olivLaw · US equity research
Data Storage Corporation DTST
Services-Computer Processing & Data Preparation · SIC 7374 · Vertical: Services-Computer Processing & Data Preparation (SIC 7374)
Data Storage Corporation (DTST) has moved away from its cloud business after selling CloudFirst and now operates through its Nexxis subsidiary, a provider of managed voice, internet and SD-WAN services for businesses. The company is now trying to invest its remaining resources in acquisitions of technology firms with recurring revenue, a step that draws investor attention to how its capital will be used.
At the close of 04 Nov 2026, Data Storage Corporation (DTST) stock was 2.79 USD (−5.10% on the day), with market capitalisation 6.5 m USD, P/E 1.5 on diluted EPS of 1.92 USD over the last 12 months, beta 1.00, 52-week range 2.79–5.12 USD. Latest reported quarter (Q2 2026): revenue of 358.5 k USD (+9.3% YoY), net income of -1.2 m USD, diluted EPS -0.55 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 38.1
- weak (30–45)
- Bollinger (20, 2)
- 2.80 – 3.35
- below the lower band · %B -0.02 · band width 17.9%
- SMA 50 / 200
- 3.07 / 3.63
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.06 / -0.03
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −17.7% | −1.1% | −16.6 pp | — |
| 3 months | −11.7% | −0.5% | −11.3 pp | — |
| 6 months | −33.7% | +4.4% | −38.1 pp | — |
| Year to date | −45.5% | +12.3% | −57.8 pp | — |
| 1 year | −32.4% | +13.5% | −46.0 pp | −24.7% |
| 3 years | −2.4% | +76.4% | −78.9 pp | −26.9% |
| 5 years | −34.5% | +63.7% | −98.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 325.3 k | 320.1 k | 312.7 k | 328.0 k | 417.0 k | 325.3 k | 346.7 k | 358.5 k |
| Cost of revenue | 180.8 k | 187.3 k | 172.0 k | 189.8 k | 218.5 k | 188.4 k | 160.7 k | 190.0 k |
| Gross profit | 144.5 k | 132.8 k | 140.8 k | 138.2 k | 198.5 k | 136.9 k | 186.0 k | 168.5 k |
| SG&A | 984.1 k | 973.2 k | 856.9 k | 1.1 m | 1.3 m | 945.2 k | 1.5 m | 1.5 m |
| Operating income | -839.6 k | -840.4 k | -716.1 k | -950.8 k | -1.1 m | -808.3 k | -1.3 m | -1.3 m |
| Depreciation & amortisation | 357.3 k | 408 | 530 | 568 ≈ | 562 ≈ | 3.6 k | 554 | 880 ≈ |
| Interest expense | 9.8 k | 87.7 k | 2.0 k | 16.2 k | — | — | — | — |
| Pre-tax income | -678.9 k | -704.2 k | -595.2 k | -847.5 k | -905.1 k | -375.5 k | -1.0 m | -1.2 m |
| Income tax | 0 | -39.0 k | — | — | -1.0 m | 2.9 m | -280.2 k | -63.6 k |
| Net income | 123.5 k | 300.4 k | 26.4 k | -732.0 k | 16.8 m | 3.1 m | -619.3 k | -1.2 m |
| Diluted EPS | 0.02 | 0.05 ≈ | 0.00 | -0.10 | 2.20 | 0.47 ≈ | -0.20 | -0.55 |
| Operating cash flow | 197.8 k ≈ | 1.2 m | -1.1 m | 372.3 k ≈ | 171.7 k ≈ | -2.6 m | -1.8 m | -866.8 k ≈ |
| Capex | -900.4 k ≈ | 0 | 1.2 k | 0 ≈ | -1.0 k ≈ | 15.9 k | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 23-quarter history (min 1.6, median 63.1, max 4,402.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ⚠ 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 8.9 m | 8.5 m | 9.3 m | 14.9 m | 23.9 m | 25.0 m | 1.2 m | 1.4 m |
| Revenue YoY | +7.6% | −4.5% | +9.9% | +59.6% | +60.5% | +4.6% | — | +13.4% |
| Net income | 259.8 k | 69.9 k | 200.0 k | 267.8 k | -4.4 m | 381.6 k | 523.2 k | 19.2 m |
| Net income YoY | unavailable | −73.1% | +186.3% | +33.9% | −1,726.6% | unavailable | — | +3,572.5% |
