Quantum (QMCO) AI Stock Analysis

• Market Cap: $101.95M
• Dividend Yield: N/A
• Average Volume (3M): 577.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.48
• Revenue Growth: -9.11%
• EPS Growth: -61.28%
• Country: US
• Employees: 770
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.54
• Shares Outstanding: 13,721,291
• 10 Day Avg. Volume: 525,853
• 30 Day Avg. Volume: 577,789
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.45
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -2.59
• Enterprise Value/Market Cap: 2.21
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 2.24
• Enterprise Value/Ebitda: -1.99
• 1Y Price Target: $11.00
• Price Target Upside: 51.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $7.00 ▼(-3.31% Downside)

Quantum's overall stock score is primarily impacted by its weak financial performance and unattractive valuation. While recent earnings call highlights and corporate events show some positive strategic moves, the company's financial instability and bearish technical indicators weigh heavily on the score.

Positive Factors

Debt Restructuring

The debt restructuring enhances financial flexibility and supports strategic goals, positioning Quantum for long-term stability and growth.

Backlog Growth

A strong backlog indicates robust sales traction and future revenue potential, supporting sustained business growth.

Strategic Partnerships

Aligning with strategic partners can enhance market reach and product offerings, driving long-term competitive advantage.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in market demand or competitiveness, potentially impacting long-term growth prospects.

Net Loss Increase

Increased net losses can strain financial resources and hinder investment in growth initiatives, affecting future performance.

Gross Margin Challenges

Persistently low gross margins indicate cost pressures or pricing challenges, which may affect profitability over the long term.

Quantum Business Overview & Revenue Model

Company Description

Quantum Corporation (QMCO) is a technology company that specializes in data storage and management solutions, primarily focusing on high-performance storage systems, cloud-based storage, and data protection services. The company operates in sectors such as enterprise storage, cloud infrastructure, and data analytics, catering to various industries including media and entertainment, healthcare, and government. Quantum's core products include data archiving solutions, video surveillance storage, and scalable storage systems that enable organizations to manage and leverage their data effectively.

How the Company Makes Money

Quantum generates revenue through multiple streams, primarily by selling hardware and software products related to data storage and management. Key revenue streams include the sale of storage systems, data protection software, and cloud services. Additionally, Quantum earns recurring revenue through maintenance contracts, subscription services, and professional services such as installation and support. Strategic partnerships with technology providers and resellers also contribute to its earnings by expanding market reach and enhancing product offerings. These partnerships may include collaborations with cloud service providers or integrators that facilitate the deployment of Quantum's solutions in various environments.

Quantum Financial Statement Overview

Summary

Quantum's financial performance is severely challenged, with negative net profit margins, declining revenue, and a weak balance sheet marked by negative equity and high leverage. Cash flow issues persist, with negative operating and free cash flows, indicating a need for significant financial restructuring.

Income Statement

Quantum's income statement reveals significant challenges, with negative net profit margins and declining revenue growth. The TTM data shows a gross profit margin of 39.85%, but the net profit margin is deeply negative at -41.75%, indicating substantial losses. Revenue has been decreasing, with a TTM revenue growth rate of -2.90%. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet highlights financial instability, with negative stockholders' equity and a concerning debt-to-equity ratio. The TTM data shows a debt-to-equity ratio of -0.08, indicating more liabilities than equity. Return on equity is positive at 71.09%, but this is due to the negative equity, which is not a healthy sign. The equity ratio is not calculable due to negative equity.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a TTM free cash flow growth rate of -2.08%. The operating cash flow to net income ratio is negative, indicating cash flow issues. However, the free cash flow to net income ratio is positive at 1.12, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	259.25M	274.06M	311.60M	422.08M	383.43M	349.58M
Gross Profit	100.69M	109.83M	124.89M	143.26M	157.64M	150.75M
EBITDA	-113.27M	-85.06M	-16.17M	4.25M	61.00M	-2.00M
Net Income	-144.41M	-115.09M	-41.29M	-18.37M	38.35M	-35.46M
Balance Sheet
Total Assets	137.70M	155.40M	187.62M	213.66M	201.63M	194.92M
Cash, Cash Equivalents and Short-Term Investments	14.67M	16.46M	25.69M	25.96M	5.21M	28.14M
Total Debt	108.24M	132.88M	119.98M	99.64M	123.18M	103.33M
Total Liabilities	298.20M	319.77M	309.11M	298.03M	345.37M	307.17M
Stockholders Equity	-160.50M	-164.37M	-121.50M	-84.37M	-143.74M	-112.25M
Cash Flow
Free Cash Flow	-42.23M	-28.56M	-16.02M	-17.48M	-40.04M	-7.70M
Operating Cash Flow	-38.91M	-23.61M	-10.16M	-4.89M	-33.73M	-767.00K
Investing Cash Flow	-3.33M	-4.95M	-5.87M	-15.60M	-14.12M	-9.59M
Financing Cash Flow	40.57M	19.31M	15.71M	41.16M	20.16M	31.33M

