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/Mis Actual Consensu

s s

Estimate

Q3 $41.88

Revenue mln

Q3 EPS -$0.06

Q3 Net -$1.50

Income mln

Q3 Gross $4.64

Profit mln

Q3 -$931,00

Operatin 0

g Income

Q3 -$1.45

Pretax mln

Profit

Press Release:

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(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.)