- Procurement revenue reached $43.2 million, rising 7% year-on-year, while systems integration revenue surged 79% year-on-year to $14.2 million.
- Gross profit in the quarter climbed 57% YoY to $11.3 million.
- The company forecasts adjusted earnings before interest, taxes, depreciation, and amortization between $20 million and $22 million for 2026.
TSS Inc. (TSSI) on Wednesday reported strong financial results for the fourth quarter and full year ended Dec. 31, 2025, driven by rising demand for AI systems integration.
The company posted fourth-quarter (Q4) revenue of $60.9 million, representing a 22% year-on-year (YoY) increase with an earnings per share (EPS) of $0.41. Both metrics surpassed the analysts’ consensus estimates of $38.91 million and $0.01, respectively, according to Fiscal AI data.
Following the earnings, TSS stock traded over 20% higher on Wednesday morning. On Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘neutral’ territory the previous day. Message volume changed to ‘extremely high’ from ‘high’ levels in 24 hours.
AI Systems Integration Drives Revenue Growth
Procurement revenue reached $43.2 million, rising 7% YoY, while systems integration revenue surged 79% YoY to $14.2 million. The company’s facilities management segment also expanded rapidly, generating $3.5 million in revenue, more than doubling YoY. Gross profit climbed 57% YoY to $11.3 million.
"Systems integration rack volumes at our new Georgetown facility came online mid-year and ramped in the fourth quarter, positioning the company for solid growth in 2026.”
-Darryll Dewan, CEO, TSS
Dewan also pointed to rapid growth in the broader artificial intelligence infrastructure market. As AI chips become more advanced, the racks that house these systems require larger configurations and cooling solutions. According to Dewan, those technical demands align with TSS’ core capabilities in systems integration.
Expanded Customer Agreement Signals Growth
TSS said it amended and extended a long-term AI rack integration agreement with its largest customer in December, with the updated contract taking effect Nov. 1, 2025.
The company forecasts adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $20 million and $22 million for 2026. Dewan said the company’s largest partner plans to double its AI infrastructure activity in 2026.
TSSI stock has gained over 19% in the last 12 months.
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