +100.0% | $55M | +28.1% |
| Nov 13, 2025 | — | $-0.06 | — | $42M | +7.6% |
| Aug 6, 2025 | — | $0.06 | — | $44M | — |
| May 15, 2025 | — | $0.12 | — | $99M | — |
| Mar 27, 2025 | — | $0.08 | — | $50M | — |
| Nov 14, 2024 | — | $0.10 | — | $70M | — |
| Aug 14, 2024 | — | $0.06 | — | $12M | — |
| May 14, 2024 | — | $0.00 | — | $16M | — |
| Nov 13, 2023 | — | $0.01 | — | $9M | — |
| Aug 14, 2023 | — | $0.01 | — | $15M | — |
| Apr 3, 2023 | — | $-0.05 | — | $7M | — |
TSSI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 30, 2026 | MARROTT KARL TODDofficer: Chief Operating Officer | Tax | 49,188 | $11.32 |
| Jun 2, 2026 | Woodward Peter Hdirector | Sell | 100,000 | $15.48 |
| Jun 2, 2026 | Woodward Peter Hdirector | Sell | 200,000 | $16.07 |
| Jun 2, 2026 | Brennan Kieranofficer: Senior Vice President | Sell | 10,000 | $16.00 |
| May 8, 2026 | Dewan Darryll Eofficer: Chief Executive Officer | Sell | 50,000 | $17.00 |
| May 8, 2026 | HEATON LARRY C IIdirector, officer: CEO | Buy | 250,000 | $0.11 |
| Apr 24, 2026 | Dewan Darryll Eofficer: Chief Executive Officer | Sell | 50,000 | $16.00 |
| Apr 22, 2026 | MARROTT KARL TODDofficer: Chief Operating Officer | Tax | 48,652 | $30.25 |
| Apr 22, 2026 | MARROTT KARL TODDofficer: Chief Operating Officer | Grant | 250,000 | — |
| Apr 17, 2026 | MARROTT KARL TODDofficer: Chief Operating Officer | Sell | 23,636 | $15.11 |
| Apr 17, 2026 | MARROTT KARL TODDofficer: Chief Operating Officer | Sell | 800 | $15.00 |
| Apr 17, 2026 | MARROTT KARL TODDofficer: Chief Operating Officer | Sell | 15,213 | $15.03 |
| Apr 16, 2026 | CHISM DANIEL Mofficer: Chief Financial Officer | Sell | 25,000 | $15.00 |
| Apr 16, 2026 | Dewan Darryll Eofficer: Chief Executive Officer | Sell | 50,000 | $15.00 |
| Mar 25, 2026 | CHISM DANIEL Mofficer: Chief Financial Officer | Grant | 5,000 | — |
Source: TSSI SEC Form 4 filings, latest Jun 30, 2026. For informational purposes only — not investment advice.
See the full TSSI insider & 13F page →TSSI research & analysis
TSS, Inc. company profile
Overview
TSS, Inc. (NASDAQ:TSSI) is a Texas-based technology services company that specializes in data center infrastructure and systems integration. Founded in 2004 and originally known as Fortress International Group, the company went public in 2005 and rebranded to TSS in 2013. The company has undergone significant transformation in recent years, evolving from a traditional IT services provider to a key player in the artificial intelligence infrastructure buildout. TSS operates from its headquarters in Round Rock, Texas, and recently expanded with a major new facility in Georgetown, Texas to support its rapidly growing AI rack integration business.
Business
TSS operates in the critical infrastructure services sector, providing specialized solutions for data centers and enterprise technology deployments. The company operates through three primary business segments that serve the backbone of modern computing infrastructure. Procurement Services represents the largest segment, accounting for approximately 77% of total revenue in Q1 2025 with $90.2 million in quarterly revenue. This division acts as a technology reseller and procurement intermediary, helping customers acquire complex hardware systems, particularly AI and high-performance computing equipment. The service involves sourcing, purchasing, and coordinating delivery of expensive technology components like NVIDIA GPUs, servers, and networking equipment for large-scale data center deployments. Systems Integration Services generates approximately 8% of revenue and focuses on the complex assembly and configuration of AI infrastructure. This segment has experienced explosive growth, with revenue reaching $7.5 million in Q1 2025, representing 253% year-over-year growth. The core offering involves "rack integration" - the intricate process of assembling server racks with high-powered AI chips, cooling systems, networking equipment, and power distribution units. These AI racks can consume 80-300 kilowatts of power each, requiring sophisticated cooling solutions including direct liquid cooling systems. Facilities Management is the smallest segment at less than 1% of revenue, providing ongoing maintenance and management services for data centers and technology facilities. This includes modular data center solutions and operational support services. The company primarily serves hyperscale cloud providers, AI companies, and enterprise customers deploying artificial intelligence infrastructure. The AI infrastructure market has created unprecedented demand for TSS's specialized integration services, as traditional data center equipment evolves to handle the extreme power and cooling requirements of modern AI workloads.
