Data Storage Corporation ( (DTST) ) has released its Q2 earnings. Here is a breakdown of the information Data Storage Corporation presented to its investors.
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Data Storage Corporation is a technology company focused on providing solutions for business continuity and efficiency, primarily operating in the cloud services sector. In its latest earnings report for the second quarter of 2025, the company reported a revenue increase of 4.8% year-over-year, reaching $5.1 million, driven by growth in subscription-based cloud services. The company maintained a consistent gross profit margin, with a total gross profit of $2.5 million, and ended the quarter with $11.1 million in cash and marketable securities, while carrying no long-term debt.
A significant highlight from the report is the proposed $40 million sale of CloudFirst Technologies Corporation, which, if approved by shareholders, is expected to generate net proceeds of approximately $24 million. The company plans to use these proceeds to repurchase up to 85% of its outstanding common stock, delivering substantial returns to shareholders while retaining funds for future acquisitions and innovation. The sale is anticipated to unlock value and allow Data Storage Corporation to focus on high-growth technology sectors such as artificial intelligence and cybersecurity.
Despite reporting a net loss of $732,000 for the quarter, the company remains optimistic about its strategic direction. The management emphasized its commitment to evolving into a technology-driven enterprise, capitalizing on emerging market trends. Data Storage Corporation is also considering a corporate rebranding to align with its strategic focus and will continue to operate Nexxis Inc. as a portfolio asset, seeking opportunities to leverage its operational expertise.
Looking ahead, Data Storage Corporation’s management is focused on transforming the company into a leading technology enterprise, with plans to capitalize on market trends and emerging opportunities. The proposed sale of CloudFirst Technologies is subject to shareholder approval, and the company encourages shareholders to review the transaction details and broader growth strategy.