TSS (TSSI) Investor presentation summary

Investment thesis and market opportunity

• Provides end-to-end integration services for data centers, advanced computing, and AI solutions, targeting the digital transformation market.

• Experiences robust demand driven by AI advancements, cloud adoption, and increased storage needs.

• Serves marquee global enterprise customers investing in AI and high-performance computing.

• Operates in a rapidly expanding market, with the global server market projected to reach $931B by 2027 and data center systems spending expected to grow 55.8% YoY.

• Multiple growth levers include new offerings, expanded capacity, direct selling, and strategic partnerships.

Service offerings and operational strengths

• Offers procurement, systems integration, and facilities management, enabling efficient IT hardware and software deployment.

• Configured and deployed ~500 modular data centers in 2025, with $279M in product procured and 65% YoY growth in gross value processed.

• Focuses on flexibility, speed, and simplifying complex integration for customers, resulting in reduced complexity and faster time-to-value.

• Facilities management delivers >50% gross margins, with post-deployment contracts typically lasting one year.

Financial performance and segment trends

• Achieved 66% revenue growth and 83% adjusted EBITDA growth in FY 2025, with 2026 adjusted EBITDA outlook of $20M–$22M.

• Procurement represents 80% of revenue but only 47% of gross profit in FY 2025, while higher-margin systems integration and facilities management make up 53% of gross profit.

• Annual revenue grew from $27.4M in 2021 to $245.7M in 2025, a 73% four-year CAGR.

• Operating income reached $6.3M in FY 2025 (+10% YoY), with diluted EPS of $0.56 and adjusted EBITDA of $18.6M.