tiprankstipranks
Trending News
More News >
Quantum Corporation (QMCO)
NASDAQ:QMCO
Advertisement

Quantum (QMCO) AI Stock Analysis

Compare
1,432 Followers

Top Page

QMCO

Quantum

(NASDAQ:QMCO)

Select Model
Select Model
Select Model
Neutral 43 (OpenAI - 4o)
Rating:43Neutral
Price Target:
$10.00
▼(-0.50% Downside)
Quantum's overall stock score is primarily impacted by its poor financial performance, characterized by negative profitability and declining revenues. While technical indicators and earnings call insights offer some hope, the company's valuation remains unattractive due to its negative P/E ratio and lack of dividends.
Positive Factors
Debt Reduction
Significant debt reduction enhances financial flexibility and reduces interest burden, improving long-term financial health and stability.
Leadership Changes
New leadership with industry experience can drive strategic initiatives and improve sales execution, fostering long-term growth.
Product Innovation
Innovative product launches position Quantum to capture market share in the growing backup market, supporting future revenue growth.
Negative Factors
Revenue Decline
Declining revenue indicates challenges in market demand or sales execution, potentially impacting long-term financial performance.
Decreased Gross Margin
Lower gross margins can strain profitability, indicating cost pressures or pricing challenges that may persist and affect future earnings.
Negative Adjusted EBITDA
Negative EBITDA reflects operational inefficiencies and financial strain, highlighting the need for cost management and revenue enhancement.

Quantum (QMCO) vs. SPDR S&P 500 ETF (SPY)

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:Oct 29, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Jan 29, 2026
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's financial performance is severely challenged, with declining revenue, negative profit margins, and a highly leveraged balance sheet with negative equity. Cash flow remains weak despite some improvement in free cash flow. Overall, the company faces significant financial instability and operational inefficiencies.
Income Statement
35
Negative
Quantum's income statement reveals significant challenges, with declining revenue and negative profit margins. The gross profit margin has decreased over the years, and the net profit margin is deeply negative, indicating persistent losses. Revenue growth has been negative in recent years, highlighting a concerning trend for the company's top line. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and financial distress.
Balance Sheet
30
Negative
The balance sheet shows a precarious financial position with negative stockholders' equity, indicating that liabilities exceed assets. The debt-to-equity ratio is negative due to negative equity, suggesting high financial leverage and potential solvency issues. Return on equity is positive but misleading due to negative equity. The equity ratio is also negative, underscoring the company's financial instability.
Cash Flow
40
Negative
Cash flow analysis indicates some improvement in free cash flow growth, but operating cash flow remains negative, raising concerns about liquidity. The operating cash flow to net income ratio is negative, suggesting that the company struggles to convert its earnings into cash. The free cash flow to net income ratio is positive, indicating some ability to generate cash relative to net losses, but overall cash flow health is weak.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue267.00M274.06M311.60M412.75M372.83M349.58M
Gross Profit106.41M109.83M124.89M133.94M147.03M150.75M
EBITDA-82.65M-85.06M-16.17M4.25M-9.63M-2.00M
Net Income-111.48M-115.09M-41.29M-37.94M-32.28M-35.46M
Balance Sheet
Total Assets169.15M155.40M187.62M213.66M201.63M194.92M
Cash, Cash Equivalents and Short-Term Investments37.40M16.46M25.69M25.96M5.21M27.43M
Total Debt8.79M132.88M119.98M99.64M123.18M100.75M
Total Liabilities283.54M319.77M309.11M300.55M328.32M307.17M
Stockholders Equity-114.39M-164.37M-121.50M-86.89M-126.68M-112.25M
Cash Flow
Free Cash Flow-43.13M-28.56M-16.02M-17.48M-40.04M-7.70M
Operating Cash Flow-38.61M-23.61M-10.16M-4.89M-33.73M-767.00K
Investing Cash Flow-4.52M-4.95M-5.87M-15.60M-14.12M-9.59M
Financing Cash Flow63.13M19.31M15.71M41.16M20.16M31.33M

Quantum Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.05
Price Trends
50DMA
9.54
Positive
100DMA
9.17
Positive
200DMA
12.39
Negative
Market Momentum
MACD
-0.03
Positive
RSI
44.64
Neutral
STOCH
29.67
Neutral
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 10.05 is below the 20-day moving average (MA) of 11.14, above the 50-day MA of 9.54, and below the 200-day MA of 12.39, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 29.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QMCO.

Quantum Risk Analysis

Quantum disclosed 43 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
$37.18B12.37-10.20%1.83%8.50%-7.62%
$125.09M-7.75-44.58%4.65%-79.75%
$47.84M-5.50-24.73%-9.09%-1586.89%
$89.67M-3.03-23.11%-73.87%-115.50%
$70.58M-4.10-20.27%0.63%-364.33%
$128.26M-0.47-8.07%-86.20%
$29.32M-7.04%154.52%47.31%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QMCO
Quantum
9.63
4.78
98.56%
ALOT
AstroNova
9.24
-4.02
-30.32%
INVE
Identiv
3.78
0.20
5.59%
TACT
Transact Technologies
4.74
0.49
11.53%
OSS
One Stop Systems
5.11
2.82
123.14%
EBON
Ebang International Holdings
4.30
-2.26
-34.45%

Quantum Corporate Events

Shareholder Meetings
Quantum Announces 2025 Annual Stockholders Meeting Date
Neutral
Oct 20, 2025

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.

