Tss (TSSI) Q2 Revenue Surges 262%
Tss (NASDAQ:TSSI), a provider of data center infrastructure services, reported earnings for Q2 2025 on August 6, 2025. The highlight was a 262% year-over-year increase in total revenue (GAAP), reaching $44.0 million in Q2 2025, with the procurement segment contributing the largest share. However, Gross margin percentage was 17.1% in Q1 2024 and declined in the following quarter, as most revenue gains came from lower-margin procurement work. There were no analyst estimates available for Q2 2025. Diluted earnings per share (GAAP) held steady at $0.06 in Q2 2025, and net income (GAAP) was $1.5 million in Q2 2025. Management called out robust demand for AI-related services, raised its full-year 2025 Adjusted EBITDA growth outlook from at least 50% to at least 75% over 2024, and highlighted strong operating cash flow in the first half of 2025. Overall, the period was defined by dramatic growth, with margin pressure and customer concentration risks noted as areas to watch.
Tss specializes in services for building and supporting data centers, including procurement of hardware, customized installation (systems integration), and ongoing facilities management. It is a technical services firm working behind the scenes for clients in computing infrastructure, particularly in areas that support artificial intelligence (AI) and high-powered computing.
The company has focused heavily on expanding capacity and modernizing its integration capabilities. Its main priority has been to keep up with surging demand for AI-specific computing racks and state-of-the-art cooling solutions. Strategic partnerships, especially with one major original equipment manufacturer (OEM) – widely believed to be Dell – are critical. Tss relies on these relationships for large contracts but wants to broaden its customer base. The recent launch of the new Georgetown facility signals the company's intent to lead in advanced technology and address growing customer needs.
Source Fool.com
