Overview

• US data center services firm's Q4 revenue rose 22% yr/yr; full-year revenue up 66%

• Full-year diluted EPS more than doubled to $0.56

• Company extended long-term AI rack integration deal with largest customer

Outlook

• TSS expects 2026 Adjusted EBITDA in the range of $20 mln to $22 mln

• Company anticipates record growth in Systems Integration, with rack integration volumes expected to double

• Company takes conservative view on Procurement and Facilities Management outlook due to supply chain volatility

Result Drivers

• SYSTEMS INTEGRATION RAMP - Co said ramp-up of systems integration rack volumes at new Georgetown facility drove Q4 and full-year growth

• AI INFRASTRUCTURE DEMAND - Co cited accelerating demand for AI and cloud infrastructure as a key growth driver, with increased rack complexity and cooling requirements benefiting its business

• CUSTOMER AGREEMENT EXTENSION - Amended and extended long-term AI rack integration agreement with largest customer provided business stability and growth visibility

Company press release: ID:nACShdKJBa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$60.91 mln	$41.40 mln (2 Analysts)
Q4 EPS		$0.41
Q4 Net Income		$12.16 mln
Q4 Basic EPS		$0.45
Q4 Gross Profit		$11.34 mln
Q4 Operating Income		$4.06 mln
Q4 Pretax Profit		$4.40 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for TSS Inc is $14.50, about 31.2% above its March 10 closing price of $11.05

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