Quarterly ResultMay 15, 2026, 08:42 AM
Data Storage Q1 2026 Business Update; Launches Sovereign AI Solutions
AI Summary
Data Storage Corporation provided a business update for Q1 2026, highlighting its strategic expansion into AI Continuity Infrastructure for regulated industries through its new subsidiary, Sovereign AI Solutions (SaiS). The company also reported stable recurring operations from Nexxis Inc., with sales increasing 10.9% year-over-year and gross profit up 32.1% to a 53.7% margin. DTST reported a net loss of $(631,272) for the quarter and executed significant share repurchases, leading to a decrease in total assets.
Key Highlights
- Launched Sovereign AI Solutions (SaiS) subsidiary to develop AI Continuity Control Plane for regulated industries.
- Nexxis Inc. sales increased 10.9% year-over-year in Q1 2026 to $346,707.
- Nexxis Inc. gross profit rose 32.1% year-over-year, with gross margin expanding to 53.7%.
- Reported a net loss attributable to common stockholders of $(631,272) for Q1 2026.
- Loss per share from continuing operations was $(0.25) for Q1 2026.
- Executed share repurchases totaling $(29,528,957) in Q1 2026.
- Total assets decreased to $11,753,446 at March 31, 2026, from $43,022,474 at December 31, 2025.
- Maintained a strong financial position with no long-term debt.
Price Impact
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