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.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool