TSS, Inc.
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
Why this colour
The red light here does not stand for a shaky balance sheet — that one is healthy — but for a single documented dependency: 99 percent of revenue and, as of June 30, 2026, a full 100 percent of accounts receivable come from one customer, and the quarterly report itself calls TSS economically dependent on that relationship. Roughly $48 million sits in a leased hall fitted out for that one client, alongside $22.7 million of lease liabilities and fixed power charges of about $192,000 per month. If the relationship ends, those obligations remain — and there is no second customer above the 10 percent threshold to absorb them. That is an existential dependency on one counterparty, and our rules take the more cautious level in case of doubt. The verdict judges the company, not the share price: at a price-to-sales ratio near 1.3 the stock is not expensive, and an extended master agreement with minimum volumes is meaningful protection. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
TSS occupies a genuine position in the AI supply chain and lifted revenue from $27.4 million in 2021 to $245.7 million in 2025. The balance sheet is sound, the company is profitable, and the shift toward higher-margin work is measurable in the first-half 2026 numbers. Against that stand three documented findings: 99 percent of revenue and 100 percent of receivables come from one customer, operating income stalled in 2025 despite $97.6 million more revenue, and that year's net income contains $7.6 million of one-time tax benefit. Not investment advice.
Growth
Revenue rose from $27.4 million in 2021 through $54.4 million (2023) and $148.1 million (2024) to $245.7 million in 2025, up 66 percent in 2025 alone. In the first half of 2026 the higher-margin systems integration line grew 65 percent to $28.0 million and facilities management 44 percent to $4.0 million, while total revenue fell 37 percent to $90.5 million on the procurement decline.
Earnings power
Operating income in 2025 moved only from $5.766 million to $6.322 million even though revenue added $97.6 million. The reported net income of $15.125 million contains $7.6 million of tax benefit from releasing a valuation allowance — per the Form 10-K for 2025 a non-cash entry that the independent auditor treated as a critical audit matter.
Customer base
A single U.S.-based IT OEM supplied 99 percent of quarterly revenue and 100 percent of accounts receivable per the Form 10-Q for the quarter ended June 30, 2026 (December 31, 2025: 98 percent). No other customer reached 10 percent. The filing expressly calls TSS economically dependent on that relationship, and roughly $48 million of build-out cost plus $22.7 million of lease liabilities are tailored to it.
Balance sheet
At June 30, 2026 total assets of $175.3 million stood against $95.0 million of liabilities, leaving equity of $80.3 million. Interest-bearing bank debt was only $16.1 million against $67.7 million of cash and $1.8 million of restricted cash. All credit covenants were met at the balance sheet date, and the filings contain no going-concern qualification.
Cash flow
The first half of 2026 consumed $7.3 million of operating cash while reporting $3.7 million of net income; cash fell from $85.5 million to $67.7 million. The Form 10-Q attributes this to paying down accounts payable, higher inventory purchases and a drop in deferred revenues from $13.9 million to $2.8 million. In 2025 that same line helped deliver an inflow of $34.9 million — the pattern swings with the project business.
Capital structure
Shares outstanding rose from 27,593,000 at December 31, 2025 to 28,219,070 at August 7, 2026, against 49,000,000 authorized. Under its effective shelf registration TSS could raise a further $94.3 million without new authorization — roughly 38 percent of market value as of August 22, 2026. The instrument was last used in August 2025 for $55.3 million net. There is no dividend.
Worth Noting
TSSI reached the research list through our in-house Reddit hype scanner, flagged on August 22, 2026. Forum attention is a reason to go and read, not an argument; this analysis rests solely on the filings with the U.S. securities regulator, the SEC.
As-of dates: annual figures from the Form 10-K for 2025 (filed March 18, 2026), interim figures from the Form 10-Q for the quarter ended June 30, 2026 (filed August 13, 2026), share count from that filing's cover page (August 7, 2026), price and market data as of August 22, 2026. The Form 10-Q/A of August 14, 2026 concerns only the iXBRL tagging and changes no figure.
