Filing Flows › TSS (TSSI) › Q1 2026
TSS (TSSI) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 7, 2026
TSS (TSSI) reported revenue of $55.3M for the first quarter 2026 (Q1 2026), -44% from a year earlier and -9% from the quarter before. Operating margin was 4.1%, net earnings $2.3M (4.1% of revenue).
TSS, Q1 2026: revenue $55.3M (-44% year over year), operating margin 4.1%, net earnings $2.3M, operating cash flow −$14.9M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $55.3M | -9% | -44% |
| Gross profit | $8.8M | -22% | -4% |
| Operating profit | $2.3M | +152% | -14% |
| Net earnings | $2.3M | -81% | -24% |
| Operating cash flow | −$14.9M | -191% | -172% |
What changed
Revenue was $55.3M in Q1 2026, down 44% year over year and down 9% from the previous quarter. Procurement Revenues Segment was the largest line at 72% of revenue. Procurement Revenues Segment lost $50.2M year over year (down 56%), 115% of the total change.
Gross margin was 15.9%, up 6.6 points from Q1 2025. Operating profit was $2.3M, a 4.1% margin (up 1.4 points year over year). Operating expenses fell 1% while revenue fell 44%. The fastest-growing cost line was SG&A (+13%). Net earnings were $2.3M, down 24% year over year. The effective tax rate was 14.7%.
Operating cash flow was −$14.9M. Non-cash charges added back $306K of depreciation and amortization and $1.1M of share-based compensation. Working capital and other items used $18.6M. Capital expenditures of $534K exceeded it, leaving free cash flow of −$15.5M.
Questions
What was TSS' revenue in the first quarter 2026?
TSS (TSSI) reported revenue of $55.3M for the first quarter 2026 (Q1 2026), -44% from a year earlier and -9% from the quarter before.
Was TSS profitable in the first quarter 2026?
Operating profit was $2.3M (4.1% of revenue) and net earnings $2.3M.
Source: TSS 10-Q on SEC EDGAR.