TSS, Inc. reported second quarter 2026 results that fell short of analyst expectations on the top and bottom lines as the company continues a deliberate shift away from low-margin procurement services. Despite the lower headline revenue, gross profit grew 11% to $8.0 million and Adjusted EBITDA rose 12% to $4.5 million, reflecting an improved mix of higher-margin AI infrastructure and data center services.
Key Highlights
- Systems integration revenue reached $13.9 million, representing a 46% year-over-year increase and now accounting for 39% of total revenues compared to 22% in the prior-year period.
- Facilities management revenue grew 84% to $2.7 million, while the company intentionally scaled back its procurement segment, which saw revenues decline 45% to $18.2 million.
- Management maintained its full-year 2026 Adjusted EBITDA guidance at the upper end of the $20 million to $22 million range, citing accelerated demand for next-generation AI data center technology.