Data Storage (NASDAQ:DTST) announced record-breaking fiscal 2025 financial results on Tuesday, April 14, 2026, marking the completion of a massive corporate transformation.
The company emerged from the fiscal year debt-free and flush with capital following the successful sale of its CloudFirst business unit and a subsequent multi-million dollar return of capital to shareholders.
The cornerstone of the 2025 performance was the $40 million divestiture of CloudFirst, which generated approximately $31.6 million in net proceeds.
This transaction resulted in a $20.1 million net gain on discontinued operations and powered the company to a record full-year net income of $19.2 million.
Following the sale, DTST executed an aggressive capital reallocation strategy, returning $29.3 million to shareholders via a tender offer at $5.20 per share.
This action significantly consolidated the company's equity structure, reducing the total outstanding shares by approximately 72% as of December 8, 2025.
Despite the heavy capital return, the company exited the fiscal year in its strongest financial position to date, reporting over $10 million in cash and zero debt.
Meanwhile, the company’s continuing core operations, housed under Nexxis, showed steady growth throughout the year.
Nexxis generated $1.4 million in revenue, a 13.4% increase over the prior year.
The segment maintained healthy profitability with a 44.4% gross margin and gross profit of $614,324.