Data Storage DTST

NASDAQ DTST

$2.82 +0.14 (+5.30%)

As of: Nov 10, 2026 · 12:25 PM EST

Data Storage (DTST) stock price is $2.82, up 5.30% on the day, as of Nov 10, 2026. It has a market cap of $6.51Mn, and is classified in the Networking Equipment industry (Technology sector).

Key Stats

Market Cap6.51 Mn

P/E0.36

FCF (Yr)-3.18 Mn

ROA (Yr)56.26

EV to EBIT22.17

Net Income (Yr)19.21 Mn

Enterprise Value-99.21 Mn

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About

Data Storage Corporation is a leading provider of multicloud hosting, fully managed cloud services, disaster recovery, cybersecurity, IT automation, and voice and data solutions. The company operated through its subsidiaries CloudFirst Technologies Corporation and CloudFirst Europe Ltd. until the sale of the CloudFirst business on September 11, 2025, for which it received $38,068,463 in cash. Following that transaction, Data Storage Corporation continues to operate its subsidiary Nexxis Inc., which delivers fully managed business voice, internet, data transport, and SDWAN communication solutions. The firm is now concentrating on managing, building, expanding, or acquiring synergetic technology companies that provide leading edge solutions to improve business processes. This strategic shift allows the company to focus on identifying and integrating technology firms that complement its existing capabilities.

Revenue is generated primarily from Nexxis’s subscription based services that include voice communications, internet access, data transport, and SDWAN offerings delivered under unified service agreements. Customers pay recurring fees for fully managed 24x7 monitoring, multi carrier redundancy, and a single invoice that consolidates advanced voice and high performance WAN infrastructure. The company may also derive income from strategic initiatives such as managing or acquiring complementary technology firms, although the core revenue stream remains the Nexxis communications platform. The recurring revenue model provides predictable cash flow and supports long term planning. Proceeds from the sale of the CloudFirst business have strengthened the balance sheet, providing liquidity for future acquisitions and shareholder returns.

The company operates through the following segment.

Nexxis: Provides fully managed business voice, internet, data transport, and SDWAN communication solutions engineered for enterprise grade reliability, cloud performance, and simplified operations. The segment emphasizes 24x7 monitoring, multi carrier redundancy, intelligent SDWAN routing, a single invoice, and unified service management. It also focuses on reduced downtime, improved business continuity, and lower total cost of ownership compared to legacy multivendor environments. Nexxis serves customers nationwide across healthcare, professional services, financial services, manufacturing, and distributed enterprise environments. Key advantages include proactive monitoring, enterprise grade performance, and a white glove approach to customer service.

Nexxis positions itself as a cloud first communications provider that differentiates through integrated voice and internet architecture, proactive monitoring, enterprise grade performance, and a white glove customer experience. These attributes enable the firm to serve organizations that require high uptime and performance guarantees across healthcare, professional services, financial services, manufacturing, and distributed enterprise environments. By consolidating voice, internet, and WAN services under one management platform, Nexxis reduces complexity and improves service reliability for its clients. The company competes with other providers of voice and data solutions while leveraging its focus on cloud centric, fully managed offerings to maintain a competitive edge. Its nationwide footprint and ability to deliver customized connectivity solutions further strengthen its market position. The firm maintains compliance with HIPAA, HITECH, and other privacy regulations, which is critical for serving healthcare and financial customers.

The company serves businesses across multiple verticals including healthcare, professional services, financial services, manufacturing, and distributed enterprise environments. Its customer base consists of enterprises that rely on reliable voice, internet, and data transport services with simplified management and continuous uptime. Nexxis also supports hybrid workforces and cloud dependent organizations that need seamless connectivity between on premises and cloud resources. In addition, the firm provides services to distributed enterprises that require consistent performance across multiple locations. Nexxis also offers solutions for businesses that require secure and reliable data transport to support disaster recovery initiatives.

Investment Thesis

▲ Bull case

Strong liquidity from the CloudFirst sale provides firepower for accretive acquisitions. Cash at September 30 2025 stood at approximately $45,800,000 before any buyback activity. Management expects the tender offer and share buyback to leave between $10,000,000 and $15,000,000 of residual cash while the $10,800,000 ATM remains available for opportunistic deals. This financial flexibility supports strategic tuck in acquisitions in the Nexxis VoIP and data access space at attractive low multiples, which can boost recurring revenue without causing significant dilution.
Nexxis reported quarterly revenue of $417,000, representing a 28.2% increase versus the prior year period. Year to date revenue reached $1,100,000, up 17.6% from the same nine month period in 2024. Management views the platform as scalable through the addition of VoIP and data circuit customers, emphasizing low churn and sticky telco relationships. A newly formed advisory group, aided by a board member with deep telecom M&A experience, is actively sourcing targets that could expand Nexxis from its current $1,500,000 revenue base to $5,000,000 or more.
The company is evaluating high growth adjacent markets such as GPU based computing, AI enabled infrastructure and cybersecurity. While these sectors exhibit valuation volatility, the disciplined investment approach and the $10,800,000 ATM allow for measured capital deployment. If a niche player with proven technology can be acquired at a reasonable valuation, the upside could be asymmetric relative to the modest capital outlay. A clean balance sheet with no debt and a NASDAQ listing position DSC to act swiftly when attractive opportunities arise.

