Data Storage (DTST)
Market Price (11/2/2026): $2.85 | Market Cap: $6.7 MilSector: Information Technology | Industry: IT Consulting & Other Services
Data Storage (DTST)
Market Price (11/2/2026): $2.85Market Cap: $6.7 MilSector: Information TechnologyIndustry: IT Consulting & Other Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 270%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 264% Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -139% Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -39% Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, and Cybersecurity. Themes include Data Centers & Infrastructure, Show more. | Weak multi-year price returns2Y Excs Rtn is -47%, 3Y Excs Rtn is -86% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -4.5 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -309% Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -24% Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 122% Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -351%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -352% Key risksDTST key risks include [1] an illiquid and volatile stock, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 270%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 264% |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -139% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -39% |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, and Cybersecurity. Themes include Data Centers & Infrastructure, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -47%, 3Y Excs Rtn is -86% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -4.5 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -309% |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -24% |
| Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 122% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -351%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -352% |
| Key risksDTST key risks include [1] an illiquid and volatile stock, Show more. |
Qualitative Assessment
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Data Storage (DTST) stock has remained largely at the same level since 7/31/2026 because of the following key factors:
1. Mixed Fiscal Q2 2026 Financial Results Offset by Strategic Direction.
Data Storage Corporation reported its fiscal Q2 2026 earnings on August 14, 2026, for the quarter ending June 30, 2026. The company posted revenue from continuing operations of $358,530, an increase of 9.3% year-over-year, primarily driven by its Nexxis telecommunications business. However, the company reported a widened net loss attributable to common stockholders of $1,225,515, or $(0.55) per basic and diluted share, missing revenue estimates by 10.3%. This mixed financial performance, combining revenue growth with increased losses, was balanced by the company's strong capital position of $9.3 million in cash and its reaffirmed strategic focus on acquiring recurring revenue technology businesses in areas like AI infrastructure and cybersecurity.
2. "Wait and See" Investor Stance Ahead of Targeted Acquisitions.
Following the divestiture of its CloudFirst business, Data Storage has explicitly shifted its long-term strategy to actively pursue mergers and acquisitions (M&A) in GPU infrastructure, AI-driven software, cybersecurity, and voice/data telecommunications. The CEO indicated plans to sign a Letter of Intent for an acquisition within 45-60 days of the August 14, 2026, Q2 earnings call, aiming to close a deal by fiscal Q4 2026 or fiscal Q1 2027. This forward-looking M&A strategy, while promising for future growth, has likely put investors in a holding pattern, awaiting concrete developments and details on these potential acquisitions, contributing to the stock's stable movement during the specified period.
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Data Storage (DTST) stock has remained largely at the same level since 7/31/2026 because of the following key factors:
1. Mixed Fiscal Q2 2026 Financial Results Offset by Strategic Direction.
Data Storage Corporation reported its fiscal Q2 2026 earnings on August 14, 2026, for the quarter ending June 30, 2026. The company posted revenue from continuing operations of $358,530, an increase of 9.3% year-over-year, primarily driven by its Nexxis telecommunications business. However, the company reported a widened net loss attributable to common stockholders of $1,225,515, or $(0.55) per basic and diluted share, missing revenue estimates by 10.3%. This mixed financial performance, combining revenue growth with increased losses, was balanced by the company's strong capital position of $9.3 million in cash and its reaffirmed strategic focus on acquiring recurring revenue technology businesses in areas like AI infrastructure and cybersecurity.
2. "Wait and See" Investor Stance Ahead of Targeted Acquisitions.
Following the divestiture of its CloudFirst business, Data Storage has explicitly shifted its long-term strategy to actively pursue mergers and acquisitions (M&A) in GPU infrastructure, AI-driven software, cybersecurity, and voice/data telecommunications. The CEO indicated plans to sign a Letter of Intent for an acquisition within 45-60 days of the August 14, 2026, Q2 earnings call, aiming to close a deal by fiscal Q4 2026 or fiscal Q1 2027. This forward-looking M&A strategy, while promising for future growth, has likely put investors in a holding pattern, awaiting concrete developments and details on these potential acquisitions, contributing to the stock's stable movement during the specified period.
3. Predominantly Neutral to Negative Analyst Sentiment.
Analyst coverage for Data Storage (DTST) during the period indicated a general lack of strong conviction. As of October 26, 2026, one AI-powered analysis rated DTST as a "Sell" (AI Score 2/10), projecting a lower probability of outperforming the market in the subsequent three months. Similarly, another analyst consensus, based on one analyst, gave the stock a "Sell" rating, while another provided a "Hold" rating. This prevailing neutral to negative analyst and AI sentiment likely acted as a ceiling on the stock's potential for significant upward movement, offsetting any positive impact from the company's strategic vision.
