Shares of TSS (TSSI 2.87%) rose on Wednesday after the data center services provider announced solid quarterly growth figures.
By the close of trading, TSS's stock price was up over 8%.
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Artificial intelligence (AI)-powered growth
TSS's revenue jumped 22% year over year to $60.9 million in the fourth quarter. The gains were fueled by a 79% rise in systems integration sales to $14.2 million and a 118% surge in facilities management revenue to $3.5 million.
Better still, TSS is growing more profitable as it scales its business. The company's gross profit climbed 57% to $11.3 million.
NASDAQ: TSSI
Key Data Points
All told, TSS's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 132% to $7.9 million.
"Our business, providing high-performance computing solutions to global leaders in the AI and cloud infrastructure ecosystem, is scaling profitably," CEO Darryll Dewan said. "As customer requirements evolve, we continue to invest in our systems, processes, and people to improve efficiency."
Management sees more AI-driven gains in the coming year
Looking ahead, TSS projects full-year adjusted EBITDA of $20 million to $22 million in 2026, up from $18.6 million in 2025.
"The market for AI infrastructure continues to accelerate, as reflected in publicly disclosed forecasts of industry analysts and corporate reports," Dewan said. "Importantly, as AI chip functionality improves, the additional size, complexity, and cooling requirements of racks play to our strengths, capabilities, and capacities."
