TSS, Inc.

Greetings ladies and gentlemen and welcome to the TSS Incorporated 4th Quarter 2025 Earnings Results Conference Call. At this time all participants are placed on a listen only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference please press star zero on your telephone keypad and please note this conference is being recorded. I will now turn the conference over to your host, Mr. James Carbonara of Hayden IR. Sir, you may begin.

Thank you, Operator, and good day, everyone. Thank you for joining us for TSS's conference call to discuss the company's fourth quarter and full year 2025 financial results. Joining me today on this call are Daryl Doohan, President and CEO of TSS, Danny Chisholm, the company CFO. As we begin the call, I would like to remind everyone to take note of the cautionary language regarding forward-looking statements contained in the press release we issued today. That same language applies to comments and statements made on today's conference call. This call will contain time-sensitive information as well as forward-looking statements, which are accurate only as of today, March 11, 2026. TSS expressly disclaims any obligation to update, amend, supplement, or otherwise review any information or forward-looking statements made on this conference call or the replay to reflect events or circumstances that may change or arise after the date indicated, except as otherwise required by applicable law. For a list of the risks and uncertainties that may affect the company's future performance, please refer to the company's periodic filings with the SEC. In addition, we will be referring to non-GAAP financial measures, a reconciliation to the difference between these measures and the most directly comparable financial measures calculated in accordance with U.S. GAAP is included in today's press release. With that, Darrell, I will turn the call over to you.

Thank you, James. I appreciate it. Thanks, everyone, for joining us today. I'm pleased to report a very strong fourth quarter that caps the transformational 2025 for TSS. During the year, RAC integration volumes in our new Georgetown, Texas facility came online and grew late in the year, setting us up for an exciting 2026 as industry demand continues to grow. In the fourth quarter, we delivered year-over-year growth in both revenue and profitability with sequential improvement over our third quarter. Adjusted EBITDA for the full year reached approximately $18.6 million, ahead of our guidance range of 50% to 75% from a foundation of 15 million to 17 million, and up from 10.2 million last year. That represents rapid growth resulting from both higher AI volumes and continued operating discipline across our entire business. As we exited the year, the run rate of our business improved meaningfully from mid-year levels. Higher rack integration output better absorb fixed costs in our facility. This step up in Q4 gives us confidence that the structural investments we've made in capacity, systems, and talent can scale and increase demand for our AI infrastructure. The market environment and customer momentum. So the environment in which we operate is dynamic, but one thing is clear, AI demand is not slowing. Hyperscalers and large enterprises continue to invest in accelerated computing infrastructure. next-generation servers, and the associate power and cooling infrastructure. Recent results and outlooks from OEMs in the AI infrastructure market underscore this trend with strong growth in servers and networking driven by AI and traditional server demand and an expectation of continued revenue and EPS growth in the fiscal 26 or in the year 26 or fiscal 27. Customer adoption of AI is broadening beyond early adopters into mainstream enterprise. Multiple independent studies now indicate that a substantial majority of medium and large enterprises are actively piloting or planning to implement AI in production workflows for inferencing with adoption rates commonly cited in the 70% to 80% range or higher across larger revenue tiers. As these initiatives move from experimentation into scale deployment, customers are seeking trusted partners who can deliver even more complex power dense technology at speed with high quality. And that is exactly where we, TSS, are positioned. We were pleased to extend and expand our relationship with our primary customer under a multi-year contract. We view this modification and extension as both validation of our execution and a key pillar of our growth strategy. The agreement was amended to address certain circumstances that were not expected in the original version, such as additional fixed costs associated with power infrastructure required on site, and a few other items. Our partner agreed this amendment provided an opportunity to reset the agreement's term, a very positive signal as to the strength and durability of the relationship. Fiscal 25 was truly a year of transformation for TSS. We scaled our new Georgetown facility, upgraded the IT systems, and refined processes to support much higher volumes of AI-related rack integration. We worked through the operational challenges of bringing a new facility online, and by Q4, we made substantial progress improving speed, quality, and time to market for our customers. 2026 will be about the next chapter of growth for TSS. We are constantly improving the operations of our facility. That job is never done. 2026 is about seizing market share and AI rack integration, extending our modular data center capabilities into the AI world, and strategically expanding our service offering to capture broader opportunity and AI data centers. The progress of the AI chip market plays directly to our capabilities. Racks are larger, heavier, more complicated, require more power, and more coolant. Our Georgetown facility is purpose-built to integrate racks of this nature. Paired with rapid delivery timelines, growing rack complexity should drive more market share for TSS. This market is extremely dynamic. Deal sizes can be enormous. The supply chain can be challenging. And the latest and primary example being the memory shortages are rapidly driving price increases for memory and delays in overall data center deployment timelines. This all makes forecasting rack integration volumes more difficult to predict with precision. We began 26 with an internal forecast based on near-term visible deals in our pipeline, driven by our customers' pipelines, and already we are seeing volume forecasts surpassing our plan. In fact, we've begun discussions about potentially expanding our capacity even further. That is how quickly this market is moving. So with that, let me turn the call over to Danny for a much more detailed discussion of our financial results. Danny?