TSS Reports 66% Revenue Growth and 536% Net Income Surge, Extends AI Rack Deal
TSS, Inc. reported FY 2025 revenue of $245.7M (up 66%) and diluted EPS of $0.56, while Q4 revenue rose 22% to $60.9M and net income surged 536% to $12.2M. The company extended its AI rack integration agreement by two years and expects 2026 adjusted EBITDA of $20–22M.
1. Strong Q4 and Full-Year Financial Performance
TSS delivered fourth-quarter revenue of $60.9 million, up 22% year-over-year, with net income of $12.2 million, a 536% increase, and diluted EPS of $0.41. For full-year 2025, revenue reached $245.7 million (up 66%), net income totaled $15.1 million (up 153%), diluted EPS was $0.56, and adjusted EBITDA climbed 83% to $18.6 million.
2. Two-Year Extension of AI Rack Integration Agreement
In December 2025, TSS amended its long-term AI rack integration agreement with its largest customer, extending the term by two years and addressing unforeseen circumstances. This extension underscores the strength of the partnership and secures future systems integration volumes.
3. Positive 2026 Outlook and Volume Guidance
Management projects doubling rack integration volumes in 2026 in line with its largest partner’s AI infrastructure expansion, targeting adjusted EBITDA of $20–22 million. The forecast reflects a conservative view on component availability amid ongoing supply chain volatility.