Data Storage: Fiscal FY25 Financial Results

Summary:

• Completed $40 million CloudFirst divestiture, generating approximately $31.6 million in net proceeds and a $20.1 million net gain on discontinued operations
• Returned $29.3 million to shareholders through a tender offer at $5.20 per share, reducing shares outstanding by approximately 72% of the total shares outstanding as of December 8, 2025
• Delivered record net income of $19.2 million, primarily attributable to the CloudFirst sale
• Strengthened capital structure, exiting 2025 debt-free with over $10 million in cash and significant financial flexibility
• Positioned for M&A, JV, and organic driven growth with a goal of pursuing accretive opportunities

Data Storage Corp., announced financial results for the fiscal year ended December 31, 2025, and provided a business update.DTST has emerged as a streamlined, Nasdaq-listed platform with capital, operational discipline, and strategic flexibility to pursue value-accretive acquisitions.

The Company is actively evaluating opportunities in billion-$ markets, including but not limited to AI-enabled vertical SaaS and GPU infrastructure, cybersecurity and SOC-related solutions, and scalable technology services with recurring revenue models. DTST’s strategy is centered on disciplined capital allocation, targeting high-growth and high-margin businesses where it can accelerate scale and enhance long-term shareholder value.

DTST continues to operate Nexxis Inc. today its core business, which provides a stable and growing operating foundation. Revenue from continuing operations totaled $1.4 million, up 13.4% Y/Y, with gross profit of $614,324 and gross margin expanding to 44.4% from 43.2% in the prior year. Nexxis also improved customer diversification, with no customer representing more than 10% of revenue.

With its strengthened balance sheet and available capital, the Company is rapidly advancing initiatives targeting emerging AI infrastructure opportunities within enterprise technology. These efforts reflect the Company’s focus on aligning capital deployment with large, evolving market needs and evaluating multiple strategic pathways for execution. The Company expects to provide near-term updates as these initiatives progress.

“2025 was the most consequential year in Data Storage Corporation’s history,” said Chuck Piluso, CEO. “We monetized a legacy asset, returned the majority of proceeds to shareholders who tendered their shares, and repositioned DTST as a clean, well-capitalized platform focused on growth. We are now focused on deploying capital into high-quality businesses where we can drive scale, expand margins, and create long-term shareholder value. Importantly, we have already identified a number of highly attractive and actionable opportunities that we believe have the potential to create significant value for the Company, and we are working aggressively to advance these initiatives. We look forward to providing meaningful updates in the near term as these initiatives continue to develop.”