TLDR
- TSS (TSSI) stock jumped over 17% in premarket trading after posting Q4 results
- Q4 revenue came in at $60.9 million, up 22% year-on-year, beating estimates of $38.91 million
- Q4 EPS of $0.41 crushed consensus estimate of $0.01
- Full-year 2025 revenue hit $245.7 million, up 66%, with diluted EPS of $0.56, up 133%
- Company guides for 2026 Adjusted EBITDA of $20–$22 million, expects to double rack integration volumes
TSS (TSSI) reported fourth-quarter and full-year 2025 earnings Wednesday morning, sending the stock up more than 17% in premarket trading.
$TSSI Q4 2025 earnings: Core AI Engine Rebounds, But Headline Earnings Are a Tax Mirage
TSS bounced back from a disastrous Q3 with Systems Integration (SI) revenue surging 79% YoY to a record $14.2M, proving the new Georgetown facility has finally overcome its operational…
— Finsee (@Finsee_main) March 11, 2026
Q4 revenue came in at $60.9 million, a 22% jump year-on-year. That number blew past analyst estimates of $38.91 million. EPS of $0.41 was equally eye-catching against a consensus estimate of just $0.01.
Gross profit for the quarter climbed 57% to $11.3 million. Net income surged 536% to $12.2 million compared to the same quarter a year ago.
For the full year, TSS posted revenue of $245.7 million, up 66% from 2024. Diluted EPS came in at $0.56, up 133% year-on-year. Adjusted EBITDA for the year was $18.6 million, up 83%.
Systems Integration was the standout segment. Full-year Systems Integration revenue rose 78% to $40.3 million. Q4 alone saw that segment grow 79%. Facilities Management more than doubled in Q4, up 118%.
CEO Darryll Dewan credited the ramp-up at the company’s new Georgetown facility for much of the Q4 strength. Rack integration volumes came online mid-year and picked up pace in the fourth quarter.
What’s Driving the Numbers
The results were fueled by growing demand for AI infrastructure buildout. TSS integrates high-performance computing racks for customers in the AI and cloud infrastructure space.
Dewan noted that as AI chips become more advanced, the complexity of rack builds increases — cooling requirements, size, and configuration — an area where TSS says it has an edge.
Supply chain volatility remains a factor. Memory price increases and component shortages are ongoing issues the company flagged. TSS said it has taken a conservative stance on component availability in its 2026 forecasts.
In December 2025, TSS amended its long-term AI rack integration agreement with its largest customer, extending the contract by two additional years. The amendment was effective November 1, 2025.
2026 Outlook
TSS guided for 2026 Adjusted EBITDA of $20 million to $22 million. The company expects to double rack integration volumes versus 2025.
Dewan said TSS’s largest partner anticipates doubling its own AI infrastructure business in 2026. TSS said it expects to capture its share of that growth.
The outlook for Procurement and Facilities Management is more conservative, with those segments expected to see slower growth relative to Systems Integration.
The company said total integration demand already exceeds what is built into its forecast.
As of Wednesday morning, TSSI stock was trading up over 20% following the earnings release.
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