TSS Q3 revenue beats estimates on systems integration growth; raises outlook
TSSI•TSS reported third-quarter revenue of $50.06 million, up 20% year over year and above the $46.26 million analyst estimate, while net income rose to $1.15 million from a year-earlier loss. It raised its 2026 adjusted EBITDA outlook to $21 million-$23 million.
1. Revenue and profit rise
TSS said third-quarter revenue increased 20% year over year to $50.06 million, beating the $46.26 million analyst estimate. Net income was $1.15 million, compared with a loss a year earlier, and gross profit was $8.63 million.
2. Systems integration growth
Record quarterly Systems Integration revenue rose 75% year over year, which the company attributed to continued demand for AI and high-performance computing infrastructure. TSS said a shift toward higher-margin Systems Integration revenue contributed to gross profit growth.
3. Outlook and capacity
TSS raised its 2026 adjusted EBITDA outlook to $21 million-$23 million and anticipates further growth in the fourth quarter of 2026. It also secured a seven-year lease for 380,000 square feet of warehouse space to expand supply chain capacity, and said investments are expected to support profitable growth in 2027 and beyond.
