DTST Reports Q3 2025 Results Following Transformative CloudFirst Sale
Data Storage Corporation (Nasdaq: DTST) reported results for the three and nine months ended September 30, 2025 and announced the completed sale of its CloudFirst subsidiary on Nov. 19, 2025. Management described the sale as a transformative transaction that unlocked shareholder value, simplified the company structure, and provided capital to redeploy into higher-growth areas.
The company said it will refocus on GPU IaaS, AI-driven software, cybersecurity, and voice/data telecommunications while Nexxis remains a stable recurring-revenue base. Management will host a business update conference call today at 10:00 a.m. ET.
Data Storage Corporation (Nasdaq: DTST) ha riportato i risultati per i tre e nove mesi terminati il 30 settembre 2025 e ha annunciato la vendita completata della sua controllata CloudFirst il 19 novembre 2025. La direzione ha descritto la vendita come una transazione trasformativa che ha sbloccato il valore per gli azionisti, ha semplificato la struttura dell'azienda e fornito capitale per rideploy in aree a maggiore crescita.
L'azienda ha dichiarato che si concentrerà nuovamente su GPU IaaS, software guidato dall'IA, cybersicurezza, e telecomunicazioni vocali/dati mentre Nexxis resta una base di ricavi ricorrenti stabile. La direzione terrà oggi una conferenza telefonica di aggiornamento aziendale alle 10:00 ET.
Data Storage Corporation (Nasdaq: DTST) reportó resultados para los tres y nueve meses terminados el 30 de septiembre de 2025 y anunció la venta completada de su filial CloudFirst el 19 de noviembre de 2025. La dirección describió la venta como una operación transformadora que desbloqueó el valor para los accionistas, simplificó la estructura de la empresa y proporcionó capital para volver a invertirlo en áreas de mayor crecimiento.
La compañía dijo que se reorientará hacia GPU IaaS, software impulsado por IA, ciberseguridad y telecomunicaciones de voz/datos mientras Nexxis continúa siendo una base de ingresos recurrentes estable. La dirección organizará una conferencia de actualización empresarial hoy a las 10:00 a.m. hora del Este.
Data Storage Corporation (나스닥: DTST)는 2025년 9월 30일 종료된 3개월 및 9개월 실적을 발표했으며 2025년 11월 19일에 자회사 CloudFirst의 매각이 완료되었음을 발표했습니다. 경영진은 이 매각을 주주가치를 실현시킨 거래로 묘사했고, 회사 구조를 단순화하며 더 높은 성장 영역에 재배치할 자본을 제공했다고 설명했습니다.
기업은 앞으로 GPU IaaS, AI 주도 소프트웨어, 사이버보안, 음성/데이터 통신에 집중할 것이며 Nexxis는 안정적인 재발생 수입 기반으로 남아 있을 것이라고 말했습니다. 경영진은 오늘 동부 표준시 10:00에 비즈니스 업데이트 컨퍼런스 콜을 개최할 예정입니다.
Data Storage Corporation (Nasdaq: DTST) a communiqué les résultats pour les trois et neuf mois terminés le 30 septembre 2025 et a annoncé la cession complète de sa filiale CloudFirst le 19 novembre 2025. La direction a décrit la vente comme une opération transformative qui a libéré la valeur pour les actionnaires, simplifié la structure de l’entreprise et fourni des capitaux pour le réinvestir dans des domaines à plus forte croissance.
La société a déclaré qu’elle se recentrerait sur GPU IaaS, logiciel piloté par l’IA, cybersécurité et les télécommunications vocales/données tandis que Nexxis reste une base de revenus récurrents stable. La direction organisera aujourd’hui une conférence téléphonique de mise à jour commerciale à 10:00 CET.
Data Storage Corporation (Nasdaq: DTST) berichtete über die Ergebnisse für die drei und neun Monate zum 30. September 2025 und kündigte den abgeschlossenen Verkauf ihrer Tochtergesellschaft CloudFirst am 19. November 2025 an. Das Management beschreibt den Verkauf als transformativen Vorgang, der den Aktionärswert freisetzte, die Struktur des Unternehmens vereinfachte und Kapital freisetzte, um in wachstumsstärkere Bereiche umzuschichten.
Das Unternehmen sagte, es werde sich wieder auf GPU IaaS, KI-gesteuerte Software, Cybersicherheit sowie Sprach-/Datenkommunikation konzentrieren, während Nexxis eine stabile wiederkehrende Umsatzbasis bleibe. Das Management wird heute um 10:00 Uhr MEZ eine Unternehmens-Update-Konferenzschaltung abhalten.