4. Absence of High-Value Insider Trading or Major External Catalysts.
During the period from July 31, 2026, to November 1, 2026, there were no reported insider buying or selling transactions exceeding the $5 million threshold that would typically signal strong directional confidence or concern from company executives. Several directors reported selling shares, but these were minor transactions primarily to cover tax withholding obligations, totaling less than $13,000 for each individual instance. This lack of significant insider activity, coupled with no major macroeconomic shifts directly impacting the data storage sector or confirmed large-scale business developments (beyond the announced strategic shift and Q2 earnings), meant that the stock lacked strong catalysts for substantial price fluctuations.
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Stock Movement Drivers
Fundamental Drivers
The -2.3% change in DTST stock from 7/31/2026 to 10/31/2026 was primarily driven by a -27.5% change in the company's P/E Multiple.| (LTM values as of) | 7312026 | 10312026 | Change |
|---|---|---|---|
| Stock Price ($) | 3.05 | 2.98 | -2.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1 | 1 | 2.2% |
| Net Income Margin (%) | 1309.2% | 1247.5% | -4.7% |
| P/E Multiple | 0.5 | 0.4 | -27.5% |
| Shares Outstanding (Mil) | 3 | 2 | 38.4% |
| Cumulative Contribution | -2.3% |
Market Drivers
7/31/2026 to 10/31/2026| Return | Correlation | |
|---|---|---|
| DTST | -2.3% | |
| Market (SPY) | 1.2% | 24.0% |
| Sector (XLK) | 2.4% | 23.6% |
Fundamental Drivers
The -24.9% change in DTST stock from 4/30/2026 to 10/31/2026 was primarily driven by a -76.3% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 10312026 | Change |
|---|---|---|---|
| Stock Price ($) | 3.97 | 2.98 | -24.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1 | 1 | 4.7% |
| Net Income Margin (%) | 1388.7% | 1247.5% | -10.2% |
| P/E Multiple | 1.6 | 0.4 | -76.3% |
| Shares Outstanding (Mil) | 8 | 2 | 236.9% |
| Cumulative Contribution | -24.9% |
Market Drivers
4/30/2026 to 10/31/2026| Return | Correlation | |
|---|---|---|
| DTST | -24.9% | |
| Market (SPY) | 5.4% | 19.8% |
| Sector (XLK) | 12.7% | 18.9% |
Fundamental Drivers
The -28.4% change in DTST stock from 10/31/2025 to 10/31/2026 was primarily driven by a -80.0% change in the company's P/S Multiple.| (LTM values as of) | 10312025 | 10312026 | Change |
|---|---|---|---|
| Stock Price ($) | 4.16 | 2.98 | -28.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1 | 1 | 12.5% |
| P/S Multiple | 23.1 | 4.6 | -80.0% |
| Shares Outstanding (Mil) | 7 | 2 | 218.9% |
| Cumulative Contribution | -28.4% |
Market Drivers
10/31/2025 to 10/31/2026| Return | Correlation | |
|---|---|---|
| DTST | -28.4% | |
| Market (SPY) | 11.7% | 15.8% |
| Sector (XLK) | 19.9% | 16.7% |
Fundamental Drivers
The 8.8% change in DTST stock from 10/31/2023 to 10/31/2026 was primarily driven by a 471.6% change in the company's P/S Multiple.| (LTM values as of) | 10312023 | 10312026 | Change |
|---|---|---|---|
| Stock Price ($) | 2.74 | 2.98 | 8.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 23 | 1 | -93.8% |
| P/S Multiple | 0.8 | 4.6 | 471.6% |
| Shares Outstanding (Mil) | 7 | 2 | 204.6% |
| Cumulative Contribution | 8.8% |
Market Drivers
10/31/2023 to 10/31/2026| Return | Correlation | |
|---|---|---|
| DTST | 8.8% | |
| Market (SPY) | 86.9% | 24.0% |
| Sector (XLK) | 122.8% | 22.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| DTST Return | 2167% | -52% | 95% | 47% | 21% | -42% | 2107% |
| Peers Return | 15% | -41% | 27% | 21% | -0% | 48% | 56% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| DTST Win Rate | 33% | 25% | 67% | 50% | 42% | 20% | |
| Peers Win Rate | 53% | 33% | 58% | 55% | 50% | 48% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| DTST Max Drawdown | -70% | -64% | -28% | -57% | -41% | -46% | |
| Peers Max Drawdown | -31% | -50% | -34% | -27% | -42% | -40% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: RXT, GDDY, VRSN, AKAM, NET.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 10/30/2026 (YTD)
How Low Can It Go
| Event | DTST | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -26.8% | -18.8% |
| % Gain to Breakeven | 36.6% | 23.1% |
| Time to Breakeven | 35 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -10.4% | -9.5% |
| % Gain to Breakeven | 11.6% | 10.5% |
| Time to Breakeven | 17 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -17.1% | -6.7% |
| % Gain to Breakeven | 20.6% | 7.1% |
| Time to Breakeven | 26 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -37.8% | -24.5% |
| % Gain to Breakeven | 60.7% | 32.4% |
| Time to Breakeven | 308 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -11.1% | -33.7% |
| % Gain to Breakeven | 12.5% | 50.9% |
| Time to Breakeven | 13 days | 140 days |
| 2013 Taper Tantrum | ||
| % Loss | -39.2% | -0.2% |
| % Gain to Breakeven | 64.4% | 0.2% |
| Time to Breakeven | 8 days | 1 days |
In The Past
Data Storage's stock fell -26.8% during the 2025 US Tariff Shock. Such a loss loss requires a 36.6% gain to breakeven.
