Data Storage Corporation
- Open
- 3.46
- Day high
- 3.50
- Day low
- 3.45
- Prev close
- 3.45
- Volume
- 2K
- Mkt cap
- $8M
- P/E (TTM)
- 1.4
- EPS (TTM)
- $2.49
- P/B
- 0.7
- P/S
- 1.2
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$333K over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions reducing (13F)
Data Storage Corporation (DTST) is a Technology company listed on NASDAQ. The stock is up 0% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4).
Data Storage Corporation (DTST) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
DTST earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 14, 2026 | $-0.34 | $-0.25 | +26.5% | $346707 | -13.3% |
| Nov 19, 2025 | $-0.10 | $0.02 | +120.0% | $416956 | +4.2% |
| Aug 14, 2025 | $-0.02 | $-0.10 | -400.0% | $5M | -22.0% |
| May 15, 2025 | $0.10 | $0.00 | -96.8% | $8M | -2.6% |
| Mar 31, 2025 | $0.11 | $0.04 | -63.6% | $6M | -23.6% |
| Nov 14, 2024 | $0.05 | $0.02 | -60.0% | $6M | -6.3% |
| Aug 14, 2024 | $-0.01 | $-0.04 | -233.3% | $5M | -23.3% |
| May 15, 2024 | $0.03 | $0.05 | +66.7% | $8M | +37.6% |
| Nov 14, 2023 | $0.02 | $0.02 | +0.0% | $6M | +17.4% |
| Aug 14, 2023 | $0.02 | $0.03 | +50.0% | $6M | +5.4% |
| May 15, 2023 | $0.02 | $0.01 | -50.0% | $7M | +7.5% |
| Nov 15, 2022 | $-0.06 | $-0.04 | +33.3% | $4M | -19.6% |
DTST insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 26, 2026 | Piluso Charles M.director, 10 percent owner, officer: Chairman and CEO | Sell | 12,555 | $3.91 |
| May 26, 2026 | Piluso Charles M.director, 10 percent owner, officer: Chairman and CEO | Sell | 32,610 | $3.82 |
| May 26, 2026 | Piluso Charles M.director, 10 percent owner, officer: Chairman and CEO | Sell | 41,793 | $3.82 |
| Feb 18, 2026 | Panagiotakos Christosofficer: Chief Financial Officer | Grant | 60,000 | — |
| Feb 18, 2026 | Piluso Charles M.director, 10 percent owner, officer: Chairman and CEO | Grant | 250,000 | $4.84 |
| Feb 18, 2026 | Panagiotakos Christosofficer: Chief Financial Officer | Grant | 125,000 | $4.40 |
| Feb 18, 2026 | Piluso Charles M.director, 10 percent owner, officer: Chairman and CEO | Grant | 60,000 | — |
| Feb 11, 2026 | Piluso Charles M.director, 10 percent owner, officer: Chairman and CEO | Grant | 160,600 | — |
| Feb 2, 2026 | Correll Todd A.director | Grant | 10,000 | — |
| Feb 2, 2026 | Maglione Lawrence A.director | Grant | 10,000 | — |
| Feb 2, 2026 | Mitchell Uwayne A.director | Grant | 10,000 | — |
| Feb 2, 2026 | Stallone Nancydirector | Grant | 10,000 | — |
| Feb 2, 2026 | Argen Johndirector | Grant | 10,000 | — |
| Feb 2, 2026 | Kempster Thomasdirector | Grant | 10,000 | — |
| Feb 2, 2026 | Stein Clifforddirector | Grant | 10,000 | — |
Source: DTST SEC Form 4 filings, latest May 26, 2026. For informational purposes only — not investment advice.
