Bradley Stevenson • Unaffiliated Investor

Question 1

Bradley Stevenson's questions to TSS Inc (TSSI) leadership • Q2 2025

Aug 6, 2025

Question

Bradley Stevenson of Breakout Investors asked about TSS's priority level with its largest customer, Dell, for rack integration projects, inquired about plans for strategic growth beyond Dell, questioned the volatility of procurement revenue, and sought clarification on the updated full-year EBITDA guidance.

Answer

President & CEO Darryll Dewan stated that TSS aims to be the 'cheaper, better, faster' choice to become the top priority for its key partner. He outlined organic growth strategies including on-site integration, serving the channel market, and partnering on other technologies. Regarding procurement, he noted a propensity toward the federal buying cycle in Q3 and increased internal resource allocation. CFO Danny Chisholm and CEO Darryll Dewan clarified that the updated guidance of 'at least 75%' growth over 2024's $10M adjusted EBITDA is a floor, noting H1 2025 adjusted EBITDA was $9.2M.

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Question 2

Bradley Stevenson's questions to TSS Inc (TSSI) leadership • Q1 2025

May 15, 2025

Question

An investor, Bradley Stevenson, asked about the risk of margin pressure as volumes increase, the sustainability of the recent high revenue levels in Procurement Services, and the drivers behind the revenue decline in Facilities Management.

Answer

Executive Daniel Chism clarified that Systems Integration margins are expected to improve, noting that Q1 margins were temporarily impacted by a non-cash rent expense; excluding this, margins actually increased. Regarding Procurement, Executive Darryll Dewan expressed optimism for continued strength but noted quarterly volatility. For Facilities Management, Darryll Dewan explained it's transitioning to serve AI and edge computing, while Daniel Chism added that half of the year-over-year decline was due to non-recurring projects in the prior year.