TMS earnings analysis
What we found in TMS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Teamshares delivered strong year-over-year operating improvement in Q2, with revenue up 20% to $148.660 million, gross margin expanding to 41%, and SME Segment EBITDA up 47% to $20.064 million. Operating cash use narrowed substantially, and the SPAC merger increased cash and cash equivalents to $113.4 million at June 30, 2026. However, the filing's substantial-doubt going-concern disclosure, the $153.4 million i80 Facility maturing on December 5, 2026, and continued dependence on refinancing and acquisition financing materially outweigh the operating gains. The outlook is therefore bearish despite improving revenue, margins, and segment profitability.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Acquisition-led revenue growth
- Q2 revenue increased to $148.660 million from $123.574 million, a $25.086 million or 20% year-over-year increase. Management attributed $20.9 million of the increase to 2025 acquisitions, $3.2 million to 2026 acquisitions, and $4.1 million to organic growth.
- Gross margin expanded
- Gross profit rose to $61.418 million from $49.076 million, while gross margin improved to 41% from 40% year over year. Management attributed the improvement to acquired businesses with higher historical margins and the exit of lower-margin operations.
- Operating profitability improved
- The company generated Q2 operating income of $2.996 million versus an operating loss of $4.801 million in the prior-year quarter, implying an operating margin of approximately 2.0% versus negative 3.9%. Six-month operating loss also narrowed to $4.399 million from $17.356 million.
- Segment EBITDA accelerated
- SME Segment EBITDA increased 47% to $20.064 million in Q2 from $13.669 million, driven by $5.7 million from acquisitions, $0.6 million from dispositions, and $0.1 million of organic improvement. Six-month Segment EBITDA increased 54% to $29.193 million.
- Cash burn narrowed
- Operating cash flow improved materially, with net cash used in operations declining to $5.068 million in the first six months from $27.563 million a year earlier. Net cash used in investing activities also declined to $8.157 million from $13.659 million.
- Post-SPAC liquidity strengthened
- Liquidity following the SPAC merger included $113.4 million of cash and cash equivalents plus $12.2 million of restricted cash at June 30, 2026. Financing activities provided $84.937 million, including $159.5 million of net SPAC merger proceeds.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Going-concern uncertainty
- Management concluded that substantial doubt exists regarding the company's ability to continue as a going concern over the 12-month period following issuance. The company had approximately $187.8 million of debt maturing within that period, while the i80 Facility carried $153.4 million of borrowings and matures on December 5, 2026.
- Refinancing and interest burden
- The i80 Facility had no remaining borrowing availability, bears interest at the lesser of SOFR plus 11% or 16%, and had a 14.7% weighted-average interest rate at June 30, 2026. The company is pursuing refinancing but had not completed it as of the financial statement issuance date.
- Acquisition funding dependency
- The proposed warehouse facility announced on August 4, 2026 remains subject to definitive agreements and customary closing conditions and may not be consummated. Management stated it may reduce, defer, or limit acquisitions until financing certainty improves, despite having non-binding letters of intent for a significant number of potential acquisitions.
- Rising financing costs
- Interest expense increased 69% for the first six months to $25.531 million from $15.089 million, including $8.6 million of amortization of deferred financing costs and discounts. Higher average borrowings used to finance acquisitions also increased cash interest payments by $3.1 million.
- Underlying cash generation remains negative
- The company used $5.068 million of operating cash in the first six months and reported that working-capital changes used $7.6 million of cash. Consolidated free cash flow was not disclosed, while management continues to expect ongoing investment in corporate platform capabilities, technology, and growth initiatives.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 41%
- Operating margin
- 2.0%
- Segment
- SME: Q2 2026 revenue of $148.660 million, up $25.086 million or 20% year over year; Segment EBITDA was $20.064 million, up $6.395 million or 47%.
- Segment
- SME: Six-month 2026 revenue of $269.699 million, up $43.582 million or 19% year over year; Segment EBITDA was $29.193 million, up $10.192 million or 54%.
What they said about what is next.
The 10-Q does not provide explicit quantitative revenue or EPS guidance. Management states it plans to remain highly acquisitive, but may reduce, defer, or limit acquisition activity until there is greater certainty regarding refinancing and committed capital. The previously disclosed $60 million 2026 Pro Forma Adjusted EBITDA outlook was not reiterated numerically in this filing.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 15, 2026
- Live Oak Acquisition Corp. V remains a pre-revenue SPAC, so gross margin, operating margin and EPS are not meaningful or were not disclosed. The first-quarter net loss improved materially to $129,303 from $6.3 million a…
- 10-K · March 30, 2026
- This is a pre-revenue SPAC, not an operating company: it reported no revenue and a $16.5 million 2025 net loss, compared with a $18,571 loss during its brief 2024 inception period. Its investment case is now principally…
- 10-Q · November 12, 2025
- Live Oak Acquisition Corp. V remains a pre-combination SPAC with $0 of operating revenue and no operating segments. Third-quarter net income of $2.1 million resulted from Trust Account interest, while the nine-month…
- 10-Q · August 13, 2025
- Live Oak Acquisition Corp. V remains a pre-business-combination SPAC, with $0 of operating revenue and no disclosed operating or gross margin/EPS metric for the quarter. Q2 net income of $2.1 million was entirely…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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