Management Insights: TSS, Inc. reported an 88% revenue increase and a 59% rise in adjusted EBITDA year-to-date for 2025, despite a year-over-year decline in Q3 revenues attributed to lower procurement services. The company is optimistic about Q4 rack volumes and is exploring strategic acquisitions and partnerships, particularly in AI and edge computing.
Financial Performance: Q3 2025 consolidated revenue was $41.9 million, down from $70.1 million in the previous year, with a net loss of $1.5 million. Systems integration revenue increased by 20%, while procurement services revenue significantly decreased, reflecting challenges in the procurement market.
Operational Challenges: The company faced operational issues related to scaling its new Georgetown facility, including power requirements and ERP integration, which delayed expected rack volumes. Analysts expressed concerns about client concentration and the need for clearer communication regarding growth strategies.
Future Outlook: TSS, Inc. anticipates a record year with projected adjusted EBITDA growth of 50% to 75% for 2025 and initial guidance of 40% to 50% growth for 2026. Management remains confident in their ability to capitalize on emerging opportunities in the AI infrastructure market despite recent challenges.
Wall Street analysts forecast TSSI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSSI is 20.50 USD with a low forecast of 20.50 USD and a high forecast of 20.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
Wall Street analysts forecast TSSI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSSI is 20.50 USD with a low forecast of 20.50 USD and a high forecast of 20.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 11.160
Low
20.50
Averages
20.50
High
20.50
Current: 11.160
Low
20.50
Averages
20.50
High
20.50
No data
About TSSI
TSS, Inc. is a data center services company that integrates high-performance computing infrastructure and software. The Company's segments include Procurement, Systems Integration, and Facilities Management. Its Procurement segment assists its customers in procuring third-party hardware, software, and professional services on their behalf that are used in its integration services as it integrates these components to deliver a completed system to its customers. Its Systems integration segment integrates information technology (IT) equipment for original equipment manufacturer vendors and customers to be used inside data center environments, including modular data centers. Its Facilities segment is involved in the design, project management and maintenance of data centers and mission-critical business operations. Its services consist of technology consulting, design and engineering, project management, systems integration, systems installation, facilities management and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
