TSS, Inc. is upgraded to Buy as margin expansion and revenue mix shift materialize, despite a 34% share price decline since March. Systems Integration and Facilities Management now drive a larger share of revenue, lifting consolidated gross margin by 640 bps to 22.8% and EBITDA by 12%. Vera Rubin capacity investment is set to contribute meaningfully from Q4, with multi-year AI rack integration agreements providing enhanced revenue visibility.
TSS NASDAQ: TSSI reported second-quarter 2026 results marked by growth in its higher-margin systems integration and facilities management businesses, even as total revenue declined because of lower procurement activity. Management said the company expects a stronger second half and maintained its full-year adjusted EBITDA outlook toward the upper end of its previously stated $20 million to $22 million range.
TSS, Inc. (TSSI) Q2 2026 Earnings Call Transcript
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
Curtis Ellergodt Rothschild Investment LLC | 19 | $244.95 | $148.77 | -$96.18 | -39.27% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 11,009 | $135,410 | $86,200.47 | -$49,209.53 | -36.34% |
| CD Charlie Durham Sterling Capital Management LLC | 86 | $756.27 | $673.38 | -$82.89 | -10.96% |
Point72 Asset Management LP Point72 Asset Management LP | 89,742 | $1.1M | $667,680.48 | -$436,146.52 | -39.51% |
Joseph Castro Nuveen LLC | 49,795 | $850,245.26 | $389,894.85 | -$460,350.41 | -54.14% |
| Diversified Consumer Services Industry | Consumer Discretionary Sector | Darryll E. Dewan CEO | NASDAQ (CM) Exchange | 87288V101 CUSIP |
| US Country | 286 Employees | - Last Dividend | - Last Split | - IPO Date |
TSS, Inc., formerly known as Fortress International Group, Inc., is a prominent provider of critical infrastructure services, specializing in the planning, design, deployment, maintenance, and refurbishment of crucial facilities and systems across the United States. With its headquarters in Round Rock, Texas, and established in 2004, TSS, Inc. operates through two primary segments: Facilities and Systems Integration. The company distinguishes itself by offering comprehensive single-source solutions for high-tech environments such as data centers, operations centers, network facilities, server rooms, and more. Catering to a diverse clientele including IT OEM equipment, technology, service companies, private sector businesses, and government or commercial end users, TSS, Inc. has solidified its position as a vital player in supporting the backbone of modern infrastructure and technological ecosystems.
TSS, Inc. provides expert services in the design, deployment, and ongoing maintenance of data centers and operations centers. This includes crafting solutions that meet the specific needs of their clients, ensuring these critical environments are optimized for efficiency, reliability, and scalability.
Specializing in the development and management of network facilities and server rooms, TSS, Inc. offers solutions that encompass planning, design, and integration to support the backbone of enterprise IT infrastructure.
The company extends its expertise to the planning and deployment of security operations centers and communications facilities. These services are crucial for maintaining secure and effective communication channels within organizations.
TSS, Inc. excels in integrating infrastructure systems that support the operational needs of enterprises. This involves a holistic approach to ensure that all components of the IT infrastructure work seamlessly together.
Offering consulting services, TSS, Inc. aids businesses in navigating the complex landscape of technology choices and investments. This includes advice on adopting new technologies, optimizing existing systems, and planning for future expansion.
With a focus on both the conceptual and practical aspects, the company provides comprehensive design and engineering services. This ensures that projects not only meet technical specifications but are also feasible and practical to implement.
Managing projects from inception to completion, TSS, Inc. ensures that all aspects of the deployment are conducted efficiently, remain on schedule, and adhere to the clients' specifications and standards.
The company offers specialized services in the installation of systems, taking care to implement solutions that are robust, secure, and tailored to meet the specific operational needs of their clients.
Understanding the critical nature of operational facilities, TSS, Inc. provides ongoing management services to ensure that these environments are maintained at peak efficiency, reliability, and security.
As part of its comprehensive suite of services, TSS, Inc. assists clients with the procurement of IT equipment and software. This includes sourcing, negotiation, and delivery of technology solutions that fit the needs and budgets of their clients.