Data Storage Corporation reported its financial results for the second quarter ended June 30, 2025, on August 14, 2025. Total sales increased by 4.8% year-over-year to $5.1 million, driven by continued growth in subscription-based cloud and Nexxis services. Sales for the first half of 2025 totaled $13.2 million, with the company ending the quarter with $11.1 million in cash and marketable securities.
A central development highlighted was the proposed $40 million sale of CloudFirst Technologies Corporation, which represents a substantial premium to the company's market capitalization prior to the announcement. If approved by shareholders, the transaction is anticipated to yield net proceeds of approximately $24 million after fees, taxes, and other adjustments.
In connection with the proposed transaction, the Board of Directors authorized a tender offer to repurchase up to 85% of outstanding common stock, utilizing 85% of the net proceeds and existing cash. The remaining 15% of cash is earmarked for acquisitions, innovation, and expansion into high-growth technology sectors such as artificial intelligence, cybersecurity, and AI vertical SaaS. Shareholder approval for the sale is scheduled for the annual meeting on September 10, 2025, and the company is evaluating a full corporate rebranding.
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