TSS Inc (TSSI) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and TSS published the results on November 5, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison.

• TSS removed the valuation allowance on its deferred tax asset in the fourth quarter of 2025, so 2026 earnings carry a full tax provision and 2025 quarters largely did not.
• Operating lease income comes from a warehousing and logistics arrangement at TSS's former Round Rock, Texas facility that began on May 1, 2026, so there is no year-ago figure.

Source: TSS Q3 2026 results, November 5, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

How TSS splits revenue in its own release, under its own labels, for Q3 2026 against Q3 2025. Indented lines are parts of the line above them.

• TSS's Procurement revenue was $32.4 million in Q3 2026, up 4% from $31.1 million in Q3 2025, 65% of total revenue.
• TSS's Systems integration revenue was $16.1 million in Q3 2026, up 75% from $9.2 million in Q3 2025, 32% of total revenue.
• TSS's Facilities management revenue was $1.1 million in Q3 2026, down 30% from $1.6 million in Q3 2025, 2% of total revenue.
• TSS's Operating lease income revenue was $0.4 million in Q3 2026, under 1% of total revenue.

Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.

From the earnings release

TSS gives an Adjusted EBITDA outlook only. It does not guide revenue or EPS.

In its Q3 2026 release (Darryll Dewan, CEO), TSS said:

“Building on the growth we delivered in Systems Integration in the third quarter and current visibility into our pipeline, we anticipate further growth in the fourth quarter.”

“We are raising our 2026 outlook for Adjusted EBITDA to a range of $21 million to $23 million.”

Source: TSS Q3 2026 release, Nov 5, 2026.

This is the company's own guidance as of Nov 5, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the TSSI forecast page.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

Total revenues and diluted EPS, each as first reported in that quarter's release. Q4 2025 EPS includes the tax benefit from removing the valuation allowance on TSS's deferred tax asset.

We do not hold a confirmed date for TSS's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Nov 5, 2026

TSS integrates and services data center hardware, mostly AI computer racks, from Georgetown, Texas. Of its $50.1 million of Q3 2026 revenue, procurement, where TSS buys third-party hardware, software and services for customers, was $32.4 million, up 4%. Systems integration was a record $16.1 million, up 75%, and 32% of total revenue. Facilities management fell 30% to $1.1 million, and operating lease income added $0.4 million. (TSS Q3 2026 release, Nov 5, 2026; TSS Form 10-Q, Q3 2026, Nov 5, 2026)

TSS put the $6.9 million rise in systems integration revenue down mainly to growth in integrating AI-enabled computer racks and to higher fixed monthly fees after it amended its long-term agreement with its main customer in December 2025. Most components in that business are consigned to TSS by its largest OEM customer or that customer's end users, so systems integration revenue mostly reflects only the services TSS provides. (TSS Form 10-Q, Q3 2026, Nov 5, 2026)

TSS depends almost entirely on one customer. A U.S.-based IT OEM accounted for 99% of revenue in Q3 2026 and in Q3 2025, and for 97% of trade accounts receivable at September 30, 2026. TSS has invested about $57.1 million in its leased Georgetown facility, mainly to add electrical power and cooling for air-cooled and direct liquid cooled racks. (TSS Form 10-Q, Q3 2026, Nov 5, 2026)

Procurement revenue can swing because TSS books some deals gross and others net. On a gross-value basis, which TSS reports as a non-GAAP figure, procurement deals were $45.0 million against $48.1 million a year earlier, and procurement gross margin on recognized revenue was 7.0% against 8.3%. Through nine months, total revenue was $140.5 million, down 24%, because procurement fell 41% from a record 2025. (TSS Form 10-Q, Q3 2026, Nov 5, 2026; TSS Q3 2026 release, Nov 5, 2026)

TSS earned $1.1 million in Q3 2026, or $0.04 per diluted share, against a net loss of $1.5 million, or $0.06 per share, a year earlier. Gross profit rose 86% to $8.6 million as revenue shifted toward systems integration, and income from operations was $1.2 million after a $1.8 million loss in Q3 2025. (TSS Q3 2026 release, Nov 5, 2026)

Income tax expense was $338 thousand on pre-tax income of $1.5 million, against $50 thousand a year earlier. TSS removed the valuation allowance on its deferred tax asset in the fourth quarter of 2025, so its 2026 results carry a full tax provision. Weighted-average shares rose to 28,219 thousand from 25,538 thousand, plus 1,353 thousand incremental dilutive shares. (TSS Q3 2026 release, Nov 5, 2026; TSS Form 10-Q, Q3 2026, Nov 5, 2026)

TSS reports no adjusted EPS. Its non-GAAP measure is Adjusted EBITDA, $4.7 million in the quarter against $1.5 million, which adds back interest, bank factoring fees of $0.7 million, taxes, depreciation and amortization of $1.5 million, stock-based compensation of $1.1 million and a $0.3 million loss on disposal of assets. (TSS Q3 2026 release, Nov 5, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

TSS guides only Adjusted EBITDA. On November 5, 2026 it raised its 2026 outlook to a range of $21 million to $23 million and said it expects further growth in the fourth quarter, citing Systems Integration growth and visibility into its pipeline. Adjusted EBITDA through nine months was $14.5 million, so the range implies about $6.5 million to $8.5 million in Q4. (TSS Q3 2026 release, Nov 5, 2026)

A consensus figure is the average of the models published by the analysts who cover TSS, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones TSS's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning TSSI is on is TSSI a buy or a sell?, what analysts expect next is on the TSSI forecast, and what the company does is on the TSS Inc (TSSI) stock page.

Every number on this page can be traced to a document TSS published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.