Why TSS (TSSI) Is Gaining Attention Despite a Sharp Q1 Revenue Decline

TSS, Inc. (NASDAQ:TSSI) is one of the best emerging technology stocks to invest in now.

The latest investor-relevant update came on May 7, 2026, when TSS, Inc. (NASDAQ:TSSI) reported first-quarter results that underscored why the company fits the emerging technology screen, despite a messy top-line comparison. Revenue fell 44% year over year to $55.3 million, mainly because procurement activity normalized after a record-heavy prior-year quarter. The more important detail was the mix: systems integration revenue rose 88% year over year, helped by demand for AI-related and high-performance computing infrastructure. The company said systems integration represented 25% of total revenue, compared with 8% in the prior-year period.

That mix shift made the quarter stronger than the headline revenue decline suggests. Consolidated gross margin improved to 15.9% from 9.3% a year earlier, while adjusted EBITDA rose 1% to $5.3 million. Management also refined its 2026 outlook, saying it now expects full-year adjusted EBITDA toward the high end of its prior $20 million to $22 million range.

TSS, Inc. (NASDAQ:TSSI) provides data center services, including AI and high-performance computing infrastructure integration, deployment, procurement, and related services.

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