Aug 14, 2026 earnings call — M&A strategy and Nexxis recurring revenue focus
Sales from continuing operations were $359,000, up 9.3% year-over-year.
Revenue $0.0B (est $0.0B) · EPS $-0.53 (est $-0.29)
Key quotes
"When we commit shareholder capital, we want a clear rationale for why that business belongs within DTST and how that investment can create value over time."
"Nexxis gives us recurring revenue and operating foundation in communications and connectivity while we execute our broader strategy."
"Having capital available does not mean we need to deploy it immediately."
Analyst Q&A 2
Buying other companies and main problems
Q (Matthew Galinko · Maxim Group): The analyst asked what the M&A market looks like now and what the biggest hurdle is (valuation or lack of recurring revenue). He also asked whether overpriced targets might come back later with more reasonable asks.
A: Management said they have reviewed many deals since the July signing and found many pre-revenue or unrealistically valued companies. They prefer targets with assets or IP (examples: distressed cyber, telecom, GPU infrastructure, sovereign AI) and use technical advisers to vet them. They have about 124 opportunities on their tracker and have items in due diligence but are not ready to close any deals yet.
"We have stuff, we have things that are lined up that we're looking at further due diligence on it, but we're not ready to pull the trigger on anyone." — Charles Piluso (CEO·CHAIR)
Company value and M&A timing
Q (TSA Capital): The analyst asked how management views the company's valuation and whether that affects M&A plans, and then asked the expected timeline for deals.
A: Management said the stock is trading below liquidation value and they have $10 million in the bank. They would use a portion of cash and structure purchases with cash and earnouts, often placing an acquisition into a new subsidiary and funding its growth. They said they'd like a nonbinding LOI signed within 60 days, 40 by the 60, and hope to close toward the end of the year or in the first quarter.
"Well, first of all, we're trading below our liquidation value right now." — Charles Piluso (CEO·CHAIR)