Data Storage Corp (DTST)

Data Storage Corporation reported a 9.3% year-over-year revenue increase from continuing operations, driven by its Nexus voice and data solutions business, and a 21.9% increase in gross profit. Despite this, the company posted a net loss of $1.2 million, attributed to higher non-cash stock-based compensation and professional fees. With $9.3 million in cash and no long-term debt, DTST is strategically focusing on M&A in AI infrastructure, cybersecurity, and communications software, aiming for recurring revenue businesses with strong management teams, and expects to sign an LOI within 60 days to close a deal by Q4 or Q1 of next year.

Data Storage (DTST) reported Q2 2026 revenue of $358,530 and a gross profit of $168,481, resulting in a net loss of $1,225,060. The company maintained approximately $9.3 million in cash and marketable securities with no long-term debt, and is actively pursuing acquisitions in recurring-revenue technology businesses while experiencing continued revenue growth at Nexxis. Strategic initiatives include establishing Sovereign AI Solutions for AI infrastructure.

Data Storage Corp (DTST) reported an increased net loss for the first half of 2026, totaling $1.86 million, despite revenue growth in its continuing Nexxis operations. The company's sales from continuing operations rose by 10.1% year-over-year to $705,237, with an improved gross margin of 50.3%. However, the wider loss was attributed to a sharp increase in non-cash stock-based compensation and higher professional fees, alongside a $2.64 million cash outflow from operating activities.

Data Storage Corporation (DTST) reported a Q2 2026 revenue miss, with revenue from continuing operations reaching $359,000 against an estimated $400,000, causing shares to fall 16.9% in premarket trading. Despite a higher gross profit and improved margins, increased operating costs led to a wider net loss of $1.2 million. The company is focusing on its Nexxis business and actively pursuing acquisitions in technology sectors like GPU infrastructure and cybersecurity to build sustainable recurring revenue and enhance shareholder value.

Data Storage Corporation reported Q2 2026 results with Nexus revenue up 9.3% year-over-year to $359,000, but a net loss widened to $1.2 million due to increased SG&A expenses. The company maintains a strong balance sheet with $9.3 million in cash and is actively pursuing M&A opportunities in AI and cybersecurity. Management aims to sign a non-binding LOI within 60 days and close a deal by Q4 or Q1 of the next fiscal year, focusing on strategic acquisitions to build recurring revenue.