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DTST

Data Storage Corporation

DTST

Data Storage Corporation • NASDAQ
$4.39 ▼ -0.11% (-0.01)
Market Cap $31.32 M
52w High $5.44
52w Low $2.93
Dividend Yield 0%
P/E 24.42
Volume 11.77K
Outstanding Shares 7.13M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $416.956K ▼ $1.297M ▼ $16.778M ▲ 4.024K% ▲ $2.3 ▲ $-905.128K ▼
Q2-2025 $5.147M ▼ $3.332M ▲ $-733.049K ▼ -14.242% ▼ $-0.1 ▼ $-365.207K ▼
Q1-2025 $8.084M ▲ $2.952M ▲ $24.078K ▼ 0.298% ▼ $0.003 ▼ $391.776K ▼
Q4-2024 $6.416M ▲ $2.937M ▲ $287.955K ▲ 4.488% ▲ $0.041 ▲ $775.416K ▲
Q3-2024 $5.809M $2.538M $122.397K 2.107% $0.018 $490.605K

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $45.757M ▲ $47.678M ▲ $8.414M ▲ $39.508M ▲
Q2-2025 $11.122M ▲ $24.421M ▼ $3.19M ▼ $21.474M ▼
Q1-2025 $11.112M ▼ $26.931M ▲ $5.479M ▲ $21.696M ▲
Q4-2024 $12.331M ▲ $25.28M ▲ $4.108M ▲ $21.419M ▲
Q3-2024 $11.888M $24.219M $3.588M $20.88M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $18.094M ▲ $171.664K ▼ $-1.059M ▼ $-38.267K ▼ $-326.609K ▼ $650.347K ▲
Q2-2025 $-731.963K ▼ $372.32K ▲ $-514.559K ▼ $38.267K ▲ $-94.234K ▲ $-38.972K ▲
Q1-2025 $24.078K ▼ $-1.1M ▼ $786.575K ▲ $-51.52K ▲ $-364.54K ▼ $-1.167M ▼
Q4-2024 $276.684K ▲ $1.187M ▲ $-570.593K ▼ $-57.936K ▲ $556.379K ▲ $503.143K ▲
Q3-2024 $123.526K $197.799K $-374.2K $-89.867K $-266.268K $-15.638K

Revenue by Products

Product Q2-2024Q3-2024Q4-2024Q2-2025
Equipment and Software
Equipment and Software
 $0 ▲$0 ▲$0 ▲$0 ▲
Managed Services
Managed Services
 $0 ▲$0 ▲$0 ▲$0 ▲
Other
Other
 $0 ▲$0 ▲$0 ▲$0 ▲
Service
Service
 $0 ▲$0 ▲$10.00M ▲$0 ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue has been slowly trending upward over the past few years, but from a very small base. Margins look reasonable for a services company, yet overall profits hover around breakeven, with one notably weak year followed by a return to modest earnings. This pattern suggests a business that is still fragile, with limited cushion against setbacks. The sale of a major subsidiary also means that past revenue and profit patterns may not fully reflect the new, smaller core business going forward.

Balance Sheet

Balance Sheet The balance sheet appears conservative and relatively clean. The company carries essentially no debt and maintains a solid equity base, which gives it financial flexibility and lowers balance sheet risk. Cash levels, especially after the CloudFirst sale, appear to be a key strength and provide room to invest, acquire, or weather volatility. Overall, the company looks more capital-light than asset-heavy, which fits with its technology and services focus.

Cash Flow

Cash Flow Cash generation from day‑to‑day operations has been close to breakeven, indicating the business is not burning large amounts of cash but also not yet throwing off substantial surplus. Capital spending has been modest, consistent with a lean, services‑oriented model. Going forward, the critical question is how the company will deploy its cash from the divestiture—toward acquisitions, new platforms, or shareholder returns—and whether those uses will lead to sustainably stronger cash flows. Until the new strategy is executed, cash flow visibility is limited.

Competitive Edge

Competitive Edge Historically, the company built its position on reliable cloud, data protection, and business continuity services, with a reputation for strong customer support and recurring, subscription-style revenue. With the sale of CloudFirst, that legacy moat is partly gone, and the remaining business is more focused on integrated voice and data solutions through Nexxis. The strategic pivot toward AI, cybersecurity, and GPU infrastructure puts the company into intensely competitive arenas dominated by much larger players. Its main current advantages are financial flexibility, a recurring revenue model, and customer-centric service, but it must now rebuild its competitive edge in new markets where it does not yet have an obvious scale or technology lead.

Innovation and R&D

Innovation and R&D Innovation is in a transition phase. Previously, the company differentiated itself via managed infrastructure, multi‑cloud hosting, and proprietary connectivity tools like Smart ConNEXion and FailSafe within Nexxis. The new strategy aims to move up the value chain into AI-enabled software, cybersecurity, healthcare automation, and GPU infrastructure, which are attractive but crowded and fast-moving fields. At this stage, the plans lean more toward acquiring or building capabilities than showcasing clear, homegrown AI or cybersecurity platforms. Future product launches, technology integrations, and any proprietary tools or patents will be critical signals of whether this innovation pivot is gaining real traction.

Summary

Data Storage Corporation is at a turning point: a small, largely breakeven technology services firm with a strong balance sheet and a sizable strategic reset underway. The divestiture of CloudFirst has reduced its legacy revenue base but freed up capital and simplified the structure. Management is now targeting higher-growth areas—AI, cybersecurity, and GPU infrastructure—while relying on its existing Nexxis communications platform and customer relationships as a bridge. The upside is meaningful if the company can translate its cash and flexibility into distinctive products and profitable acquisitions; the downside is that it is entering highly competitive markets with limited current scale and a short track record in these new domains. Execution over the next few years will likely determine whether this pivot leads to durable growth or prolonged strategic drift.

NEWS

November 19, 2025 · 8:30 AM UTC

DTST Reports Q3 2025 Results Following Transformative CloudFirst Sale

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November 18, 2025 · 2:00 PM UTC

Data Storage Corporation Reschedules 2025 Third Quarter Business Update Conference Call for November 19th at 10:00 AM Eastern Time

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November 13, 2025 · 5:50 PM UTC

Data Storage Corporation Postpones 2025 Third Quarter Business Update Conference Call

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November 5, 2025 · 11:30 AM UTC

Data Storage Corporation to Host Business Update Conference Call on November 14, 2025 at 11:00 a.m. Eastern Time

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October 20, 2025 · 9:00 AM UTC

Data Storage Corporation Completes Repurchase of July 2021 Warrants

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