Revenue growth remains highly erratic, swinging from a 141.7% surge in 2024Q1 to a 44.1% decline in 2026Q1, while gross margins remain compressed at 15.4%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Sales/Revenue | 202.11M | 245.72M | 148.14M | 54.4M | 30.64M | 27.41M | 45.06M | 32.78M | 22.34M | 18.32M | 27.37M | 29.49M | 27.98M | 44.43M | 47.67M | 36.86M | 74.9M | 48.11M | 102.53M | 50.46M | 0 | 0 |
| Revenue Growth % | -12.59% | 65.86% | 172.33% | 77.56% | 11.77% | -39.17% | 37.47% | 46.76% | 21.94% | -33.09% | -7.17% | 5.37% | -37.01% | -6.81% | 29.36% | -50.8% | 55.69% | -53.08% | 103.21% | - | - | - |
| Cost of Goods Sold | 171.32M | 214.43M | 125.79M | 43.4M | 21.66M | 21.05M | 38.26M | 26.19M | 13.85M | 10.59M | 20.16M | 21.12M | 19.42M | 35.46M | 38.24M | 24.38M | 62.95M | 40.22M | 86.73M | 42.07M | 689.12K | 319.69K |
| COGS % of Revenue | - | 87.27% | 84.91% | 79.78% | 70.69% | 76.79% | 84.9% | 79.89% | 62.02% | 57.82% | 73.67% | 71.62% | 69.41% | 79.8% | 80.2% | 66.14% | 84.05% | 83.6% | 84.59% | 83.38% | - | - |
| Gross Profit | 30.79M | 31.29M | 22.35M | 11M | 8.98M | 6.36M | 6.8M | 6.59M | 8.48M | 7.72M | 7.21M | 8.37M | 8.56M | 8.97M | 9.44M | 12.48M | 11.95M | 7.89M | 15.8M | 8.38M | -689.12K | -319.69K |
| Gross Margin % | 15.23% | 12.73% | 15.09% | 20.22% | 29.31% | 23.21% | 15.1% | 20.11% | 37.98% | 42.18% | 26.33% | 28.38% | 30.59% | 20.2% | 19.8% | 33.86% | 15.95% | 16.4% | 15.41% | 16.62% | - | - |
| Gross Profit Growth % | - | 39.99% | 103.17% | 22.51% | 41.17% | -6.5% | 3.22% | -22.3% | 9.81% | 7.17% | -13.86% | -2.25% | -4.59% | -4.94% | -24.36% | 4.42% | 51.45% | -50.05% | 88.41% | 1316.69% | -115.56% | - |
| Operating Expenses | 21.29M | 20.65M | 13.85M | 9.25M | 8.07M | 7.19M | 7.2M | 6.11M | 6.76M | 6.94M | 8.75M | 10.22M | 11.03M | 11.55M | 10.75M | 11.47M | 10.97M | 13.64M | 22.47M | 17.07M | 689.12K | 319.69K |
| OpEx % of Revenue | - | 8.4% | 9.35% | 17.01% | 26.33% | 26.24% | 15.98% | 18.64% | 30.25% | 37.89% | 31.97% | 34.65% | 39.43% | 26% | 22.54% | 31.12% | 14.64% | 28.36% | 21.92% | 33.83% | - | - |
| Selling, General & Admin | 21.29M | 20.65M | 13.24M | 8.93M | 7.68M | 6.66M | 6.67M | 5.74M | 6.37M | 6.46M | 8.15M | 9.65M | 10.55M | 11.19M | 10.46M | 11.24M | 10.62M | 12.31M | 19.24M | 14.56M | 689.12K | 319.69K |
| SG&A % of Revenue | - | 8.4% | 8.94% | 16.42% | 25.08% | 24.28% | 14.81% | 17.51% | 28.53% | 35.26% | 29.77% | 32.73% | 37.68% | 25.19% | 21.93% | 30.49% | 14.18% | 25.59% | 18.77% | 28.86% | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 608K | 320K | 383K | 536K | 529K | 370K | 385K | 481K | 602K | 566K | 488K | 357.93K | 291.71K | 233.73K | 342.22K | 1.33M | 3.23M | 2.5M | 0 | 0 |
