Quantum (QMCO) AI Stock Analysis

• Market Cap: $67.92M
• Dividend Yield: N/A
• Average Volume (3M): 562.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.49
• Revenue Growth: -9.11%
• EPS Growth: -61.28%
• Country: US
• Employees: 770
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.36
• Shares Outstanding: 14,638,029
• 10 Day Avg. Volume: 644,453
• 30 Day Avg. Volume: 562,301
• 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: 2.37
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 1.65
• Enterprise Value/Ebitda: -3.33
• 1Y Price Target: $10.00
• Price Target Upside: 115.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -2.68
• Revenue Forecast (FY): $262.00M

• Rating: 43 Neutral
• Price Target: $5.50 ▲(18.53% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held down primarily by weak financial performance—heavy losses, ongoing cash burn, and negative equity—alongside a bearish technical setup with the stock below all major moving averages. The latest earnings call provides some offset via improving non-GAAP profitability and strong backlog, but conservative guidance plus supply-chain risk and high net debt limit upside. Valuation offers limited support given ongoing losses and no dividend.

Positive Factors

Backlog Strength

A backlog more than double the historical run rate gives multi-month revenue visibility and supports production planning and resource allocation. Sustained backlog reduces near-term revenue volatility, improves capacity utilization, and raises the probability that recent demand gains convert into durable top-line recovery.

Improving Non-GAAP Profitability

A positive adjusted EBITDA after restructuring signals improving operating leverage and cost discipline. If maintained, these non-GAAP gains can translate to stronger cash conversion and a clearer path to break-even at the operating level, reducing reliance on external financing over the medium term.

Debt Exchange Reduced Term Debt

Converting a large portion of term debt into longer‑dated convertible notes materially lowers near-term term debt obligations and reshapes maturities. This eases immediate refinancing pressure and creates runway for operational fixes, though it trades cash interest relief for potential equity dilution and secured creditor structure.

Negative Factors

Negative Stockholders' Equity

Persistently negative equity reflects accumulated losses and a thin capital cushion, limiting the company's ability to absorb shocks or fund opportunistic investments. It raises solvency concerns and increases dependency on external financing or asset sales to restore balance‑sheet health over the medium term.

Persistent Cash Burn

Chronic negative operating and free cash flow forces reliance on financing and erodes liquidity over time. Continued cash consumption constrains investment in go‑to‑market and R&D, elevates refinancing risk, and makes the company vulnerable to funding disruptions if operational improvements stall.

High Net Debt / Low Liquidity

Large net debt relative to a small cash balance creates leverage and liquidity pressure. Debt covenants and minimum liquidity requirements from recent financing increase operational constraints and the chance that management must prioritize covenant compliance or refinancing over longer‑term strategic investments.

Quantum Business Overview & Revenue Model

Company Description

Quantum Corporation provides products for storing and managing digital video and unstructured data in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers CatDV, an asset management and workflow orchestration platform that provides asset management, automation, and collaboration tools for organization that manages large volumes of digital media; StorNext software systems that enable high-speed ingest, editing, processing, and management of digital video and image datasets; and Scalar tape systems that provide long-term data storage facility to archive and preserve digital content for decades. It also provides DXi backup appliances for backup storage and multi-site disaster recovery; portfolio of products designed for the capture and analysis of video surveillance and security, including video recording servers, as well as hyperconverged storage systems for video surveillance management and recording; and appliances designed for video surveillance analytics and to run various types of access control systems. In addition, the company offers managed services, customer support agreements, software subscriptions, installation, and consulting and training services; and object storage systems for online content repositories, such as media archives, genome sequencing data repositories, and big data lakes. Further, it sells linear tape-open (LTO) tape cartridges, as well as standalone LTO tape drives for small business and desktop use. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.

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

Despite a recent TTM revenue rebound and solid gross margin (~37%), results are dominated by very large operating and net losses (TTM EBIT margin about −20%, net margin about −39%), persistent negative operating/free cash flow, and consistently negative stockholders’ equity, implying elevated liquidity and solvency risk.

Income Statement

Revenue is volatile: FY2025 revenue declined versus FY2024, but TTM (Trailing-Twelve-Months) shows a sharp rebound in sales growth. Profitability remains the key issue—TTM gross margin is solid (~37%), but operating results are deeply negative (TTM EBIT margin about -20%) and net losses are very large (TTM net margin about -39%). Overall, the top line has improved recently, but losses and weak operating leverage materially pressure the score.