Data Storage Corporation (ناسداك: DTST) أبلغت عن النتائج للثلاثة وتسعة أشهر المنتهية في 30 سبتمبر 2025 وأعلنت عن اكتمال بيع فرعها CloudFirst في 19 نوفمبر 2025. وصفت الإدارة الصفقة بأنها عملية تحويلية أطلقت قيمة المساهمين، وبسّطت هيكل الشركة، ووفرت رأسمال لإعادة توجيهه نحو مجالات ذات نمو أعلى.
قالت الشركة إنها ستعيد التركيز على GPU IaaS، البرمجيات القائمة على الذكاء الاصطناعي، الأمن السيبراني، والاتصالات الصوتية/البيانات بينما تبقى Nexxis قاعدة إيرادات متكررة ومستقرة. ستعقد الإدارة مكالمة تحديث أعمال اليوم في 10:00 صباحاً بتوقيت شرق الولايات المتحدة.
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Insights
Sale of CloudFirst simplifies the business and provides capital to refocus on AI, cybersecurity, and infrastructure.
The transaction converts a non-core asset into deployable resources and a simpler corporate structure. The Company states the sale "unlocked significant shareholder value" and gives flexibility to redeploy capital toward GPU IaaS, AI-driven software, cybersecurity, and voice/data telecommunications. The Nexxis subsidiary remains as a steady recurring revenue base that management cites as supportive.
Execution now determines outcome. The announcement ties impact to disciplined capital allocation and operational focus, so benefits depend on how proceeds are deployed and on Nexxis performance. Monitor the stated webcast replay availability through
Transaction Unlocks Shareholder Value and Refocuses Company on High-Growth AI, Cybersecurity, and Infrastructure Markets
Conference Call to be Held Today at 10:00 am ET
MELVILLE, N.Y., Nov. 19, 2025 (GLOBE NEWSWIRE) -- Data Storage Corporation (Nasdaq: DTST) (the “Company”), today provided a business update and reported financial results for the three months and nine months ended September 30, 2025.
Chuck Piluso, Chairman and Chief Executive Officer of Data Storage Corporation, commented, “This quarter represents a defining period for Data Storage Corporation as we completed the sale of our CloudFirst subsidiary and repositioned the Company for its next phase of disciplined growth. The CloudFirst sale was a transformative milestone that unlocked significant shareholder value and provided us with a solid financial foundation for the future. It allows us to simplify our structure, sharpen our focus, and redeploy capital toward initiatives that offer higher returns and long-term sustainability.”
“With this transaction behind us, we are executing from a position of strength. We now have the flexibility to strategically invest in high-growth areas where we believe we can build durable competitive advantages, including, but not limited to, GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, cybersecurity, and voice/data telecommunications. Our priority is to remain disciplined—both operationally and financially. We are committed to creating lasting value through prudent capital allocation, sound execution, and thoughtful innovation. Our Nexxis subsidiary continues to perform well, and we believe it provides a stable, recurring revenue base that supports our broader strategic objectives.”
“Looking forward, we intend to leverage our expertise, financial strength, and market position to identify opportunities that align with our core competencies and aim to build upon our history in data and communications infrastructure to deliver sustainable results and long-term shareholder value.”
Conference Call
The management will host a business update conference call today at 10:00 a.m. Eastern Time, to discuss the Company's sale of its CloudFirst subsidiary as well as its strategic business outlook.
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 DTST Business Update 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 May 19, 2026. A telephone replay of the call will be available approximately three hours following the call, through November 26, 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: 13757276.
About Data Storage Corporation
Data Storage Corporation (Nasdaq: DTST), once the tender offer is complete, plans to invest in and support businesses, including, but not limited to, GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, cybersecurity, and voice/data telecommunications. The Company’s mission is to build sustainable, recurring revenue streams while maintaining financial discipline and strategic focus. For more information, visit www.dtst.com.
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 repositioning the Company for its next phase of disciplined growth; the CloudFirst sale providing the Company with a solid financial foundation for the future; allowing the Company to simplify its structure, sharpen its focus, and redeploy capital toward initiatives that offer higher returns and long-term sustainability; executing from a position of strength; having the flexibility to strategically invest in high-growth areas where the Company can build durable competitive advantages, including, but not limited to, GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, cybersecurity, and voice/data telecommunications; remaining disciplined both operationally and financially; creating lasting value through prudent capital allocation, sound execution, and thoughtful innovation; the Company’s Nexxis subsidiary providing a stable, recurring revenue base that supports its broader strategic objectives; leveraging the Company’s expertise, financial strength, and market position to identify opportunities that align with its core competencies; and aiming to build upon the Company’s history in data and communications infrastructure to deliver sustainable results and long-term shareholder value. Important factors that could cause actual results to differ materially from current expectations include the Company’s ability to redeploy capital toward initiatives that offer higher returns and long-term sustainability; the Company’s ability to strategically invest in high-growth areas where it can build durable competitive advantages; the Company’s ability to create lasting value through prudent capital allocation, sound execution, and thoughtful innovation; the Company ability to operate Nexxis as a stable, recurring revenue base that supports broader strategic objectives; the Company’s ability to leverage its expertise, financial strength, and market position to identify opportunities that align with its core competencies; and the Company’s ability to build upon its history in data and communications infrastructure to deliver sustainable results and long-term shareholder value.. These risks should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise.