| Operating Income | 9.5M | 10.64M | 8.5M | 1.75M | 914K | -831K | -400K | 480K | 2.87M | 1.11M | -633K | -1.85M | -2.47M | -2.58M | -3.66M | 1.01M | 984.49K | -16.01M | -32.66M | -8.68M | -689.12K | -319.69K |
| Operating Margin % | 4.7% | 4.33% | 5.74% | 3.22% | 2.98% | -3.03% | -0.89% | 1.46% | 12.83% | 6.04% | -2.31% | -6.27% | -8.84% | -5.8% | -7.68% | 2.74% | 1.31% | -33.27% | -31.86% | -17.21% | - | - |
| Operating Income Growth % | - | 25.12% | 385.89% | 91.47% | 209.99% | -107.75% | -183.33% | -83.25% | 159.13% | 274.72% | 65.77% | 25.23% | 4.03% | 29.58% | -462.32% | 2.59% | 106.15% | 50.99% | -276.18% | -1159.98% | -115.56% | - |
| EBITDA | 14.3M | 14.4M | 9.11M | 2.07M | 1.3M | -295K | 129K | 850K | 3.25M | 1.59M | -31K | -1.28M | -2.08M | -2.22M | -3.37M | 1.24M | 1.33M | -14.68M | -28.85M | -5.73M | 977.69K | 205.74K |
| EBITDA Margin % | 7.08% | 5.86% | 6.15% | 3.81% | 4.23% | -1.08% | 0.29% | 2.59% | 14.56% | 8.66% | -0.11% | -4.35% | -7.44% | -4.99% | -7.06% | 3.37% | 1.77% | -30.5% | -28.14% | -11.35% | - | - |
| EBITDA Growth % | 9.09% | 58.09% | 340.14% | 59.6% | 539.66% | -328.68% | -84.82% | -73.85% | 104.85% | 5219.35% | 97.58% | 38.35% | 6.22% | 34.11% | -370.78% | -6.25% | 109.04% | 49.13% | -403.92% | -685.58% | 375.21% | - |
| D&A (Non-Cash Add-back) | 4.8M | 3.77M | 608K | 320K | 383K | 536K | 529K | 370K | 385K | 481K | 602K | 566K | 392K | 357.93K | 291.71K | 233.73K | 342.22K | 1.33M | 3.81M | 2.96M | 1.67M | 525.43K |
| EBIT | 9.5M | 10.64M | 8.87M | 1.75M | 914K | -802K | 496K | 480K | 2.87M | 1.1M | -639K | -1.85M | -2.47M | -2.58M | -1.31M | 1.93M | 984.49K | -16.01M | -27.72M | -8.68M | 977.69K | 205.74K |
| Net Interest Income | -1.88M | -2.65M | -2.17M | -1.62M | -931K | -430K | -367K | -313K | -403K | -328K | -365K | -344K | -277K | -197K | -140.78K | -89.22K | -124.51K | -195.94K | -206.81K | 806.52K | 3.33M | 1.05M |
| Interest Income | 2M | 1.66M | 562K | 355K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 431 | 0 | 0 | 0 | 0 | 0 | 806.52K | 1.67M | 525.43K |
| Interest Expense | 3.88M | 4.31M | 2.74M | 1.97M | 931K | 430K | 367K | 313K | 403K | 328K | 365K | 344K | 277K | 197.43K | 140.78K | 89.22K | 124.51K | 195.94K | 205.65K | 0 | -1.67M | -525.43K |
| Other Income/Expense | -2.33M | -3.11M | -2.37M | -1.62M | -931K | -401K | 529K | -313K | -403K | -331K | -371K | -335K | -277K | -217.43K | -2.65M | 829.87K | -124.51K | -10.45M | -5.15M | 806.52K | 1.67M | 525.43K |
| Pretax Income | 7.17M | 7.53M | 6.13M | 134K | -17K | -1.23M | 129K | 167K | 2.46M | 775K | -1M | -2.18M | -2.75M | -2.79M | -3.96M | 1.84M | 859.98K | -16.2M | -32.87M | -7.85M | 977.69K | 205.74K |
| Pretax Margin % | 3.55% | 3.07% | 4.14% | 0.25% | -0.06% | -4.49% | 0.29% | 0.51% | 11.03% | 4.23% | -3.67% | -7.41% | -9.83% | -6.29% | -8.31% | 4.99% | 1.15% | -33.68% | -32.06% | -15.55% | - | - |
| Income Tax | -7.25M | -7.59M | 158K | 60K | 56K | 65K | 50K | 41K | 26K | 9K | 19K | 21K | 53K | 0 | 2.65M | 0 | 0 | 2.59M | 65.61K | -499.15K | 332.41K | 74.19K |
| Effective Tax Rate % | -101.09% | -100.78% | 2.58% | 44.78% | -329.41% | -5.28% | 38.76% | 24.55% | 1.06% | 1.16% | -1.89% | -0.96% | -1.93% | 0% | -66.94% | 0% | 0% | -15.98% | -0.2% | 6.36% | 34% | 36.06% |
| Net Income | 14.42M | 15.13M | 5.98M | 74K | -73K | -1.3M | 79K | 126K | 2.44M | 766K | -1.02M | -2.21M | -2.8M | -2.79M | -3.96M | 1.84M | 851.26K | -18.79M | -32.93M | -7.38M | 645.27K | 131.54K |
| Net Margin % | 7.14% | 6.16% | 4.03% | 0.14% | -0.24% | -4.73% | 0.18% | 0.38% | 10.91% | 4.18% | -3.74% | -7.48% | -10.02% | -6.29% | -8.31% | 4.99% | 1.14% | -39.06% | -32.12% | -14.62% | - | - |
| Net Income Growth % | 61.32% | 153.1% | 7975.68% | 201.37% | 94.37% | -1741.77% | -37.3% | -94.83% | 218.15% | 174.88% | 53.61% | 21.33% | -0.31% | 29.44% | -315.25% | 116.14% | 104.53% | 42.94% | -346.44% | -1243.26% | 390.54% | - |
| Net Income (Continuing) | 14.42M | 15.13M | 5.98M | 74K | -73K | -1.3M | 79K | 126K | 2.44M | 766K | -1.02M | -2.21M | -2.8M | -2.79M | -3.96M | 1.84M | 859.98K | -16.2M | -32.93M | -7.38M | 645.27K | 131.54K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.58 | 0.61 | 0.24 | 0.00 | -0.00 | -0.07 | 0.00 | 0.01 | 0.13 | 0.05 | -0.07 | -0.14 | -0.19 | -0.19 | -0.28 | 0.13 | 0.06 | -1.48 | -2.68 | -0.63 | 0.07 | 0.01 |
| EPS Growth % | 64.17% | 154.17% | - | - | 94.9% | - | - | -95.38% | 160% | 175.3% | 52.57% | 26.32% | 0% | 32.14% | -315.38% | 116.67% | 104.05% | 44.78% | -325.4% | -1031.95% | 389.86% | - |
| EPS (Basic) | - | 0.65 | 0.27 | 0.00 | -0.00 | -0.07 | 0.00 | 0.01 | 0.13 | 0.05 | -0.07 | -0.14 | -0.19 | -0.19 | -0.28 | 0.14 | 0.06 | -1.48 | -2.68 | -0.63 | 0.07 | 0.01 |
| Diluted Shares Outstanding | 24.7M | 24.7M | 24.7M | 22.02M | 20.06M | 18.36M | 20.99M | 20.93M | 18.75M | 15.51M | 15.4M | 15.54M | 15.02M | 14.38M | 14.17M | 14.85M | 14.13M | 12.68M | 12.27M | 11.7M | 9.55M | 9.55M |
| Basic Shares Outstanding | 23.4M | 23.4M | 22.08M | 21.77M | 20.06M | 18.36M | 17.82M | 17.36M | 18.75M | 15.51M | 15.4M | 15.54M | 14.75M | 14.38M | 14.14M | 13.61M | 13.27M | 12.68M | 12.27M | 11.7M | 9.55M | 9.55M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High OEM Revenue Concentration
As evidenced by the quarterly data, TSSI exhibits extreme top-line volatility, with revenue swings ranging from a 141.7% surge in 2024Q1 to a 44.1% contraction in 2026Q1, suggesting that the company's project-based integration model remains highly sensitive to the timing of large-scale data center deployments.
