Data Storage Corporation (DTST)
NASDAQ:DTST
Want to see DTST full AI Analyst Report?
Top Page
Data Storage
(NASDAQ:DTST)
Select Model
Select Model
Rating:53Neutral
Price Target:
$4.50
▲(13.35% Upside)
Action:Reiterated
Date:05/15/26
The score is held down primarily by deteriorating operating performance and negative cash generation, alongside unusually strong net income that appears non-core and less repeatable. Technicals are moderately supportive (positive trend vs key moving averages), and valuation looks optically cheap on P/E but is less reliable given nonrecurring earnings. The earnings call adds some support via a stronger cash position post-transaction and cost-reduction guidance, but core-business scale and M&A execution risk remain key overhangs.
Positive Factors
Low Leverage / Clean Balance Sheet
Minimal debt materially reduces financial risk and preserves strategic optionality. Over 2-6 months this increases flexibility to fund operations, opportunistic acquisitions, or bridge shortfalls without heavy interest burdens, supporting stability while management repositions the business.
Negative Factors
Negative Operating Cash Flow
Sustained negative operating cash flow signals the core business is not self-funding and increases reliance on one-time proceeds or external financing. Without restored positive cash conversion, liquidity depletion could constrain strategic options and make acquisition-driven growth harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Clean Balance Sheet
Minimal debt materially reduces financial risk and preserves strategic optionality. Over 2-6 months this increases flexibility to fund operations, opportunistic acquisitions, or bridge shortfalls without heavy interest burdens, supporting stability while management repositions the business.
Read all positive factors
Data Storage (DTST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.32M
Dividend YieldN/A
Average Volume (3M)64.76K
Price to Earnings (P/E)―
Beta (1Y)1.15
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 Cap2.82
Enterprise Value/Revenue3.77
Enterprise Value/Gross Profit7.68
Enterprise Value/Ebitda-6.61
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.37
Revenue Forecast (FY)$1.70M
Data Storage Business Overview & Revenue Model
Company Description
Data Storage Corporation provides multi-cloud information technology solutions primarily in the United States. The company offers data protection and disaster recovery solutions; high availability, data vaulting, DRaaS, IaaS, message logic, standb...
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 | -3.57M | 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
4.01
Negative
4.22
Negative
4.34
Negative
Market Momentum
-0.03
Positive
42.18
Neutral
7.34
Positive
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 below the 20-day moving average (MA) of 4.09, below the 50-day MA of 4.01, and below the 200-day MA of 4.34, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of 7.34 is Positive, 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $43.88M | 64.56 | -11.73% | ― | 5.81% | -165.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $8.32M | -8.79 | 118.69% | ― | -75.27% | -1546.44% | |
46 Neutral | $8.01M | -0.54 | -87.36% | ― | -32.85% | 55.43% | |
43 Neutral | $27.64M | 70.02 | -11.94% | ― | 8.43% | -395.99% | |
| ― | $7.83M | -12.22 | -15.17% | ― | -53.14% | -325.97% |
* Technology Sector Average
DTST
Data Storage
3.78
-0.13
-3.32%
USIO
Usio
1.64
0.20
13.89%
CLPS
Clps
0.90
-0.04
-4.57%
VEEA
Veea
0.69
-1.37
-66.36%
CYCU
Cycurion
0.94
-12.32
-92.90%
GLE
Global Engine Group Holding Limited
0.50
-2.50
-83.33%
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.