See the full DTST insider & 13F page →Data Storage Corporation company profile
Overview
Data Storage Corporation (OTCQB:DTST) is a multi-cloud information technology solutions provider founded in 2012 and headquartered in Melville, New York. The company specializes in cloud infrastructure, disaster recovery, and cybersecurity services primarily for businesses in regulated industries such as healthcare, banking, manufacturing, and government. Through its CloudFirst subsidiary, Data Storage Corporation has evolved from a traditional IT services company into a cloud-first provider focused on IBM Power Systems migration and managed cloud services. The company went public in March 2012 and has been expanding its global footprint, recently establishing operations in the United Kingdom through CloudFirst Europe Limited.
Business
Data Storage Corporation operates in the cloud infrastructure and managed IT services industry, providing multi-cloud solutions that help businesses migrate from legacy on-premises systems to modern cloud environments. The company's core business revolves around three main service areas. The primary offering is cloud infrastructure and disaster recovery services, which accounts for approximately 51% of total revenue. These services include Disaster Recovery as a Service (DRaaS) and Infrastructure as a Service (IaaS), which essentially means the company hosts and manages critical business applications and data in secure data centers, ensuring businesses can continue operating even if their primary systems fail. The company specializes in migrating clients from IBM Power Systems (formerly IBM AS/400 systems) to cloud environments, targeting what management estimates as a $90 million annual addressable market for IBM Power platform migrations. The second segment involves cybersecurity solutions, offering managed endpoint security with active threat mitigation, system security assessments, and continuous security monitoring. This is particularly important for the company's focus on regulated industries where data protection and compliance are critical requirements. The third component includes voice and data communication solutions, providing Voice over Internet Protocol (VoIP) services and data connectivity through fiber optic, coaxial, and wireless networks. The company also generates revenue from software and hardware sales, renewals, and maintenance contracts, though management is strategically shifting toward subscription-based recurring revenue models. Data Storage Corporation operates through multiple subsidiaries including CloudFirst (the primary cloud services division), and serves over 400 clients across 600+ contracts from 10 global data centers. The company targets businesses in highly regulated sectors that require robust compliance, security, and uptime guarantees.
Revenue model
Data Storage Corporation generates revenue through multiple complementary business models, with management strategically pivoting toward subscription-based recurring revenue. The company's annual recurring revenue (ARR) run rate is approximately $21-22 million, representing the predictable subscription income from cloud hosting, disaster recovery, and managed services contracts. The primary revenue stream comes from subscription-based cloud services, where clients pay monthly or annual fees for cloud infrastructure hosting, disaster recovery protection, and managed IT services. These contracts typically have 2-3 year terms with over 90% renewal rates, providing predictable cash flows. Clients in regulated industries pay premium rates due to compliance requirements and the mission-critical nature of their applications. A secondary revenue stream involves one-time equipment and software sales, including hardware installations, software licensing, and system migrations. This generates approximately $5-6 million annually but is more volatile and lower-margin than subscription services. The company also earns revenue from professional services including system implementations, migrations, and technical support. The company's margins are influenced by several key factors. Positive margin drivers include the shift toward higher-margin subscription services (targeting 50% gross margins), economies of scale as the company grows its client base across existing data center infrastructure, and premium pricing power in regulated industries where switching costs are high and compliance requirements create barriers to competition. Margin pressures come from data center lease costs, which represent fixed expenses that must be absorbed regardless of utilization levels, competitive pricing pressure in the broader cloud services market dominated by hyperscalers like AWS and Microsoft Azure, and the need for continuous technology investments to maintain security certifications and compliance standards. Additionally, the company's focus on IBM Power Systems creates both opportunity and risk, as this represents a specialized but potentially declining market segment as businesses modernize their technology stacks.
