Data Storage Corporation (DTST) AI Stock Analysis

Data Storage Corporation, based in Melville, New York, provides multi-cloud information technology solutions primarily in the United States. Its services include data protection, disaster recovery, high availability, data vaulting, Disaster Recovery as a Service (DRaaS), and Infrastructure as a Service (IaaS). The company also delivers cybersecurity capabilities, featuring managed endpoint security with active threat mitigation, system security assessments, and risk analysis services alongside continuous monitoring tools. In addition, it provides voice and data solutions such as VoIP and fiber optic, coaxial, and wireless networks to sectors including healthcare, banking, finance, distribution, manufacturing, construction, education, and government.

Revenue grew from $14.9M in FY2021 to $23.9M in FY2022 and $25.4M in FY2024, before declining 94.5% to $1.4M in FY2025. Over the five years from FY2020 to FY2025, revenue recorded a compound annual growth rate of -31.7%. Despite the revenue decline in FY2025, net income was $19.2M, producing a net margin of 1388.7%, while operating margin dropped to -258.4%. Over the trailing twelve months ended June 30, 2026, revenue stood at $1.4M with an operating margin of -357.6% and diluted eps of -$0.65. For the latest quarter, revenue grew 9.3% year-over-year.

As of June 30, 2026, Data Storage Corporation held $9.3M in cash and short-term investments, with total assets of $11.1M and shareholders' equity of $10.3M. The company reported a current ratio of 10.69. During FY2025, operating cash flow was -$3.2M and free cash flow was -$3.2M, while capital expenditures were $16,024. Over the past five years, the company reduced its share count by 65.4%.

With a market capitalization of $7.0M and an enterprise value of -$3.7M, Data Storage Corporation trades at a price-to-sales multiple of 4.9x, which is above the 2.8x median of its US-listed Technology peers. The company's EV to EBITDA multiple is 16.3x, close to the peer median of 16.6x, while its price-to-book ratio is 0.7x. Over the past year, DTST shares fell 27.1%, underperforming the 16.8% return of the S&P 500 (SPY).

Wall Street coverage currently shows 1 Hold rating with no Buy or Sell ratings. The mean price target is $9.00, indicating potential upside of 199.0% compared to the October 16, 2026 closing price of $3.01. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.5M and an eps of -$0.76. The company beat eps estimates in 3 of the last 4 quarters, and its next earnings date is November 18, 2026.

This page is an AI-written research summary of Data Storage Corporation (DTST). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: DTST income statement, DTST balance sheet, DTST key metrics, DTST analyst forecast, DTST chart. See the DTST stock overview for the latest quote and news.