Quantum Corporation Q3 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy QMCO?
Source: seekingalpha
- Earnings Highlights: Quantum Corporation reported a Q3 non-GAAP EPS of -$0.36, beating expectations by $0.09, with revenue of $74.6 million reflecting a 2.8% year-over-year increase, surpassing forecasts by $1.9 million, indicating resilience amid challenges.
- Liquidity Position: As of December 31, 2025, the company held $13.8 million in cash and equivalents, down from $20.6 million a year earlier, reflecting liquidity pressures but maintaining sufficient reserves to support operations.
- Debt Management: The quarterly interest expense decreased to $5.9 million from $6.8 million year-over-year, indicating progress in debt management, while outstanding term loan debt fell from $105.9 million in 2024 to $54.6 million, alleviating financial burdens.
- Future Outlook: The company projects Q4 2026 revenue to fluctuate around $68 million, with a non-GAAP adjusted basic net loss per share of -$0.33, suggesting ongoing challenges in profitability but also presenting potential rebound opportunities for investors.
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Analyst Views on QMCO
Wall Street analysts forecast QMCO stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 5.610
Low
9.00
Averages
11.00
High
13.00
Current: 5.610
Low
9.00
Averages
11.00
High
13.00
About QMCO
Quantum Corporation provides solutions for artificial intelligence (AI) and unstructured data. The Company's data platform has allowed customers to extract the maximum value from their unstructured data. From high-performance ingest that powers AI applications and demanding data-intensive workloads, to massive, durable data lakes to fuel AI models, the Company delivers comprehensive solutions. It specializes in solutions for video, images, audio, and other large files. Its portfolio of products includes primary storage software and systems, secondary storage software and systems, as well as devices and media. Its products and services include high-performance platforms, Al-enabled workflow management, data protection and archiving, and services. Its high-performance platforms include Myriad all-flash file and object storage, StorNext file system, and ActiveScale object storage. Its Al-enabled workflow management includes CatDV media asset management and cloud-based analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Quantum Corporation Q3 2026 Earnings Call Highlights
- Significant Revenue Growth: Quantum Corporation reported revenue of $74.6 million in Q3, an 18.9% increase from $62.7 million in the previous quarter, demonstrating effective execution of its strategy and laying a foundation for achieving positive cash flow in the near term.
- Successful Debt Restructuring: Shareholders approved the exchange of term debt held by Dialectic for convertible notes, reducing outstanding term debt by approximately 50%, which lowers the company's debt to historically low levels and enhances financial stability.
- Strong Market Demand: Despite facing global supply chain pressures, Quantum secured multiple million-dollar orders in Q3, with tape sales doubling quarter-over-quarter, indicating a rising demand from customers for new architectures that reduce reliance on constrained components, thus further boosting market share.
- Cautious Outlook: While management remains optimistic about demand, the revenue forecast for Q4 is set at approximately $68 million due to pricing volatility and component availability issues, reflecting the company's cautious stance in an uncertain environment.
See More
Quantum Corporation Q3 Earnings Beat Expectations
- Earnings Highlights: Quantum Corporation reported a Q3 non-GAAP EPS of -$0.36, beating expectations by $0.09, with revenue of $74.6 million reflecting a 2.8% year-over-year increase, surpassing forecasts by $1.9 million, indicating resilience amid challenges.
- Liquidity Position: As of December 31, 2025, the company held $13.8 million in cash and equivalents, down from $20.6 million a year earlier, reflecting liquidity pressures but maintaining sufficient reserves to support operations.
- Debt Management: The quarterly interest expense decreased to $5.9 million from $6.8 million year-over-year, indicating progress in debt management, while outstanding term loan debt fell from $105.9 million in 2024 to $54.6 million, alleviating financial burdens.
- Future Outlook: The company projects Q4 2026 revenue to fluctuate around $68 million, with a non-GAAP adjusted basic net loss per share of -$0.33, suggesting ongoing challenges in profitability but also presenting potential rebound opportunities for investors.
See More
Retail Giants Earnings Season Nears Conclusion
- Earnings Calendar: This week, several retail, energy, and tech giants are set to report earnings, with investors particularly focused on Medtronic, Energy Transfer, and HIVE, while Carvana's Q4 results are due after Wednesday's close.