▼ Bear case

Core operating revenue remains modest at $417,000 for the quarter and $1,100,000 for the nine month period. The company’s growth strategy leans heavily on acquisitions to drive meaningful top line expansion. Integrating VoIP or AI related targets may prove operationally costly and could divert focus from the thin existing Nexxis business. Execution risk is heightened given the limited scale of the current operating base and the complexity of merging disparate technologies.
The tender offer and share buyback could consume a substantial portion of the cash reserve. Management’s guidance indicates a post buyback cash range of $5,000,000 to $15,000,000, which is wide and uncertain. If the buyback utilizes cash at the higher end of that range, the residual $5,000,000 may constrain the ability to fund sizable acquisition opportunities. In such a scenario reliance on the $10,800,000 ATM could lead to shareholder dilution if the capital is deployed for expensive but accretive purchases.
The AI infrastructure and GPU based computing sectors are often driven by hype rather than fundamentals. Chasing these trends may result in overpaying for assets that lack proven revenue streams. Moreover the company does not possess deep specialized expertise in these areas, increasing the likelihood of strategic missteps and potential write downs. Meanwhile the telecom VoIP market faces commoditization and price pressure, which limits the upside potential from Nexxis tuck in initiatives.

Related and Nonrelated Parties Breakdown of Revenue (2025)

History

Peer percentiles

How Data Storage ranks

Ranked against the 121 companies in Computer Hardware58 metrics · as of Nov 6, 2026

Valuation

12 metrics · Lower multiples rank higher; a negative multiple ranks last

P/EImplausibly low multiple 0.30xMedian 25.2x Not meaningful —
P/FCFNegative free cash flow −1.60xMedian 23.4x 8^th
P/Operating cash flowNegative operating cash flow −1.60xMedian 17.5x 8^th
P/S 3.74xMedian 2.38x 38^th
P/B 0.52xMedian 2.27x 87^th
P/Tangible book 0.52xMedian 2.82x 90^th
EV/EBITDANet cash exceeds market value 0.91xMedian 16.2x Not meaningful —
EV/EBITNet cash exceeds market value 0.87xMedian 19.3x Not meaningful —
EV/RevenueNet cash exceeds market value −2.67xMedian 2.00x Not meaningful —
EV/FCFNet cash exceeds market value 1.15xMedian 19.4x Not meaningful —
EV/Operating cash flowNet cash exceeds market value 1.15xMedian 16.9x Not meaningful —
PEG (3Y EPS CAGR)Implausibly low multiple 0.00Median 0.98 Not meaningful —

Growth

14 metrics · Year-on-year growth and three-year compound annual growth

Revenue growth (1Y) 12.5%Median 14.2% 46^th
Revenue CAGR (3Y) −60.3%Median 3.6% 2^nd
Gross profit growth (1Y) 24.0%Median 18.2% 59^th
Gross profit CAGR (3Y) −56.8%Median 4.4% 3^rd
Operating income growth (1Y) −33.7%Median 29.3% 12^th
Operating income CAGR (3Y) −12.3%Median 10.5% 14^th
Net income growth (1Y) 6,755%Median 33.3% 99^th
Net income CAGR (3Y) 101%Median 11.4% 93^rd
EPS growth (1Y) >10,000%Median 36.4% 99^th
EPS CAGR (3Y) 173%Median 21.8% 94^th
Operating cash flow growth (1Y) −613%Median 7.8% 1^st
Operating cash flow CAGR (3Y) −55.1%Median 10.6% 6^th
Free cash flow growth (1Y) −317%Median 7.4% 5^th
Free cash flow CAGR (3Y) −89.0%Median 13.1% 6^th

Profitability

14 metrics · Margins, returns on capital and the quality of earnings

Gross margin 47.7%Median 40.0% 67^th
EBITDA margin −292%Median 7.2% 10^th
Operating margin −309%Median 4.9% 9^th
Pretax margin −247%Median 4.3% 8^th
Net margin 1,247%Median 2.9% 98^th
FCF margin −233%Median 3.8% 9^th
Operating cash flow margin −233%Median 7.1% 9^th
Return on equity 185%Median 5.0% 98^th
Return on assets 170%Median 2.5% 99^th
Return on invested capital —Median 9.7% No data —
Return on capital employed —Median 6.4% No data —
Asset turnover 0.13xMedian 0.70x 10^th
Cash conversion (OCF / net income) −0.17xMedian 1.25x 10^th
Stock comp / revenue 59.7%Median 2.7% 8^th

Financial Health

11 metrics · Leverage, liquidity and solvency; less debt ranks higher

Debt / assets —Median 16.2% No data —
Debt / equity —Median 0.34x No data —
Net debt / EBITDA —Median 0.04x No data —
Debt / FCF —Median 2.25x No data —
Liabilities / assets 7.2%Median 46.0% 93^rd
Equity / assets 92.8%Median 54.6% 93^rd
Interest coverage —Median 5.64x No data —
Current ratio —Median 1.99x No data —
Quick ratio —Median 1.23x No data —
Cash ratio —Median 0.68x No data —
Altman Z-score —Median 3.16 No data —

Peer group

Peer Comparison

Companies in the Networking Equipment

View all peers

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	AAPL	Apple Inc.	5,090.84 Bn	38.52	10.63	80.11 Bn
2	CSCO	Cisco Systems, Inc.	390.99 Bn	29.47	6.17	29.53 Bn
3	ANET	Arista Networks, Inc.	240.45 Bn	50.60	20.22	-
4	DELL	Dell Technologies Inc.	219.04 Bn	19.25	1.45	34.47 Bn
5	SONY	Sony Group Corp	158.27 Bn	-74.47	2.01	11.24 Bn
6	SNDK	Sandisk Corp	129.40 Bn	6.66	4.47	-
7	STX	Seagate Technology Holdings plc	114.31 Bn	26.00	8.28	2.35 Bn
8	DTST	Data Storage Corp	0.01 Bn	0.36	4.50	-