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Sep 30
TSS Inc Q3 2025 Earnings Report
TSS reported a Q3 net loss due to a sharp drop in procurement revenue, despite growth in Systems Integration and ongoing investment in new operations.
Key Takeaways
TSS saw Q3 2025 revenues fall 40% year-over-year, driven by a 49% decline in procurement revenue. The company posted a net loss of $1.5 million, with gross profit down 41%. However, Systems Integration revenue increased and improvements are expected in Q4.
Total revenue for Q3 2025 was $41.88 million, down from $70.07 million in Q3 2024.
Net loss was $1.5 million, compared to net income of $2.6 million a year earlier.
Adjusted EBITDA dropped 66% to $1.46 million.
Systems Integration revenue increased 20% year-over-year.
TSS Inc
TSS Inc
TSS Inc Revenue by Segment
Revenue by Segment
Procurement Revenue
CapyFin.comSystems Integration Revenue
CapyFin.comFacilities Management Revenue
CapyFin.com Forward Guidance
TSS expects a strong Q4 rebound in all business lines and raised full-year 2025 adjusted EBITDA guidance to 50–75% growth over 2024.
Positive Outlook
- Full-year adjusted EBITDA growth outlook raised to 50%–75%.
- Higher rack volumes expected in Q4 for Systems Integration.
- Operational improvements implemented in new factory.
- Anticipated rebound in Facilities Management revenue.
- Procurement to remain elevated despite headwinds.
Challenges Ahead
- Government shutdown may delay procurement orders.
- Q3 Systems Integration volumes were below expectations.
- Procurement revenue declined significantly YoY.
- Costs increased due to new facility without matching revenue.
- Q3 net loss driven by high expenses and lower gross profit.
Revenue & Expenses
Visualization of income flow from segment revenue to net income