Q2 2026 Data Storage Corp Earnings Call Transcript
Key Points
- Revenue from continuing operations increased 9.3% year-over-year, driven by growth in Nexus voice and data solutions.
- Gross profit margin improved to 47% from 42.1%, reflecting favorable sales mix and operating leverage.
- Ended the quarter with approximately $9.3 million in cash and marketable securities and no long-term debt, providing financial flexibility.
- Active M&A pipeline with over 124 companies evaluated, focusing on AI infrastructure, cybersecurity, and telecommunications.
- Strategic focus on acquiring businesses with recurring revenue, strong customer relations, and capable management teams, with a disciplined approach to valuation.
- Net loss attributable to common shareholders widened to $1.2 million from $732,000 in the prior year period.
- SG&A expenses increased 33.2% due to higher non-cash stock-based compensation and professional fees.
- Company trades below its liquidation value, indicating market undervaluation or lack of investor confidence.
- M&A environment characterized by unrealistic valuations, with many potential targets having excessive price expectations.
- No acquisition has been completed yet, and management acknowledges the need to deliver results, not just intentions, to improve shareholder value.
Thank you. Greetings and welcome to the Data Storage Corporation second-quarter 2026 earnings call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce Alexandra Schilt, Investor Relations. Thank you. You may begin.
Thank you. Good morning, everyone, and welcome to Data Storage Corporation's 2026 second-quarter business update conference call. The call with us this morning are Chuck Piluso, Chairman and Chief Executive Officer, and Christos Panagiotakos, Chief Financial Officer.
The company issued a press release this morning containing its 2026 second-quarter financial results, which is also posted on the company's website. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.
Before we begin, please note that today's call contains forward-looking statements within the meaning of the Private Securities
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