Data Storage Corporation Earnings Recaps
Q3 2025
Nov 20, 2025
Data Storage Corporation's Q3 2025 results reflect a pivotal transformation following the successful sale of its CloudFirst subsidiary, leading to a substantial increase in net income and a streamlined operational focus.
Key takeaways
- Completed the sale of CloudFirst for $40 million, enhancing financial stability and simplifying company structure.
- Q3 sales from continuing operations (Nexxis) rose 28.2% year-over-year to $417,000, driven by growth in telecommunications solutions.
- Net income for Q3 surged to $16.8 million, compared to $122,000 in the same period last year, primarily due to gains on discontinued operations.
- Cash and marketable securities at quarter-end totaled approximately $45.8 million, up from $12.3 million at year-end 2024, positioning the company for strategic growth post-tender offer.
- The company is exploring acquisitions in high-value sectors, including AI and cybersecurity, while maintaining a disciplined approach to capital allocation.