Quantum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QMCO, the sentiment is Negative. The current price of 7.24 is below the 20-day moving average (MA) of 8.10, below the 50-day MA of 8.65, and below the 200-day MA of 10.01, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 8.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QMCO.

Quantum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDC	77 Outperform	$60.43B	25.99	31.48%	0.18%	-16.35%	316.56%
NTAP	76 Outperform	$21.96B	19.12	125.35%	1.88%	2.64%	4.12%
STX	68 Neutral	$60.40B	36.30	―	1.03%	31.56%	106.00%
PSTG	64 Neutral	$22.23B	177.59	9.27%	―	13.18%	-0.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IRM	55 Neutral	$23.95B	151.11	―	3.97%	10.88%	51.13%
QMCO	44 Neutral	$101.95M	-0.34	―	―	-9.11%	-61.28%

Quantum Corporate Events

Quantum completes major convertible debt exchange and approvals

On December 18, 2025, Quantum Corporation completed a debt exchange with Dialectic Technology SPV LLC, issuing $54.7 million of senior secured convertible notes due December 18, 2028 in exchange for existing term loans owed to Dialectic, following shareholder approval on December 16, 2025. The notes carry a 10% payment-in-kind interest rate, an initial $10 per-share conversion price subject to reset and anti-dilution protections, and are secured by all company assets that also secure the term loans; if fully converted and combined with Dialectic’s forbearance warrant, Dialectic could own approximately 36.9% of Quantum’s outstanding common stock after conversion and exercise, with Quantum also agreeing to maintain escalating quarterly minimum liquidity levels in 2026 and granting Dialectic registration rights for the underlying shares. At the December 16, 2025 annual meeting, shareholders elected the full slate of director nominees, approved the convertible note transactions with Dialectic and potential share issuances under Dialectic’s forbearance warrant for Nasdaq compliance purposes, expanded the 2023 Long-Term Incentive Plan by 1.4 million shares while removing individual award caps, endorsed executive compensation on an advisory basis, ratified CohnReznick LLP as auditor for fiscal 2026, and authorized the potential adjournment of the meeting, collectively reinforcing management’s capital restructuring strategy and compensation framework while paving the way for significant potential equity dilution and tighter liquidity covenants.

Quantum Announces 2025 Annual Stockholders Meeting Date

Quantum Corporation has set December 16, 2025, as the date for its 2025 annual meeting of stockholders. Stockholders wishing to present proposals not included in the proxy statement must adhere to specific deadlines and comply with the company’s bylaws and relevant regulations. The announcement highlights the importance of timely submissions and compliance with Securities and Exchange Commission rules for proposals to be considered for inclusion in the meeting’s proxy materials.

Quantum Restructures Debt to Enhance Financial Flexibility

On September 23, 2025, Quantum Corporation announced a definitive agreement to restructure its outstanding term debt with Dialectic Technology SPV LLC and other lenders. This transaction involves exchanging approximately $52 million of Dialectic’s term debt for senior secured convertible notes, eliminating existing financial covenants, and allowing Quantum to retain additional funds for working capital. The restructuring aims to enhance Quantum’s financial flexibility, support its strategic vision, and align Dialectic as a future strategic partner. The transaction is seen as a significant step towards Quantum’s goal of becoming debt-free and is expected to positively impact its operational and financial transformation.