DTST Reports 2025 Second Quarter Financial Results and Provides Business Update
Data Storage Corporation (Nasdaq: DTST) reported Q2 2025 financial results with revenue of $5.1 million, up 4.8% year-over-year, and gross profit of $2.5 million. The company announced a significant strategic move: the proposed $40 million sale of CloudFirst Technologies Corporation, expected to yield net proceeds of approximately $24 million after adjustments.
Following shareholder approval, DTST plans to initiate a tender offer to repurchase up to 85% of outstanding common stock using 85% of available cash, including proceeds from the CloudFirst sale. The company maintains a strong financial position with $11.1 million in cash and marketable securities and no long-term debt. Management aims to focus on high-growth technology sectors including AI, cybersecurity, and AI vertical SaaS, with plans for a corporate rebranding to align with this strategic direction.
Data Storage Corporation (Nasdaq: DTST) ha comunicato i risultati del secondo trimestre 2025 con ricavi per 5,1 milioni di dollari, in aumento del 4,8% su base annua, e un utile lordo di 2,5 milioni di dollari. La società ha annunciato una mossa strategica rilevante: la proposta cessione di CloudFirst Technologies Corporation per 40 milioni di dollari, che dovrebbe generare proventi netti di circa 24 milioni di dollari dopo gli adeguamenti.
Dopo l'approvazione degli azionisti, DTST intende avviare un'offerta pubblica di acquisto per riacquistare fino all'85% delle azioni ordinarie in circolazione utilizzando l'85% della liquidità disponibile, inclusi i proventi della cessione di CloudFirst. La società mantiene una solida posizione finanziaria con 11,1 milioni di dollari in liquidità e titoli negoziabili e senza debiti a lungo termine. La direzione mira a concentrarsi su settori tecnologici ad alta crescita, tra cui IA, cybersecurity e AI vertical SaaS, e prevede un rebranding aziendale per allineare il marchio a questa nuova strategia.
Data Storage Corporation (Nasdaq: DTST) informó sus resultados del segundo trimestre de 2025 con ingresos de 5,1 millones de dólares, un crecimiento interanual del 4,8%, y un beneficio bruto de 2,5 millones de dólares. La compañía anunció un movimiento estratégico importante: la propuesta venta de CloudFirst Technologies Corporation por 40 millones de dólares, que se espera genere unos ingresos netos de aproximadamente 24 millones de dólares después de los ajustes.
Tras la aprobación de los accionistas, DTST planea iniciar una oferta pública de compra para recomprar hasta el 85% de las acciones ordinarias en circulación utilizando el 85% de la liquidez disponible, incluidos los ingresos de la venta de CloudFirst. La empresa mantiene una posición financiera sólida con 11,1 millones de dólares en efectivo y valores negociables y sin deuda a largo plazo. La dirección tiene la intención de enfocarse en sectores tecnológicos de alto crecimiento, incluidos IA, ciberseguridad y SaaS verticales de IA, y planea un rebranding corporativo para alinearse con esta orientación estratégica.
Data Storage Corporation (Nasdaq: DTST)는 2025년 2분기 실적을 발표하며 수익 510만 달러(전년 대비 4.8% 증가)와 총이익 250만 달러를 보고했습니다. 회사는 중요한 전략적 조치로 CloudFirst Technologies Corporation의 4천만 달러 매각 제안을 발표했으며, 조정 후 약 2,400만 달러의 순매각대금을 확보할 것으로 예상됩니다.
주주 승인 후 DTST는 보유 현금의 85%(CloudFirst 매각대금 포함)를 사용해 유통 보통주 최대 85%를 공개매수로 재매입할 계획입니다. 회사는 현금 및 시장성 증권 1,110만 달러를 보유하고 있으며 장기 부채는 없습니다. 경영진은 AI, 사이버보안, AI 수직형 SaaS 등 고성장 기술 분야에 집중할 계획이며, 이를 반영한 기업명 변경(리브랜딩)도 계획하고 있습니다.
Data Storage Corporation (Nasdaq: DTST) a publié ses résultats du deuxième trimestre 2025 avec un chiffre d'affaires de 5,1 millions de dollars, en hausse de 4,8% en glissement annuel, et un profit brut de 2,5 millions de dollars. La société a annoncé une décision stratégique importante : la vente proposée de CloudFirst Technologies Corporation pour 40 millions de dollars, qui devrait générer un produit net d'environ 24 millions de dollars après ajustements.
Après approbation des actionnaires, DTST prévoit de lancer une offre publique d'achat afin de racheter jusqu'à 85% des actions ordinaires en circulation, en utilisant 85% de la trésorerie disponible, y compris le produit de la vente de CloudFirst. La société conserve une position financière solide avec 11,1 millions de dollars en liquidités et titres négociables et aucune dette à long terme. La direction entend se concentrer sur des secteurs technologiques à forte croissance, notamment l'IA, la cybersécurité et les SaaS verticaux IA, et envisage un rebranding pour aligner l'identité de l'entreprise sur cette orientation stratégique.
