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Edge14 Aug 2026
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TSS
TSS (TSSI) investor relations material
TSS Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Q2 2026 earnings summary13 Aug, 2026
Executive summary
Higher-margin business lines, especially systems integration and facilities management, drove a favorable shift in revenue mix, improving earnings quality and profitability despite a 20-21% decline in total revenue year-over-year due to lower procurement activity.
Systems integration revenue grew 46% year-over-year to $13.9 million, now representing 39% of total revenue, up from 22% last year; facilities management revenue increased 84%.
Net income for Q2 2026 was $1.4 million ($0.05 per diluted share), down from $1.5 million ($0.06) in Q2 2025, reflecting higher SG&A and increased share count.
The company is investing $17 million to expand power and cooling capacity for NVIDIA's Vera Rubin platform and next-generation AI data center technology, expected to drive incremental high-margin revenue.
Customer engagement and pipeline for higher-margin services remain strong, with expectations for a stronger second half of 2026.
Financial highlights
Q2 2026 total revenue was $35.1 million (down 20-21% YoY); gross profit increased 11% year-over-year to $8 million; blended gross margin improved from 16.4% to 22.8%.
Adjusted EBITDA rose 12% year-over-year to $4.5 million; net income was $1.4 million ($0.05 per diluted share).
SG&A costs increased to $5.6 million from $4.7 million, mainly due to higher equity compensation and headcount.
Cash and cash equivalents at June 30, 2026, were $67.7 million-$69.5 million; total debt was $16.1 million-$16.4 million.
Adjusted EBITDA for the first six months of 2026 was $9.8 million, up 5% year-over-year.
Outlook and guidance
Procurement revenues expected to return to the $30 million-$40 million range in Q3 2026.
Full-year Adjusted EBITDA outlook reaffirmed at the upper end of $20 million-$22 million.
Management anticipates stronger performance in the second half of 2026, driven by investments in integration capacity and new service offerings.
Full-year effective tax rate projected at ~23%.
Explain impact of $17M AI rack investment
Analyze drivers of procurement margin expansion
Status of the 2024 material weakness remediation
Drivers for H2 2026 Systems Integration growth
Impact of tax asset valuation allowance removal
Effect of depreciation on YTD gross profit
Vera Rubin platform investment and revenue timing
Systems integration capacity vs contract minimums
Modular Data Center demand and rollout plans
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Latest events from TSS
- Rapid revenue and EBITDA growth fueled by AI-driven demand and strategic expansion.TSSI
Investor presentation - AI-fueled growth, facility expansion, and M&A drive high-margin rack integration strategy.TSSIPlanet MicroCap Las Vegas 2026
- AI-driven data center integration and strategic investments fuel growth and revenue stability.TSSISingular Research’s Las Vegas Invitational Conference
- AI-driven demand and expanded capacity fuel strong growth in high-margin integration services.TSSI21st Annual Needham Technology, Media, & Consumer Conference
- AI-driven demand and strategic expansion fuel rapid revenue and profit growth.TSSIInvestor presentation
- Systems integration revenue soared 88% and margin gains offset a 44% revenue decline in Q1 2026.TSSIQ1 2026
- Vote on director elections and auditor ratification at the June 4, 2026 annual meeting.TSSIProxy filing
- Revenue up 88% YTD; Q3 dip from procurement, strong Q4 and 50–75% EBITDA growth expected.TSSIQ3 2025
- Q2 net income rose 345% to $1.4M as AI integration and margin gains offset procurement volatility.TSSIQ2 2024
Next TSS earnings date
Q3 202612 Nov, 2026
TSS
Next TSS earnings date
Q3 202612 Nov, 2026
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Amina0781App Store
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@theshortbearx.com
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