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Quantum Corporation (QMCO)
NASDAQ:QMCO
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Quantum
(NASDAQ:QMCO)
Rating:41Neutral
Price Target:
$8.00
▼(-6.65% Downside)
Positive Factors
Board Strengthening
The addition of experienced executives from Dell and Apple to the board enhances strategic oversight and could drive long-term growth.
Product and Market Diversification
Diverse revenue streams from hardware, software, and cloud services provide resilience against market fluctuations and support stable growth.
Leadership Renewal
New leadership under CEO Hugues Meyrath may bring fresh strategic direction and operational improvements, fostering long-term stability.
Negative Factors
Financial Instability
Negative equity and high leverage indicate financial instability, potentially limiting investment in growth and innovation.
Revenue Decline
Continued revenue decline suggests challenges in market competitiveness and product demand, impacting long-term viability.
Nasdaq Non-Compliance
Non-compliance with Nasdaq listing rules due to delayed filings reflects governance issues, which could affect investor confidence and market perception.
Quantum (QMCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$101.09M
Dividend YieldN/A
Average Volume (3M)474.27K
Price to Earnings (P/E)―
Beta (1Y)2.09
Revenue Growth-11.85%
EPS Growth-157.04%
CountryUS
Employees770
SectorTechnology
Sector Strength85
IndustryComputer Hardware
Share Statistics
EPS (TTM)-1.87
Shares Outstanding13,319,249
10 Day Avg. Volume364,581
30 Day Avg. Volume474,266
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.14
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit1.89
Enterprise Value/Ebitda-2.21
Forecast
1Y Price Target
$16.50Price Target Upside92.53% Upside
Rating ConsensusHold
Number of Analyst Covering2
Quantum Business Overview & Revenue Model
Company DescriptionQuantum Corporation (QMCO) is a technology company that specializes in data storage and management solutions, primarily focusing on high-performance and scalable storage systems. The company operates in the data protection and management sectors, providing a range of products and services including data backup, archiving, and cloud storage solutions. Quantum's offerings are designed to help organizations efficiently manage and protect their data across various environments, catering to a diverse clientele in industries such as media and entertainment, healthcare, and scientific research.
How the Company Makes MoneyQuantum makes money through several key revenue streams, primarily from the sale of its hardware and software solutions. This includes revenue from high-performance storage systems, data protection software, and cloud storage services. Additionally, the company generates income from subscriptions and maintenance contracts associated with its products, providing ongoing support and updates to customers. Quantum also engages in partnerships with other technology firms and resellers, which can enhance its distribution capabilities and expand its market reach, contributing to overall revenue growth. Furthermore, the company may benefit from government and enterprise contracts that require robust data management solutions.
Quantum Earnings Call Summary
Earnings Call Date:Sep 10, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Negative
While there are significant efforts in leadership changes and product innovation, the financial performance including revenue decline, decreased gross margin, and increased net loss overshadow these positives. The company's debt reduction is a positive sign, but the financial challenges indicate a tough operating environment.Q1-2026 Updates
Positive Updates
Successful Debt Reduction
The company reduced its net debt position to approximately $66.8 million, representing a reduction of more than 40% from the net debt position at the end of fiscal 2025.
New Leadership Additions
Appointed Tony Craythorne as Chief Revenue Officer and Gregg Pugmire as Vice President of Americas Sales, along with new board members with significant industry experience.
Product Innovations and Launches
Launched two new DXi T-Series models with all-flash deduplication appliances, positioning the company to capture a share in the multibillion-dollar backup market.
Strong Backlog Position
Backlog at the end of the first quarter was approximately $10 million, which is at the higher end of the target run rate of $8 million to $10 million.
Negative Updates
Decline in Revenue
First quarter revenue was $64.3 million compared to $72.3 million in the prior year first quarter, reflecting a significant year-over-year decline.
Decreased Gross Margin
GAAP gross margin for the first quarter was 35.3%, down from 37.4% in the fiscal first quarter of 2025, due to inventory provisions and import tariffs.
Increased Net Loss
GAAP net loss in the first fiscal quarter was $17.2 million compared to a net loss of $19.9 million in the year-ago quarter, reflecting a negative financial performance.
Negative Adjusted EBITDA
Adjusted EBITDA for the first quarter was negative $6.5 million, worse than the negative $2.2 million in the prior year quarter.