Data Storage Corporation (Nasdaq: DTST) meldete die Finanzergebnisse für das 2. Quartal 2025 mit Umsatz in Höhe von 5,1 Mio. USD, einem Jahreswachstum von 4,8%, und einem Bruttogewinn von 2,5 Mio. USD. Das Unternehmen kündigte einen bedeutenden strategischen Schritt an: den vorgeschlagenen Verkauf von CloudFirst Technologies Corporation für 40 Mio. USD, der nach Anpassungen voraussichtlich Nettoerlöse von rund 24 Mio. USD bringen wird.
Nach Zustimmung der Aktionäre plant DTST, ein Übernahmeangebot zu starten, um bis zu 85% der ausstehenden Stammaktien zurückzukaufen und dafür 85% der verfügbaren Barmittel zu verwenden, einschließlich der Erlöse aus dem CloudFirst-Verkauf. Das Unternehmen verfügt über eine starke Finanzposition mit 11,1 Mio. USD an Zahlungsmitteln und handelbaren Wertpapieren und ohne langfristige Verschuldung. Das Management will sich auf wachstumsstarke Technologiebereiche wie KI, Cybersicherheit und vertikale KI-SaaS konzentrieren und plant ein Corporate Rebranding, um die Marke an diese strategische Ausrichtung anzupassen.
- Proposed $40 million sale of CloudFirst Technologies at substantial premium to market cap
- Revenue increased 4.8% year-over-year to $5.1 million
- Strong cash position of $11.1 million with no long-term debt
- Planned return of capital through 85% stock repurchase tender offer
- Growth in higher-margin recurring subscription sales
- Lower equipment and software sales affecting overall revenue
- CloudFirst sale contingent on shareholder approval
- Significant reduction in cash reserves if tender offer completed
Insights
DTST reports modest growth while planning $40M asset sale that could return significant capital to shareholders.
Data Storage Corporation's Q2 2025 results show modest growth with revenue reaching
The company's financial position remains solid with
The proposed sale of CloudFirst Technologies Corporation for
This capital return strategy would provide immediate value to shareholders while preserving
The CloudFirst sale, if approved, essentially represents a partial liquidation event that would significantly alter DTST's business composition and capital structure. While this move unlocks substantial immediate value, investors should carefully evaluate the remaining business prospects and management's ability to execute on its stated growth initiatives in emerging technology sectors.
Conference Call to be Held Today at 11:00 am ET
MELVILLE, N.Y., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (the “Company”), today provided a business update and reported financial results for the three months and six months ended June 30, 2025.
Second Quarter 2025 Highlights:
- Revenue was
$5.1 million , up4.8% from the same period in 2024, driven by continued growth in subscription-based cloud and Nexxis services - Gross profit totaled
$2.5 million , maintaining consistent margin levels - Cash and marketable securities were
$11.1 million , with no long term debt
“We continue to see strong growth in our core business, particularly in our higher-margin, recurring subscription sales,” said Chuck Piluso, Chairman and Chief Executive Officer of Data Storage Corporation. “Building on this momentum, a central development is the proposed
“In connection with the proposed transaction if approved by our shareholders and consummated, our Board of Directors has authorized a tender offer to repurchase up to
“CloudFirst has delivered consistent year-over-year EBITDA growth and remains a valuable business. Assuming approval by our shareholders, we expect the proposed transaction to unlock this value, convert it into tangible returns, and allow us to focus resources on high-growth technology sectors such as, but not limited to, artificial intelligence, cybersecurity, and AI vertical SaaS. If the proposed transaction is not approved by our shareholders, CloudFirst will remain a core part of our operations, and we will continue to invest in its performance while pursuing new strategic opportunities.”
“Regardless of the outcome, our long-term plan is clear: to continue evolving Data Storage Corporation into a technology-driven enterprise that capitalizes on market trends and emerging opportunities. As part of this transformation, we are evaluating a full corporate rebranding to align our identity with our strategic direction. We will also continue to operate Nexxis Inc. as a portfolio asset and seek opportunities where our operational expertise can unlock additional value.”
“The proposed sale of CloudFirst Technologies Corporation is subject to shareholder approval at our annual meeting scheduled to be held on September 10, 2025. We encourage all shareholders to review the proxy materials, which detail the transaction terms, the Board’s rationale, and our broader growth strategy,” concluded Mr. Piluso.
Chris Panagiotakos, Chief Financial Officer of Data Storage Corporation, added, “In the second quarter, we delivered total sales of
Conference Call
The management will host a conference call at 11:00 a.m. Eastern Time today, August 14, 2025, to discuss the Company’s progress and the financial results for the second quarter of 2025, which ended June 30, 2025.
