Data Storage Corporation (DTST)
NASDAQ:DTST
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Data Storage
(NASDAQ:DTST)
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Rating:48Neutral
Price Target:
$3.50
▼(-11.84% Downside)
Action:Reiterated
Date:06/14/26
The score is held down primarily by weak financial performance (sharp revenue disruption, negative operating profitability, and negative operating/free cash flow) and a bearish technical trend (price below key moving averages with negative MACD). The low P/E provides some offset on valuation, but is tempered by the instability in underlying operations and cash generation.
Positive Factors
Recurring revenue model
DTST’s core business mixes DRaaS subscriptions, reserved compute/storage and multi-term managed services, creating durable recurring revenue. This model supports predictable cash inflows, customer stickiness from continuity contracts, and long-term revenue base resilience vs pure project firms.
Negative Factors
Severe revenue collapse
A dramatic top-line collapse destroys scale economics and undermines the business model’s sustainability. Without a credible path to regain recurring revenue, fixed-cost absorption and customer relationships suffer, making margin recovery and forecasting highly uncertain over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue model
DTST’s core business mixes DRaaS subscriptions, reserved compute/storage and multi-term managed services, creating durable recurring revenue. This model supports predictable cash inflows, customer stickiness from continuity contracts, and long-term revenue base resilience vs pure project firms.
Read all positive factors
Data Storage (DTST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.09M
Dividend YieldN/A
Average Volume (3M)64.76K
Price to Earnings (P/E)1.3
Beta (1Y)1.24
Revenue Growth-75.27%
EPS Growth-1546.44%
CountryUS
Employees53
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.49
Shares Outstanding2,167,138
10 Day Avg. Volume66,873
30 Day Avg. Volume64,763
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.91
Price to Sales (P/S)26.93
P/FCF Ratio-11.72
Enterprise Value/Market Cap3.12
Enterprise Value/Revenue3.55
Enterprise Value/Gross Profit7.24
Enterprise Value/Ebitda-8.23
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-1.02
Revenue Forecast (FY)$1.60M
Data Storage Business Overview & Revenue Model
Company Description
Headquartered in Melville, New York, Data Storage Corporation (DTST) delivers comprehensive multi-cloud information technology services, primarily catering to clients within the United States. The company's offerings encompass a wide range of data...
How the Company Makes Money
DTST makes money primarily by selling subscription-based and recurring services related to business continuity and data availability. Key revenue streams include (1) recurring fees from disaster recovery as a service (DRaaS) and related cloud infr...
Data Storage Earnings Call Summary
Earnings Call Date:Apr 14, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The call highlights a transformational year: management executed a value-realizing divestiture (CloudFirst), generated substantial one-time proceeds and returned significant capital to shareholders, leaving the company debt-free and repositioned as an acquisition platform targeting AI-related and recurring-revenue technology markets. However, the underlying continuing business (Nexxis) is small ($1.4M revenue) and profitability is driven by nonrecurring gains, SG&A currently exceeds continuing revenue, and future success depends on disciplined deal execution, valuation discipline, and effective deployment of a much-reduced cash base post-tender. Given the meaningful financial accomplishments offset by clear operational scale and execution risks, the positives and negatives are balanced.Positive Updates
CloudFirst Divestiture and Transaction Proceeds
Sold CloudFirst for a total transaction value of $40.0 million, generating approximately $31.6 million in net proceeds and a recognized gain of $20.1 million (nonrecurring).
Negative Updates
Profitability Driven by Nonrecurring Items
FY2025 net income ($19.2M) was primarily the result of one-time gains from the CloudFirst sale and discontinued operations; management expressly cautioned that this does not reflect the underlying earnings power of the continuing business.
Read all updates
Q4-2025 Updates
Positive
Negative
CloudFirst Divestiture and Transaction Proceeds
Sold CloudFirst for a total transaction value of $40.0 million, generating approximately $31.6 million in net proceeds and a recognized gain of $20.1 million (nonrecurring).