Contact:
Crescendo Communications, LLC
212-671-1020
DTST@crescendo-ir.com
| DATA STORAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
| September 30, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 284,714 | $ | 1,070,097 | ||||
| Accounts receivable, net of allowance for expected credit losses of | 74,035 | 59,018 | ||||||
| Escrow funds receivable | 1,500,000 | — | ||||||
| Marketable securities | 45,471,979 | 11,261,006 | ||||||
| Prepaid expenses and other current assets | 127,778 | 118,538 | ||||||
| Current assets of discontinued operations | — | 2,907,404 | ||||||
| Total current assets | 47,458,506 | 15,416,063 | ||||||
| Property and equipment, net | 4,545 | 6,077 | ||||||
| Other long-term assets | 214,639 | 137,077 | ||||||
| Non-current assets of discontinued operations | — | 9,720,998 | ||||||
| Total assets | 47,677,690 | 25,280,215 | ||||||
| LIABILITIES AND STOCKHOLDERS’EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | 708,993 | 588,590 | ||||||
| Warrant liability | 1,224,838 | — | ||||||
| Payable to purchaser of discontinued operations | 176,687 | — | ||||||
| Income taxes payable | 5,976,589 | — | ||||||
| Deferred tax liability - current | 326,951 | — | ||||||
| Current liabilities of discontinued operations | — | 2,957,559 | ||||||
| Total current liabilities | 8,414,058 | 3,546,149 | ||||||
| Deferred tax liability – long-term | — | 39,031 | ||||||
| Non-current liabilities of discontinued operations | — | 523,070 | ||||||
| Total long-term liabilities | — | 562,101 | ||||||
| Total liabilities | 8,414,058 | 4,108,250 | ||||||
| Commitments and contingencies (Note 7) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, Series A par value | — | — | ||||||
| Common stock, par value | 7,466 | 7,045 | ||||||
| Additional paid in capital | 42,427,313 | 40,417,813 | ||||||
| Accumulated deficit | (2,912,547 | ) | (18,982,589 | ) | ||||
| Accumulated other comprehensive loss | (14,235 | ) | (23,214 | ) | ||||
| Total Data Storage Corp stockholders’ equity | 39,507,997 | 21,419,055 | ||||||
| Non-controlling interest in consolidated subsidiary | (244,365 | ) | (247,090 | ) | ||||
| Total stockholders’ equity | 39,263,632 | 21,171,965 | ||||||
| Total liabilities and stockholders’ equity | $ | 47,677,690 | $ | 25,280,215 | ||||
| DATA STORAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Sales | $ | 416,956 | $ | 325,299 | $ | 1,057,651 | $ | 899,135 | ||||||||
| Cost of sales | 218,457 | 180,832 | 580,193 | 504,684 | ||||||||||||
| Gross Profit | 198,499 | 144,467 | 477,458 | 394,451 | ||||||||||||
| Selling, general and administrative | 1,296,974 | 984,099 | 3,242,833 | 2,867,140 | ||||||||||||
| Loss from operations | (1,098,475 | ) | (839,632 | ) | (2,765,375 | ) | (2,472,689 | ) | ||||||||
| Interest income | 193,347 | 160,770 | 417,520 | 456,580 | ||||||||||||
| Loss from continuing operations before income taxes | (905,128 | ) | (678,862 | ) | (2,347,855 | ) | (2,016,109 | ) | ||||||||
| Provision (benefit) for income taxes | (1,034,683 | ) | — | (1,034,683 | ) | — | ||||||||||
| Loss from continuing operations, net of tax | 129,555 | (678,862 | ) | (1,313,172 | ) | (2,016,109 | ) | |||||||||
| Income (loss) from discontinued operations, net of tax | (822,503 | ) | 802,388 | (85,351 | ) | 2,238,934 | ||||||||||
| Gain on sale of discontinued operation, net of tax | 17,471,290 | — | 17,471,290 | — | ||||||||||||
| Net income from discontinued operations | 16,648,787 | 802,388 | 17,385,939 | 2,238,934 | ||||||||||||
| Net income | 16,778,342 | 123,526 | 16,072,767 | 222,825 | ||||||||||||
| Income (loss) in non-controlling interest of consolidated subsidiary | (66 | ) | (1,129 | ) | (3,462 | ) | 12,434 | |||||||||
| Net income attributable to common stockholders | $ | 16,778,276 | $ | 122,397 | $ | 16,069,305 | $ | 235,259 | ||||||||