The erratic revenue trajectory implies that TSSI lacks a predictable recurring revenue base, making it difficult to forecast long-term growth durability. Investors should monitor whether the recent revenue fluctuations are tied to specific OEM contract cycles or broader shifts in enterprise IT infrastructure spending.
According to the reported financial statements, TSSI's gross margin has struggled to maintain consistency, fluctuating from a high of 36.3% in 2024Q2 down to 9.1% in 2025Q1, which highlights the inherent difficulty in scaling a low-margin, high-volume hardware integration and services business model.
The compression of gross margins suggests that TSSI may be acting primarily as a pass-through entity for expensive OEM hardware, leaving little room for value-added service premiums. This structural limitation warrants further investigation into whether the company can successfully pivot toward higher-margin facility management services to stabilize profitability.
Based on the provided income statement data, TSSI's operating income has failed to scale linearly with revenue, as evidenced by the 2025Q3 period where a $41.9M revenue base resulted in a $931K operating loss, indicating that fixed costs remain a significant burden during periods of lower throughput.
The lack of consistent operating leverage suggests that the company's cost structure is not sufficiently flexible to absorb revenue volatility. Without a more efficient conversion of gross profit into operating income, the company may struggle to generate sustainable bottom-line returns during cyclical downturns in the IT services sector.
As reported in recent filings, TSSI's net income has been periodically bolstered by non-operating items, while stock-based compensation expenses have risen to $1.1M per quarter, which may be masking the underlying operational performance and diluting the quality of reported earnings for shareholders over the observed period.
The presence of significant stock-based compensation relative to net income suggests that management's incentive structure may be creating a disconnect between reported EPS and actual cash-generative capability. Investors should carefully adjust for these non-cash expenses when evaluating the true profitability of the firm's core integration operations.
Based on the provided figures, the primary risk to the current narrative is the potential for OEM insourcing, as TSSI's thin 12.73% gross margin leaves the company with little competitive defense should major server manufacturers decide to bring integration services in-house to capture more of the value chain.
Short-term growth figures may be misleading if they are driven by temporary spikes in hardware procurement rather than a sustainable increase in high-margin engineering services. The market's current valuation of TSSI as a high-growth AI play appears to ignore the significant risk of margin erosion if the company's role as a specialized integrator becomes commoditized.
Quick answers to the most common questions about buying TSSI stock.
For fiscal year 2025, TSS, Inc. (TSSI) reported total revenue of $245.7M.
TSS, Inc. (TSSI) is profitable, generating $15.1M in net income for the fiscal year ending 2025 with a net profit margin of 6.2%.
TSS, Inc. (TSSI) reported an operating income of $10.6M, resulting in an operating profit margin of 4.3%. This margin reflects the operational efficiency of the business before interest and taxes.
TSS, Inc. (TSSI) generated $31.3M in gross profit for the year, representing a gross profit margin of 12.7%. This demonstrates the company's core pricing power and production efficiency.