TSS, Inc. Reports 262% Revenue Growth to $43.97 Million in Latest Quarter

TSS, Inc. reported significant financial growth in its quarterly report for the period ending June 30, 2025, with total revenues reaching $43.97 million, a 262% increase compared to $12.16 million in the same quarter of the previous year. The surge in revenue was primarily driven by a substantial rise in procurement services, which increased by 572% to $33.00 million, and a 91% increase in systems integration revenues, which reached $9.49 million. However, the facilities management segment saw a decline of 35%, generating $1.48 million in revenue. The company’s net income for the quarter was $1.48 million, or $0.06 per diluted share, slightly up from $1.40 million, or $0.06 per diluted share, in the prior year.

In the first half of 2025, TSS, Inc. reported total revenues of $142.93 million, a 410% increase from $28.05 million in the same period last year. This growth was largely attributed to a 645% increase in procurement revenues and a 140% increase in systems integration revenues. The facilities management segment, however, experienced a 37% decrease in revenue. The company’s net income for the six-month period was $4.46 million, or $0.17 per diluted share, compared to $1.42 million, or $0.06 per diluted share, in the prior year.

Operationally, TSS, Inc. has made strategic moves to enhance its capabilities, including relocating its corporate offices and primary integration facility from Round Rock, Texas, to a larger facility in Georgetown, Texas. This new facility, which began operations in May 2025, is designed to support the integration of AI-enabled computer racks, a service that has seen increased demand. The company has invested approximately $31.6 million in improvements to this facility, funded through a combination of a $20 million construction loan and cash on hand.

As of June 30, 2025, TSS, Inc. reported total assets of $139.47 million, up from $96.57 million at the end of 2024. The company’s cash and cash equivalents increased to $36.84 million, compared to $23.22 million at the end of the previous year. The total employee headcount has also grown, reflecting the company’s expansion efforts. TSS, Inc. continues to rely heavily on a single U.S.-based IT OEM customer, which accounted for 98% of its revenues, highlighting the importance of maintaining this relationship for future growth.

Looking ahead, TSS, Inc. anticipates continued revenue growth driven by its procurement and systems integration services, particularly in the AI sector. The company has secured a multi-year agreement with its primary customer for the integration of AI-enabled racks, which is expected to provide a stable revenue stream. However, TSS, Inc. also acknowledges potential risks, including reliance on a single customer and the impact of supply chain disruptions on its operations. The company remains focused on enhancing its operational efficiencies and expanding its service offerings to mitigate these risks.