The most recent analyst rating on (QMCO) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Quantum stock, see the QMCO Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Quantum Restructures Debt to Enhance Financial Flexibility
Positive
Sep 23, 2025

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.

The most recent analyst rating on (QMCO) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Quantum stock, see the QMCO Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
Quantum Regains Nasdaq Compliance, Stabilizing Market Position
Positive
Sep 15, 2025

On September 12, 2025, Quantum Corporation received confirmation from the Nasdaq Stock Market that it has regained compliance with the periodic filing requirement as per Nasdaq Listing Rule 5250(c)(1). This resolution indicates that the company has addressed previous compliance issues, potentially stabilizing its market position and reassuring stakeholders.

The most recent analyst rating on (QMCO) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Quantum stock, see the QMCO Stock Forecast page.

Quantum Corp’s Earnings Call: Challenges and Innovations
Sep 12, 2025

In the latest earnings call, Quantum Corp presented a mixed sentiment. While the company is making strides with leadership changes and product innovations, the financial performance remains a concern. The decline in revenue, decreased gross margin, and increased net loss overshadow the positives. However, the reduction in debt is a promising sign amidst these challenges, indicating a tough operating environment.

Quantum Corp Reports Q1 2026 Financial Results
Sep 11, 2025

Quantum Corporation, a leader in data management solutions for the AI era, offers comprehensive and cost-efficient solutions for industries like life sciences, government, and media. In its fiscal first quarter of 2026, Quantum reported a decline in revenue to $64.3 million from $72.3 million the previous year, alongside a net loss of $17.2 million. Despite these setbacks, the company has taken strategic steps to improve its financial health, including raising $83 million through a standby equity purchase agreement and reducing operating expenses. Key financial metrics showed a decrease in gross profit margin to 35.3% and an adjusted EBITDA of negative $6.5 million. Looking forward, Quantum’s management is optimistic about future performance improvements, expecting better bottom-line results in the upcoming quarters due to strategic leadership changes and a focus on debt reduction.

Quantum Corp’s Growth Strategy: Prioritizing Reinvestment Over Dividends
Aug 28, 2025

Quantum Corp has consistently opted not to distribute dividends on its capital stock, choosing instead to reinvest earnings into business growth. This strategy indicates that any potential returns for investors will primarily rely on stock price appreciation rather than dividend income. The decision to pay dividends in the future remains at the discretion of the Board of Directors, contingent upon various factors including financial health and market conditions. Consequently, investors seeking immediate income might find the company’s stock less attractive compared to those focusing on long-term capital gains.

Delistings and Listing ChangesFinancial DisclosuresRegulatory Filings and Compliance
Quantum Faces Nasdaq Non-Compliance Notice
Neutral
Aug 26, 2025

On August 26, 2025, Quantum Corporation announced the filing of its Annual Report on Form 10-K for the fiscal year ended March 31, 2025, which includes a review of certain revenue contracts. The company also disclosed a delay in filing its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, due to additional time needed for financial statement review. As a result, Quantum received a notice from Nasdaq on August 21, 2025, for non-compliance with listing rules, but this has no immediate impact on its stock listing. The company is working to file the Form 10-Q by September 15, 2025, to regain compliance.

The most recent analyst rating on (QMCO) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Quantum stock, see the QMCO Stock Forecast page.

Executive/Board ChangesFinancial Disclosures
Quantum CFO Resigns Amid Financial Restatement
Negative
Aug 18, 2025

Quantum Corporation announced the termination of its Revolving Credit Agreement with PNC Bank and settled all outstanding obligations, including an early termination fee of $1.2 million, on August 14, 2025. Additionally, the company is undergoing leadership changes as Lewis W. Moorehead, the Chief Financial Officer, resigned effective August 18, 2025, with Laura A. Nash stepping in as the Principal Financial Officer. The company is also finalizing a restatement of its financial statements for the fiscal third quarter ended December 31, 2024, expecting a $3.9 million decrease in revenue and net loss, aligning with previous disclosures.

The most recent analyst rating on (QMCO) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Quantum stock, see the QMCO Stock Forecast page.

Quantum Corporation Delays 10-Q Filing
Aug 15, 2025

Quantum Corporation has announced a delay in filing its Form 10-Q (Quarter Report) for the financial period ending June 30, 2025. The primary reason for the delay is the additional time required to finalize and review the company’s financial statements, both quarterly and annual, which could not be completed without unreasonable effort or expense. The company anticipates that the report will be filed within five calendar days following the original due date of August 14, 2025. There are no expected significant changes in financial results from the previous year. Quantum Corporation continues to work on compliance efforts, with the notification signed by Chief Accounting Officer Laura A. Nash.

The most recent analyst rating on (QMCO) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Quantum stock, see the QMCO Stock Forecast page.

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.Date of analysis: Oct 28, 2025