| Diluted EPS | 0.00 | 0.00 | 0.02 | 0.03 | -0.64 | 0.05 | 0.08 | 2.64 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | +50.0% | −2,233.3% | unavailable | — | +3,200.0% |
| net % | 2.9% | 0.8% | 2.1% | 1.8% | -18.3% | 1.5% | 42.9% | 1,389.4% |
| Free cash flow | unavailable | 759.3 k | 929.6 k | -816.5 k | 536.5 k | 2.3 m | 1.7 m | -3.2 m |
The series breaks before 2024: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 2.0 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 40.7 m USD
- Total assets
- 43.0 m USD
- Debt / equity
- unavailable
- Current ratio
- 21.05x
- ROE
- 62.1%
- ROA
- 56.3%
- FCF margin
- -229.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 9.3 m | 14.9 m | 23.9 m | 25.0 m | 1.2 m | 1.4 m | SEC (XBRL)· 14 Apr 2026verified |
| Cost of revenue | 5.4 m | 8.5 m | 15.8 m | 15.4 m | 692.0 k | 768.6 k | SEC (XBRL)· 14 Apr 2026verified |
| Gross profit | 3.9 m | 6.4 m | 8.1 m | 9.6 m | 527.2 k | 614.3 k | SEC (XBRL)· 14 Apr 2026verified |
| SG&A | 3.9 m | 7.2 m | 9.8 m | 9.7 m | 3.8 m | 4.2 m | SEC (XBRL)· 14 Apr 2026verified |
| Operating income | -1.1 k | -767.1 k | -4.1 m | -168.4 k | -3.3 m | -3.6 m | SEC (XBRL)· 14 Apr 2026verified |
| Depreciation & amortisation | 1.0 m | 1.3 m | 1.2 m | 1.3 m | 1.6 k | 5.2 k | SEC (XBRL)· 14 Apr 2026verified |
| EBITDA | 1.0 m ≈ | 517.3 k ≈ | -2.9 m ≈ | 1.1 m ≈ | -3.3 m ≈ | -3.6 m ≈ | SEC (XBRL)· 14 Apr 2026derived |
| Interest expense | 175.6 k | 126.7 k | 141.1 k | 74.5 k | 119.0 k | — | SEC (XBRL)· 31 Mar 2025verified |
| Pre-tax income | 173.4 k | -139.7 k | -4.4 m | 299.3 k | -2.7 m | -2.7 m | SEC (XBRL)· 14 Apr 2026verified |
| Income tax | — | -399.6 k | — | — | -39.0 k | 1.9 m | SEC (XBRL)· 14 Apr 2026verified |
| Net income | 200.0 k | 267.8 k | -4.4 m | 381.6 k | 523.2 k | 19.2 m | SEC (XBRL)· 14 Apr 2026verified |
| Diluted EPS | 0.02 | 0.03 | -0.64 | 0.05 | 0.08 | 2.64 | SEC (XBRL)· 14 Apr 2026verified |
| Weighted average diluted shares | 3.4 m | 6.3 m | 6.8 m | 7.4 m | 6.9 m | 7.3 m | SEC (XBRL)· 14 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 893.6 k | 12.1 m | 2.3 m | 1.4 m | 1.1 m | 2.0 m | SEC (XBRL)· 14 Apr 2026verified |
| Receivables | 554.6 k | 2.4 m | 3.5 m | 1.3 m | 59.0 k | 34.6 k | SEC (XBRL)· 14 Apr 2026verified |
| Current assets | 1.7 m | 15.1 m | 15.4 m | 14.5 m | 15.4 m | 42.6 m | SEC (XBRL)· 14 Apr 2026verified |
| Property, plant & equipment, net | 2.3 m | 1.9 m | 2.2 m | 2.7 m | 6.1 k | — | SEC (XBRL)· 19 Nov 2025verified |
| Goodwill | 3.0 m | 6.6 m | 4.2 m | 4.2 m | 4.2 m | — | SEC (XBRL)· 31 Mar 2025verified |
| Intangibles (excl. goodwill) | 455.9 k | 2.3 m | 2.0 m | 1.7 m | 1.4 m | — | SEC (XBRL)· 31 Mar 2025verified |
| Total assets | 7.8 m | 26.3 m | 24.1 m | 23.3 m | 25.3 m | 43.0 m | SEC (XBRL)· 14 Apr 2026verified |
| Accounts payable | 979.6 k | 1.3 m | 3.2 m | 2.6 m | 588.6 k | 842.5 k | SEC (XBRL)· 14 Apr 2026verified |
| Short-term debt | — | 1.1 m | 537.5 k | 37.9 k | — | — | SEC (XBRL)· 28 Mar 2024verified |
| Long-term debt | 107.1 k | — | — | — | — | — | SEC (XBRL)· 31 Mar 2021verified |
| Current liabilities | 4.4 m | 3.0 m | 4.5 m | 3.5 m | 3.5 m | 2.0 m | SEC (XBRL)· 14 Apr 2026verified |
| Total liabilities | 5.8 m | 3.7 m | 5.1 m | 3.5 m | 4.1 m | 2.3 m | SEC (XBRL)· 14 Apr 2026verified |
