DATA STORAGE CORP C/WTS 18/05/2026 (TO PUR COM) | 8-K: FY2025 Q2 Revenue: USD 5.147 M

Revenue: As of FY2025 Q2, the actual value is USD 5.147 M.

EPS: As of FY2025 Q2, the actual value is USD -0.1.

EBIT: As of FY2025 Q2, the actual value is USD -731.96 K.

Segment Revenue

• Revenue for the second quarter of 2025 was $5.1 million, up 4.8% from the same period in 2024, driven by continued growth in subscription-based cloud and Nexxis services.

Operational Metrics

• Gross profit for the second quarter of 2025 totaled $2.5 million, maintaining consistent margin levels.
• Net loss for the second quarter of 2025 was - $731,963, compared to a net loss of - $246,605 in the same period in 2024.
• Loss from operations for the second quarter of 2025 was - $795,667, compared to - $388,786 in the same period in 2024.
• Selling, general, and administrative expenses for the second quarter of 2025 were $3,332,421, up from $2,796,679 in the same period in 2024.

Cash Flow

• Cash and marketable securities as of June 30, 2025, were $11.1 million, with no long-term debt.
• Net cash used in operating activities for the six months ended June 30, 2025, was - $727,487, compared to net cash provided by operating activities of $354,791 for the same period in 2024.
• Net cash provided by investing activities for the six months ended June 30, 2025, was $272,016, compared to net cash used in investing activities of - $798,381 for the same period in 2024.
• Net cash used in financing activities for the six months ended June 30, 2025, was - $13,253, compared to - $205,154 for the same period in 2024.

Unique Metrics

• The proposed $40 million sale of CloudFirst Technologies Corporation is expected to generate net proceeds of approximately $24 million, after fees, taxes, and other adjustments.
• The Board of Directors has authorized a tender offer to repurchase up to 85% of the outstanding common stock, using 85% of cash on hand at the time the tender offer is commenced, including net proceeds from the proposed transaction.

Outlook / Guidance

• The company anticipates that the proposed sale of CloudFirst Technologies Corporation will unlock value, convert it into tangible returns, and allow the company to focus resources on high-growth technology sectors such as artificial intelligence, cybersecurity, and AI vertical SaaS.
• If the proposed transaction is not approved by shareholders, CloudFirst will remain a core part of operations, and the company will continue to invest in its performance while pursuing new strategic opportunities.
• The company is evaluating a full corporate rebranding to align its identity with its strategic direction.