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Asset Allocation
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| Event | DTST | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -26.8% | -18.8% |
| % Gain to Breakeven | 36.6% | 23.1% |
| Time to Breakeven | 35 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -37.8% | -24.5% |
| % Gain to Breakeven | 60.7% | 32.4% |
| Time to Breakeven | 308 days | 427 days |
| 2013 Taper Tantrum | ||
| % Loss | -39.2% | -0.2% |
| % Gain to Breakeven | 64.4% | 0.2% |
| Time to Breakeven | 8 days | 1 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -37.5% | -17.9% |
| % Gain to Breakeven | 60.0% | 21.8% |
| Time to Breakeven | 21 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -40.0% | -15.4% |
| % Gain to Breakeven | 66.7% | 18.2% |
| Time to Breakeven | 6 days | 125 days |
In The Past
Data Storage's stock fell -26.8% during the 2025 US Tariff Shock. Such a loss loss requires a 36.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Data Storage (DTST)
Data Storage Corporation (DTST) is a multi-cloud information technology solutions provider that primarily serves businesses across the United States from its headquarters in Melville, New York. The company specializes in helping organizations manage, protect, and connect their critical digital infrastructure and data through a comprehensive suite of IT services.
DTST's core offerings include advanced data protection and disaster recovery solutions, such as high availability, data vaulting, and DRaaS, designed to ensure business continuity. They also provide robust cybersecurity services, encompassing managed endpoint security with active threat mitigation, system security assessments, and continuous auditing applications. Additionally, Data Storage Corporation delivers essential voice and data solutions, offering VoIP and internet connectivity through diverse network types like fiber optic, coaxial, and wireless. Their diverse clientele spans various industries, including healthcare, banking and finance, manufacturing, construction, education, and government sectors.
AI Analysis | Feedback
Data Storage is like Rackspace Technology for managed data protection, disaster recovery, and cybersecurity solutions for businesses.
Data Storage is like a digital Iron Mountain, providing secure data vaults and comprehensive disaster recovery plans for businesses.
AI Analysis | Feedback
- Data Protection and Disaster Recovery Solutions: Offers services like high availability, data vaulting, Disaster Recovery as a Service (DRaaS), and Infrastructure as a Service (IaaS) to secure and recover critical business data.
- Cybersecurity Solutions: Provides managed endpoint security, system security assessments, risk analysis, and applications for continuous security and auditing to protect IT environments.
- Voice and Data Solutions: Delivers VoIP and data services through various networks including fiber optic, coaxial, and wireless for business communication and connectivity.
- IT Support and Maintenance: Offers ongoing support and maintenance for its technology solutions to ensure system reliability and performance.
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Data Storage Corporation (DTST) primarily sells its multi-cloud information technology solutions and services to other companies and organizations, rather than individuals.
The company serves businesses in the following sectors:
- Healthcare
- Banking and Finance
- Distribution Services
- Manufacturing
- Construction
- Education
- Government
Specific customer company names are not disclosed by Data Storage Corporation.
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Chuck Piluso, Chairman of the Board and Chief Executive Officer
Mr. Piluso co-founded CloudFirst Technologies Corporation, a subsidiary of Data Storage Corporation, in 2001. He also co-founded North American Telecommunication Corporation, serving as its Chairman and President, playing a key role in its growth across ten states. Additionally, Mr. Piluso was the Chairman and Founder of International Telecommunications Corporation, which successfully consolidated and went public in 1997 with a valuation of $800 million.
Chris H. Panagiotakos, Chief Financial Officer
Before joining Data Storage Corporation, Mr. Panagiotakos served as Vice President, Corporate Controller of Cineverse Corp. (formerly Cinedigm Corp.) from April 2017 to March 2021. Prior to that, he was Corporate Assistant Controller at Cinedigm Corp. from October 2013 to April 2017. His experience also includes various accounting roles, including Controller of a division and Assistant Corporate Controller, at Young Broadcasting Inc. from September 2004 to October 2013. Mr. Panagiotakos is a Certified Public Accountant.
