Data Storage Corporation (DTST)
NASDAQ:DTST
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Data Storage
(NASDAQ:DTST)
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Rating:56Neutral
Price Target:
$4.50
▲(14.80% Upside)
Action:ReiteratedDate:01/17/26
DTST scores highest on balance-sheet strength and recent strategic actions (asset sale, cash build, and major share count reduction), but the overall score is held back by weak TTM operating performance and cash-flow quality, plus bearish technicals and limited valuation support due to a negative P/E.
Positive Factors
Revenue Growth
The robust revenue growth rate indicates successful market expansion and increased demand for the company's products and services, supporting long-term business sustainability.
Negative Factors
Profitability Challenges
Weak profitability metrics indicate challenges in converting revenue into profit, which may hinder long-term financial health and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The robust revenue growth rate indicates successful market expansion and increased demand for the company's products and services, supporting long-term business sustainability.
Read all positive factors
Data Storage (DTST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.44M
Dividend YieldN/A
Average Volume (3M)64.76K
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth-20.20%
EPS Growth-799.54%
CountryUS
Employees53
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.20
Shares Outstanding7,498,358
10 Day Avg. Volume66,873
30 Day Avg. Volume64,763
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)1.37
Price to Sales (P/S)1.16
P/FCF Ratio-486.43
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue1.47
Enterprise Value/Gross Profit3.34
Enterprise Value/Ebitda-285.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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
Data Storage generates revenue primarily through the sale of its cloud storage subscriptions, which provide users with scalable storage options based on their needs. Additional revenue streams include licensing fees for its proprietary data manage...
Data Storage Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Positive
The earnings call highlighted a major strategic shift with the successful sale of the CloudFirst subsidiary, leading to a strong financial position and a focus on future growth opportunities. However, the increase in SG&A expenses and uncertainty regarding the final cash position from the tender offer and share buyback process present challenges.Positive Updates
Sale of CloudFirst Subsidiary
The sale of the CloudFirst business for $40 million was completed, providing a strong financial foundation and simplifying the company's structure.
Negative Updates
Increase in SG&A Expenses
Selling, general and administrative expenses increased by $313,000 or 31.8% to $1.3 million for the three months ended September 30, 2025, primarily due to noncash stock-based compensation and increased salaries.
Read all updates
Q3-2025 Updates
Positive
Negative
Sale of CloudFirst Subsidiary
The sale of the CloudFirst business for $40 million was completed, providing a strong financial foundation and simplifying the company's structure.
Read all positive updates
Company Guidance
During the Data Storage Corporation's third-quarter earnings call for fiscal year 2025, several key metrics and strategic initiatives were highlighted. The company completed the sale of its CloudFirst subsidiary on September 11, 2025, for $40 million, which was projected to generate approximately $25 million in annual revenue and $5.5 million in EBITDA. This sale significantly improved the company's financial position, with cash, cash equivalents, and marketable securities rising to $45.8 million compared to $12.3 million at the end of 2024. The Nexxis subsidiary reported sales of $417,000 for the three months ended September 30, 2025, marking a 28.2% increase from the same period in the previous year. Net income attributable to common shareholders rose dramatically to $16.8 million for the third quarter, up from $122,000 the previous year, primarily due to gains from discontinued operations. The company plans to focus on strategic acquisitions that provide recurring revenue, particularly in high-value markets like AI-enabled infrastructure and cybersecurity, while also completing a tender offer and share buyback process to optimize its capital allocation.Data Storage Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
78
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2025 | Dec 2023 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.06M | 25.37M | 24.96M | 23.87M | 14.88M | 9.32M |
| Gross Profit | 8.81M | 11.10M | 9.58M | 8.08M | 6.42M | 3.90M |
| EBITDA | -103.14K | 2.11M | 1.68M | -2.85M | 1.27M | 1.48M |
| Net Income | -1.11M | 523.21K | 381.57K | -4.36M | 267.84K | -325.59K |
Balance Sheet | ||||||
| Total Assets | 47.68M | 25.28M | 23.30M | 24.09M | 26.33M | 7.75M |
| Cash, Cash Equivalents and Short-Term Investments | 45.76M | 12.33M | 12.75M | 11.30M | 12.14M | 893.60K |
| Total Debt | 0.00 | 673.45K | 601.47K | 1.65M | 2.01M | 3.27M |
| Total Liabilities | 8.41M | 4.11M | 3.55M | 5.14M | 3.72M | 5.83M |
| Stockholders Equity | 39.51M | 21.42M | 19.99M | 19.10M | 22.72M | 2.02M |
Cash Flow | ||||||
| Free Cash Flow | -52.81K | -60.27K | 2.33M | 536.54K | -816.52K | 929.61K |
| Operating Cash Flow | 631.68K | 1.74M | 3.87M | 663.80K | -360.69K | 1.11M |
| Investing Cash Flow | 65.47K | -1.74M | -3.85M | -9.14M | -6.42M | -181.07K |
| Financing Cash Flow | -933.51K | -352.96K | -878.79K | -1.37M | 18.02M | -362.57K |
Data Storage Technical Analysis
Neutral
3.92
Price Trends
4.24
Negative
4.43
Negative
4.34
Negative
Market Momentum
-0.10
Negative
49.90
Neutral
52.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTST, the sentiment is Neutral. The current price of 3.92 is below the 20-day moving average (MA) of 3.97, below the 50-day MA of 4.24, and below the 200-day MA of 4.34, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 49.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DTST.
Data Storage Risk Analysis
Data Storage disclosed 33 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% | |
56 Neutral | $30.44M | -11.37 | -4.28% | ― | -20.20% | -799.54% | |
51 Neutral | $31.91M | -14.58 | -13.52% | ― | 3.24% | -115.15% | |
51 Neutral | $28.55M | 70.02 | -11.94% | ― | 15.17% | -172.09% | |
44 Neutral | $5.03M | -1.86 | -135.84% | ― | ― | -81.60% | |
| ― | $7.14M | -9.54 | -15.17% | ― | -53.14% | -325.97% |
* Technology Sector Average
DTST
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Data Storage Corporate Events
Business Operations and StrategyStock Buyback
Data Storage Completes Major Cash Tender Offer Buyback
Positive
Jan 16, 2026
On January 15, 2026, Data Storage Corporation reported the final results of a cash tender offer that expired on January 12, 2026, in which it purchased 5,625,129 shares of its common stock at $5.20 per share, for a total of about $29.3 million fun...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Data Storage Extends Tender Offer Expiration for Shareholders
Neutral
Dec 23, 2025
On December 23, 2025, Data Storage Corporation announced that it had extended the expiration time of its ongoing tender offer for its common stock, moving the deadline from January 7, 2026 to 12:00 midnight New York City time on January 12, 2026, ...
Business Operations and Strategy
Data Storage unveils 2026 hybrid acquisition growth strategy
Positive
Dec 18, 2025
On December 18, 2025, Data Storage Corporation released a shareholder letter from CEO Chuck Piluso outlining its 2026 corporate strategy, which is built around a disciplined hybrid acquisition approach focused on consolidating technology-enabled s...
Business Operations and StrategyStock BuybackM&A Transactions
Data Storage Announces Tender Offer for Shares
Positive
Dec 8, 2025
On December 8, 2025, Data Storage Corporation announced its intention to commence a tender offer to purchase up to 6,192,990 shares of its common stock at $5.20 per share, totaling up to $32,203,548. This move follows the company’s divestitu...
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.