Filing Flows › TSS (TSSI) › Q2 2026
TSS (TSSI) Q2 2026 earnings results (second quarter 2026)
10-Q filed Aug 13, 2026
TSS (TSSI) reported revenue of $35.1M for the second quarter 2026 (Q2 2026), -20% from a year earlier and -37% from the quarter before. Operating margin was 4.6%, net earnings $1.4M (4.1% of revenue).
TSS, Q2 2026: revenue $35.1M (-20% year over year), operating margin 4.6%, net earnings $1.4M, operating cash flow $7.6M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $35.1M | -37% | -20% |
| Gross profit | $8.0M | -9% | +11% |
| Operating profit | $1.6M | -30% | +16% |
| Net earnings | $1.4M | -37% | -3% |
| Operating cash flow | $7.6M | — | -53% |
| Free cash flow | $3.6M | — | -34% |
What changed
Revenue was $35.1M in Q2 2026, down 20% year over year and down 37% from the previous quarter. Procurement Revenues Segment was the largest line at 52% of revenue. Procurement Revenues Segment lost $14.8M year over year (down 45%), 167% of the total change.
Gross margin was 22.8%, up 6.4 points from Q2 2025. Operating profit was $1.6M, a 4.6% margin (up 1.4 points year over year). Operating expenses grew 10% against a revenue fall of 20%. The fastest-growing cost line was SG&A (+17%). Net earnings were $1.4M, down 3% year over year. The effective tax rate was 22.4%.
Operating cash flow was $7.6M (down 53% year over year), 533% of net earnings. Non-cash charges added back $320K of depreciation and amortization and $1.0M of share-based compensation. Working capital and other items added $4.8M. Capital expenditures of $4.1M left free cash flow of $3.6M.
Questions
What was TSS' revenue in the second quarter 2026?
TSS (TSSI) reported revenue of $35.1M for the second quarter 2026 (Q2 2026), -20% from a year earlier and -37% from the quarter before.
Was TSS profitable in the second quarter 2026?
Operating profit was $1.6M (4.6% of revenue) and net earnings $1.4M.
Source: TSS 10-Q on SEC EDGAR.