Wendy Schmittzeh, Chief Administrative Officer
Ms. Schmittzeh has over 30 years of experience in corporate administration and executive support. She joined Data Storage Corporation in 2011 as Manager of Administration, was promoted to Director of Corporate Administration, and became Chief Administrative Officer in 2024. In her roles, she has been instrumental in initiatives related to mergers and acquisitions, office and facilities management, human resources, corporate relocations, and executive leadership support.
John Kempster, Executive Vice President and Director
Mr. Kempster has served as Executive Vice President and Director since February 2020 and as a member of the Board since December 2016. Before his current executive positions, he was the President of Service Delivery until 2021, where he significantly contributed to establishing the company's customer service standards.
AI Analysis | Feedback
The key risks to Data Storage Corporation (DTST) primarily stem from the intensely competitive market it operates in, its ongoing struggle to achieve consistent profitability, and the inherent cybersecurity threats associated with its data protection services.
- Highly Competitive Market and Customer Acquisition/Retention Challenges: Data Storage Corporation operates in a highly competitive digital infrastructure and managed services sector, facing a broad range of competitors from large global data center operators and cloud service giants to specialized software providers. As a micro-cap company, DTST's position is precarious, making it challenging to compete effectively on price or features without a strong technological moat. The company's revenue and operating results could be significantly impacted if it is unable to cost-effectively attract new customers or retain its existing client base for its infrastructure and disaster recovery/cloud subscription services.
- Struggle for Consistent Profitability and Small Revenue Base: Data Storage Corporation has historically struggled to achieve consistent profitability, and its operating margin has been variable and often unprofitable. This financial profile indicates a speculative growth company with a relatively small revenue base, which makes it particularly vulnerable to the loss of any single large client.
- Cybersecurity Threats and Data Loss Risks: Despite providing cybersecurity and data protection solutions, Data Storage Corporation's business model inherently exposes it and its clients to significant cybersecurity threats and data loss risks. The broader industry faces constant threats such as malware attacks, data leakage, data breaches, misconfigurations, unauthorized access, and insider threats. Ransomware, phishing, and the challenges of maintaining data integrity and availability in cloud environments are pervasive risks. A failure to adequately protect its own or its clients' data from these evolving threats could severely damage the company's reputation and business operations.
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The increasing comprehensive and integrated data protection, disaster recovery, and cybersecurity solutions offered directly by major public cloud providers (hyperscalers such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform) represent a clear emerging threat. These hyperscalers are continuously expanding their native capabilities, often providing deep integration, global reach, and competitive pricing for services that directly overlap with Data Storage Corporation's core offerings in DRaaS, IaaS, data protection, and managed cybersecurity.
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Data Storage Corporation (DTST) operates in several significant and growing addressable markets within the information technology sector, primarily in the United States. The company's main products and services cater to data protection, disaster recovery, cloud infrastructure, cybersecurity, and voice and data solutions.
Addressable Markets for Data Storage Corporation's Products and Services:
- Data Protection and Disaster Recovery Solutions: This market, encompassing services like Disaster Recovery as a Service (DRaaS) and data vaulting, is experiencing substantial growth. The U.S. Data Protection and Recovery Solutions market was valued at USD 2.42 billion in 2024 and is projected to reach approximately USD 11.12 billion by 2034, with a compound annual growth rate (CAGR) of 16.47% from 2025 to 2034. Separately, the Disaster Recovery as a Service (DRaaS) market in the United States generated USD 3,531.5 million in 2023 and is expected to grow to USD 15,308.9 million by 2030, at a CAGR of 23.3% from 2024 to 2030. The global DRaaS market was valued at USD 22.40 billion in 2025 and is predicted to increase to approximately USD 195.71 billion by 2034, with North America dominating with a 35% market share in 2024.
- High Availability Solutions: The global High Availability Server Market was valued at USD 18.75 billion in 2024 and is projected to reach USD 98.21 billion by 2033, demonstrating a CAGR of 20.2% during the forecast period of 2026–2033. North America held the largest market share in 2024 for these solutions.
- Infrastructure as a Service (IaaS): The U.S. IaaS & PaaS (Platform as a Service) Market reached USD 28 billion in 2024 and is anticipated to grow to USD 65.30 billion by 2032, at a CAGR of 11.17% from 2025 to 2032. More broadly, the North America Infrastructure-as-a-Service (IaaS) Market is expected to achieve a market value of USD 136.83 billion by 2031, with the U.S. market being a dominant contributor. Globally, the IaaS market size is estimated at USD 106.04 billion in 2025 and is predicted to grow to approximately USD 1061.67 billion by 2035, with North America holding the highest revenue share of 46% in 2025.
- Cybersecurity Solutions: The U.S. cybersecurity market was valued at USD 67.69 billion in 2023 and is projected to grow at a CAGR of 10.7% from 2024 to 2030. Other estimates place the U.S. market size at USD 65.70 billion in 2024, projected to grow to USD 166.73 billion by 2032 with a CAGR of 12.5%.
