Start here if you're new
what it is
TSS helps companies plan, build, install, maintain, and refurbish data-center and server-room equipment.
how it gets paid
Last year Tss made $148M in revenue. systems integration and installation was the main engine at $52M, or 35% of sales.
what just happened
Revenue hit $185M, up 341% vs. prior year, while EPS climbed to $0.11.
At a glance
B balance sheet — gets the job done, barely
40/100 earnings predictability — expect surprises
46.3x trailing p/e — you're paying up for this one
47.9% return on capital — every dollar works hard here
$0.24 fy2024 eps est
xvary composite: 47/100 — below average
What they do
TSS helps companies plan, build, install, maintain, and refurbish data-center and server-room equipment.
TSS wins by being the one vendor that can plan, install, maintain, and refurbish a data-center job in one handoff. If you are the customer, fewer handoffs mean fewer chances to break your timeline or your server room. With just 161 employees, the company says it manages and deploys billions of dollars of technology each year, which tells you this business runs on trust and execution.
How they make money
$148M
annual revenue
systems integration and installation
$52M
+341%
design, engineering, and consulting
$30M
+18.5%
maintenance and facilities management
$27M
+18.5%
it reseller and third-party procurement
$24M
+341%
refurbishment and project management
$15M
+18.5%
The products that matter
integrates AI server racks
AI Server Rack Integration
$246M 2025 revenue reference
this is the demand engine the page keeps pointing to. it pushed revenue to $246M, but the 13.2% gross margin says scale has not translated cleanly into economics yet.
growth driver
deploys and supports infrastructure
Data Center Infrastructure Services
13.2% full-year gross margin
this is the operating reality under the AI story. at 13.2%, TSS kept 13.2 cents of each revenue dollar after direct costs. that gives you some room. not much.
margin test
Key numbers
47.9%
return on capital
Return on capital → profit generated per dollar invested → so what: TSS is squeezing a lot of earnings out of a small asset base.
46.3x
trailing p/e
P/E → how many years of current earnings you are paying for → so what: this stock already assumes the growth surge keeps going.
6.2%
operating margin
Operating margin → profit left after running the business → so what: one bad project can do real damage.
$36M
long-term debt
Long-term debt → money owed over years → so what: debt is manageable, but not tiny for a $345M company.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $36M (9% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TSSI right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $185M, up 341% vs. prior year, while EPS climbed to $0.11.
The quarter was driven by a huge jump in project activity tied to data-center demand. Gross margin was 11.4%, so the quiet part is that scale is arriving faster than fat margins.
$185M
revenue
$0.11
eps
11.4%
gross margin
the number that mattered
Revenue up 341% matters most because it shows TSS is catching a real spending wave, not just polishing a tiny base.
source: company earnings report, 2026
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What could go wrong
the top threat is AI rack integration margin compression.
med
AI rack integration margin compression
Full-year gross margin was 13.2%. Even after the Q4 lift to 18.6% from 14.4%, this is still a business where a few points of cost pressure matter a lot.
When margin starts that low, small pricing misses or component cost moves can strip out a large share of profit.
med
AI infrastructure spending cooling off
The growth case leans on a 66% revenue jump tied to AI server rack demand. That reads great while customers are deploying. It gets harder fast if orders pause.
If AI orders normalize before margins mature, revenue slows and the 46.3x trailing p/e loses its support at the same time.
med
execution whiplash in a volatile stock
Price stability is 5 / 100, the stock traded between $6 and $32 in a year, and the balance sheet is rated B. That is not a forgiving setup.
You do not need a collapse for this to hurt. You need one quarter where growth cools before profitability looks settled.
At 13.2% gross margin, the $246M revenue story still leaves very little room for disappointment.
source: institutional data · regulatory filings · risk analysis
Pay attention to
guide
2026 adjusted ebitda target
Management is targeting $20M–$22M. If that number starts moving down, the market will question whether the recent revenue jump was profitable enough to matter.
margin
Q4 margin follow-through
Q4 gross margin reached 18.6% from 14.4%. That improvement is the cleanest sign the model might be maturing. You want to see it hold, not flash once.
calendar
March 26 earnings report
The next report is scheduled for March 26, 2026. This is where you find out whether revenue is still coming in and whether the margin gains were more than one clean quarter.
valuation
multiple versus proof
A 46.3x trailing p/e is not cheap for a business with 13.2% gross margin and 5 / 100 price stability. If the operating proof slows, the multiple will do the talking.
Analyst rankings
earnings predictability
40 / 100
earnings are harder to forecast here. in human-speak, expect sharper quarterly swings than you would get from a steadier business.
risk rank
3
This sits around the middle on overall risk. That sounds calm until you put it next to a 5 / 100 price stability score and a $6–$32 trading range.
source: institutional data
Institutional activity
institutional ownership data for TSSI is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$9
current price
n/a
target midpoint · n/a from current
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