Quantum (QMCO) AI Stock Analysis

• Market Cap: $85.90M
• Dividend Yield: N/A
• Average Volume (3M): 514.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.46
• Revenue Growth: -9.11%
• EPS Growth: -61.28%
• Country: US
• Employees: 770
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): N/A
• Shares Outstanding: 13,721,291
• 10 Day Avg. Volume: 511,134
• 30 Day Avg. Volume: 514,250
• 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: 1.54
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 1.32
• Enterprise Value/Ebitda: -1.17
• 1Y Price Target: $11.00
• Price Target Upside: 76.28% 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: $6.00 ▼(-3.85% Downside)

QMCO scores low primarily due to weak financial performance (large losses, declining revenue, negative equity, and negative cash flows). Technicals also remain bearish with the stock trading below key moving averages, despite oversold readings. Offsetting factors include a more constructive earnings-call outlook (stronger backlog and improving adjusted EBITDA) and restructuring/corporate actions that may improve the balance sheet, but they carry dilution and liquidity constraints.

Positive Factors

Backlog growth

A backlog >$25M materially increases near-term revenue visibility and indicates stronger deal flow and customer commitments. This supports steadier production planning, smoother revenue conversion overcoming quarter-to-quarter volatility, and potential margin leverage as fixed costs are absorbed.

Large strategic contract win

Landing a high-profile, long-duration archive contract validates Quantum’s product-market fit in cold storage and archiving. Such reference customers drive credibility, create recurring support/service revenue, and open doors to adjacent government and enterprise mandates over multiple years.

Capital structure improvement step

Converting term debt to longer-dated convertible notes reduces near-term cash interest and rollover risk, improving liquidity runway and easing covenant pressure. Structurally this creates a clearer path to deleveraging, enabling focus on operations and strategic investments if conversion proceeds as planned.

Negative Factors

Negative equity

Negative shareholders’ equity is a structural red flag that limits financing options and can trigger creditor protections or covenant events. It distorts returns metrics and constrains capital allocation flexibility, making sustainable growth and large investments more difficult without material balance-sheet repair.

Negative cash generation

Persistent negative operating and free cash flow undermines the company’s ability to self-fund R&D, capital expenditures, and working capital. Reliance on external financing raises refinancing and dilution risk and limits resilience to demand softness or longer sales cycles over the medium term.

Declining revenue trend

A demonstrated year-over-year revenue decline reduces operating leverage and makes it harder to cover fixed costs, pressuring margins and profitability. Unless new wins and backlog convert sustainably, this trend risks prolonging losses and hinders scale economies critical to storage hardware businesses.

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

Weak fundamentals overall: declining revenue (TTM growth -2.90%), deeply negative profitability (net margin -41.75%) and negative operating metrics (negative EBIT/EBITDA margins). The balance sheet is a major risk with negative stockholders’ equity, and cash flow remains pressured with negative operating/free cash flows.

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: 6.24
• 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 6.24 is below the 20-day moving average (MA) of 7.17, below the 50-day MA of 7.52, and below the 200-day MA of 9.07, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 35.19 is Neutral, neither overbought nor oversold. The STOCH value of 11.36 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	78 Outperform	$91.62B	27.13	41.27%	0.18%	-16.35%	316.56%
NTAP	70 Outperform	$19.30B	16.96	125.35%	1.89%	2.64%	4.12%
STX	68 Neutral	$94.41B	48.96	―	1.02%	31.56%	106.00%
PSTG	64 Neutral	$23.22B	180.49	9.27%	―	13.18%	-0.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IRM	55 Neutral	$26.43B	167.23	―	3.98%	10.88%	51.13%
QMCO	44 Neutral	$85.90M	-0.29	―	―	-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.