Quarterly ResultMay 15, 2026, 08:32 AM
Data Storage Corp Launches AI Continuity Subsidiary; Nexxis Sales +10.9%
AI Summary
Data Storage Corp provided a business update for Q1 2026, highlighting its strategic expansion into AI continuity infrastructure for regulated industries with the launch of Sovereign AI Solutions (SaiS), a wholly owned subsidiary. The company's Nexxis operations showed stable recurring revenue, with sales increasing 10.9% year-over-year to $346,707 and gross profit rising 32.1% to $186,019. Despite these operational gains, the company reported a net loss attributable to common stockholders of $(631,272) for the quarter. Data Storage Corp also completed a $29.5 million share repurchase via a Tender Offer and emphasized its strong financial position with no long-term debt.
Key Highlights
- Data Storage Corp launched Sovereign AI Solutions (SaiS), a wholly owned subsidiary.
- SaiS will develop an AI Continuity Control Plane for regulated industries.
- Nexxis sales increased 10.9% year-over-year to $346,707 in Q1 2026.
- Nexxis gross profit grew 32.1% to $186,019, with gross margin at 53.7%.
- Net loss attributable to common stockholders was $(631,272) for Q1 2026.
- Basic loss per share from continuing operations was $(0.25).
- Company repurchased $29.5 million in shares via a Tender Offer.
- Maintained strong financial position with no long-term debt.
Price Impact
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