- Voice and Data Solutions (VoIP): The U.S. Voice over Internet Protocol (VoIP) industry is projected to grow to approximately USD 152 billion by 2034. Globally, the VoIP services market is valued at USD 132.2 billion in 2024 and is expected to reach USD 349.1 billion by 2034, growing at a 10.2% CAGR. North America is a leading market for VoIP services, holding approximately 45% of the global market share.
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Data Storage Corporation (DTST) is focused on several key drivers for future revenue growth over the next 2-3 years, particularly following the strategic sale of its CloudFirst subsidiary in Q3 2025. The company's strategy involves a combination of targeted acquisitions, organic growth in existing services, and international expansion.
- Strategic Acquisitions in High-Growth Technology Sectors: Data Storage Corporation plans to pursue a disciplined hybrid acquisition strategy, targeting technology-enabled service providers in fragmented markets. The company intends to evaluate opportunities in areas such as managed IT, cybersecurity monitoring, telecom and UCaaS platforms, compliance-as-a-service, document security, access control, healthcare BPO, and niche micro-SaaS+ services. Additionally, it will selectively consider companies utilizing GPU infrastructure, AI workflow tools, and automation platforms. This strategy is supported by the significant cash proceeds from the CloudFirst sale, with 15% earmarked for acquisitions and expansion.
- Organic Growth in Core Cloud Infrastructure and Disaster Recovery Services: The company has demonstrated consistent growth in its fundamental cloud infrastructure and disaster recovery offerings. For instance, in Q1 2024, revenue growth was primarily attributed to an increase in these services, and in Q4 2024, cloud infrastructure and disaster recovery services saw a 27% year-over-year increase. This trend continued into Q2 2025, with cloud infrastructure and disaster recovery revenue increasing by 6.1% due to new and expanded subscription clients.
- Expansion and Growth of its Telecommunications Subsidiary (Nexxis): Nexxis, which provides VoIP and data services, is identified as a significant contributor to revenue growth. The company has set ambitious targets for Nexxis, aiming for a $5 million run-rate in the next 12 months, with a long-term goal of $10 million. In Q2 2025, Nexxis services contributed significantly to overall growth with a 17.3% increase.
- International Expansion, Particularly in the UK and Europe: Data Storage Corporation is actively pursuing an international growth strategy. The company has expanded its global footprint, launching operations in the UK, and is targeting UK revenue by Q4 2025 through partnerships with entities like BrightSolid, Megaport, and Pulsant. This expansion aims to capitalize on rising demand for robust cloud services in these markets.
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Share Repurchases
- Data Storage Corporation announced a tender offer on December 8, 2025, to repurchase up to 6,192,990 shares of common stock for a total potential expenditure of $32.2 million.
- The company completed the tender offer on January 12, 2026, repurchasing 5,625,129 shares at $5.20 per share, totaling approximately $29.25 million, which represented about 72.0% of outstanding shares as of December 8, 2025.
- In October 2025, Data Storage Corporation repurchased warrants issued in July 2021 for approximately $2.05 million, simplifying its capital structure and reducing potential future dilution.
Inbound Investments
- On September 11, 2025, Data Storage Corporation completed the sale of its CloudFirst subsidiary for approximately $40 million in gross proceeds, with estimated net proceeds of $24 million. This capital was used to fund the share repurchase program and future strategic investments.
Outbound Investments
- Following the CloudFirst sale and tender offer, Data Storage Corporation plans to invest in and acquire businesses focused on GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, and cybersecurity.
- The company is pursuing a disciplined hybrid acquisition strategy, targeting technology-enabled service businesses with predictable cash flows, strong margins, and established customer bases.
- In 2024, Data Storage Corporation expanded its CloudFirst platform by adding four new Tier III data centers (in the UK and Chicago), bringing its global total to ten, and fully integrated its Flagship Solutions Group subsidiary into CloudFirst.
Capital Expenditures
- Capital expenditures were approximately $1.80 million for the fiscal year ended December 31, 2024.
- For the fiscal year ended December 31, 2023, capital expenditures were approximately $1.55 million.
- These expenditures were primarily focused on expanding the company's cloud infrastructure and disaster recovery services, including establishing new data centers in Chicago and the UK.
