TSS, Inc. Common Stock

TSS Inc. reported second-quarter results that show revenue falling 20% year over year to $35.1 million, while gross profit rose 11% and adjusted EBITDA climbed 12%, as the company shifts focus to AI data center systems integration. Systems integration revenue grew 46% to $13.9 million, now representing 39% of total revenue, up from 22% a year earlier, while facilities management revenue surged 84% to $2.7 million. The company is investing $17 million in AI data center technology, expecting to convert it into higher systems integration revenue starting in the third quarter, and it maintained full-year adjusted EBITDA guidance of $20 million to $22 million. However, procurement revenue, still the largest segment, fell 45% to $18.2 million in the quarter, dragging total revenue down, and net income slipped to $1.4 million, or $0.05 per diluted share, from $1.5 million a year earlier. Short interest stands at 15.63% of float, indicating significant skepticism despite a slight increase in hedge fund ownership.