Filing Flows › TSS (TSSI) › Q2 2025
TSS (TSSI) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 11, 2025
TSS (TSSI) reported revenue of $44.0M for the second quarter 2025 (Q2 2025), +262% from a year earlier and -56% from the quarter before. Operating margin was 3.1%, net earnings $1.5M (3.4% of revenue).
TSS, Q2 2025: revenue $44.0M (+262% year over year), operating margin 3.1%, net earnings $1.5M, operating cash flow $16.3M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $44.0M | -56% | +262% |
| Gross profit | $7.2M | -22% | +59% |
| Operating profit | $1.4M | -67% | -19% |
| Net earnings | $1.5M | -50% | +6% |
| Operating cash flow | $16.3M | -21% | — |
| Free cash flow | $5.4M | -6% | — |
What changed
Revenue was $44.0M in Q2 2025, up 262% year over year and down 56% from the previous quarter. Procurement Revenues Segment was the largest line at 75% of revenue. Procurement Revenues Segment added $28.1M year over year (up 572%), 88% of the total change. Facilities Segment declined 35%.
Gross margin was 16.4%, down 20.9 points from a year earlier. Operating profit was $1.4M, a 3.1% margin (down 10.8 points year over year). Operating profit fell $323K even though revenue rose $31.8M versus a year earlier, so costs grew faster than sales. Operating expenses grew 105% against revenue growth of 262%. The fastest-growing cost line was Other operating costs (+827%). Net earnings were $1.5M, up 6% year over year. The effective tax rate was 4.4%.
Operating cash flow was $16.3M, 1102% of net earnings. Non-cash charges added back $226K of depreciation and amortization and $930K of share-based compensation. Working capital and other items added $13.7M. Capital expenditures of $10.9M left free cash flow of $5.4M.
Questions
What was TSS' revenue in the second quarter 2025?
TSS (TSSI) reported revenue of $44.0M for the second quarter 2025 (Q2 2025), +262% from a year earlier and -56% from the quarter before.
Was TSS profitable in the second quarter 2025?
Operating profit was $1.4M (3.1% of revenue) and net earnings $1.5M.
Source: TSS 10-Q on SEC EDGAR.