Data Storage Plans Major Asset Sale
Data Storage (NASDAQ:DTST) reported its second quarter 2025 results on Aug. 14, 2025, posting total sales of $5.1 million, up 4.8% year over year, but a net loss attributable to common shareholders widened to $733,000 from $244,000 in Q2 2024. The quarter was defined by a proposed $40 million sale of Cloud First Technologies, a major capital return plan, and a strategic overhaul, as detailed in the Q2 2025 earnings call.
Cloud First generated EBITDA (earnings before interest, taxes, depreciation, and amortization) of $1 million in Q2 and $2.5 million for the first half of 2025, but management noted that public markets did not fully recognize its value. The proposed sale to a private equity-backed buyer would deliver $24 million in net cash after closing costs, taxes, and fees, in addition to $11.1 million in cash on hand as of quarter-end.
This transaction would allow DTST to return a significant portion of its enterprise value directly to shareholders and provide substantial capital for future growth or business model transformation.
Source Fool.com