Read all positive updates
Company Guidance
Guidance: management said DTST enters 2026 debt‑free and well‑capitalized — reporting ~$41.0M in cash, cash equivalents and marketable securities at 12/31/2025 (vs $12.3M a year earlier) after monetizing CloudFirst for $40M (≈$31.6M net proceeds and a $20.1M gain) and returning $29.3M to shareholders via a $5.20 tender (reducing shares outstanding by ~72%); 2025 net income was $19.2M (vs $0.523M in 2024) though largely nonrecurring, while continuing operations (80%‑owned Nexxis) produced $1.4M revenue (+13.4% YoY from $1.2M) with 44.4% gross margin and no customer >10% of revenue; looking to 2026 management expects corporate overhead and total expenses to decline meaningfully, forecasts a public‑company cash burn of about $2.0M for the year, plans disciplined capital deployment into AI‑enabled vertical SaaS, GPU infrastructure, cybersecurity/SOC and recurring‑revenue tech, and will provide material updates as acquisition opportunities evolve.Data Storage Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
55
Neutral
Cash Flow
28
Negative
| Breakdown | Mar 2026 | Mar 2025 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.38M | 25.37M | 24.96M | 23.87M | 14.88M |
| Gross Profit | 614.32K | 11.10M | 9.58M | 8.08M | 6.42M |
| EBITDA | -2.72M | 2.02M | 1.68M | -3.04M | 1.27M |
| Net Income | 19.20M | 523.21K | 381.57K | -4.36M | 267.84K |
Balance Sheet | |||||
| Total Assets | 43.02M | 25.28M | 23.30M | 24.09M | 26.33M |
| Cash, Cash Equivalents and Short-Term Investments | 40.99M | 12.33M | 12.75M | 11.30M | 12.14M |
| Total Debt | 0.00 | 673.45K | 601.47K | 1.65M | 2.01M |
| Total Liabilities | 2.34M | 4.11M | 3.55M | 5.14M | 3.72M |
| Stockholders Equity | 40.92M | 21.42M | 19.99M | 19.10M | 22.72M |
Cash Flow | |||||
| Free Cash Flow | -3.18M | -60.27K | 2.33M | 536.54K | -816.52K |
| Operating Cash Flow | -3.16M | 1.74M | 3.87M | 663.80K | -360.69K |
| Investing Cash Flow | 6.92M | -1.74M | -3.85M | -9.14M | -6.42M |
| Financing Cash Flow | -1.35M | -352.96K | -878.79K | -1.37M | 18.02M |
Data Storage Technical Analysis
Negative
3.97
Price Trends
3.85
Negative
4.00
Negative
4.25
Negative
Market Momentum
-0.17
Positive
40.44
Neutral
57.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTST, the sentiment is Negative. The current price of 3.97 is above the 20-day moving average (MA) of 3.52, above the 50-day MA of 3.85, and below the 200-day MA of 4.25, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 40.44 is Neutral, neither overbought nor oversold. The STOCH value of 57.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DTST.
Data Storage Risk Analysis
Data Storage disclosed 34 risk factors in its most recent earnings report. Data Storage reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Data Storage Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $50.22M | -23.44 | -11.73% | ― | 5.81% | -165.27% | |
48 Neutral | $7.09M | 1.29 | 118.69% | ― | -75.27% | -1546.44% | |
45 Neutral | $29.54M | -4.37 | -11.94% | ― | 8.43% | -395.99% | |
44 Neutral | $6.88M | -0.19 | -87.36% | ― | -32.85% | 55.43% | |
| ― | $7.91M | 20.87 | -15.17% | ― | -76.15% | -1660.00% |
* Technology Sector Average
DTST
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Data Storage Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Data Storage Announces New Equity Distribution Agreement
Neutral
May 27, 2026
On May 26, 2026, Data Storage Corporation entered into a new Equity Distribution Agreement with Maxim Group LLC that allows the company to sell its common stock from time to time through at-the-market and other permitted offering methods, replacin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.