Bull case
TSS is supported by a strong secular tailwind from AI infrastructure demand, with management expecting rack integration volumes to double in CY26 and the Georgetown facility positioned to handle multiples of current volume while a 4x revenue multiplier applies when minimum Dell shipment thresholds are exceeded. Despite a top-line miss of $35.1 Million versus $47.1 Million consensus, Systems Integration revenue still grew 46% year over year to $13.9 Million, gross margin expanded about 7 points to 22.8%, and adjusted EBITDA remained at the upper end of the $20 Million to $22 Million range, showing operating leverage. The planned $17 Million capex for Vera Rubin GPU power and cooling, with $7 Million to $8 Million already completed and completion expected in September, should unlock higher pricing, better throughput, and stronger 2HCY26 results.