Balance Sheet

The balance sheet is stressed by consistently negative stockholders’ equity across all periods provided, which signals a thin capital cushion and elevated financial risk. Debt levels swing materially year-to-year (high in FY2024–FY2025 annual, much lower in TTM), but negative equity keeps leverage risk high regardless. Total assets have also trended down from FY2023 to TTM, limiting flexibility and reducing balance-sheet strength.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow are negative in every period shown, including TTM (Trailing-Twelve-Months). While TTM free cash flow is slightly better than the prior annual period (modest growth), the company is still consuming cash, which increases reliance on financing or balance-sheet actions. Free cash flow is not consistently improving and worsened sharply in FY2025 versus FY2024, highlighting execution and funding risk.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	261.28M	274.06M	311.60M	422.08M	383.43M	349.58M
Gross Profit	97.87M	109.83M	124.89M	143.26M	157.64M	150.75M
EBITDA	-48.41M	-85.06M	-16.17M	4.25M	61.00M	-2.00M
Net Income	-100.82M	-115.09M	-41.29M	-18.37M	38.35M	-35.46M
Balance Sheet
Total Assets	149.27M	155.40M	187.62M	213.66M	201.63M	194.92M
Cash, Cash Equivalents and Short-Term Investments	13.84M	16.46M	25.69M	25.96M	5.21M	28.14M
Total Debt	146.12M	132.88M	119.98M	99.64M	123.18M	103.33M
Total Liabilities	333.50M	319.77M	309.11M	298.03M	345.37M	307.17M
Stockholders Equity	-184.23M	-164.37M	-121.50M	-84.37M	-143.74M	-112.25M
Cash Flow
Free Cash Flow	-42.25M	-28.56M	-16.02M	-17.48M	-40.04M	-7.70M
Operating Cash Flow	-40.71M	-23.61M	-10.16M	-4.89M	-33.73M	-767.00K
Investing Cash Flow	-1.55M	-4.95M	-5.87M	-15.60M	-14.12M	-9.59M
Financing Cash Flow	35.46M	19.31M	15.71M	41.16M	20.16M	31.33M

Quantum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.64
• 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 4.64 is below the 20-day moving average (MA) of 5.60, below the 50-day MA of 6.55, and below the 200-day MA of 8.56, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 30.93 is Neutral, neither overbought nor oversold. The STOCH value of 19.35 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	79 Outperform	$84.97B	25.16	41.27%	0.18%	-16.35%	316.56%
PSTG	72 Outperform	$20.38B	113.24	13.68%	―	13.18%	-0.92%
STX	70 Outperform	$77.99B	40.44	―	1.02%	31.56%	106.00%
NTAP	64 Neutral	$19.49B	16.53	112.59%	1.89%	2.64%	4.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IRM	58 Neutral	$31.89B	222.00	―	3.98%	10.88%	51.13%
QMCO	43 Neutral	$67.92M	-0.53	―	―	-9.11%	-61.28%

Quantum Corporate Events

Quantum Appoints William H. White as New CFO

On February 2, 2026, Quantum Corporation appointed William H. White as its Chief Financial Officer and Principal Financial Officer, tasking him with leading the company’s global finance organization, including financial strategy, capital structure initiatives, operations, and investor relations. White, a seasoned finance executive with over two decades of experience in transforming technology businesses, joins from Emotive, where he led a multi-year financial turnaround, and brings a background spanning SaaS, investment banking, and AI-focused companies. His compensation package includes a $375,000 base salary, a target bonus equal to 50% of base salary, and new-hire equity awards of 25,000 time-vested RSUs and 25,000 performance-based RSUs under Quantum’s 2021 Inducement Plan, along with change-of-control and severance protections that provide salary, bonus-equivalent payments, equity acceleration, and COBRA coverage under specified termination scenarios. The appointment underscores Quantum’s push to strengthen financial execution and operational rigor as it pursues its next phase of growth and seeks to solidify its position in AI-driven data management, aiming to deliver long-term value for customers, partners, and shareholders.

The most recent analyst rating on (QMCO) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Quantum stock, see the QMCO Stock Forecast page.

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.

The most recent analyst rating on (QMCO) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Quantum stock, see the QMCO Stock Forecast page.