Data Storage Reports 5% Q2 Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 14 2025
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Source: NASDAQ.COM
Financial Performance: Data Storage reported a GAAP earnings per share of $(0.10) for Q2 2025, significantly missing analyst expectations, while revenue grew 4.8% year-over-year to $5.1 million but fell short of forecasts by 17.7%. The company also experienced widening operating losses due to rising expenses.
Proposed Divestiture: The company announced a proposed $40 million sale of its CloudFirst Technologies subsidiary, pending shareholder approval on September 10, 2025, which could reshape its focus and capital allocation strategy, including plans for a tender offer to repurchase shares if the sale is approved.
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Analyst Views on DTST
About DTST
Data Storage Corporation focuses on investing in and supporting businesses in graphics processing unit (GPU) Infrastructure-as-a-Service (IaaS), artificial intelligence (AI)-driven software applications, cybersecurity, and voice/data telecommunications. The Company, through its subsidiary, Nexxis Inc., provides single-source solutions that deliver fully managed cloud-based voice over internet services (VoIP), data transport, Internet access, and SD-WAN solutions focused on business continuity for the modern business environment. It also provides Hosted VoIP solutions with equipment options for IP phones and Internet speeds of up to 10Gb delivered over fiber optics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Data Storage Corporation Appoints Strategic Advisors to Drive Acquisition and Growth Strategy
- Strategic Advisory Team: Data Storage Corporation has appointed a group of experienced strategic advisors to support the execution of its post-tender offer strategy, particularly focusing on acquiring high-margin, recurring revenue technology service businesses, thereby enhancing the company's competitive position in the market.
- Website Redesign: The company launched a redesigned corporate website that reflects its strategic focus adjustments, providing enhanced visibility into its priorities in technology services, cybersecurity, and telecommunications, which is expected to boost investor confidence.
- Acquisition Strategy: Following the divestiture of its cloud services business, Data Storage is advancing a disciplined hybrid acquisition strategy targeting businesses with predictable cash flows and strong margins, particularly within fragmented technology markets, to achieve long-term growth.
- Market Outlook: Executives indicate that this is a pivotal moment for Data Storage, and with a strengthened advisory team and clear strategic focus, the company is expected to create lasting value for shareholders and enhance market confidence.
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Data Storage Corp Extends Tender Offer Expiration to January 12, 2026
- Tender Offer Extension: Data Storage Corporation has extended its tender offer expiration from January 7, 2026, to January 12, 2026, aiming to provide shareholders with additional time to consider participation, thereby enhancing shareholder engagement and trust.
- Strategic Investment Plans: Following the completion of the tender offer, the company plans to invest in various sectors including GPU Infrastructure-as-a-Service, AI-driven software applications, and cybersecurity, demonstrating its ambition in technological innovation and market expansion.
- Sustainable Revenue Stream Development: The company is focused on building sustainable recurring revenue streams while maintaining financial discipline, indicating its commitment to long-term growth and adaptability to market changes.
- Compliance Statement: The announcement includes forward-looking statements that highlight the risks and uncertainties the company faces during the tender offer process, reminding investors to be aware of potential market fluctuations and changes in company performance.
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