IT services firm TSS Q3 rev slumps on weakness in procurement revenues

TSS

13/11/2025 21:27

Overview

TSS Q3 revenue falls 40% yr/yr, with a net loss of $1.5 mln

Systems Integration revenue grows 20%, offsetting declines in other segments

Company updates 2025 EBITDA outlook to 50%-75% growth, expecting Q4 rebound

Outlook

TSS updates 2025 Adjusted EBITDA outlook to 50%-75% growth over 2024

Company expects stronger Q4 results in Systems Integration and Facilities Management

TSS anticipates growth trajectory to continue into 2026

Result Drivers

LOWER RACK VOLUMES - Systems Integration business faced lower rack volumes due to unforeseen operational requirements

NEW FACTORY COSTS - Increased costs from new factory not yet matched by expected additional revenues

PROCUREMENT REVENUE DECLINE - Procurement revenues decreased, impacting overall revenue performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$41.88 mln
Q3 EPS
-$0.06
Q3 Net Income
-$1.50 mln
Q3 Gross Profit
$4.64 mln
Q3 Operating Income
-$931,000
Q3 Pretax Profit
-$1.45 mln


Press Release: ID:nACS0ZCmga

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)