Quantum Corp (QMCO)
NASDAQ:QMCO
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Quantum
(NASDAQ:QMCO)
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Rating:47Neutral
Price Target:
$7.00
▼(-3.85% Downside)
Action:ReiteratedDate:04/16/26
QMCO scores low primarily due to weak financial performance—ongoing losses, cash burn, and negative equity dominate the risk profile. Technicals are supportive but appear overbought, while valuation is constrained by continued losses and no dividend. The earnings call added some improvement signals (backlog and positive adjusted EBITDA), but conservative guidance and leverage/liquidity risks keep the overall score subdued.
Positive Factors
Backlog Strength / Demand Visibility
A backlog more than double the historical run rate provides meaningful near-term revenue visibility and supports production planning. Sustained elevated backlog signals persistent customer demand for high-capacity retention solutions, which can smooth revenue volatility and feed services/consumables over months.
Negative Factors
Negative Stockholders' Equity
Persistent negative equity reflects cumulative losses and a thin capital buffer, reducing resilience to shocks and limiting access to unsecured financing. This structural weakness elevates solvency risk, constrains strategic options, and can impair supplier or partner confidence over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog Strength / Demand Visibility
A backlog more than double the historical run rate provides meaningful near-term revenue visibility and supports production planning. Sustained elevated backlog signals persistent customer demand for high-capacity retention solutions, which can smooth revenue volatility and feed services/consumables over months.
Read all positive factors
Quantum (QMCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$106.13M
Dividend YieldN/A
Average Volume (3M)399.02K
Price to Earnings (P/E)―
Beta (1Y)2.61
Revenue Growth-9.11%
EPS Growth-61.28%
CountryUS
Employees770
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.36
Shares Outstanding14,638,029
10 Day Avg. Volume496,614
30 Day Avg. Volume399,023
Financial Highlights & Ratios
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 Cap1.68
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda-3.67
Forecast
1Y Price Target
$10.50Price Target Upside44.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-1.09
Revenue Forecast (FY)$289.44M
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 pla...
How the Company Makes Money
Quantum makes money primarily by selling data-storage products and related services. Key revenue streams include: (1) Product revenue from storage systems and infrastructure sold to customers, including tape-based systems (such as automated tape l...
Quantum Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Neutral
The call presented a mix of improving operational and financial trends alongside material near-term risks. Positives include a revenue beat (Q3 $74.6M, +19% sequential), a marked improvement in adjusted EBITDA to a positive $2.9M, doubling of tape sales, a backlog above $20M, realized cost savings from restructuring, and a successful debt exchange that reduced term debt. Offsetting these gains are significant industry-wide supply chain disruptions and price volatility that threaten fulfillment and margins, a sizable GAAP net loss driven partly by one-time debt extinguishment charges, low cash (~$13.8M) and elevated net debt (~$116.7M), and expected GAAP volatility from convertible-note fair value adjustments. Management’s tone is constructive and cautious: demand and sales execution appear strong, but near-term liquidity, leverage and supply constraints pose meaningful execution risks.Positive Updates
Revenue Growth and Beat
Q3 revenue $74.6M, up from $62.7M in prior quarter (+19.0% sequential) and up from $68.7M year-ago (+8.6% YoY). Revenue exceeded the high end of the company’s forecasted range.
Negative Updates
Supply Chain Disruption and Price Volatility
Industry-wide component shortages (memory, disk, flash), with pricing reported to have doubled or even tripled in some cases within ~10 days; extended lead times (weeks to months) create fulfillment timing uncertainty and pressured margin visibility.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth and Beat
Q3 revenue $74.6M, up from $62.7M in prior quarter (+19.0% sequential) and up from $68.7M year-ago (+8.6% YoY). Revenue exceeded the high end of the company’s forecasted range.
Read all positive updates
Company Guidance
Quantum guided fiscal Q4 revenue of approximately $68 million ± $2 million, non‑GAAP operating expenses of about $27 million ± $2 million, adjusted EBITDA of breakeven ± $2 million, and an adjusted non‑GAAP net loss per share of roughly −$0.33 ± $0.10 based on an estimated 15 million shares outstanding; management emphasized the conservative posture due to industry supply‑chain and component‑pricing volatility despite a strong Q3 (Q3 revenue $74.6M, GAAP gross margin 38.8%, non‑GAAP loss $4.9M or $0.36/sh, adjusted EBITDA +$2.9M) and a quarter‑end backlog >$20M (well above the $8–10M historical run rate) while noting cash of ~$13.8M and total debt of $54.6M term debt plus $75.9M convertible notes (net debt ≈ $116.7M).Quantum Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
21
Negative
| 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
Positive
7.28
Price Trends
5.60
Positive
6.54
Positive
7.73
Negative
Market Momentum
0.43
Negative
67.62
Neutral
85.91
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 7.28 is above the 20-day moving average (MA) of 5.79, above the 50-day MA of 5.60, and below the 200-day MA of 7.73, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 67.62 is Neutral, neither overbought nor oversold. The STOCH value of 85.91 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 44 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $123.75B | 8.79 | 64.18% | 0.18% | -16.35% | 316.56% | |
71 Outperform | $113.31B | 26.06 | -889.39% | 1.02% | 31.56% | 106.00% | |
71 Outperform | $21.44B | 123.52 | -146.66% | ― | 13.18% | -0.92% | |
64 Neutral | $19.80B | 14.44 | 116.57% | 1.89% | 2.64% | 4.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $33.78B | 169.47 | -17.37% | 3.98% | 10.88% | 51.13% | |
47 Neutral | $106.13M | ― | 64.68% | ― | -9.11% | -61.28% |
* Technology Sector Average
QMCO
Quantum
7.28
-2.56
-26.02%
IRM
Iron Mountain
118.07
39.22
49.75%
NTAP
NetApp
104.53
24.40
30.45%
STX
Seagate Tech
547.75
474.76
650.46%
WDC
Western Digital
372.52
336.72
940.41%
PSTG
Everpure
66.97
26.76
66.55%
Quantum Corporate Events
Business Operations and StrategyExecutive/Board Changes
Quantum Appoints William H. White as New CFO
Positive
Feb 2, 2026
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 str...
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.