| Equity | 1.9 m | 22.6 m | 18.9 m | 19.8 m | 21.2 m | 40.7 m | SEC (XBRL)· 14 Apr 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.1 m | -360.7 k | 663.8 k | 3.9 m | 1.7 m | -3.2 m | SEC (XBRL)· 14 Apr 2026verified |
| Capex | 181.1 k | 455.8 k | 127.3 k | 1.5 m | 2.1 k | 16.0 k | SEC (XBRL)· 14 Apr 2026verified |
| Free cash flow | 929.6 k ≈ | -816.5 k ≈ | 536.5 k ≈ | 2.3 m ≈ | 1.7 m ≈ | -3.2 m ≈ | SEC (XBRL)· 14 Apr 2026derived |
| Investing cash flow | -181.1 k | -6.4 m | -9.1 m | -3.9 m | -1.7 m | 6.9 m | SEC (XBRL)· 14 Apr 2026verified |
| Financing cash flow | -362.6 k | 18.0 m | -1.4 m | -878.8 k | -353.0 k | -1.3 m | SEC (XBRL)· 14 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 6.5 m USD
Key indicators
Coverage and freshness
Score by group
66% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 47.7% | 19 (on a fixed band) | 16% |
| EBIT margin · Quality | -309.2% | 8 (vs peers) | 13% |
| FCF margin · Quality | -352.0% | 0 (on a fixed band) | 13% |
| Revenue CAGR 3Y · Growth | -61.3% | 0 (on a fixed band) | 26% |
| Revenue growth (YoY) · Growth | 13.4% | 69 (vs peers) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -78.1% | 0 (on a fixed band) | 19% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partialunavailable · 0/2 factors with a value
- Growth23/100 · 2/2 factors with a value
- Quality10/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation· partial0/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
DATA STORAGE CORPORATION (DTST). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.4 m USD in 2025; YoY growth 13.4%; net margin 1,248.8%; ROE 113.7%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- Gross margin: 47.7%
- EBIT margin: -309.2%
- FCF margin: -352.0%
- Revenue CAGR 3Y: -61.3%
- FCF yield: -78.1%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, Current ratio, EV/Sales, Shareholder yield (distributions).
Versus the vertical median
Services-Computer Processing & Data Preparation (SIC 7374) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ADPAutomatic Data Processing, Inc. | 119.8 bn | 27.7 | 77.0% | 20.1% | +6.7% | +19% / +32% |
| WDAYWorkday, Inc. | 44.4 bn | 40.9 | 16.0% | 12.3% | +13.1% | −6% / −25% |
| VRSKVerisk Analytics, Inc. | 25.9 bn | 30.1 | — | 29.3% | +6.6% | −12% / −18% |
| FIRYFiry Inc. | 4.3 bn | — | -63.0% | -60.2% | +12.5% | +107% / +94% |
| FAFirst Advantage Corp | 3.9 bn | 160.5 | 1.9% | 1.5% | +83.0% | +62% / +45% |
| FIVNFive9, Inc. | 2.7 bn | 52.7 | 7.9% | 4.9% | +10.3% | +86% / −52% |
| RAMPLiveRamp Holdings, Inc. | 2.3 bn | 15.8 | 16.2% | 18.7% | +9.0% | +41% / +39% |
| INFQInfleqtion, Inc. | 1.9 bn | — | -70.8% | — | unavailable | unavailable / unavailable |
| INODInnodata Inc | 1.5 bn | 32.8 | 37.7% | 14.7% | +47.6% | −25% / +541% |
| CLVTClarivate PLC | 1.4 bn | — | -8.2% | -15.1% | −4.0% | −44% / −73% |
| UPWKUpwork Inc. | 1.3 bn | 12.9 | 16.3% | 13.5% | +2.4% | −48% / −27% |
| LZLegalZoom.com, Inc. | 1.1 bn | 56.0 | 12.1% | 2.6% | +10.9% | −26% / −40% |
| PLTKPlaytika Holding Corp. | 808.6 m | — | — | -9.9% | +8.1% | −48% / −76% |
| YEXTYext, Inc. | 775.0 m | 40.6 | 27.8% | 5.9% | +6.1% | −7% / +18% |
| NRDSNerdWallet, Inc. | 754.4 m | 13.3 | 18.2% | 7.6% | +21.7% | −21% / +1% |
| NXTTNext Technology Holding Inc. | 736.5 m | — | -59.4% | -2,356.0% | +545.3% | −99% / −100% |
| CARSCars.com Inc. | 682.5 m | 22.4 | 7.4% | 4.7% | +0.6% | +10% / −32% |