Peer Outperformance in IT Consulting & Other Services
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 10 | 23.5% | 116.3% | 232.6% | FLEX 597% · TTMI 526% · JBL 362% |
| Technology Distributors | 9 | 46.6% | 83.2% | 82.4% | AVT 162% · SNX 140% · CNXN 100% |
| Semiconductor Materials & Equipment | 28 | 41.2% | 75.7% | 59.3% | AXTI 574% · LRCX 346% · KLAC 345% |
| Communications Equipment | 36 | 2.6% | 86.8% | 51.0% | LITE 918% · AAOI 803% · ANET 559% |
| Electronic Components | 26 | 0.4% | 67.9% | 46.8% | CLS 2604% · BELFA 1204% · APH 332% |
| Semiconductors | 55 | 1.3% | 55.8% | 16.4% | MU 1211% · NVDA 704% · AVGO 570% |
| Technology Hardware, Storage & Peripherals | 21 | 3.7% | 100.8% | 2.6% | WDC 841% · SMCI 831% · DELL 744% |
| Electronic Equipment & Instruments | 27 | -6.9% | 33.7% | -1.1% | PI 158% · OSIS 114% · MIR 73% |
| Internet Services & Infrastructure | 6 | 5.8% | 60.2% | -10.1% | GDDY 69% · VRSN 40% · DOCN -8% |
| IT Consulting & Other Services ← | 30 | -26.7% | 2.5% | -24.6% | CHRN 378321% · APLD 280% · IBM 160% |
| Application Software | 126 | -17.2% | -2.8% | -49.0% | PLTR 611% · FROG 189% · AGYS 143% |
| Systems Software | 69 | -10.0% | 25.5% | -51.8% | ZETA 277% · CRWD 255% · CVLT 169% |
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Data Storage Earnings Notes | 12/16/2025 | |
| Data Storage Stock Jump Looks Great, But How Secure Is That Gain? | 10/17/2025 |
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 104.64 |
| Mkt Cap | 14.0 |
| Rev LTM | 2,607 |
| Op Inc LTM | 255 |
| FCF LTM | 472 |
| FCF 3Y Avg | 471 |
| CFO LTM | 848 |
| CFO 3Y Avg | 731 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 6.4% |
| Rev Chg 3Y Avg | 5.5% |
| Rev Chg Q | 5.9% |
| QoQ Delta Rev Chg LTM | 1.4% |
| Op Inc Chg LTM | -1.5% |
| Op Inc Chg 3Y Avg | 2.3% |
| Op Mgn LTM | 4.3% |
| Op Mgn 3Y Avg | 5.3% |
| QoQ Delta Op Mgn LTM | -0.3% |
| CFO/Rev LTM | 29.3% |
| CFO/Rev 3Y Avg | 27.5% |
| FCF/Rev LTM | 13.6% |
| FCF/Rev 3Y Avg | 14.3% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Data transport services | 1 | 1 | |||
| Voice over Internet Protocol (VoIP) services | 1 | 0 | |||
| Other | 0 | 0 | 0 | ||
| CloudFirst Europe Ltd. | 0 | ||||
| CloudFirst Technologies | 24 | 12 | |||
| Corporate | 0 | 0 | |||
| Nexxis Inc. | 1 | 1 | |||
| Flagship Solutions LLC | 11 | ||||
| Equipment and Software | 2 | ||||
| Infrastructure & Disaster Recovery/Cloud Service | 7 | ||||
| Managed Service | 5 | ||||
| Nexxis Voice over Internet Protocol Services | 1 | ||||
| Total | 1 | 1 | 25 | 24 | 15 |
| $ Mil | 2024 | 2023 | 2022 |
|---|---|---|---|
| CloudFirst Technologies | 4 | 4 | 2 |
| Nexxis Inc. | -0 | -0 | -0 |
| CloudFirst Europe Ltd. | -0 | -0 | |
| Corporate | -3 | -3 | -2 |
| Flagship Solutions LLC | -4 | ||
| Total | 0 | 0 | -4 |
| $ Mil | 2024 | 2023 | 2022 |
|---|---|---|---|
| Corporate | 13 | 13 | 11 |
| CloudFirst Technologies | 12 | 10 | 7 |
| CloudFirst Europe Ltd. | 1 | ||
| Nexxis Inc. | 0 | 0 | 0 |
| Flagship Solutions LLC | 5 | ||
| Total | 25 | 23 | 24 |
Price Behavior
| Market Price | $2.98 | |
| Market Cap ($ Bil) | 0.0 | |
| First Trading Date | 11/05/2009 | |
| Distance from 52W High | -41.8% | |
| 50 Days | 200 Days | |
| DMA Price | $3.07 | $3.63 |
| DMA Trend | down | down |
| Distance from DMA | -3.0% | -17.8% |
| 3M | 1YR | |
| Volatility | 57.8% | 52.2% |
| Downside Capture | 127.53 | 89.02 |
| Upside Capture | 92.94 | 36.11 |
