TSS, Inc. (TSSI) AI Stock Analysis
TSSI AI stock analysis summary
AI ResearchTSS, Inc. (TSSI) provides planning, design, deployment, and maintenance services for IT enterprise systems across the United States. While revenue grew to $245.7M in FY2025, performance cooled in the quarter ended June 30, 2026, with quarterly revenue falling 20.1% year-over-year. The company carries $28.9M in net cash and trades at a trailing P/E of 13.6x.
- Market cap
- $199.5M
- Revenue (TTM)
- $193.3M
- P/E
- 13.6x fwd 17.0x
- 1Y return
- -58.8% S&P 500 16.8%
- Avg. target
- $16.50 133.4% vs last close
Bull case
- The company demonstrated strong multi-year expansion with a 5-year revenue CAGR of 40.4% from FY2020 to FY2025.
- TSS maintains a healthy balance sheet with $28.9M in net cash and a current ratio of 1.66 as of June 30, 2026.
- Its valuation reflects a discount with a trailing P/E of 13.6x compared to the US-listed Technology peer median of 28.1x.
Bear case
- Revenue contracted in the quarter ended June 30, 2026, falling 20.1% year-over-year alongside a 16.7% decline in earnings.
- Gross margin has compressed steadily from 23.2% in FY2021 to 12.7% in FY2025.
- Full-year earnings for FY2026 are projected to weaken, with analyst consensus estimating an EPS decline of 66.1% to $0.21.
What TSS does
TSS, Inc. engages in the planning, design, deployment, maintenance, and refresh of end-user and enterprise systems in the United States. Operating across Procurement, Facilities Management, and Systems Integration segments, the company delivers IT equipment deployment services for client products, enterprise products, clusters, and modular containers. It also offers second-touch configuration services for OEM and end-user customers, including hardware additions, peripheral bundling, software pre-loading, tagging, and asset capture. Additionally, TSS provides consulting, maintenance, third-party hardware and software procurement, and professional services to IT OEMs, technology companies, private businesses, and government or commercial end users.
Growth and profitability
Revenue expanded from $27.4M in FY2021 to $245.7M in FY2025, reflecting a 5-year revenue CAGR of 40.4%. Net income improved from -$1.3M in FY2021 to $15.1M in FY2025, lifting diluted EPS from -$0.07 to $0.53 over the same period. However, gross margin contracted from 23.2% in FY2021 to 12.7% in FY2025. Over the trailing twelve months, revenue totaled $193.3M with an operating margin of 6.1% and a profit margin of 7.4%. In the latest quarter ended June 30, 2026, quarterly revenue fell 20.1% year-over-year and quarterly earnings declined 16.7%.
Balance sheet and cash flow
As of June 30, 2026, TSS held $67.7M in cash and short-term investments alongside $38.8M in total debt, resulting in net cash of $28.9M. Liquidity remains supported by a current ratio of 1.66 and a debt-to-equity ratio of 0.48 against shareholders' equity of $80.3M. In FY2025, the company generated $34.9M in operating cash flow and $2.1M in free cash flow after deploying $32.7M toward capital expenditures. Cash use also included $4.9M allocated to share buybacks during FY2025.
Valuation and performance
TSS trades at a trailing P/E of 13.6x and a forward P/E of 17.0x, compared to medians of 28.1x and 18.8x for its US-listed Technology peers. Its enterprise value of $233.0M reflects an EV/EBITDA of 16.6x, aligning with the peer median of 16.6x, while its price-to-sales of 1.0x sits below the peer median of 2.8x. Over the past year, the stock returned -58.8%, lagging the S&P 500 return of 16.8%. Over a 5-year period, its return of 1078.3% outperformed the S&P 500 return of 83.0%.
What analysts expect
Wall Street coverage consists of 1 Strong Buy and 1 Buy rating. The mean price target of $16.50 implies an upside of 133.4% from the last close of $7.07. For the fiscal year ending December 31, 2026, analysts estimate revenue of $189.1M and EPS of $0.21, representing an estimated EPS decline of 66.1%. TSS has beaten EPS estimates in 3 of the last 4 quarters, with its next earnings release scheduled for November 12, 2026.
Key risks and what to watch
- The stock exhibits elevated market sensitivity with a beta of 1.98 and a 1-year return of -58.8%.
- Short sellers hold a notable position in the company, with short interest accounting for 19.1% of the float.
- Capital expenditures rose to $32.7M in FY2025, which reduced free cash flow to $2.1M despite $34.9M in operating cash flow.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this TSSI AI stock analysis
This page is an AI-written research summary of TSS, Inc. (TSSI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: TSSI income statement, TSSI balance sheet, TSSI key metrics, TSSI analyst forecast, TSSI chart. See the TSSI stock overview for the latest quote and news.
TSSI AI stock analysis FAQ
What does TSS, Inc. do?
TSS, Inc. plans, designs, deploys, and maintains end-user and enterprise IT systems. It operates through Procurement, Facilities Management, and Systems Integration segments serving OEMs, technology firms, and commercial or government clients.
Does TSS, Inc. pay a dividend?
TSS, Inc. does not pay a dividend based on current company filings.
What are the analyst expectations for TSSI's stock price?
Analysts hold 1 Strong Buy and 1 Buy rating on TSSI, with a mean price target of $16.50 representing a 133.4% premium over the last close of $7.07.
How strong is the balance sheet of TSS, Inc.?
As of June 30, 2026, TSS held $67.7M in cash and short-term investments against $38.8M in total debt, giving it a net cash position of $28.9M and a current ratio of 1.66.