Q4 2025 TSS Inc Earnings Call Transcript
Key Points
- TSS Inc (TSSI) reported strong year-over-year growth in both revenue and profitability for the fourth quarter and full year 2025.
- The company exceeded its adjusted EBITDA guidance, reaching approximately $18.6 million, up from $10.2 million the previous year.
- TSS Inc (TSSI) successfully scaled its new Georgetown, Texas facility, which contributed to increased rack integration volumes and better absorption of fixed costs.
- The company extended and expanded its relationship with its primary customer under a multi-year contract, providing enhanced revenue visibility.
- TSS Inc (TSSI) raised $55.3 million in a secondary offering to fund future strategic growth opportunities, significantly increasing its cash reserves.
- The supply chain remains challenging, with memory shortages driving price increases and delays in data center deployment timelines.
- Gross margins decreased from 15.1% in 2024 to 13.2% in 2025, partly due to the allocation of operations-related depreciation to cost of goods sold.
- The facilities management segment saw a slight decrease in maintenance revenues for the full year, driven by declines in the first two quarters.
- The company faces difficulties in forecasting rack integration volumes due to the dynamic nature of the market and deal sizes.
- Despite strong performance, TSS Inc (TSSI) remains cautious about future growth due to potential supply chain volatility and the timing of deal closings.
Greetings, ladies and gentlemen, and welcome to the TSS Incorporated fourth-quarter 2025 earnings results conference call. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Mr. James Carbonara of Hayden IR. Sir, you may begin.
Thank you, operator, and good day everyone.
Thank you for joining us for TSS's conference call to discuss the company's 4th quarter and full year 2025 financial results.
Joining me today on this call are Darryl Doha, President and CEO of TSS, Dan H. Chisholm, the company CFO. As we begin the call, I would like to remind everyone to take note of the cautionary language regarding forward-looking statements contained in the press release we issued today.
That same language applies to comments and statements made on today's conference call.
This call will contain time sensitive information as well as forward-looking statements which are accurate only as of today, March 11th,
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