DTST Reports 2025 First Quarter Financial Results and Provides Business Update
Strong Financial Performance: Data Storage Corporation reported a revenue of $8.1 million for Q1 2025, marking a 14% year-over-year growth in Cloud Infrastructure and Disaster Recovery services, alongside an adjusted EBITDA of $497,000.
Strategic Partnership and Expansion: The company has partnered with Pulsant to enhance its international presence in the U.K. and Europe, aiming to serve regulated clients more effectively while continuing to focus on building a high-margin, recurring revenue base.
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- Strategic Advisory Team: Data Storage Corporation has appointed a group of experienced strategic advisors to support the execution of its post-tender offer strategy, particularly focusing on acquiring high-margin, recurring revenue technology service businesses, thereby enhancing the company's competitive position in the market.
- Website Redesign: The company launched a redesigned corporate website that reflects its strategic focus adjustments, providing enhanced visibility into its priorities in technology services, cybersecurity, and telecommunications, which is expected to boost investor confidence.
- Acquisition Strategy: Following the divestiture of its cloud services business, Data Storage is advancing a disciplined hybrid acquisition strategy targeting businesses with predictable cash flows and strong margins, particularly within fragmented technology markets, to achieve long-term growth.
- Market Outlook: Executives indicate that this is a pivotal moment for Data Storage, and with a strengthened advisory team and clear strategic focus, the company is expected to create lasting value for shareholders and enhance market confidence.
- Tender Offer Extension: Data Storage Corporation has extended its tender offer expiration from January 7, 2026, to January 12, 2026, aiming to provide shareholders with additional time to consider participation, thereby enhancing shareholder engagement and trust.
- Strategic Investment Plans: Following the completion of the tender offer, the company plans to invest in various sectors including GPU Infrastructure-as-a-Service, AI-driven software applications, and cybersecurity, demonstrating its ambition in technological innovation and market expansion.
- Sustainable Revenue Stream Development: The company is focused on building sustainable recurring revenue streams while maintaining financial discipline, indicating its commitment to long-term growth and adaptability to market changes.
- Compliance Statement: The announcement includes forward-looking statements that highlight the risks and uncertainties the company faces during the tender offer process, reminding investors to be aware of potential market fluctuations and changes in company performance.

Management Insights: Data Storage Corporation's CEO, Charles Piluso, described Q3 2025 as a transformative period following the $40 million sale of the CloudFirst subsidiary, which allows the company to focus on long-term shareholder value and disciplined growth under the new strategy, DSC 2.0.
Financial Performance: The company reported a 28.2% increase in sales from its continuing operations, totaling $417,000 for the quarter, while net income for the quarter reached $16.8 million, primarily due to gains from discontinued operations.
Future Outlook: Management is focused on completing a tender offer and share buyback process, with expectations of finalizing cash positions between $5 million and $15 million, and is exploring strategic acquisitions in emerging technology sectors like AI and cybersecurity.
Analyst Sentiment: Analysts expressed skepticism regarding cash forecasts and the sustainability of current expenses, while management maintained a confident tone, emphasizing transparency and a disciplined approach to capital allocation and acquisition strategies.

Conference Call Announcement: Data Storage Corporation has rescheduled its 2025 third quarter business update conference call to November 19, 2025, at 10:00 a.m. Eastern Time, accessible via telephone and webcast.
Webcast and Replay Information: The conference call will be available for replay on the company's website until May 19, 2026, with a telephone replay option available until November 26, 2025.
Company's Future Plans: Data Storage Corporation plans to invest in various sectors, including GPU Infrastructure-as-a-Service, AI-driven software applications, cybersecurity, and telecommunications, aiming to create sustainable revenue streams.
Forward-Looking Statements: The release includes forward-looking statements that involve risks and uncertainties, with details available in the company's SEC filings.

Postponement of Conference Call: Data Storage Corporation has postponed its 2025 third quarter business update conference call, originally set for November 14, 2025, to allow for accounting adjustments following the sale of its CloudFirst subsidiary.
Focus on Financial Adjustments: The company is working to finalize necessary accounting adjustments and will announce a new date and time for the conference call once available.
Future Investment Plans: Following the completion of a tender offer, Data Storage Corporation plans to invest in various sectors, including GPU Infrastructure-as-a-Service, AI-driven software applications, cybersecurity, and telecommunications.
Forward-Looking Statements: The release includes forward-looking statements that involve risks and uncertainties, with details available in the company's filings with the Securities and Exchange Commission.

Conference Call Announcement: Data Storage Corporation will host a business update conference call on November 14, 2025, to discuss the sale of its CloudFirst subsidiary and its strategic business outlook.
Access Information: The call can be accessed via telephone or webcast, with replays available on the company's website and through a dedicated phone line.
Future Investments: Post-tender offer, Data Storage Corporation plans to invest in areas such as GPU Infrastructure-as-a-Service, AI-driven software applications, cybersecurity, and telecommunications.
Forward-Looking Statements: The release includes forward-looking statements that involve risks and uncertainties, with details available in the company's SEC filings.






