TSS, Inc. (TSSI) Form 10-Q — Aug 13, 2026

$TSSIForm 10-QFiled Aug 13, 2026, 4:10 PM ET0001654954-26-007589Original filing

TSS, Inc. reported Q2 2026 total revenues of $35.1 million, down 21% year over year, as lower-margin procurement revenue dropped 45% to $18.2 million. The mix shift toward higher-margin work lifted gross margin to 22.8% from 16.4%, with systems integration revenue up 46% to $13.9 million and facilities management up 84% to $2.7 million; operating income rose 16% to $1.6 million while net income was essentially flat at $1.4 million ($0.05 diluted EPS vs $0.06 a year ago).

Key figures

Eps: $0.05 basic and diluted (Q2 2026); $0.13 basic for six months
Revenue: $35.1 million (Q2 2026 total revenues incl. operating lease income; $34.9 million ASC 606 revenue)
Guidance: Procurement revenues expected to return to the $30-40 million range in the quarter ending September 30, 2026; revenues expected to ramp faster than SG&A costs, leading to higher operating income for the remainder of the year
Net Income: 1432000
Total Debt: 16449000
Revenue Yoy: -21% (Q2 2026 vs Q2 2025)
Total Assets: 175321000
Cash Position: 67679000
Shares Outstanding: 28219070
Gross margin q2: 22.8% vs 16.4% prior-year quarter
Capex six months: 4609000
Six month revenue: 90487000
Operating income q2: 1602000
Six month net income: 3708000
Effective interest rate: 6.9%
Factored receivables q2: 46052000
Customer concentration pct: 99
Procurement revenue decline: -45% to $18.2 million
Stock repurchases six months: $2.219 million (203,786 shares)
Georgetown facility investment: 48000000
Remaining performance obligations: 115000000
Systems integration revenue growth: +46% to $13.9 million
Facilities management revenue growth: +84% to $2.7 million

Price after filing

1 day: +4.9%7 days: -22.9%30 days: -21.7%

Close on the filing date to close N calendar days later (from $11.40). Historical, not a forecast.

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