Tss(NASDAQ) TSSI

TSS, Inc. helps companies set up and run large computer systems. It builds specialized rooms and racks for powerful servers. These services make it easier for businesses to use artificial intelligence.

Powering the AI Revolution

• Systems Integration: Building specialized computer racks designed for artificial intelligence and high-performance computing; generated $13.9 million in revenue in the quarter ended June 30, 2026.
• Procurement Services: Buying third-party hardware and software on behalf of customers for their technology needs; accounted for $18.2 million in revenue in the three-month period ended June 30, 2026.
• Facilities Management: Providing maintenance, engineering, and project management for mission-critical data center environments; contributed $2.7 million in revenue in the quarter ended June 30, 2026.
• Warehousing and Logistics: Managing inventory, fulfillment, and transportation of parts from a dedicated facility; commenced operations in May 2026.

Building New Tech Spaces

• Moved headquarters and production to a larger facility in Georgetown, Texas, in May 2025 to increase capacity.
• Invested approximately $48 million through June 30, 2026, to upgrade electrical power and cooling systems for advanced technology.
• Signed a long-term agreement in October 2024 to provide integration services for artificial intelligence racks at a minimum monthly volume.
• Commenced a multiyear warehousing and logistics arrangement in May 2026 to support its largest customer.
• Amended a key customer contract in December 2025 to extend the term for two additional years.

Why TSS Stands Out

TSS adapts its infrastructure to support advanced technologies like direct liquid-cooled solutions and Graphics Processing Units (GPUs) for artificial intelligence. The company provides a single source for managing the entire life cycle of complex data centers and security operations centers.

Checking the Financial Vitals

• Total revenues were $34.9 million in the three-month period ended June 30, 2026, down 21% year over year.
• Systems integration revenue rose 46% to $13.9 million in the quarter ended June 30, 2026.
• The company held $69.5 million in cash and cash equivalents as of June 30, 2026.
• Net income was $1.4 million in the quarter ended June 30, 2026, compared to $1.5 million in the prior-year period.
• Capital expenditures reached $4.6 million in the first six months of 2026 to support next-generation technology integration.

Company Evolution

TSS has transitioned from traditional IT services to specializing in the physical and technical infrastructure required for artificial intelligence. This shift to high-power integration and specialized facilities management defines its current business model.