| IBEXIBEX Limited | 593.6 m | 14.3 | 30.4% | 7.2% | +15.4% | +27% / +152% |
| OOMAOoma, Inc. | 524.7 m | 49.8 | 11.7% | 3.6% | +6.5% | +69% / +64% |
| GRVYGravity Co., Ltd. | 475.7 m | 0.0 | 16.5% | 17.0% | −31.0% | +19% / −6% |
| EGHT8x8, Inc. | 326.4 m | 55.5 | 3.5% | 0.6% | +2.9% | +16% / −27% |
| TCXTucows Inc | 140.3 m | — | — | -21.2% | +7.7% | −42% / −41% |
| TRAKRepositrak, Inc. | 132.7 m | 18.7 | 14.9% | 32.5% | +3.0% | −46% / −29% |
| BIRDSmartbird, Inc. | 92.1 m | — | -164.0% | -72.8% | −19.7% | −68% / −91% |
| VERIVeritone, Inc. | 56.7 m | — | -517.7% | -117.5% | −0.5% | −87% / −73% |
1- and 3-year price returns: for DTST from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 6.00 Total return 115% · Per year 115% | 10.66 Total return 282% · Per year 282% | 16.13 Total return 478% · Per year 478% |
| 3 years | 4.76 Total return 71% · Per year 20% | 9.62 Total return 245% · Per year 51% | 16.13 Total return 478% · Per year 79% |
| 5 years | 3.78 Total return 36% · Per year 6% | 8.68 Total return 211% · Per year 25% | 16.13 Total return 478% · Per year 42% |
- Exit P/E± 2.41
- Net margin± 1.68
- Annual revenue growth± 1.52
- Annual dilution± 0.14
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Data Storage Corporation (DTST) has moved away from its cloud business after selling CloudFirst and now operates through its Nexxis subsidiary, a provider of managed voice, internet and SD-WAN services for businesses. The company is now trying to invest its remaining resources in acquisitions of technology firms with recurring revenue, a step that draws investor attention to how its capital will be used.
SWOT
Strengths
- The company has a clean balance sheet with no long-term debt and a simplified capital structure after the share repurchase 3.
- Nexxis brings recurring and growing revenue, with a managed services model that customers value 1.
- The company is publicly listed, which may ease access to capital and merger transactions 2.
Weaknesses
Opportunities
- Acquisitions of recurring-revenue companies in artificial intelligence and cybersecurity could significantly expand the company's scale 1.
- AI continuity infrastructure for regulated industries, mentioned in the release, could open new markets 3.
- Steady demand for managed connectivity could support Nexxis as a stable operating base 3.
Risks
- Unclear strategy after the salehigh
The company has not yet set a definitive direction, and remaining funds could prove insufficient if the search for acquisitions is prolonged 1.
- Weak internal controlshigh
The internal control weakness linked to the sale has not been fully remediated, which could lead to errors or delays in reporting 1.
- Dilution riskmedium
If new shares are issued through the at-the-market programme, existing shareholders could be diluted 2.
- Integration of acquisitionsmedium
Integrating acquired companies could bring unexpected costs and divert management attention from Nexxis 1.
- Federal and state regulationlow
Changes to FCC rules or state privacy laws could impose new obligations on Nexxis operations 1.
Investment thesis
What would need to be true (bull case)
- If acquisitions of recurring-revenue companies are made at reasonable prices, the company could build a larger revenue base, supported by a balance sheet without long-term debt.
