Data Storage Corp. Reports 2025 Profit Driven by CloudFirst Sale, Shifts Strategy to AI and Cyber M&A

Overview

• Data Storage reported $19.2 million in 2025 net income, largely from selling its CloudFirst unit in a $40 million deal that produced about $31.6 million in net proceeds and a $20.1 million gain.
• The company returned $29.3 million to shareholders through a tender offer at $5.20 per share, cutting the share count by roughly 72 percent.
• DTST ended the year debt-free with about $10 million in cash and roughly $41 million when including cash equivalents and marketable securities.
• The continuing business, Nexxis, which provides voice and data services, generated $1.4 million in 2025 revenue, up 13.4 percent, with a 44.4 percent gross margin and no single customer over 10 percent of sales.
• Management said the profit was mostly one-time and projected about $2 million of net cash use in 2026 as it evaluates targets in AI-enabled software, GPU infrastructure, and cybersecurity.