| Correlation (S&P 500) | 18.6% | 15.2% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.21 | 1.46 | 1.29 | 0.96 | 0.65 | 1.14 |
| Up Beta | 1.62 | 2.63 | 1.23 | 1.81 | 0.45 | 0.87 |
| Down Beta | 1.61 | 1.77 | 1.22 | 1.15 | 1.10 | 1.27 |
| Up Capture | -16% | 121% | 130% | 26% | 25% | 137% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 9 | 21 | 34 | 62 | 118 | 350 |
| Down Capture | 190% | 120% | 144% | 111% | 89% | 108% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 10 | 18 | 26 | 59 | 124 | 376 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DTST | |
|---|---|---|---|---|
| DTST | -28.8% | 52.2% | -0.47 | - |
| Sector ETF (XLK) | 18.6% | 27.1% | 0.60 | 16.8% |
| Equity (SPY) | 10.9% | 12.8% | 0.52 | 15.9% |
| Gold (GLD) | -2.0% | 28.6% | -0.08 | -5.6% |
| Commodities (DBC) | 48.2% | 20.6% | 1.79 | -14.1% |
| Real Estate (VNQ) | 10.2% | 13.7% | 0.45 | -6.1% |
| Bitcoin (BTCUSD) | -30.0% | 43.5% | -0.70 | 8.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DTST | |
|---|---|---|---|---|
| DTST | -5.7% | 72.7% | 0.21 | - |
| Sector ETF (XLK) | 18.6% | 26.1% | 0.64 | 19.8% |
| Equity (SPY) | 12.2% | 17.1% | 0.53 | 19.8% |
| Gold (GLD) | 16.2% | 19.0% | 0.68 | 4.8% |
| Commodities (DBC) | 9.2% | 19.5% | 0.35 | 7.7% |
| Real Estate (VNQ) | 0.9% | 18.9% | -0.06 | 11.1% |
| Bitcoin (BTCUSD) | 4.9% | 51.6% | 0.28 | 15.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DTST | |
|---|---|---|---|---|
| DTST | 2.0% | 94.6% | 0.40 | - |
| Sector ETF (XLK) | 23.7% | 25.1% | 0.86 | 15.6% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 14.6% |
| Gold (GLD) | 11.4% | 16.5% | 0.56 | 2.0% |
| Commodities (DBC) | 8.2% | 18.1% | 0.37 | 5.9% |
| Real Estate (VNQ) | 5.3% | 20.7% | 0.21 | 6.9% |
| Bitcoin (BTCUSD) | 61.8% | 66.2% | 1.02 | 8.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 9/17/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/14/2026 | -1.6% | -0.2% | -6.2% |
| 5/15/2026 | -6.9% | -10.6% | -24.2% |
| 11/19/2025 | 5.2% | 8.4% | 24.1% |
| 8/14/2025 | -2.6% | -3.0% | -0.9% |
| 5/15/2025 | -8.0% | -7.3% | -12.3% |
| 11/14/2024 | -24.5% | -24.1% | -8.8% |
| 8/14/2024 | -13.8% | -20.3% | -21.0% |
| 5/15/2024 | -1.3% | 9.0% | -4.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 4 | 5 | 4 |
| # Negative | 8 | 7 | 8 |
| Median Positive | 4.9% | 8.4% | 15.3% |
| Median Negative | -7.5% | -10.6% | -10.5% |
| Max Positive | 6.4% | 10.4% | 30.1% |
| Max Negative | -25.1% | -24.1% | -32.9% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/14/2026 | -1.6% | -0.2% | -6.2% |
| 5/15/2026 | -6.9% | -10.6% | -24.2% |
| 11/19/2025 | 5.2% | 8.4% | 24.1% |
| 8/14/2025 | -2.6% | -3.0% | -0.9% |
| 5/15/2025 | -8.0% | -7.3% | -12.3% |
| 11/14/2024 | -24.5% | -24.1% | -8.8% |
| 8/14/2024 | -13.8% | -20.3% | -21.0% |
| 5/15/2024 | -1.3% | 9.0% | -4.2% |
| 3/28/2024 | -25.1% | -20.0% | -32.9% |
| 11/14/2023 | 6.4% | 10.4% | 6.4% |
| 8/14/2023 | 4.6% | 3.5% | 30.1% |
| 4/1/2021 | 0.0% | 0.0% | 0.0% |
| SUMMARY STATS | |||
| # Positive | 4 | 5 | 4 |
| # Negative | 8 | 7 | 8 |
| Median Positive | 4.9% | 8.4% | 15.3% |
| Median Negative | -7.5% | -10.6% | -10.5% |
| Max Positive | 6.4% | 10.4% | 30.1% |
| Max Negative | -25.1% | -24.1% | -32.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/14/2026 | 10-Q |
| 03/31/2026 | 05/15/2026 | 10-Q |
| 12/31/2025 | 04/14/2026 | 10-K |
| 09/30/2025 | 11/19/2025 | 10-Q |
| 06/30/2025 | 08/14/2025 | 10-Q |
| 03/31/2025 | 05/15/2025 | 10-Q |
| 12/31/2024 | 03/31/2025 | 10-K |
| 09/30/2024 | 11/14/2024 | 10-Q |