- Carvana Earnings Expectations: Analysts forecast Carvana to report earnings of $1.10 per share on revenue of $5.26 billion, with strong year-over-year growth in retail units and gross profit per unit, although investor concerns linger over a recent short-seller report alleging accounting irregularities.
- Walmart Earnings Focus: Walmart is expected to report earnings on Thursday, with estimates of $0.72 per share and revenue of $190.24 billion, as investors will closely monitor the growth of high-margin segments and commentary on consumer health.
- Opendoor Earnings Outlook: Opendoor is set to release its Q4 results after Thursday's close, with investors looking for updates on its turnaround plans and progress towards profitability by 2026, particularly regarding improvements in gross margins and the success of its AI-driven “capital-light” platform.
See More
Quantum Corp. Appoints New CFO William White Amid Turnaround Efforts
- Executive Appointment: Quantum Corp. has appointed William White as CFO, who previously served as CFO and head of revenue operations at Emotive, and his extensive SaaS experience is expected to enhance the company's financial management and strategic execution.
- Turnaround Progress: The company is undergoing a high-risk turnaround, and while its stock price has yet to reflect this potential, market expectations for its future performance have improved, indicating cautious optimism among investors.
- Financial Outlook: Quantum estimates that its FQ3 revenue will exceed prior guidance, signaling substantial progress in revenue growth, which may bolster investor confidence moving forward.
- Policy Support: Senators have introduced a bipartisan quantum bill aimed at advancing quantum technology, which will provide policy support for Quantum Corp. and further enhance its competitiveness in the quantum computing sector.
See More
Quantum Corporation Executives Accused of Breach of Duty
- Financial Reporting Error: Quantum Corporation improperly recognized revenue during the fiscal year ending March 31, 2025, necessitating a restatement of its financial statements for Q3 2024, which could undermine investor confidence in the company's financial health.
- Legal Investigation Initiated: Kuehn Law is investigating whether Quantum executives breached their fiduciary duties to shareholders, and if substantiated, this could lead to legal repercussions for the executives involved.
- Improper Disclosure: The failure to timely disclose financial issues has rendered statements regarding the company's business, operations, and prospects materially false and misleading, potentially impacting shareholder decision-making.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased QMCO stock before November 15, 2024, to contact them promptly to safeguard their rights, emphasizing the critical role shareholders play in maintaining market integrity.
See More
Quantum Corporation Executives Under Investigation for Breach of Fiduciary Duties
- Financial Misrepresentation: Quantum Corporation improperly recognized revenue during the fiscal year ending March 31, 2025, necessitating a restatement of financial statements for the third quarter of 2024, which could undermine investor confidence in the company's financial health.
- Legal Investigation: Kuehn Law, PLLC is investigating whether Quantum's executives breached their fiduciary duties to shareholders, and if substantiated, this could lead to legal repercussions for the executives and damage the company's reputation.
- Improper Disclosure: Statements made by Quantum regarding its business, operations, and prospects have been accused of being materially false and misleading, potentially misguiding shareholders in their future investment decisions.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased QMCO stock before November 15, 2024, to contact the firm to protect their rights, highlighting the importance of shareholder involvement in maintaining market integrity.
See More
Quantum Corporation Q3 2026 Earnings Call Highlights
- Significant Revenue Growth: Quantum Corporation reported revenue of $74.6 million in Q3, an 18.9% increase from $62.7 million in the previous quarter, demonstrating effective execution of its strategy and laying a foundation for achieving positive cash flow in the near term.
- Successful Debt Restructuring: Shareholders approved the exchange of term debt held by Dialectic for convertible notes, reducing outstanding term debt by approximately 50%, which lowers the company's debt to historically low levels and enhances financial stability.
- Strong Market Demand: Despite facing global supply chain pressures, Quantum secured multiple million-dollar orders in Q3, with tape sales doubling quarter-over-quarter, indicating a rising demand from customers for new architectures that reduce reliance on constrained components, thus further boosting market share.
- Cautious Outlook: While management remains optimistic about demand, the revenue forecast for Q4 is set at approximately $68 million due to pricing volatility and component availability issues, reflecting the company's cautious stance in an uncertain environment.
See More
Quantum Corporation Q3 Earnings Beat Expectations
- Earnings Highlights: Quantum Corporation reported a Q3 non-GAAP EPS of -$0.36, beating expectations by $0.09, with revenue of $74.6 million reflecting a 2.8% year-over-year increase, surpassing forecasts by $1.9 million, indicating resilience amid challenges.