Competitive moat
Data Storage Corporation operates in a moderately defensible niche but faces significant competitive pressures from much larger players. The company's primary moat stems from its specialization in IBM Power Systems migration and management, serving a specific market segment that requires deep technical expertise and industry knowledge. This specialization creates switching costs for clients, as migrating mission-critical applications requires significant planning, testing, and execution that clients are reluctant to repeat frequently. The company's focus on regulated industries provides additional defensive characteristics, as these sectors prioritize reliability, compliance, and security over cost optimization. Healthcare, banking, and government clients typically have stringent requirements for data handling, uptime guarantees, and regulatory compliance that create barriers for generic cloud providers. Data Storage Corporation's ISO certifications and specialized compliance expertise make it difficult for clients to switch to providers without equivalent credentials. However, the company's moat is relatively narrow and under pressure. The core competitive threat comes from hyperscale cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform, which offer significantly greater scale, broader service portfolios, and aggressive pricing. These giants are increasingly developing specialized offerings for regulated industries and acquiring smaller players to gain compliance expertise. Additionally, the company's dependence on IBM Power Systems represents both opportunity and risk. While this creates a specialized niche, the long-term trend is toward modernization and migration away from legacy IBM systems entirely, potentially shrinking the addressable market over time. Larger systems integrators and consulting firms with deeper resources are also targeting the same IBM Power migration opportunities. The company's small scale (approximately $25 million in annual revenue) limits its ability to invest in research and development, acquire complementary technologies, or compete on price against well-funded competitors. While the recurring revenue model provides some stability, the overall competitive position is vulnerable to disruption from larger, better-capitalized players entering the specialized compliance and legacy system migration markets.
Risks & safety
Data Storage Corporation exhibits moderate financial safety with strong liquidity but limited profitability and growth trajectory. **Liquidity and Solvency:** - Cash and marketable securities: $705,557 (Q1 2025), down from over $1 million in prior quarters - Current ratio: 3.52x indicating strong short-term liquidity - Debt-to-equity ratio: 0.028, essentially debt-free operations - Negative free cash flow: -$1.17 million (Q1 2025), indicating cash burn despite positive revenue **Profitability Metrics:** - Net income: $26,388 (Q1 2025), barely positive - EBITDA: -$92,509 (Q1 2025), negative despite revenue growth - Annual revenue run rate: approximately $32 million based on Q1 results - Operating cash flow: -$1.1 million (Q1 2025), concerning trend **Valuation Considerations:** - Price-to-book ratio: 1.18x, reasonable for a growing tech services company - Enterprise value appears reasonable given recurring revenue base - Market cap of approximately $28 million seems aligned with financial performance **Other Risk Factors:** - Heavy dependence on specialized IBM Power Systems market - Significant competition from hyperscale cloud providers - Recent UK expansion requiring capital investment with uncertain returns - Small scale limits competitive positioning and investment capacity
Recent development
Over the past several years, Data Storage Corporation has executed a strategic transformation from a traditional IT services provider to a cloud-first subscription business. The most significant development has been the international expansion into the United Kingdom, launched in 2024 through CloudFirst Europe Limited with Colin Freeman as Managing Director. The company has invested approximately $450,000-575,000 in UK infrastructure, establishing partnerships with Brightsolid, Pulsant, and Megaport, and deploying equipment across three UK data centers. The company has also undergone organizational consolidation, merging its Flagship and CloudFirst subsidiaries in January 2024 to streamline operations and focus resources on the higher-margin cloud services business. This consolidation supports management's strategic goal of achieving 80% subscription revenue and 20% one-time sales, moving away from the historically volatile equipment sales business. Infrastructure expansion has been another key development, with the company now operating across 10 global data centers, including a new Tier 3 facility in Chicago. The expanded infrastructure supports the company's growth in serving over 400 clients across 600+ contracts, with particular strength in regulated industries requiring specialized compliance and security capabilities. Management has also focused on digital marketing and lead generation, with the CloudFirst website attracting over 84,000 unique visitors and building a nurture list of over 25,000 organizations. The company has expanded its partnership ecosystem, adding multiple channel partners and targeting the estimated $90 million annual IBM Power Systems migration market. Recent earnings calls indicate management is actively evaluating strategic alternatives to address what they perceive as a disconnect between the company's fundamental value and stock price, including potential share buybacks, carve-outs, or other value-enhancing transactions.
DTST company profile · for informational purposes only — not investment advice.
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