DTST Reports Q3 2025 Results Following Transformative CloudFirst Sale

Core Insights - Data Storage Corporation has completed the sale of its CloudFirst subsidiary, which is seen as a transformative milestone that unlocks significant shareholder value and provides a solid financial foundation for future growth [3][6] - The company aims to refocus its operations on high-growth areas such as GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, cybersecurity, and voice/data telecommunications [3][6] - The management emphasizes a disciplined approach to capital allocation and operational execution to create lasting value for shareholders [3][6] Financial Performance - For the three months ended September 30, 2025, the company reported sales of $416.96 million, an increase from $325.30 million in the same period of 2024, representing a growth of approximately 28% [12] - Gross profit for the same period was $198.50 million, compared to $144.47 million in 2024, indicating a significant improvement in profitability [12] - The net income attributable to common stockholders for the three months ended September 30, 2025, was $16.78 million, a substantial increase from $123.53 thousand in the prior year [13] Strategic Outlook - The company plans to leverage its expertise and financial strength to identify opportunities that align with its core competencies, focusing on sustainable results and long-term shareholder value [3][6] - The Nexxis subsidiary is highlighted as a stable source of recurring revenue that supports the broader strategic objectives of the company [3][6] - Management is committed to maintaining financial discipline while pursuing growth in high-potential markets [3][6]