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Quantum
(NASDAQ:QMCO)
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Rating:61Neutral
Price Target:
$26.00
▲(10.36% Upside)
Action:Reiterated
Date:09/06/26
QMCO’s score is primarily held back by weak financial performance (large losses, cash burn, and negative equity). Offsetting this, technicals are strong with clear upward price momentum, and the latest earnings call points to operational improvement (better margins, positive adjusted EBITDA and operating cash flow) albeit with meaningful supply-chain execution risk. Valuation is constrained by negative earnings and no indicated dividend yield.
Positive Factors
Revenue and Margin Momentum
Strong year-over-year revenue growth paired with significant gross-margin expansion indicates improving demand conversion and product economics. If sustained, the combination can increase operating leverage, support reinvestment, and strengthen Quantum’s position in expanding unstructured-data storage markets over coming quarters.
Negative Factors
Structurally Stressed Capital Structure
Negative shareholder equity leaves limited balance-sheet protection and reduces financial flexibility if operating results weaken. Even after debt reduction, the capital structure can constrain investment choices, increase refinancing sensitivity, and make continued execution especially important for preserving liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Momentum
Strong year-over-year revenue growth paired with significant gross-margin expansion indicates improving demand conversion and product economics. If sustained, the combination can increase operating leverage, support reinvestment, and strengthen Quantum’s position in expanding unstructured-data storage markets over coming quarters.
Read all positive factors
Quantum Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down Quantum's revenue by region, revealing where its customers and growth are concentrated and which markets expose the company to economic, currency, or regulatory headwinds. Geographic diversity can reduce risk and highlight untapped growth areas, while reliance on a few regions creates vulnerability to local slowdowns.
Breaks down Quantum's revenue by region, revealing where its customers and growth are concentrated and which markets expose the company to economic, currency, or regulatory headwinds. Geographic diversity can reduce risk and highlight untapped growth areas, while reliance on a few regions creates vulnerability to local slowdowns.
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The Fly
The FlyQuantum (QMCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$974.61M
Dividend YieldN/A
Average Volume (3M)1.99M
Price to Earnings (P/E)―
Beta (1Y)2.59
Revenue Growth10.90%
EPS Growth35.72%
CountryUS
Employees490
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-13.23
Shares Outstanding39,410,000
10 Day Avg. Volume917,570
30 Day Avg. Volume1,986,903
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$24.00Price Target Upside1.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.08
Revenue Forecast (FY)$313.10M
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:Aug 10, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial turnaround: revenue growth (sequential and year-over-year), materially improved gross margins, positive adjusted EBITDA, cash generation, and a debt-free balance sheet. These achievements are tempered by meaningful supply-chain constraints (tape drives and certain disk components) that limit order fulfillment and by a large, one-time GAAP loss tied to debt extinguishment. Management is investing modestly in R&D and sales (raising near-term OpEx) while guiding conservatively on margins given supply uncertainty. Overall the company shows improving fundamental performance with near-term execution risk centered on supply.Positive Updates
Revenue Beat and Strong Year-Over-Year Growth
Revenue of $80.8M (≈$81M) beat guidance ($75M) and increased $2.8M sequentially (~4%) from $78M; up 25.7% year-over-year from $64.3M.
Negative Updates
Supply Chain Constraints Limiting Fulfillment
Demand materially outpaces ability to fulfill orders due to tape drive and certain disk drive shortages; backlog growth constrained by component availability, limiting near-term upside despite strong bookings.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Beat and Strong Year-Over-Year Growth
Revenue of $80.8M (≈$81M) beat guidance ($75M) and increased $2.8M sequentially (~4%) from $78M; up 25.7% year-over-year from $64.3M.
