DTSTW · Data Storage Corporation

Data Storage Corporation disclosed Q1 2026 results showing a GAAP net loss attributable to common stockholders of $631,272, or $0.20 per basic share, driven by elevated selling, general, and administrative expenses of $1.47 million versus $857 thousand in the prior year period, partially offset by gross profit growth to $186 thousand from $141 thousand. Nexxis operations provided stability with sales up 10.9% year-over-year and gross margins expanding significantly to 53.7% from 45.0%, reflecting stronger demand for telecom, VoIP, SD-WAN, and data transport services amid increased customer spending. The company maintains a debt-free balance sheet with $114.6 thousand in cash and $11.6 million in current assets as of March 31, 2026, though total assets declined from $43 million year-end due to reductions in marketable securities. Strategically, DTST launched Sovereign AI Solutions (SaiS), a new subsidiary developing an AI Continuity Control Plane for regulated sectors including healthcare, financial services, and insurance, positioning for AI recovery, resiliency, validation, and compliance needs. CEO Chuck Piluso emphasized execution post-2025 cloud business sale, leveraging Nexxis recurring revenue as a foundation for AI infrastructure pursuits from a position of financial strength with substantial working capital. No quantitative guidance provided, but management anticipates advancing SaiS development through 2026 with future commercial updates and ongoing evaluation of partnerships, investments, and acquisitions to drive long-term shareholder value.