Conference Call to be Held Today at 11:00 am ET
NEW YORK, April 14, 2026 (GLOBE NEWSWIRE) -- Data Storage Corporation (NASDAQ:DTST) ("DTST" and the "Company"), today announced financial results for the fiscal year ended December 31, 2025, and provided a business update.
Business Highlights:
Completed $40 million CloudFirst divestiture, generating approximately $31.6 million in net proceeds and a $20.1 million net gain on discontinued operations
Returned $29.3 million to shareholders through a tender offer at $5.20 per share, reducing shares outstanding by approximately 72% of the total shares outstanding as of December 8, 2025
Delivered record net income of $19.2 million, primarily attributable to the CloudFirst sale
Strengthened capital structure, exiting 2025 debt-free with over $10 million in cash and significant financial flexibility
Positioned for M&A, JV, and organic driven growth with a goal of pursuing accretive opportunities
DTST has emerged as a streamlined, Nasdaq-listed platform with capital, operational discipline, and strategic flexibility to pursue value-accretive acquisitions. The Company is actively evaluating opportunities in billion-dollar markets, including but not limited to AI-enabled vertical SaaS and GPU infrastructure, cybersecurity and SOC-related solutions, and scalable technology services with recurring revenue models. DTST's strategy is centered on disciplined capital allocation, targeting high-growth and high-margin businesses where it can accelerate scale and enhance long-term shareholder value.
DTST continues to operate Nexxis Inc. ("Nexxis"), today its core business, which provides a stable and growing operating foundation. Revenue from continuing operations totaled $1.4 million, up 13.4% year over year, with gross profit of $614,324 and gross margin expanding to 44.4% from 43.2% in the prior year. Nexxis also improved customer diversification, with no customer representing more than 10% of revenue.
With its strengthened balance sheet and available capital, the Company is rapidly advancing initiatives targeting emerging AI infrastructure opportunities within enterprise technology. These efforts reflect the Company's focus on aligning capital deployment with large, evolving market needs and evaluating multiple strategic pathways for execution. The Company expects to provide near-term updates as these initiatives progress.
"2025 was the most consequential year in Data Storage Corporation's history," said Chuck Piluso, Chief Executive Officer. "We monetized a legacy asset, returned the majority of proceeds to shareholders who tendered their shares, and repositioned DTST as a clean, well-capitalized platform focused on growth. We are now focused on deploying capital into high-quality businesses where we can drive scale, expand margins, and create long-term shareholder value. Importantly, we have already identified a number of highly attractive and actionable opportunities that we believe have the potential to create significant value for the Company, and we are working aggressively to advance these initiatives. We look forward to providing meaningful updates in the near term as these initiatives continue to develop."
Conference Call
Management will host a business update call today at 11:00 a.m. Eastern Time, to discuss the Company's financial results for the 2025 fiscal year which ended December 31, 2025, as well as corporate progress and other developments.
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 October 14, 2026. A telephone replay of the call will be available approximately three hours following the call, through April 21, 2026, 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: 13759995.
About Data Storage CorporationData Storage Corporation (NASDAQ:DTST), through its subsidiary today, Nexxis, provides Voice over Internet Protocol ("VoIP"), Internet access, and data transport services as part of DTST's one-stop solution set. In the future, DTST plans to invest in and support businesses, including, but not limited to, GPU Infrastructure, 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 StatementThis 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 being positioned for M&A, JV, and organic driven growth; pursuing accretive opportunities; the Company executing opportunities it is evaluating in billion-dollar markets, including but not limited to AI-enabled vertical SaaS and GPU infrastructure, cybersecurity and SOC-related solutions, and scalable technology services with recurring revenue models; the Company targeting high-growth and high-margin businesses where it can accelerate scale and enhance long-term shareholder value; Nexxis providing a stable and growing operating foundation for the Company; the Company rapidly advancing initiatives targeting emerging AI infrastructure opportunities within enterprise technology; aligning capital deployment with large, evolving market needs and evaluating multiple strategic pathways for execution; the Company expecting to provide near-term updates as these initiatives progress; deploying capital into high-quality businesses where the Company can drive scale, expand margins, and create long-term shareholder value; the highly attractive and actionable opportunities that the Company has identified having the potential to create significant value for the Company; the Company's advancement of these initiatives; the Company providing meaningful updates in the near term as these initiatives continue to develop; the Company investing in and supporting businesses, including, but not limited to, GPU Infrastructure, AI-driven software applications, cybersecurity, and voice/data telecommunications; the Company's building sustainable, recurring revenue streams while maintaining financial discipline and strategic focus, and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include the Company executing opportunities it is evaluating in billion-dollar markets, including but not limited to AI-enabled vertical SaaS and GPU infrastructure, cybersecurity and SOC-related solutions, and scalable technology services with recurring revenue models; the Company accelerating scale and enhancing long-term shareholder value; Nexxis providing a stable and growing operating foundation for the Company; the highly attractive and actionable opportunities that the Company has identified having the potential to create significant value for the Company; the Company's advancement of these initiatives; the Company building sustainable, recurring revenue streams while maintaining financial discipline and strategic focus. 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, 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, LLC212-671-1020[email protected]
DATA STORAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
December 31, 2025
December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents
$
1,989,354
$
1,070,097
Accounts receivable, net of allowance for expected credit losses of $648 and $767 in 2025 and 2024, respectively
34,605
59,018
Escrow funds receivable
1,500,000
—
Marketable securities
39,004,124
11,261,006
Prepaid expenses and other current assets
98,843
118,538
Current assets of discontinued operations
—
2,907,404
Total current assets
42,626,926
15,416,063
Property and equipment, net
16,866
6,077
Other long-term assets
378,682
137,077
Non-current assets of discontinued operations
—
9,720,998
Total assets
$
43,022,474
$
25,280,215
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses
$
842,473
$
588,590
Payable to purchaser of discontinued operations
15,889
—
Income taxes payable
1,166,315
—
Current liabilities of discontinued operations
—
2,957,559
Total current liabilities
2,024,677
3,546,149
Deferred tax liability - non-current