Company Guidance
During Quantum Corporation's Fiscal First Quarter 2026 Financial Results Conference Call, the company provided detailed guidance and insights into their financial performance and strategic direction. Revenue for the quarter was reported at $64.3 million, a decrease from the previous year's $72.3 million, largely due to a shift in product mix. The company also reported a GAAP gross margin of 35.3%, down from 39.6% in the previous quarter, influenced by increased inventory provisions and import tariffs. Operating expenses on a GAAP basis were $35.3 million, while non-GAAP operating expenses were $30 million. The company faced a GAAP net loss of $17.2 million or $1.87 per share, with a non-GAAP net loss of $14.5 million or $1.58 per share. Adjusted EBITDA was negative $6.5 million. The company's cash and cash equivalents stood at $37.5 million, with total outstanding term debt of $104.3 million. Looking ahead, Quantum anticipates second-quarter revenue of approximately $61 million and a reduction in non-GAAP operating expenses to about $27 million. They aim for a breakeven adjusted EBITDA in the next quarter as they focus on improving sales execution and leveraging high-value assets.Quantum Financial Statement Overview
Summary
Quantum is struggling with profitability, financial stability, and cash flow management. Persistent losses, high debt levels, and negative equity highlight significant risks. A strategic overhaul focused on revenue growth and cost management is essential.Income Statement
Quantum has faced significant challenges in maintaining profitability. The gross profit margin for TTM is approximately 40.04%, but the company has been unable to translate this into net profits, as indicated by a net profit margin of -43.62%. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies. Revenue has been decreasing, indicating a need for strategic shifts to stimulate growth.35
Negative
Balance Sheet
The balance sheet reveals a concerning financial structure. The company's stockholders' equity is negative, showing a debt-heavy configuration. The debt-to-equity ratio cannot be computed due to negative equity, but the high total liabilities and negative equity ratio indicate financial instability. The return on equity is also negative due to persistent net losses.25
Negative
Cash Flow
Cash flow analysis shows cash management difficulties. Both operating and free cash flows are negative, suggesting potential liquidity issues. The free cash flow to net income ratio is undefined due to negative free cash flow, and the operating cash flow to net income ratio is also negative. These metrics suggest challenges in sustaining operations without external financing.30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 285.86M | 274.06M | 311.60M | 412.75M | 372.83M | 349.58M |
| Gross Profit | 114.49M | 109.83M | 124.89M | 133.94M | 147.03M | 150.75M |
| EBITDA | -97.89M | -85.06M | -16.17M | 4.25M | -9.63M | -2.00M |
| Net Income | -124.72M | -115.09M | -41.29M | -37.94M | -32.28M | -35.46M |
Balance Sheet | ||||||
| Total Assets | 168.06M | 155.40M | 187.62M | 213.66M | 201.63M | 194.92M |
| Cash, Cash Equivalents and Short-Term Investments | 20.38M | 16.46M | 25.69M | 25.96M | 5.21M | 27.43M |
| Total Debt | 146.40M | 132.88M | 119.98M | 99.64M | 123.18M | 100.75M |
| Total Liabilities | 363.11M | 319.77M | 309.11M | 300.55M | 328.32M | 307.17M |
| Stockholders Equity | -195.06M | -164.37M | -121.50M | -86.89M | -126.68M | -112.25M |
Cash Flow | ||||||
| Free Cash Flow | -14.94M | -28.56M | -16.02M | -17.48M | -40.04M | -7.70M |
| Operating Cash Flow | -9.77M | -23.61M | -10.16M | -4.89M | -33.73M | -767.00K |
| Investing Cash Flow | -5.17M | -4.95M | -5.87M | -15.60M | -14.12M | -9.59M |
| Financing Cash Flow | 10.99M | 19.31M | 15.71M | 41.16M | 20.16M | 31.33M |
Quantum Technical Analysis
Positive
8.57
Price Trends
8.15
Positive
9.52
Negative
15.91
Negative
Market Momentum
-0.08
Negative
60.68
Neutral
81.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QMCO, the sentiment is Positive. The current price of 8.57 is above the 20-day moving average (MA) of 7.53, above the 50-day MA of 8.15, and below the 200-day MA of 15.91, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 60.68 is Neutral, neither overbought nor oversold. The STOCH value of 81.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QMCO.
Quantum Risk Analysis
Quantum disclosed 37 risk factors in its most recent earnings report. Quantum reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quantum Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $24.19B | 21.41 | 123.00% | 1.68% | 3.45% | 9.69% | |
74 Outperform | $32.36B | 19.34 | 25.98% | 0.21% | 2.12% | ― | |
72 Outperform | $40.25B | 27.95 | -109.27% | 1.48% | 38.86% | 337.22% | |
68 Neutral | $23.79B | 25.86 | 17.90% | ― | 47.04% | -17.89% | |
65 Neutral | $26.52B | 199.29 | 10.04% | ― | 11.31% | -1.30% | |
61 Neutral | $36.58B | 11.16 | -10.43% | 1.86% | 8.71% | -7.09% | |
41 Neutral | $101.09M | ― | 33.98% | ― | -11.85% | -157.04% |
* Technology Sector Average
Performance Comparison
QMCO
Quantum
8.57
5.36
166.98%
NTAP
NetApp
123.53
9.37
8.21%
STX
Seagate Tech
193.04
95.16
97.22%
SMCI
Super Micro Computer
43.91
-0.30
-0.68%
WDC
Western Digital
95.02
47.37
99.41%
PSTG
Pure Storage
81.15
32.89
68.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.