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Quantum Corp (QMCO)
:QMCO
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Quantum
(NASDAQ:QMCO)
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Rating:48Neutral
Price Target:
$11.00
▲(6.90% Upside)
Quantum's overall stock score is primarily impacted by its poor financial performance, with negative profitability and high leverage. While technical indicators show some short-term strength, the valuation remains unattractive due to ongoing losses. The earnings call provided mixed signals, with some positive strategic changes but overshadowed by financial difficulties.
Positive Factors
Leadership Changes
New leadership can drive strategic initiatives and improve sales execution, potentially enhancing long-term revenue growth and market position.
Product Innovation
Innovative product launches position Quantum to capture market share in the growing backup market, supporting future revenue and competitive advantage.
Debt Reduction
Significant debt reduction enhances financial flexibility, allowing for better capital allocation and investment in growth opportunities.
Negative Factors
Revenue Decline
A decline in revenue indicates challenges in maintaining market share and could impact long-term financial health if not addressed.
Decreased Gross Margin
Decreasing gross margins suggest cost pressures and pricing challenges, which could hinder profitability and operational efficiency over time.
Negative Adjusted EBITDA
Negative adjusted EBITDA reflects operational inefficiencies and financial strain, potentially limiting the company's ability to invest in growth.
Quantum (QMCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$137.06M
Dividend YieldN/A
Average Volume (3M)3.23M
Price to Earnings (P/E)―
Beta (1Y)2.17
Revenue Growth-8.07%
EPS Growth-86.20%
CountryUS
Employees770
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-1.87
Shares Outstanding13,319,249
10 Day Avg. Volume2,883,000
30 Day Avg. Volume3,234,641
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 Cap1.58
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit2.03
Enterprise Value/Ebitda-2.62
Forecast
1Y Price Target
$11.50Price Target Upside11.76% Upside
Rating ConsensusHold
Number of Analyst Covering2
Quantum Business Overview & Revenue Model
Company DescriptionQuantum 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 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'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
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.35
Negative
Balance Sheet
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.30
Negative
Cash Flow
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.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 267.00M | 274.06M | 311.60M | 412.75M | 372.83M | 349.58M |
| Gross Profit | 106.41M | 109.83M | 124.89M | 133.94M | 147.03M | 150.75M |
| EBITDA | -82.65M | -85.06M | -16.17M | 4.25M | -9.63M | -2.00M |
| Net Income | -111.48M | -115.09M | -41.29M | -37.94M | -32.28M | -35.46M |
Balance Sheet | ||||||
| Total Assets | 169.15M | 155.40M | 187.62M | 213.66M | 201.63M | 194.92M |
| Cash, Cash Equivalents and Short-Term Investments | 37.40M | 16.46M | 25.69M | 25.96M | 5.21M | 27.43M |
| Total Debt | 8.79M | 132.88M | 119.98M | 99.64M | 123.18M | 100.75M |
| Total Liabilities | 283.54M | 319.77M | 309.11M | 300.55M | 328.32M | 307.17M |
| 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 Flow | 63.13M | 19.31M | 15.71M | 41.16M | 20.16M | 31.33M |
Quantum Technical Analysis
Neutral
10.29
Price Trends
9.15
Positive
9.32
Positive
13.69
Negative
Market Momentum
0.71
Positive
47.69
Neutral
13.96
Positive
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 10.29 is below the 20-day moving average (MA) of 11.24, above the 50-day MA of 9.15, and below the 200-day MA of 13.69, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 13.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $126.80M | ― | -44.58% | ― | 4.65% | -79.75% | |
50 Neutral | $46.53M | ― | -24.73% | ― | -9.09% | -1586.89% | |
48 Neutral | $137.06M | ― | 33.98% | ― | -8.07% | -86.20% | |
48 Neutral | $74.45M | 16.92 | -20.27% | ― | 0.63% | -364.33% | |
48 Neutral | $91.57M | ― | -23.11% | ― | -73.87% | -115.50% | |
41 Neutral | $29.32M | ― | -7.04% | ― | 154.52% | 47.31% |
* Technology Sector Average
QMCO
Quantum
10.29
5.38
109.57%
ALOT
AstroNova
9.75
-4.25
-30.36%
INVE
Identiv
3.86
0.19
5.18%
TACT
Transact Technologies
4.61
0.31
7.21%
OSS
One Stop Systems
5.18
2.60
100.78%
EBON
Ebang International Holdings
4.48
-1.37
-23.42%
Quantum Corporate Events
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.
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.