- Nexxis continues to grow and offers a recurring model that could remain a stable base while the company looks for new opportunities.
- Management's experience and the company's public listing could help it complete strategic transactions if market conditions are favourable.
What would break the thesis
- The core business is small, and the company has not yet shown it can generate consistent profit, which could limit investor confidence.
- If acquisitions fail or are expensive, remaining capital could be consumed without creating value for shareholders.
- Internal control problems and strategic uncertainty could reduce transparency and confidence in financial reporting.
What to watch
- Announcement of a first acquisition or merger agreement2026
- Remediation of the internal control weaknessnext 10-K
- Nexxis revenue trend and gross marginQ3 2026
- Use of the at-the-market programme and any dilution2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Data Storage Corporation spent more than two decades as a provider of multi-cloud hosting, managed cloud services, disaster recovery, cybersecurity and voice and data solutions. After the sale of the CloudFirst business, completed on September 11, 2025, its ongoing activity centres on its subsidiary Nexxis Inc., which offers voice, internet, data transport and SD-WAN services. Management says it is pursuing acquisitions of companies in complementary, high-growth technology sectors. According to the annual report, revenue from continuing operations was $1,382,929 in 2025, up 13.4% from the prior year 1.
Segments
Nexxis (voice, internet and data)
Nexxis provides managed voice, internet, data transport and SD-WAN services to businesses in healthcare, professional services, financial services and manufacturing 1. In the second quarter of 2026, revenue from continuing operations rose 9.3% year over year, according to the results release 3.
Market context
The market Nexxis serves includes managed business communications, where demand for reliable connectivity and hybrid work remains strong. The company's profile could however change if acquisitions in artificial intelligence and cybersecurity are completed. So far, no acquisition agreement has been signed 2.
Trends
- Consolidation in technologytailwind
The company says it is looking for businesses with recurring revenue, high margins and established customers, in areas such as artificial intelligence and cybersecurity 1. If such acquisitions succeed, they could expand the company's scale.
- Demand for hybrid connectivitytailwind
Customers with distributed or hybrid workforces look for high-availability voice and data services, and Nexxis positions itself in this segment 1.
- Regulatory uncertainty for VoIPheadwind
Nexxis services are classified as information services, but reclassification by the FCC could bring additional obligations and higher costs 1.
- Delays from federal shutdownheadwind
A partial shutdown of the U.S. federal government, in effect since February 2026, could delay approvals needed for financings or transactions 1.
Competitive position
Nexxis competes with business communications and SD-WAN providers, although the sources do not name specific competitors. In acquisitions, the company competes with other buyers looking for similar technology targets, as its strategy describes 1.
- Managed business communications providers
Direct competition for Nexxis voice and SD-WAN services, not named in the sources.
- Investors seeking technology acquisitions
Competition for acquisition targets with recurring revenue, as mentioned in the company's strategy.
- Cybersecurity service providers
Relevant if the company completes acquisitions in cybersecurity.
- AI infrastructure providers
Relevant to the AI infrastructure acquisitions mentioned by management.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- British spy agency cannot account for thousands of data storage devices, watchdog saysThe Record (Recorded Future) · 30 Oct 2026 · EN
- Diskus Polska and ProDevice, from data storage to data destructionEuropean Defence Review · 25 Sept 2026 · RO
- New molecular magnet design boosts performance for ultrahigh-density data storagePhys.org · 08 Sept 2026 · EN
- Chinese data storage firm makes tepid Hong Kong debut after $900 million share saleCNA (Channel NewsAsia) · 08 Sept 2026 · EN
- AI's biggest challenge is not compute - it's data storageThe Register · 08 Jul 2026 · RO
SEC filings
- Current report03 Sept 2026Shareholder vote
- Quarterly report14 Aug 2026
- Current report14 Aug 2026Results of operations · Financial statements and exhibits
- Proxy statement16 Jul 2026
- Current report27 May 2026Material agreement · Financial statements and exhibits
- Quarterly report15 May 2026
- Current report15 May 2026Results of operations · Financial statements and exhibits
- Annual report14 Apr 2026
- Current report14 Apr 2026Results of operations · Financial statements and exhibits
- Current report13 Feb 2026Departure or appointment of officers · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Data Storage Corporation · 14 Apr 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Data Storage Corporation · 14 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Data Storage Corporation · 14 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.