Quantum Corp (QMCO)
NASDAQ:QMCO
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Quantum
(NASDAQ:QMCO)
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Rating:50Neutral
Price Target:
$11.50
▲(57.97% Upside)
Action:Reiterated
Date:06/27/26
QMCO scores low-to-mid primarily due to weak financial performance: persistent losses, negative operating/free cash flow, and chronically negative equity dominate risk despite improved gross margin and reduced debt. Technicals are mixed but moderately supportive (positive longer-term trend with neutral-to-weak near-term signals). The earnings call indicates operational progress (backlog and adjusted EBITDA improvement) but guidance is conservative and liquidity/leverage risks remain. Valuation is constrained by ongoing losses (negative P/E) and no dividend yield support in the provided data.
Positive Factors
Backlog and Revenue Momentum
Sustained backlog above historical run-rate and sequential revenue growth signal durable demand and improved sales execution. A backlog >$20M (2x+ historical) provides near-term revenue visibility and conversion runway over coming quarters, supporting operational stability and planning.
Negative Factors
Persistent Cash Burn
Consistent negative operating and free cash flow erodes internal funding for investment and operations, forcing reliance on external financing. Continued cash burn limits ability to fund R&D, inventory builds, or services improvements, and raises the risk that future execution depends on raising new capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Revenue Momentum
Sustained backlog above historical run-rate and sequential revenue growth signal durable demand and improved sales execution. A backlog >$20M (2x+ historical) provides near-term revenue visibility and conversion runway over coming quarters, supporting operational stability and planning.
Read all positive factors
Quantum Key Performance Indicators (KPIs)
Any
Revenue by Geography
Data provided by:
The Fly
The FlyQuantum (QMCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$458.71M
Dividend YieldN/A
Average Volume (3M)1.33M
Price to Earnings (P/E)―
Beta (1Y)2.55
Revenue Growth2.02%
EPS Growth65.11%
CountryUS
Employees770
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-7.97
Shares Outstanding14,638,029
10 Day Avg. Volume1,588,867
30 Day Avg. Volume1,325,067
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.30
Price to Sales (P/S)0.22
P/FCF Ratio-1.52
Enterprise Value/Market Cap0.49
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit2.19
Enterprise Value/Ebitda-3.33
Forecast
1Y Price Target
$16.50Price Target Upside126.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.36
Revenue Forecast (FY)$298.40M
Quantum Business Overview & Revenue Model
Company Description
Quantum Corporation is a global technology provider, delivering specialized solutions for the storage and management of digital video and various forms of unstructured data across the Americas, Europe, the Middle East, Africa, and the Asia Pacific...
How the Company Makes Money
Quantum makes money primarily by selling data storage and data management products and related services. Key revenue streams include: (1) Product revenue from hardware and integrated solutions, such as storage appliances/systems and tape automatio...
Quantum Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 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
22
Negative
Balance Sheet
14
Very Negative
Cash Flow
18
Very Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 279.58M | 274.06M | 311.60M | 422.08M | 383.43M |
| Gross Profit | 103.04M | 109.83M | 124.89M | 143.26M | 157.64M |
| EBITDA | -24.51M | -85.06M | -16.17M | 4.25M | 61.00M |
| Net Income | -101.05M | -115.09M | -41.29M | -18.37M | 38.35M |
Balance Sheet | |||||
| Total Assets | 156.89M | 155.40M | 187.62M | 213.66M | 201.63M |
| Cash, Cash Equivalents and Short-Term Investments | 15.57M | 16.46M | 25.69M | 25.96M | 5.21M |
| Total Debt | 8.17M | 132.88M | 119.98M | 99.64M | 123.18M |
| Total Liabilities | 355.75M | 319.77M | 309.11M | 298.03M | 345.37M |
| Stockholders Equity | -198.86M | -164.37M | -121.50M | -84.37M | -143.74M |
Cash Flow | |||||
| Free Cash Flow | -39.56M | -28.56M | -16.02M | -17.48M | -40.04M |
| Operating Cash Flow | -37.86M | -23.61M | -10.16M | -4.89M | -33.73M |
| Investing Cash Flow | -1.71M | -4.95M | -5.87M | -15.60M | -14.12M |
| Financing Cash Flow | 39.17M | 19.31M | 15.71M | 41.16M | 20.16M |
Quantum Technical Analysis
Neutral
7.28
Price Trends
10.21
Positive
7.88
Positive
8.26
Positive
Market Momentum
0.91
Positive
46.68
Neutral
24.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QMCO, the sentiment is Neutral. The current price of 7.28 is below the 20-day moving average (MA) of 13.35, below the 50-day MA of 10.21, and below the 200-day MA of 8.26, indicating a neutral trend. The MACD of 0.91 indicates Positive momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 24.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $202.14B | 31.38 | 91.94% | 0.18% | -18.43% | 242.76% | |
75 Outperform | $29.87B | 23.71 | 114.18% | 1.89% | 5.29% | 10.66% | |
72 Outperform | $201.78B | 81.73 | 916.38% | 1.02% | 28.92% | 55.56% | |
65 Neutral | $38.03B | 139.35 | -28.32% | 3.98% | 15.64% | 121.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $458.71M | -1.46 | 64.68% | ― | 2.02% | 65.11% |
* Technology Sector Average
QMCO
Quantum
11.65
2.61
28.87%
IRM
Iron Mountain
132.44
33.51
33.87%
NTAP
NetApp
152.45
48.74
46.99%
STX
Seagate Tech
899.90
759.62
541.50%
WDC
Western Digital
586.45
523.33
829.13%
Quantum Corporate Events
Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
Quantum Simplifies Capital Structure, Terminating Key Financing Arrangements
Positive
Jun 5, 2026
On June 4, 2026, Quantum Corporation terminated its Term Loan Credit and Security Agreement by paying a total of $57.8 million, covering $56.0 million of principal, $1.5 million of accrued interest and $0.3 million of related fees and expenses, an...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Quantum Announces Private Placement, Debt Changes and Preliminary Results
Positive
Jun 2, 2026
On June 1, 2026, Quantum Corporation entered into private placement agreements with accredited investors to sell about 10.6 million common shares at $9.42 per share, raising roughly $100 million in gross proceeds and an expected $94.7 million net....
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.