| Loss per share from continuing operations – basic | $ | 0.02 | $ | (0.10 | ) | $ | (0.18 | ) | $ | (0.29 | ) | |||||
| Loss per share from continuing operations – diluted | $ | 0.02 | $ | (0.10 | ) | $ | (0.18 | ) | $ | (0.29 | ) | |||||
| Earnings per share from discontinued operations - basic | $ | 2.28 | $ | 0.11 | $ | 2.42 | $ | 0.32 | ||||||||
| Earnings per share from discontinued operations - diluted | $ | 2.19 | $ | 0.11 | $ | 2.32 | $ | 0.31 | ||||||||
| Earnings per share attributable to common stockholders – basic* | $ | 2.30 | $ | 0.02 | $ | 2.24 | $ | 0.03 | ||||||||
| Earnings per share attributable to common stockholders – diluted* | $ | 2.20 | $ | 0.02 | $ | 2.15 | $ | 0.03 | ||||||||
| Weighted average number of shares - basic | 7,293,644 | 6,999,447 | 7,177,691 | 6,918,253 | ||||||||||||
| Weighted average number of shares - diluted | 7,613,606 | 7,405,664 | 7,482,791 | 7,334,763 | ||||||||||||
*Earnings per share may not add due to rounding
| DATA STORAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Loss from continuing operations | $ | (1,313,172 | ) | $ | (2,016,109 | ) | ||
| Net income from discontinued operations | 17,385,939 | 2,238,934 | ||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Gain on sale of discontinued operations | (17,471,290 | ) | — | |||||
| Depreciation and amortization | 1,660 | 1,215 | ||||||
| Stock based compensation | 1,005,830 | 564,800 | ||||||
| Provision for credit losses | 6,512 | 577 | ||||||
| Changes in Assets and Liabilities: | ||||||||
| Accounts receivable | (21,529 | ) | (12,502 | ) | ||||
| Prepaid expenses and other assets | (86,802 | ) | (165,714 | ) | ||||
| Accounts payable and accrued expenses | 296,345 | (9,645 | ) | |||||
| Income taxes payable | (1,066,307 | ) | — | |||||
| Changes in assets and liabilities of discontinued operations | 706,991 | (48,966 | ) | |||||
| Net cash provided by (used in) operating activities | (555,823 | ) | 552,590 | |||||
| Cash Flows from Investing Activities: | ||||||||
| Capital expenditures | (128 | ) | (2,149 | ) | ||||
| Net proceeds from sale of discontinued operation | 35,634,291 | — | ||||||
| Purchase of marketable securities | (38,485,795 | ) | (456,573 | ) | ||||
| Sale of marketable securities | 4,274,822 | 400,000 | ||||||
| Cash used in investing activities of discontinued operations | (787,129 | ) | (1,113,859 | ) | ||||
| Net cash provided by (used in) investing activities | 636,061 | (1,172,581 | ) | |||||
| Cash Flows from Financing Activities: | ||||||||
| Payment for settlement of warrants | (1,236,825 | ) | — | |||||
| Proceeds from stock option exercises | 412,774 | 88,732 | ||||||
| Cash used in financing activities of discontinued operations | (51,520 | ) | (383,753 | ) | ||||
| Net cash used in financing activities | (875,571 | ) | (295,021 | ) | ||||
| Effect of exchange rate changes on cash | 9,950 | — | ||||||
| Decrease in cash and cash equivalents | (785,383 | ) | (915,012 | ) | ||||
| Cash and cash equivalents, beginning of period | 1,070,097 | 1,428,730 | ||||||
| Cash and cash equivalents, end of period | $ | 284,714 | $ | 513,718 | ||||
| Supplemental cash flow disclosures: | ||||||||
| Cash paid for interest | $ | — | $ | — | ||||
| Cash paid for income taxes | $ | — | $ | — | ||||
FAQ
What did DTST announce on Nov. 19, 2025 about CloudFirst?
How will the CloudFirst sale affect DTST's strategy and capital allocation?
When and how can investors join the DTST business update call on Nov. 19, 2025?
Will DTST provide a replay of the Nov. 19, 2025 conference call?
What parts of DTST’s business did management highlight as continuing revenue drivers?
Does the Nov. 19, 2025 release include DTST financial figures for Q3 2025?
