Data Storage (DTST) investor relations material

Executive summary

• Completed sale of CloudFirst subsidiary for $40 million, generating $31.6 million in net proceeds and a $20.1 million gain.

• Returned $29.3 million to shareholders via a tender offer at $5.20 per share, reducing share count by 72%.

• Ended 2025 debt-free with over $10 million in capital and a simplified operating structure, positioning for M&A and organic growth.

• Net income for 2025 was $19.2 million, up from $500,000 in 2024, primarily from the CloudFirst sale.

• Core business now focused on Nexxis, a recurring revenue, subscription-based platform with improved customer diversification.

Financial highlights

• Nexxis revenue grew 13.4% year-over-year to $1.4 million in 2025.

• Gross margin for Nexxis expanded to 44.4%, up from 43.2%.

• Net income attributable to common shareholders was $19.2 million for 2025, compared to $523,000 in 2024.

• Earnings per share (EPS) was $2.64 (basic and diluted), up from $0.08 in 2024.

• Cash, equivalents, and marketable securities totaled $41 million at year-end 2025, up from $12.3 million in 2024.

Outlook and guidance

• Actively evaluating acquisitions and growth opportunities in AI-enabled SaaS, GPU infrastructure, cybersecurity, and scalable tech businesses.

• Focused on deploying capital in large, high-growth markets with recurring revenue models and high margins.

• Expecting corporate overhead to decline in 2026 due to CloudFirst divestiture.

• 2026 burn rate estimated at $2 million, with potential for further reduction.

• Plans to provide near-term updates as strategic initiatives progress.