Data Storage Corporation (DTST) Earnings Call Transcripts

Data Storage Corporation's Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Data Storage Corporation (DTST) reported revenue of $347,000, a 10.9% increase year-over-year, primarily driven by growth in its Nexxis subsidiary. However, the company recorded a net loss of $631,000 compared to a net income of $24,000 in the prior year, largely due to increased operating expenses. Management signaled a strategic pivot towards developing Sovereign AI Solutions, a new subsidiary aimed at addressing compliance and recovery needs in AI infrastructure, indicating a potential multibillion-dollar market opportunity.

Reported metrics

Guidance from management

Management expects to advance the platform architecture for Sovereign AI Solutions throughout 2026 and aims to begin taking customer reservations by early 2027, indicating a focus on disciplined execution and strategic flexibility.

What analysts pressed on

Analysts expressed concerns regarding the significant increase in operating expenses and the potential impact on profitability. There were questions about the timeline for the AI initiative and how the company plans to manage costs while pursuing growth.

Main topics on the call

• Strategic Transformation — DTST is undergoing a significant transformation following the sale of its CloudFirst business, which provided capital for repositioning towards larger market opportunities. CEO Chuck Piluso stated, "We are operating from...
• Launch of Sovereign AI Solutions — The company plans to establish Sovereign AI Solutions to develop a platform for AI continuity and compliance, targeting a market that could represent a multibillion-dollar opportunity. Piluso noted, "We believe our appro...
• Nexxis Performance — Nexxis reported a 10.9% increase in sales and a 32.1% increase in gross profit, with gross margins expanding to 53.7%. This performance underscores the stability of the recurring revenue model, which supports broader str...
• Increased Operating Expenses — SG&A expenses surged by 71.8% to $1.5 million, primarily due to a significant rise in stock-based compensation and professional fees. This increase contributed to the net loss for the quarter, raising concerns about cost...

Read the full Data Storage Corporation transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 17 Data Storage Corporation earnings call transcripts on record, spanning February 9, 2022 to May 15, 2026. Based on this history, Data Storage Corporation reports quarterly. The most recent call on file is dated May 15, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

DTST

Exchange

NasdaqCM

Country

US

Sector

Information Technology

Industry

IT Services

Calls on record

17

First call

February 9, 2022

Most recent

May 15, 2026

Reporting cadence

quarterly