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what it is
Quantum sells data storage systems, software, and support for companies drowning in video, audio, and image files.
how it gets paid
Last year Quantum made $274M in revenue.
why it's growing
Revenue is still under pressure versus the last clean comparable year (~$312M toward ~$274M). The key number is 37.3% gross margin because it shows the products are not broken.
what just happened
Revenue hit $202M, but EPS stayed deep in the red at -$7.58.
At a glance
C+ balance sheet — struggling to keep the lights on
40/100 earnings predictability — expect surprises
-$16.26 fy2025 eps (GAAP)
~$274M annual revenue view
-15.2% operating margin
xvary composite: 24/100 — weak
What they do
Quantum sells data storage systems, software, and support for companies drowning in video, audio, and image files.
Quantum sells the whole data path, from fast ingest to cheap long-term archive. If your video, image, and audio library already runs on its gear, switching means moving mission-critical files and retraining your team. That matters because unstructured data makes up more than 80% of new data creation, and Quantum is built around that mess.
How they make money
$274M
annual revenue · revenue is down from the prior reported year (~$312M) on a comparable basis
total revenue
$274M
~ -12%
The products that matter
storage systems and appliances
Hardware & Systems
about $~192M · roughly 70% of revenue
This is still the center of gravity. The last reported year showed total revenue down 26.2% to $311.6M. If this hardware-heavy base keeps contracting, the rest of the company is too small to hide it.
core revenue base
software, support, and recurring service work
Software & Services
about $~82M · roughly 30% of revenue
This is the part you would want getting bigger because it should be steadier. Here's the catch: the latest quarter still printed 35.3% gross margin for the company overall. That is not the kind of margin structure that rescues a weak hardware cycle by itself.
needs to get bigger
Key numbers
$16.26
fy2025 eps
EPS → profit per share → so Quantum lost $16.26 per share in FY2025 versus a loss of $8.60 in FY2024. The business is moving backward, not healing.
$76M
long-term debt
Debt this large against a ~$78M market cap means creditors and shareholders are staring at nearly the same pile of value.
-15.2%
operating margin
Operating margin → profit after running the business → so Quantum loses about 15 cents for every $1 of sales at this margin level.
2.3
beta
Beta → how violently a stock moves versus the market → so QMCO tends to swing more than twice as hard as the index.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $76M (49% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for QMCO right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $202M, but EPS stayed deep in the red at -$7.58.
Gross margin was 37.3%, which says the products still have economic value. The problem is the company-level math: annual operating margin is still -15.2%, and yearly losses widened to -$16.26 per share.
$202M
revenue
$7.58
eps
37.3%
gross margin
the number that mattered
The key number is 37.3% gross margin because it shows the products are not broken. The income statement below that line still is.
source: company earnings report, 2026
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What could go wrong
The biggest risk is not abstract "execution." It is that a company with delayed reporting, shrinking revenue, and debt nearly matching its market cap runs out of time before it regains credibility.
med
revenue-recognition review stays unresolved
Ongoing auditor review tied to revenue recognition has delayed financial reporting. Late filings do more than annoy investors. They make every forecast, valuation input, and financing discussion harder.
Impact: credibility gets marked down first, valuation second, and access to capital third.
med
the top line keeps shrinking
Revenue fell 26.2% to $311.6M in the last reported year, and the current annual estimate is $274M. That's not one bad quarter. That's a business still searching for a floor.
Impact: if sales keep falling, the cost base and debt load start looking even heavier.
med
margin erosion turns pressure into cash pressure
Gross margin was 37.3% in the last reported year and 35.3% in the latest quarter. That sounds like a small move. On a weak revenue base, it is not small. It means less room to absorb tariffs, inventory cleanup, or plain old operating mistakes.
Impact: if margin does not recover, the turnaround story becomes a financing story.
med
dilution becomes the price of survival
Long-term debt is $76M, or 49% of capital, and the company entered a standby equity purchase agreement in January 2025. That combination tells you new capital is possible and dilution is not theoretical.
Impact: the business can buy time while your slice of it gets smaller.
A $78M equity carrying $76M of long-term debt, reporting delays, and just $64.3M of quarterly revenue does not have much room for another operational miss.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
Gross margin needs to stop sliding
The latest quarter printed 35.3% versus 37.3% in the last reported year. If that keeps moving down, the turnaround case becomes a capital-raising case.
next report
Q4 revenue guide of $68M ± $2M
This is the cleanest near-term scorecard. A print inside the range helps the stabilization case. A miss tells you the floor may still be lower.
accounting
Resolution of the auditor review
Until the revenue-recognition review is resolved, every other datapoint carries an asterisk. You need cleaner filings before you can underwrite cleaner multiples.
capital
Use of the standby equity facility
The January 2025 equity purchase agreement gives management flexibility. It also tells you dilution is a live issue, not a hypothetical one.
Analyst rankings
earnings predictability
40 / 100
A 40/100 score means the business does not produce clean, repeatable patterns. In human-speak, you should expect surprises, and most of them will not be pleasant.
risk rank
5
This stock is rated safer than only 5% of stocks in the dataset. Translation: the market sees this as an unusually risky setup, not a hidden safe haven.
source: institutional data
Institutional activity
institutional ownership data for QMCO is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$5
current price
n/a
target midpoint · n/a from current
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