Do not confuse the company: today's TSS, Inc. was named Fortress America Acquisition Corp. until 2007 and Fortress International Group, Inc. until 2013. It is unrelated to similarly named investment firms or to software companies trading as TSS in other markets. CIK 0001320760 is the identifier that governs.
The adjusted EBITDA the company reports is not a measure defined under U.S. GAAP. It excludes, among other items, interest, taxes, depreciation, stock-based compensation and bank factoring fees, and is therefore not comparable to operating income.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at TSSI since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 6.90 $ to 20.40 $ · Last price: 8.60 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Information Technology Services
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| TSS, Inc. TSSI | 0.2 | 16.9 | 14.3 | 19.0 | – | 65.9 | -43.3 |
| International Business Machines IBM | 212.8 | 21.3 | 16.3 | 58.1 | 13.8 | 7.6 | -5.9 |
| Accenture plc ACN | 117.9 | 15.3 | 9.0 | 32.0 | 17.0 | 7.4 | -18.5 |
| Infosys Ltd INFY | 45.0 | 13.7 | 9.0 | 29.7 | 21.2 | 4.6 | -32.7 |
| Cognizant Technology Solutions Corporation CTSH | 29.3 | 13.1 | 7.3 | 33.4 | 15.6 | 7.0 | -9.6 |
| CDW Corp CDW | 19.1 | 17.3 | 12.4 | 21.4 | 6.6 | 6.8 | -9.0 |
| Broadridge Financial Solutions Inc BR | 19.0 | 17.6 | 12.1 | 31.8 | 18.4 | 5.9 | -31.4 |
| Fidelity National Information Services, Inc. FIS | 18.8 | 7.2 | 9.6 | 35.8 | 16.4 | 5.4 | -43.7 |
| Wipro Limited WIT | 16.6 | 12.9 | 7.4 | 29.0 | 15.7 | 4.0 | -37.3 |
| Median of companies shown | 19.1 | 15.3 | 9.6 | 31.8 | 16.0 | 6.8 | -31.4 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 27 | -1 | -1 | -0.07 | 2 | -1 | 9 |
| 2017 | 18 | 1 | 1 | 0.05 | 0 | 0 | 7 |
| 2018 | 22 | 3 | 2 | 0.13 | 2 | 2 | 9 |
| 2019 | 33 | 0 | 0 | 0.01 | 3 | 3 | 18 |
| 2020 | 45 | 0 | 0 | 0.00 | 10 | 3 | 24 |
| 2021 | 27 | -1 | -1 | -0.07 | -10 | 2 | 19 |
| 2022 | 31 | 1 | 0 | 0.00 | 15 | 3 | 31 |
| 2023 | 54 | 2 | 0 | 0.00 | -8 | 4 | 26 |
| 2024 | 148 | 9 | 6 | 0.24 | 15 | 7 | 97 |
| 2025 | 246 | 11 | 15 | 0.61 | 35 | 77 | 185 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.07 | 469.30 | 50 | 105.00 | 3.80 | -22 | -28 |
| 2025: Q1 | 0.11 | 19,760.00 | 99 | 522.70 | 3.00 | 21 | 6 |
| 2025: Q2 | 0.05 | 5.80 | 44 | 261.60 | 3.40 | 16 | 5 |
| 2025: Q3 | -0.05 | -156.60 | 42 | -40.20 | -3.60 | -18 | -25 |
| 2025: Q4 | 0.43 | 535.70 | 61 | 21.80 | 20.00 | 16 | 16 |
| 2026: Q1 | 0.08 | -23.60 | 55 | -44.10 | 4.10 | -15 | -16 |
| 2026: Q2 | 0.05 | 0.00 | 35 | -20.20 | 4.00 | 8 | 8 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 3 of our scanner strategies — each hit links to the scanner.