| 06/30/2024 | 08/14/2024 | 10-Q |
| 03/31/2024 | 05/15/2024 | 10-Q |
| 12/31/2023 | 03/28/2024 | 10-K |
| 09/30/2023 | 11/14/2023 | 10-Q |
| 06/30/2023 | 08/14/2023 | 10-Q |
| 03/31/2023 | 05/15/2023 | 10-Q |
| 12/31/2022 | 03/31/2023 | 10-K |
| 09/30/2022 | 11/14/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/14/2026 | 10-Q |
| 03/31/2026 | 05/15/2026 | 10-Q |
| 12/31/2025 | 04/14/2026 | 10-K |
| 09/30/2025 | 11/19/2025 | 10-Q |
| 06/30/2025 | 08/14/2025 | 10-Q |
| 03/31/2025 | 05/15/2025 | 10-Q |
| 12/31/2024 | 03/31/2025 | 10-K |
| 09/30/2024 | 11/14/2024 | 10-Q |
| 06/30/2024 | 08/14/2024 | 10-Q |
| 03/31/2024 | 05/15/2024 | 10-Q |
| 12/31/2023 | 03/28/2024 | 10-K |
| 09/30/2023 | 11/14/2023 | 10-Q |
| 06/30/2023 | 08/14/2023 | 10-Q |
| 03/31/2023 | 05/15/2023 | 10-Q |
| 12/31/2022 | 03/31/2023 | 10-K |
| 09/30/2022 | 11/14/2022 | 10-Q |
| 06/30/2022 | 08/12/2022 | 10-Q |
| 03/31/2022 | 05/16/2022 | 10-Q |
| 12/31/2021 | 03/31/2022 | 10-K |
| 09/30/2021 | 11/15/2021 | 10-Q |
| 06/30/2021 | 08/16/2021 | 10-Q |
| 03/31/2021 | 05/17/2021 | 10-Q |
| 12/31/2020 | 03/31/2021 | 10-K |
| 09/30/2020 | 11/17/2020 | 10-Q |
| 06/30/2020 | 08/17/2020 | 10-Q |
| 03/31/2020 | 05/20/2020 | 10-Q |
| 12/31/2019 | 04/14/2020 | 10-K |
| 09/30/2019 | 11/19/2019 | 10-Q |
Insider Activity
Updated 9/14/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Kempster, Thomas | Direct | Sell | 9142026 | 2.92 | 3,500 | 10,238 | 54,112 | Form | |
| 2 | Mitchell, Uwayne A | Direct | Sell | 9112026 | 2.95 | 3,000 | 8,850 | 56,050 | Form | |
| 3 | Argen, John | Direct | Sell | 9112026 | 2.97 | 3,000 | 8,910 | 56,430 | Form | |
| 4 | Stein, Clifford | Direct | Sell | 9112026 | 3.05 | 3,991 | 12,173 | 54,927 | Form | |
| 5 | Piluso, Charles M | Chairman and CEO | Direct | Sell | 5262026 | 3.82 | 32,610 | 124,570 | 852,143 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Kempster, Thomas | Direct | Sell | 9142026 | 2.92 | 3,500 | 10,238 | 54,112 | Form | |
| 2 | Mitchell, Uwayne A | Direct | Sell | 9112026 | 2.95 | 3,000 | 8,850 | 56,050 | Form | |
| 3 | Argen, John | Direct | Sell | 9112026 | 2.97 | 3,000 | 8,910 | 56,430 | Form | |
| 4 | Stein, Clifford | Direct | Sell | 9112026 | 3.05 | 3,991 | 12,173 | 54,927 | Form | |
| 5 | Piluso, Charles M | Chairman and CEO | Direct | Sell | 5262026 | 3.82 | 32,610 | 124,570 | 852,143 | Form |
| 6 | Piluso, Charles M | Chairman and CEO | Direct | Sell | 5262026 | 3.82 | 41,793 | 159,649 | 976,713 | Form |
| 7 | Piluso, Charles M | Chairman and CEO | Direct | Sell | 5262026 | 3.91 | 12,555 | 49,090 | 1,163,135 | Form |
| 8 | Maglione, Lawrence A | Direct | Sell | 12152025 | 5.03 | 3,298 | 16,584 | 124,464 | Form | |
| 9 | Maglione, Lawrence A | Direct | Sell | 12152025 | 5.00 | 18,231 | 91,200 | 140,320 | Form | |
| 10 | Correll, Todd A | Direct | Sell | 12152025 | 4.96 | 10,471 | 51,936 | 166,358 | Form | |
| 11 | Piluso, Charles M | Chairman and CEO | Direct | Sell | 12122025 | 4.99 | 20,089 | 100,312 | 2,063,727 | Form |
| 12 | Kempster, Thomas | Direct | Sell | 12122025 | 4.99 | 6,846 | 34,185 | 4,354,105 | Form | |
| 13 | Panagiotakos, Christos | Chief Financial Officer | Direct | Sell | 12122025 | 4.99 | 11,053 | 55,192 | 202,268 | Form |
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| IT Consulting & Other Services Resources |
| IDC |
| Forrester |
| Consultancy.org |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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