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

Reuters
11/14
IT services firm TSS Q3 rev slumps on weakness in procurement revenues

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)

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