Momentum & Trend
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 0.21 | 0.21 – 0.21 | 189 | – | 1 |
| 12/31/2027 | 0.24 | 0.24 – 0.24 | 205 | 14.3% | 1 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Free cash flow over the past twelve months is negative, which rules out a serious reverse calculation. Any growth rate only makes a negative cash flow more negative; no present value comes out of it. What the price reflects here is therefore not a stream of cash flows, but the expectation that there will be one at all.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
TSS verkauft die Integration von KI-Serverschränken als eigenes Umsatzgeschäft: Das Segment Systemintegration wuchs 2025 um 78 Prozent auf 40,4 Mio. US-Dollar, ausdrücklich getrieben vom Zusammenbau KI-fähiger Rechenschränke unter einem Langfristvertrag seit Oktober 2024.
View the full file — quotes, sources, reviewed filings
„Beginning in 2024, our systems integration services have been enhanced to include integration of AI enabled data center server racks."
Seit 2024 umfassen unsere Systemintegrationsleistungen zusätzlich die Integration KI-fähiger Serverschränke für Rechenzentren.
10-K · 2026-03-18 · View SEC filing
„The $17.7 million (78%) increase in systems integration revenues was due primarily to the growth in integration of AI-enabled computer racks, which began with significant volume in June 2024"
Der Anstieg der Umsätze aus Systemintegration um 17,7 Millionen US-Dollar (78 Prozent) ging vor allem auf das Wachstum bei der Integration KI-fähiger Rechenschränke zurück, das im Juni 2024 mit erheblichem Volumen begann
10-K · 2026-03-18 · View SEC filing
„In October 2024, we signed a long-term agreement with our largest customer to provide systems integration services for AI-enabled computer racks at an expected minimum monthly volume."
Im Oktober 2024 schlossen wir mit unserem größten Kunden einen Langfristvertrag über Systemintegrationsleistungen für KI-fähige Rechenschränke mit einer erwarteten monatlichen Mindestmenge.
10-Q · 2026-08-13 · View SEC filing
Filings Reviewed: 10-Q 2026-08-13 · 10-Q 2026-05-07 · 10-Q 2025-11-13 · 10-Q 2025-08-11 · 10-K 2026-03-18 · 10-K 2025-04-15
Rated on August 22, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 100.1%
- More than 10% revenue growth is expected for the coming year 4.6%
- Share count grows by less than 3% a year 7.2%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 66.7%
- Gross margin at 40% or higher and without meaningful erosion 12.7%
- Goodwill from acquisitions does not grow faster than revenue 0.4%
- Net debt below twice EBITDA 44 m net cash
- Operating cash flow covers the profits of the last three years 21 m
- Return on capital at 15% or higher, or up versus two years ago 9.5%
- Insiders hold at least 10% or are net buyers 5.7%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
3/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 27.6%
- Exp. sales growth 3Y > 5% -8.6%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% -37.4%
- Net debt < 4x EBIT -4.1x
- EBIT positive, 10Y straight 7
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% 19.9%
- ROCE > 15% 9.5%
- Expected return > 10% -36.9%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Apr 22, 2026 | Darryll E Dewan | CEO | Sell | 50,000 | 16.00 | 800,000 |
The company
About the Company
TSS, Inc. befasst sich mit Planung, Konzeption, Bereitstellung, Wartung und Aktualisierung von Endnutzer- und Unternehmenssystemen in den USA.
- Employees
- 286
- Headquarters
- Georgetown, TX
- Address
- 1800 Aviation Drive, 78628 Georgetown, United States
- Phone
- 512 310 1000
- Website
- tssiusa.com
- IPO Date
- 07/15/2005
- ISIN
- US87288V1017
Management
| Name | Title | Birth Year |
|---|---|---|
| Darryll E. Dewan | CEO, President & Director | 1953 |
| Daniel M. Chism CPA | Chief Financial Officer | 1968 |
| Karl Todd Marrott | Chief Operating Officer | 1967 |
| David Hull | Chief Technology Officer | – |
| Janet Morrison | Chief People Officer | – |
| Kieran P. Brennan | Senior Vice President of Business Development | 1961 |
| Matt Wallace | Chief Strategy Officer | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 08/13/2026 TSS, Inc. (TSSI): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.