Read all positive updates
Company Guidance
Quantum guided fiscal second quarter 2027 revenue of approximately $82 million, plus or minus $2 million (midpoint implying ~31% year‑over‑year growth), noting upside will depend on supply to fulfill backlog; non‑GAAP adjusted operating expenses are expected to be about $27 million, plus or minus $1 million (a sequential increase driven by higher sales commissions and R&D hiring); non‑GAAP adjusted net income per share is anticipated at $0.12, plus or minus $0.10, based on an estimated 39.4 million weighted average basic shares outstanding; and adjusted EBITDA is targeted at $6 million, plus or minus $1 million.Quantum Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
16
Very Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 296.10M | 279.58M | 274.06M | 311.60M | 422.08M | 383.43M |
| Gross Profit | 112.05M | 103.04M | 109.83M | 124.89M | 143.26M | 157.64M |
| EBITDA | -214.76M | -73.18M | -85.06M | -16.17M | 4.25M | 61.00M |
| Net Income | -239.13M | -101.05M | -115.09M | -41.29M | -18.37M | 38.35M |
Balance Sheet | ||||||
| Total Assets | 191.90M | 156.89M | 155.40M | 187.62M | 213.66M | 201.63M |
| Cash, Cash Equivalents and Short-Term Investments | 54.45M | 15.57M | 16.46M | 25.69M | 25.96M | 5.21M |
| Total Debt | 8.86M | 153.82M | 132.88M | 119.98M | 99.64M | 123.18M |
| Total Liabilities | 219.72M | 355.75M | 319.77M | 309.11M | 298.03M | 345.37M |
| Stockholders Equity | -27.82M | -198.86M | -164.37M | -121.50M | -84.37M | -143.74M |
Cash Flow | ||||||
| Free Cash Flow | -20.93M | -39.56M | -28.56M | -16.02M | -17.48M | -40.04M |
| Operating Cash Flow | -20.02M | -37.86M | -23.61M | -10.16M | -4.89M | -33.73M |
| Investing Cash Flow | -909.00K | -1.71M | -4.95M | -5.87M | -15.60M | -14.12M |
| Financing Cash Flow | 37.95M | 39.17M | 19.31M | 15.71M | 41.16M | 20.16M |
Quantum Technical Analysis
Positive
23.56
Price Trends
15.53
Positive
12.82
Positive
9.69
Positive
Market Momentum
2.52
Positive
65.10
Neutral
78.64
Neutral
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 23.56 is above the 20-day moving average (MA) of 22.51, above the 50-day MA of 15.53, and above the 200-day MA of 9.69, indicating a bullish trend. The MACD of 2.52 indicates Positive momentum. The RSI at 65.10 is Neutral, neither overbought nor oversold. The STOCH value of 78.64 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $168.54B | 17.21 | 118.65% | 0.11% | -2.71% | 407.72% | |
71 Outperform | $36.45B | 25.85 | 113.67% | 1.12% | 12.15% | 24.60% | |
63 Neutral | $192.48B | 58.41 | 348.17% | 0.35% | 34.06% | 108.45% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $974.61M | -1.87 | 167.40% | ― | 10.90% | 35.72% | |
59 Neutral | $34.79B | 83.47 | -38.42% | 2.89% | 17.37% | 898.02% |
* Technology Sector Average
QMCO
Quantum
24.73
17.14
225.82%
IRM
Iron Mountain
116.86
27.48
30.74%
NTAP
NetApp
185.59
66.51
55.85%
STX
Seagate Tech
849.28
661.59
352.49%
WDC
Western Digital
467.46
374.31
401.86%
Quantum Corporate Events
Business Operations and StrategyExecutive/Board Changes
Quantum Appoints New Chief Accounting Officer Patel
Positive
Sep 1, 2026
On September 1, 2026, Quantum Corporation appointed Hiral A. Patel as chief accounting officer and principal accounting officer, placing her in charge of the company’s global accounting functions, including financial reporting, revenue recog...
Executive/Board Changes
Quantum Announces Transition of Chief Accounting Officer Role
Neutral
Aug 14, 2026
On August 11, 2026, Quantum Corporation announced that Chief Accounting Officer and Principal Accounting Officer Laura A. Nash will transition out of her roles effective September 1, 2026, with her employment expected to end on December 31, 2026. ...
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.