- Liquidity Position: As of December 31, 2025, the company held $13.8 million in cash and equivalents, down from $20.6 million a year earlier, reflecting liquidity pressures but maintaining sufficient reserves to support operations.
- Debt Management: The quarterly interest expense decreased to $5.9 million from $6.8 million year-over-year, indicating progress in debt management, while outstanding term loan debt fell from $105.9 million in 2024 to $54.6 million, alleviating financial burdens.
- Future Outlook: The company projects Q4 2026 revenue to fluctuate around $68 million, with a non-GAAP adjusted basic net loss per share of -$0.33, suggesting ongoing challenges in profitability but also presenting potential rebound opportunities for investors.
See More
Retail Giants Earnings Season Nears Conclusion
- Earnings Calendar: This week, several retail, energy, and tech giants are set to report earnings, with investors particularly focused on Medtronic, Energy Transfer, and HIVE, while Carvana's Q4 results are due after Wednesday's close.
- Carvana Earnings Expectations: Analysts forecast Carvana to report earnings of $1.10 per share on revenue of $5.26 billion, with strong year-over-year growth in retail units and gross profit per unit, although investor concerns linger over a recent short-seller report alleging accounting irregularities.
- Walmart Earnings Focus: Walmart is expected to report earnings on Thursday, with estimates of $0.72 per share and revenue of $190.24 billion, as investors will closely monitor the growth of high-margin segments and commentary on consumer health.
- Opendoor Earnings Outlook: Opendoor is set to release its Q4 results after Thursday's close, with investors looking for updates on its turnaround plans and progress towards profitability by 2026, particularly regarding improvements in gross margins and the success of its AI-driven “capital-light” platform.
See More
Quantum Corp. Appoints New CFO William White Amid Turnaround Efforts
- Executive Appointment: Quantum Corp. has appointed William White as CFO, who previously served as CFO and head of revenue operations at Emotive, and his extensive SaaS experience is expected to enhance the company's financial management and strategic execution.
- Turnaround Progress: The company is undergoing a high-risk turnaround, and while its stock price has yet to reflect this potential, market expectations for its future performance have improved, indicating cautious optimism among investors.
- Financial Outlook: Quantum estimates that its FQ3 revenue will exceed prior guidance, signaling substantial progress in revenue growth, which may bolster investor confidence moving forward.
- Policy Support: Senators have introduced a bipartisan quantum bill aimed at advancing quantum technology, which will provide policy support for Quantum Corp. and further enhance its competitiveness in the quantum computing sector.
See More
Quantum Corporation Executives Accused of Breach of Duty
- Financial Reporting Error: Quantum Corporation improperly recognized revenue during the fiscal year ending March 31, 2025, necessitating a restatement of its financial statements for Q3 2024, which could undermine investor confidence in the company's financial health.
- Legal Investigation Initiated: Kuehn Law is investigating whether Quantum executives breached their fiduciary duties to shareholders, and if substantiated, this could lead to legal repercussions for the executives involved.
- Improper Disclosure: The failure to timely disclose financial issues has rendered statements regarding the company's business, operations, and prospects materially false and misleading, potentially impacting shareholder decision-making.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased QMCO stock before November 15, 2024, to contact them promptly to safeguard their rights, emphasizing the critical role shareholders play in maintaining market integrity.
See More
Quantum Corporation Executives Under Investigation for Breach of Fiduciary Duties
- Financial Misrepresentation: Quantum Corporation improperly recognized revenue during the fiscal year ending March 31, 2025, necessitating a restatement of financial statements for the third quarter of 2024, which could undermine investor confidence in the company's financial health.
- Legal Investigation: Kuehn Law, PLLC is investigating whether Quantum's executives breached their fiduciary duties to shareholders, and if substantiated, this could lead to legal repercussions for the executives and damage the company's reputation.
- Improper Disclosure: Statements made by Quantum regarding its business, operations, and prospects have been accused of being materially false and misleading, potentially misguiding shareholders in their future investment decisions.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased QMCO stock before November 15, 2024, to contact the firm to protect their rights, highlighting the importance of shareholder involvement in maintaining market integrity.
See More
