Data Storage Corporation (DTST)
NASDAQ:DTST
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Data Storage
(NASDAQ:DTST)
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Rating:55Neutral
Price Target:
$4.50
▲(14.80% Upside)
Action:ReiteratedDate:04/14/26
The score is held back primarily by weak and volatile operating/cash-flow performance and earnings quality concerns, partially offset by a strong, low-leverage balance sheet. Technicals are mixed (better short-term than long-term), while valuation is constrained by a negative P/E and no dividend support. The earnings call adds modest support due to debt-free positioning and cost/burn guidance, but execution and M&A deployment risk remain high given the small continuing revenue base.
Positive Factors
Low leverage / strong balance sheet
A near‑debt-free balance sheet provides durable financial flexibility: it lowers solvency risk, preserves optionality to fund bolt‑on deals or cover shortfalls without high interest costs, and gives management time to execute a repositioning strategy without immediate refinancing pressure.
Negative Factors
Weak cash generation and cash conversion
Material deterioration in operating and free cash flow is a durable concern: core operations are not reliably converting revenue into cash, reducing internal funding for investments or acquisitions and increasing reliance on one‑off transactions or external financing to sustain strategy and cover overhead.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
A near‑debt-free balance sheet provides durable financial flexibility: it lowers solvency risk, preserves optionality to fund bolt‑on deals or cover shortfalls without high interest costs, and gives management time to execute a repositioning strategy without immediate refinancing pressure.
Read all positive factors
Data Storage (DTST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.64M
Dividend YieldN/A
Average Volume (3M)64.76K
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth-20.20%
EPS Growth-799.54%
CountryUS
Employees53
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.64
Shares Outstanding7,498,358
10 Day Avg. Volume66,873
30 Day Avg. Volume64,763
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue20.47
Enterprise Value/Gross Profit46.07
Enterprise Value/Ebitda-7.92
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
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:May 18, 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
78
Positive
Cash Flow
28
Negative
| Breakdown | Dec 2025 | 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 | 312.33K | 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 | -787.13K | -1.74M | -3.85M | -9.14M | -6.42M |
| Financing Cash Flow | -51.52K | -352.96K | -878.79K | -1.37M | 18.02M |
Data Storage Technical Analysis
Neutral
3.92
Price Trends
4.13
Negative
4.41
Negative
4.37
Negative
Market Momentum
-0.01
Negative
51.15
Neutral
55.43
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 3.95, below the 50-day MA of 4.13, and below the 200-day MA of 4.37, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.15 is Neutral, neither overbought nor oversold. The STOCH value of 55.43 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% | |
55 Neutral | $31.64M | ― | 118.69% | ― | -20.20% | -799.54% | |
51 Neutral | $32.19M | -14.58 | -13.52% | ― | 3.24% | -115.15% | |
51 Neutral | $30.34M | 70.02 | -11.94% | ― | 15.17% | -172.09% | |
43 Neutral | $6.83M | -0.21 | -135.84% | ― | ― | -81.60% | |
| ― | $8.07M | -9.71 | -15.17% | ― | -53.14% | -325.97% |
* Technology Sector Average
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Data Storage Corporate Events
Business Operations and StrategyExecutive/Board Changes
Data Storage boosts executive pay amid leadership transition
Positive
Feb 13, 2026
On February 9, 2026, Data Storage Corporation’s board approved a 2025 fiscal-year bonus for CEO Charles M. Piluso, comprising a cash payout within his contractual limits and 160,600 restricted stock units vesting on May 20, 2026. The move un...
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...
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.