The conference call will be available via telephone by dialing toll-free 877-407-9219 for U.S. callers or for international callers +1-412-652-1274. A webcast of the call may be accessed at DSC Q2 2025 Earnings Call or on the Company’s News & Events section of the website, www.dtst.com/news-events.
A webcast replay of the call will be available on the Company’s website (www.dtst.com/news-events) through February 14, 2026. A telephone replay of the call will be available approximately three hours following the call, through August 21, 2025, and can be accessed by dialing 877-660-6853 for U.S. callers or + 1-201-612-7415 for international callers and entering conference ID: 13755236.
The press release is neither an offer to purchase nor a solicitation of an offer to sell securities. The Offer for the shares of Common Stock described in this press release has not commenced. At the time the Offer is commenced, the Company will file a tender offer statement on Schedule TO with the Securities and Exchange Commission (“SEC”).
THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS) WILL CONTAIN IMPORTANT INFORMATION. HOLDERS OF SHARES OF THE COMPANY’S COMMON STOCK ARE URGED TO READ THESE DOCUMENTS CAREFULLY WHEN THEY BECOME AVAILABLE (AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME) BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT HOLDERS OF SHARES OF THE COMPANY’S COMMON STOCK SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES.
The Offer to Purchase, the related Letter of Transmittal and certain other tender offer documents will be made available to all holders of shares of the Company’s Common Stock at no expense to them. The tender offer materials will be made available for free at the SEC’s website at www.sec.gov or by accessing the Investor Relations section of the Company’s website at www.dtst.com.
About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST) through its subsidiaries, is focused on providing solutions that ensure business continuity, improvement in business processes, and efficiency, while striving to build shareholder value.
For more information, please visit www.dtst.com or follow us on X @DataStorageCorp.
Safe Harbor Provision
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and include statements regarding the proposed
Contact:
Crescendo Communications, LLC
212-671-1020
DTST@crescendo-ir.com
| DATA STORAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 611,323 | $ | 1,070,097 | ||||
| Accounts receivable, net of allowance for expected credit losses of | 1,727,111 | 2,225,458 | ||||||
| Marketable securities | 10,510,179 | 11,261,006 | ||||||
| Prepaid expenses and other current assets | 1,913,094 | 859,502 | ||||||
| Total current assets | 14,761,707 | 15,416,063 | ||||||
| Property and Equipment: | ||||||||
| Property and equipment | 10,078,502 | 9,598,963 | ||||||
| Less: Accumulated depreciation | (6,740,363 | ) | (6,159,307 | ) | ||||
| Property and equipment, net | 3,338,139 | 3,439,656 | ||||||
| Other assets: | ||||||||
| Goodwill | 4,238,671 | 4,238,671 | ||||||
| Operating lease right-of-use assets | 525,416 | 575,380 | ||||||
| Other assets | 263,778 | 183,439 | ||||||
| Intangible assets, net | 1,293,435 | 1,427,006 | ||||||
| Total long-term assets | 6,321,300 | 6,424,496 | ||||||
| Total assets | $ | 24,421,146 | $ | 25,280,215 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 2,349,999 | $ | 3,183,379 | ||||
| Deferred revenue | 227,204 | 212,390 | ||||||
| Finance leases payable | — | 17,641 | ||||||
| Finance leases payable related party | — | 33,879 | ||||||
| Operating lease liabilities short term | 105,750 | 98,860 | ||||||
| Total current liabilities | 2,682,953 | 3,546,149 | ||||||
| Operating lease liabilities | 468,432 | 523,070 | ||||||
| Deferred tax liability | 39,031 | 39,031 | ||||||
| Total long-term liabilities | 507,463 | 562,101 | ||||||
| Total liabilities | 3,190,416 | 4,108,250 | ||||||
| Commitments and contingencies (Note 7) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, Series A par value | — | — | ||||||
| Common stock, par value | 7,231 | 7,045 | ||||||
| Additional paid in capital | 41,094,738 | 40,417,813 | ||||||
| Accumulated deficit | (19,691,560 | ) | (18,982,589 | ) | ||||
| Accumulated other comprehensive income (loss) | 64,015 | (23,214 | ) | |||||
| Total Data Storage Corp stockholders’ equity | 21,474,424 | 21,419,055 | ||||||
| Non-controlling interest in consolidated subsidiary | (243,694 | ) | (247,090 | ) | ||||
| Total stockholders’ equity | 21,230,730 | 21,171,965 | ||||||
| Total liabilities and stockholders’ equity | $ | 24,421,146 | $ | 25,280,215 | ||||
The accompanying notes are an integral part of these condensed consolidated Financial Statements.
