Data Storage Earnings Call Transcripts
Fiscal Year 2026
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Revenue from continuing operations grew 9.3% year-over-year, driven by Nexxis, while gross margin improved to 47%. The company remains debt-free with $9.3 million in cash, focusing on disciplined M&A and value creation, targeting a deal by year-end.
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Q1 2026 saw strong Nexxis growth and a strategic pivot to AI continuity solutions for regulated enterprises. The company remains debt-free, with ample liquidity and a focus on developing its new SAIS platform, targeting a multi-billion dollar market opportunity.
Fiscal Year 2025
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Fiscal 2025 saw a transformative year with the sale of CloudFirst, a major capital return to shareholders, and a shift to a debt-free, acquisition-focused platform. Nexxis delivered double-digit revenue growth and improved margins, while the company is actively pursuing tech acquisitions in high-growth markets.
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Q3 2025 marked a strategic transformation with the $40M CloudFirst sale, boosting liquidity and shifting focus to Nexus and disciplined M&A. Net income surged to $16.8M, driven by the divestiture, while the company prepares for a tender offer and targeted acquisitions.
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Q2 2025 sales grew 4.8% year-over-year, led by cloud and subscription services, but net loss widened due to higher SG&A and expansion costs. A $40 million CloudFirst sale is proposed, with plans to return capital to shareholders and pivot toward AI, cybersecurity, and SaaS.
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Q1 2025 revenue was $8.1M, with core cloud services up 14% year-over-year and adjusted EBITDA at $497K. European expansion is underway, with revenue expected in Q4 2025 and break-even by January 2026. The company remains debt-free and is evaluating strategic alternatives.
Fiscal Year 2024
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Revenue grew 2% to $25.4M in 2024, with recurring cloud services now over 80% of total revenue and net income up 37%. International expansion, major contract wins, and integration of Flagship drove operational gains, while strong cash reserves support future growth.
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Q3 2024 revenue declined 3% year-over-year to $5.8M, but gross margin improved to 43.2%. Recurring revenue and high renewal rates support a projected $20M+ baseline for 2025, with strong growth in cloud services and international expansion.
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Q2 2024 revenue declined year-over-year due to fewer one-time equipment sales, but gross margin improved to 49% and recurring revenue focus drove profitability. International expansion, especially in the UK, and strong contract renewals position the company for long-term growth.