DTST earnings analysis
What we found in DTST's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Data Storage Corporation reported quarterly revenue of $358,530 and diluted EPS of negative $0.52, with the loss indicating continued operating pressure despite sequential revenue growth from $346,707. Liquidity was substantial at June 30, 2026, including $1,270,691 of cash and $9,008,914 of marketable securities, and management reported remediation of the previously identified control weakness. However, the six-month net loss of $1,856,787, prior restatement involving a $2,461,663 warrant liability, and absence of quantitative guidance remain material concerns.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Increased Sequentially
- Revenue was $358,530 for the quarter, up from $346,707 in the prior quarter, while diluted EPS was a loss of $0.52.
- Strong Liquidity Position
- The company reported cash of $1,270,691, marketable securities of $9,008,914, and working capital of $10,261,306 as of June 30, 2026.
- Disclosure Controls Effective
- Management concluded that disclosure controls were effective at the reasonable-assurance level as of June 30, 2026.
- Prior Control Weakness Remediated
- Management stated that the previously identified material weakness had been remediated after implementing enhanced reviews, specialized transaction expertise, disclosure checklists, and related monitoring during 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Persistent Unprofitability
- The company reported a net loss attributable to common stockholders of $1,856,787 for the six months ended June 30, 2026, and cautioned that it may not continue to generate income or achieve significant profitability.
- Restatement and Control Risk
- A prior control weakness resulted in an incorrectly recorded $2,461,663 warrant liability associated with the CloudFirst divestiture; the company restated certain previously reported financial statements in its 2025 Annual Report.
- Losses Could Pressure Liquidity
- Liquidity remains dependent on cash and securities while the company incurs losses: at June 30, 2026, cash was $1,270,691 and marketable securities were $9,008,914 against a six-month net loss of $1,856,787.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.52
What they said about what is next.
No quantitative revenue or EPS outlook was provided in the 10-Q; numeric outlook was deferred to the earnings press release/call, if any.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 15, 2026
- Data Storage Corporation's Q1 2026 results showed a decline in revenue to $346,707, missing expectations of $400,000. Despite a year-over-year revenue growth of 10.9% in its Nexxis segment, the company recorded a loss…
- 10-K · April 14, 2026
- Data Storage Corporation completed the sale of its CloudFirst business for $38,068,463 (net proceeds ≈ $31.6 million) and used roughly $29.25 million of cash to repurchase 5,625,129 shares at $5.20 per share, leaving…
- 10-Q · November 14, 2023
- Data Storage Corporation reported Q3 revenue of $5,986,625, up from $4,419,285 a year earlier, and swung to operating income of $14,141 versus an operating loss of $(223,224) in Q3 2022. Net income was $157,738 (net…
- 10-Q · August 14, 2023
- Data Storage Corp reported Q2 2023 revenue of $5,904,391, up from $4,827,749 in Q2 2022, producing gross profit of $2,578,754 and turning operating income positive at $106,744. The company delivered net income…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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