| DATA STORAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Sales | $ | 5,146,922 | $ | 4,910,492 | $ | 13,230,678 | $ | 13,146,239 | ||||||||
| Cost of sales | 2,610,168 | 2,502,599 | 7,834,028 | 7,771,874 | ||||||||||||
| Gross profit | 2,536,754 | 2,407,893 | 5,396,650 | 5,374,365 | ||||||||||||
| Selling, general and administrative | 3,332,421 | 2,796,679 | 6,284,826 | 5,549,356 | ||||||||||||
| Loss from operations | (795,667 | ) | (388,786 | ) | (888,176 | ) | (174,991 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 103,267 | 152,441 | 224,173 | 295,810 | ||||||||||||
| Interest expense | (16,236 | ) | (10,260 | ) | (18,245 | ) | (21,520 | ) | ||||||||
| Other expense | (23,327 | ) | — | (23,327 | ) | — | ||||||||||
| Total other income | 63,704 | 142,181 | 182,601 | 274,290 | ||||||||||||
| Income (loss) before provision for income taxes | (731,963 | ) | (246,605 | ) | (705,575 | ) | 99,299 | |||||||||
| Income taxes | — | — | — | — | ||||||||||||
| Net income (loss) | (731,963 | ) | (246,605 | ) | (705,575 | ) | 99,299 | |||||||||
| (Income) loss in non-controlling interest of consolidated subsidiary | (1,086 | ) | 2,365 | (3,396 | ) | 13,563 | ||||||||||
| Net income (loss) attributable to common stockholders | $ | (733,049 | ) | $ | (244,240 | ) | $ | (708,971 | ) | $ | 112,862 | |||||
| Earnings (loss) per share attributable to common stockholders – basic | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | 0.02 | |||||
| Earnings (loss) per share attributable to common stockholders – diluted | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.10 | ) | $ | 0.02 | |||||
| Weighted average number of shares - basic | 7,155,464 | 6,973,068 | 7,119,102 | 6,902,138 | ||||||||||||
| Weighted average number of shares - diluted | 7,155,464 | 6,973,068 | 7,119,102 | 7,499,839 | ||||||||||||
The accompanying notes are an integral part of these condensed consolidated Financial Statements.
| DATA STORAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net (loss) income | $ | (705,575 | ) | $ | 99,299 | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 713,899 | 634,509 | ||||||
| Stock-based compensation | 638,844 | 379,172 | ||||||
| Change in expected credit losses | 66,055 | 21,816 | ||||||
| Changes in Assets and Liabilities: | ||||||||
| Accounts receivable | 432,292 | (666,603 | ) | |||||
| Prepaid expenses and other current assets | (1,133,931 | ) | (308,211 | ) | ||||
| Right of use asset | 49,964 | 78,206 | ||||||
| Accounts payable and accrued expenses | (756,101 | ) | 315,636 | |||||
| Deferred revenue | 14,814 | (127,257 | ) | |||||
| Operating lease liability | (47,748 | ) | (71,776 | ) | ||||
| Net cash (used in) provided by operating activities | (727,487 | ) | 354,791 | |||||
| Cash Flows from Investing Activities: | ||||||||
| Capital expenditures | (478,811 | ) | (902,571 | ) | ||||
| Purchase of marketable securities | (224,173 | ) | (295,810 | ) | ||||
| Sale of marketable securities | 975,000 | 400,000 | ||||||
| Net cash provided by (used in) investing activities | 272,016 | (798,381 | ) | |||||
| Cash Flows from Financing Activities: | ||||||||
| Repayments of finance lease obligations related party | (33,879 | ) | (142,774 | ) | ||||
| Repayments of finance lease obligations | (17,641 | ) | (133,473 | ) | ||||
| Proceeds from stock option exercises | 38,267 | 71,093 | ||||||
| Net cash used in financing activities | (13,253 | ) | (205,154 | ) | ||||
| Effect of exchange rate changes on cash | 9,950 | — | ||||||
| Decrease in cash and cash equivalents | (458,774 | ) | (648,744 | ) | ||||
| Cash and cash equivalents, beginning of period | 1,070,097 | 1,428,730 | ||||||
| Cash and cash equivalents, end of period | $ | 611,323 | $ | 779,986 | ||||
| Supplemental cash flow disclosures: | ||||||||
| Cash paid for interest | $ | 17,239 | $ | 14,303 | ||||
| Cash paid for income taxes | $ | — | $ | — | ||||
| Non-cash investing and financing activities: | ||||||||
| Assets acquired by operating lease | $ | — | $ | 647,958 | ||||
The accompanying notes are an integral part of these condensed consolidated Financial Statements.
FAQ
What are DTST's Q2 2025 financial results?
How much is DTST selling CloudFirst Technologies for?
What is DTST's planned tender offer for shareholders?
When is DTST's shareholder meeting for the CloudFirst sale approval?
What are DTST's future strategic focus areas?
