Data Storage (DTST) investor relations material

Executive summary

• Completed strategic transformation with the sale of CloudFirst/Cloud Solutions Business in September 2025, shifting focus to Nexxis, which provides managed voice, internet, and data solutions.

• Engaged in a significant tender offer in January 2026, repurchasing 72% of outstanding shares for $29.5 million, funded by proceeds from the CloudFirst sale.

• Nexxis delivered 9.3% year-over-year revenue growth, providing a stable recurring revenue base and operating foundation.

• Strategic pipeline active, evaluating opportunities in AI infrastructure, cybersecurity, communications, and software, prioritizing recurring revenue and strong management.

• Maintained strong capital position post-tender offer, supporting disciplined capital deployment and future M&A.

Financial highlights

• Revenue from continuing operations (Nexxis) was $359,000 for Q2 2026, up 9.3% from $328,000 in Q2 2025; for the six months ended June 30, 2026, revenue was $705,237, up 10.1%.

• Gross profit increased 21.9% year-over-year to $168,481 for Q2 2026, with gross margin improving to 47% from 42.1%.

• Net loss attributable to common shareholders was $1.23 million for Q2 2026, compared to $732,000 in Q2 2025.

• Cash and marketable securities totaled $10.3 million as of June 30, 2026.

• Weighted average shares outstanding dropped significantly post-tender offer, to 2,244,002 in Q2 2026.

Outlook and guidance

• Actively evaluating M&A opportunities in technology sectors with recurring revenue, aiming to sign a non-binding LOI within 45–60 days and close a deal by year-end or early next year.

• Focus remains on quality businesses with recurring revenue, strong management, and sustainable earnings potential.

• Management expects current liquidity and anticipated cash flows to support operational needs for at least the next 12 months.

• Ongoing focus on expense management and capital preservation.