Forensic Analysis · General / Diversified · as of Jun 28, 2026
TSS, Inc. (TSSI)
A forensic read on TSS, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Grey Zone
Financial health
1.8
Altman Z-score
Clean
Earnings quality
4
Forensic signals
22.0
P / E (ttm)
25.3%
ROE
$318M
Market cap
TSS, Inc. earns a B (Sound & dependable) forensic quality grade, and its Altman Z-score is 1.8, placing it in the Grey zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+2712.8%Accruals ratio. Net operating assets grew +2712.8% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -3145% of net operating assets.
+11.9%/yrShare-count dilution. Diluted share count changed +36% over the last 3 years to FY2025 (+11.9%/yr). The count is GROWING — existing holders are being diluted. That's ~11.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~36%.
2% of revStock-based comp load. Stock-based compensation ran 2% of revenue and 187% of free cash flow in FY2025 — about $0.15 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
231% of FCFShareholder returns. Returned $5M to shareholders (buybacks + dividends) in FY2025 — 231% of free cash flow, but 14% of operating cash flow. Returns run ahead of free cash flow because the business is also funding heavy growth capex (usually debt-financed); the payout itself is covered by operating cash — sustainable as long as that spending is genuine expansion, not upkeep.
Key fundamentals
Net Margin6.2%
Debt / Equity0.24x
Free Cash Flow$2.1M
Latest Revenue$245.7M
Return on Equity19.7%
Revenue Growth YoY+65.9%
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🔒Calibrated 12-month price forecast, with the math shown
🔒Peer comparison + filing-change monitoring & alerts
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Data from SEC EDGAR public filings · metrics as of Jun 28, 2026. Forensic signals flag probability, not certainty.