Revenue model
TSS generates revenue through three distinct business models that capitalize on different aspects of the AI infrastructure value chain. The Procurement Services model operates on thin margins but high volumes, earning commissions and markups on technology hardware sales. The company acts as an intermediary between equipment manufacturers and end customers, typically earning 4-7% gross margins on transactions that can reach tens of millions of dollars per quarter. Revenue fluctuates significantly based on customer deployment cycles and equipment availability. Systems Integration generates higher margins through specialized technical services, earning approximately 22-32% gross margins by providing complex rack assembly and configuration services. This model charges service fees for highly skilled technical work that requires specialized facilities, equipment, and expertise. The company has reduced integration cycle times from 2-3 weeks to less than one day, enabling higher throughput and efficiency. Facilities Management operates on a recurring service model with gross margins exceeding 50%, providing ongoing maintenance and operational support contracts. Several factors significantly impact TSS's profitability. Positive margin drivers include the increasing complexity of AI infrastructure requiring specialized expertise, economies of scale as volume increases, and the company's operational improvements reducing labor costs. The shortage of skilled technicians capable of handling high-power AI equipment creates pricing power for TSS's services. Margin pressures come from the volatility of procurement revenue, competition from equipment manufacturers potentially integrating services in-house, power and facility costs, and the need for continuous capital investment in specialized equipment and facilities. Supply chain constraints, particularly NVIDIA chip availability, can also impact revenue timing and customer demand patterns.
Competitive moat
TSS possesses a moderate but growing competitive moat built primarily around specialized expertise and infrastructure investments rather than traditional economic moats. The company's primary defensive position stems from its deep technical knowledge of AI infrastructure integration, which requires understanding complex power, cooling, and networking requirements that are rapidly evolving as AI chips become more powerful. The company's operational expertise in handling high-power density equipment (80-300 kilowatts per rack) and direct liquid cooling systems creates barriers to entry, as these skills are scarce in the market. TSS has invested heavily in specialized facilities with adequate power capacity (expanding from 2.7 MW to planned 15 MW), clean room environments, and testing equipment that competitors would need to replicate. Customer relationships provide some protection, particularly the multi-year agreement with their largest customer and the high switching costs associated with changing integration partners during critical AI deployments. The company's track record and security clearances for handling sensitive equipment also create customer stickiness. However, the moat faces significant competitive threats. Equipment manufacturers like NVIDIA and Dell could potentially integrate these services in-house or partner with other providers. Hyperscale customers might develop internal capabilities as AI infrastructure becomes more standardized. The rapid pace of technological change in AI hardware could also disrupt TSS's current expertise advantage if new integration approaches emerge. The company's moat is best characterized as moderately strong in the near term due to market dynamics and specialized expertise, but potentially vulnerable to disintermediation as the AI infrastructure market matures and standardizes.
Risks & safety
TSS presents a moderate margin of safety with improving financial metrics but some balance sheet concerns. Liquidity and Solvency: - Cash position: $27.3 million as of Q1 2025 - Current ratio: 0.85 (below 1.0, indicating potential short-term liquidity pressure) - Debt-to-equity ratio: 2.63 (high leverage) - Free cash flow: $5.8 million in Q1 2025 (positive but volatile) - Working capital: Negative $11.1 million Valuation Metrics: - P/E ratio: 14.5 (reasonable for growth rate) - EV/EBITDA: 9.9 (moderate) - Price-to-book: 18.5 (elevated) - Revenue growth: 676% year-over-year in procurement services Other Considerations: - High customer concentration risk with largest customer representing majority of revenue - Significant capital investment requirements ($25-30 million for new facility) - Volatile revenue patterns, particularly in procurement services - Strong operational cash flow generation when business is performing well
Recent development
TSS has undergone a dramatic strategic transformation over the past two years, pivoting from a traditional IT services company to a specialized AI infrastructure provider. The most significant development has been the company's focus on AI rack integration services, which has driven explosive revenue growth as hyperscale customers and AI companies build out their computing infrastructure. The company made substantial facility investments, leasing a new 213,000 square foot facility in Georgetown, Texas, that will more than double their operational capacity. This $25-30 million investment includes expanding power capacity from 2.7 MW to an initial 6 MW with plans to reach 15 MW, enabling the company to handle increasingly power-hungry AI equipment. The facility is designed for direct liquid cooling systems, anticipating the evolution from traditional air cooling to liquid cooling for high-performance AI chips. Operational improvements have been equally significant, with TSS reducing rack integration cycle times from 2-3 weeks to less than one day through process optimization and workforce development. The company has more than doubled its headcount and implemented new incentive systems to attract and retain skilled technicians capable of handling complex AI infrastructure. The procurement services expansion has created a new major revenue stream, growing from minimal contribution to $90.2 million in Q1 2025. This growth reflects TSS's role in sourcing and coordinating delivery of scarce AI components, particularly NVIDIA GPUs and associated hardware, for large-scale customer deployments. TSS has also secured multi-year customer agreements that provide revenue visibility and support the substantial facility investments. The company is exploring expansion beyond its primary customer relationship while maintaining existing partnerships, potentially through complementary service offerings or strategic acquisitions.
TSSI company profile · for informational purposes only — not investment advice.
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