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TSS, Inc. (TSSI) Fundamental Analysis & AI Grade 2026

TSSI Nasdaq Services-Management Consulting Services DE CIK: 0001320760
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
78% Confidence
N/A
C
78% Conf
Pending
Analysis scheduled

📊 TSSI Key Takeaways

Revenue: $55.3M
Net Margin: 4.1%
Free Cash Flow: $-15.5M
Current Ratio: 2.18x
Debt/Equity: 0.22x
EPS: $0.08
AI Grade: C with 78% confidence
TSS, Inc. (TSSI) receives a C fundamental grade with 78% confidence from our AI analysis based on SEC 10-K filings. With revenue of $55.3M, net profit margin of 4.1%, and return on equity (ROE) of 2.9%, TSS, Inc. demonstrates mixed fundamentals in the Services sector. Below is our complete TSSI stock analysis for 2026.

Is TSS, Inc. (TSSI) a Good Investment?

Claude

TSS faces severe operational headwinds with flat revenue growth, extremely low margins of 4.1%, and negative operating cash flow of -$14.9M despite positive net income—a critical disconnect indicating serious cash generation problems. While the company maintains a $66M cash buffer and reasonable liquidity ratios, it is burning cash operationally and cannot cover interest expenses from operating income (0.7x coverage ratio), making the current trajectory unsustainable.

TSS, Inc. Key Strengths (TSSI)

Claude
  • + Strong cash position of $66M provides operational buffer
  • + Good liquidity ratios (current ratio 2.18x, quick ratio 1.99x)
  • + Conservative debt levels (0.22x debt-to-equity ratio)

TSSI Stock Risks: TSS, Inc. Investment Risks

Claude
  • ! Negative operating cash flow of -$14.9M and negative free cash flow of -$15.5M signal severe cash generation dysfunction
  • ! Stagnant revenue growth (0% YoY) with no organic expansion visible
  • ! Critically low gross margin of 15.9% and net margin of 4.1% for management consulting sector
  • ! Interest coverage ratio of 0.7x indicates inability to service debt from operations
  • ! Weak returns on capital (ROE 2.9%, ROA 1.5%) suggest fundamental business challenges
  • ! Cash position will deplete without operational improvement given current burn rate

Key Metrics to Watch

Claude
  • * Operating cash flow trend—must turn positive
  • * Revenue growth acceleration—current 0% YoY is concerning
  • * Gross margin expansion—15.9% is unsustainably low
  • * Working capital changes—possible source of cash flow deterioration
  • * Monthly cash burn rate—critical for sustainability modeling

TSS, Inc. (TSSI) Financial Metrics & Key Ratios

Revenue
$55.3M
Net Income
$2.3M
EPS (Diluted)
$0.08
Free Cash Flow
$-15.5M
Total Assets
$153.6M
Cash Position
$66.0M

💡 AI Analyst Insight

Strong liquidity with a 2.18x current ratio provides a solid financial cushion.

TSSI Profit Margin, ROE & Profitability Analysis

Gross Margin 15.9%
Operating Margin 4.1%
Net Margin 4.1%
ROE 2.9%
ROA 1.5%
FCF Margin -27.9%

TSSI vs Services Sector: How TSS, Inc. Compares

How TSS, Inc. compares to Services sector averages

Net Margin
TSSI 4.1%
vs
Sector Avg 10.0%
TSSI Sector
ROE
TSSI 2.9%
vs
Sector Avg 16.0%
TSSI Sector
Current Ratio
TSSI 2.2x
vs
Sector Avg 1.5x
TSSI Sector
Debt/Equity
TSSI 0.2x
vs
Sector Avg 0.7x
TSSI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is TSS, Inc. Stock Overvalued? TSSI Valuation Analysis 2026

Based on fundamental analysis, TSS, Inc. has mixed fundamental signals relative to the Services sector in 2026.

Return on Equity
2.9%
Sector avg: 16%
Net Profit Margin
4.1%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.22x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

TSS, Inc. Balance Sheet: TSSI Debt, Cash & Liquidity

Current Ratio
2.18x
Quick Ratio
1.99x
Debt/Equity
0.22x
Debt/Assets
48.8%
Interest Coverage
0.69x
Long-term Debt
$17.4M

TSSI Revenue & Earnings Growth: 5-Year Financial Trend

TSSI 5-year financial data: Year 2021: Revenue $45.1M, Net Income $79.0K, EPS $0.00. Year 2022: Revenue $30.6M, Net Income -$1.3M, EPS $-0.07. Year 2023: Revenue $54.4M, Net Income -$73.0K, EPS $0.00. Year 2024: Revenue $148.1M, Net Income $74.0K, EPS $0.00. Year 2025: Revenue $245.7M, Net Income $74.0K, EPS $0.00.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: TSS, Inc.'s revenue has grown significantly by 445% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.00 indicates the company is currently unprofitable.

TSSI Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-27.9%
Free cash flow / Revenue

TSSI Quarterly Earnings & Performance

Quarterly financial performance data for TSS, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $55.3M $2.3M $0.08
Q3 2025 $41.9M $15.0K $-0.06
Q2 2025 $12.2M $15.0K $0.06
Q1 2025 $15.9M $15.0K $0.00
Q3 2024 $8.9M $15.0K $-0.01
Q2 2024 $12.2M $15.0K $0.01
Q1 2024 $6.6M $15.0K $0.00
Q3 2023 $8.1M $209.0K $-0.01

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

TSS, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$14.9M
Cash generated from operations
Stock Buybacks
$1.4M
Shares repurchased (TTM)
Capital Expenditures
$534.0K
Investment in assets
Dividends
None
No dividend program

TSSI SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for TSS, Inc. (CIK: 0001320760)

📋 Recent SEC Filings

Date Form Document Action
May 8, 2026 4 xslF345X06/form4.xml View →
May 7, 2026 8-K tssi_8k.htm View →
May 7, 2026 10-Q tssi_10q.htm View →
Apr 24, 2026 4 xslF345X06/form4.xml View →
Apr 23, 2026 DEF 14A ny20068614x1_def14a.htm View →

Frequently Asked Questions about TSSI

What is the AI rating for TSSI?

TSS, Inc. (TSSI) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TSSI's key strengths?

Claude: Strong cash position of $66M provides operational buffer. Good liquidity ratios (current ratio 2.18x, quick ratio 1.99x).

What are the risks of investing in TSSI?

Claude: Negative operating cash flow of -$14.9M and negative free cash flow of -$15.5M signal severe cash generation dysfunction. Stagnant revenue growth (0% YoY) with no organic expansion visible.

What is TSSI's revenue and growth?

TSS, Inc. reported revenue of $55.3M.

Does TSSI pay dividends?

TSS, Inc. does not currently pay dividends.

Where can I find TSSI SEC filings?

Official SEC filings for TSS, Inc. (CIK: 0001320760) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TSSI's EPS?

TSS, Inc. has a diluted EPS of $0.08.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is TSSI's fundamental grade?

Based on our AI fundamental analysis in June 2026, TSS, Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TSSI stock overvalued or undervalued?

Valuation metrics for TSSI: ROE of 2.9% (sector avg: 16%), net margin of 4.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

What is TSSI's AI grade for 2026?

Our dual AI analysis gives TSS, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TSSI's free cash flow?

TSS, Inc.'s operating cash flow is $-14.9M, with capital expenditures of $534.0K. FCF margin is -27.9%.

How does TSSI compare to other Services stocks?

Vs Services sector averages: Net margin 4.1% (avg: 10%), ROE 2.9% (avg: 16%), current ratio 2.18 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI