Filing Flows › TSS (TSSI) › Q3 2026
TSS (TSSI) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 5, 2026
TSS (TSSI) reported revenue of $50.1M for the third quarter 2026 (Q3 2026), +20% from a year earlier and +42% from the quarter before. Operating margin was 2.3%, net earnings $1.1M (2.3% of revenue).
TSS, Q3 2026: revenue $50.1M (+20% year over year), operating margin 2.3%, net earnings $1.1M, operating cash flow −$3.0M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $50.1M | +42% | +20% |
| Gross profit | $8.6M | +8% | +86% |
| Operating profit | $1.2M | -28% | — |
| Net earnings | $1.1M | -20% | — |
| Operating cash flow | −$3.0M | -139% | — |
What changed
Revenue was $50.1M in Q3 2026, up 20% year over year and up 42% from the previous quarter. Procurement Revenues Segment was the largest line at 65% of revenue. System Integration Services Segment added $6.9M year over year (up 75%), 85% of the total change. Facilities Segment declined 30%.
Gross margin was 17.2%, up 6.2 points from Q3 2025. Operating profit was $1.2M, a 2.3% margin (up 6.5 points year over year). Operating expenses grew 17% against revenue growth of 20%. The fastest-growing cost line was Other operating costs (+17%). Net earnings were $1.1M. The effective tax rate was 22.7%. Non-operating items added $328K, 22% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$3.0M. Non-cash charges added back $356K of depreciation and amortization and $1.1M of share-based compensation. Working capital and other items used $5.6M. Capital expenditures of $9.6M exceeded it, leaving free cash flow of −$12.6M.
Questions
What was TSS' revenue in the third quarter 2026?
TSS (TSSI) reported revenue of $50.1M for the third quarter 2026 (Q3 2026), +20% from a year earlier and +42% from the quarter before.
Was TSS profitable in the third quarter 2026?
Operating profit was $1.2M (2.3% of revenue) and net earnings $1.1M.
Source: TSS 10-Q on SEC EDGAR.