Quantum (NASDAQ:QMCO) Releases Quarterly Earnings Results

Quantum (NASDAQ:QMCO) posted its quarterly earnings results on Monday. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.13 by $0.12, FiscalAI reports. The business had revenue of $89.63 million during the quarter, compared to analyst estimates of $82.30 million. Quantum updated its Q3 2027 guidance to 0.100-0.300 EPS.

Here are the key takeaways from Quantum’s conference call:

• Fiscal Q2 revenue rose 43% year over year to $89.6 million, above guidance, while adjusted EBITDA reached $11.1 million—more than the company generated in the prior seven fiscal years combined. Quantum also reported $9.8 million in non-GAAP net income and a second consecutive quarter of positive operating cash flow.
• Demand drove record core invoicing and a nearly $100 million backlog, with revenue increasing across all regions and hyperscale demand more than 2.6 times its year-ago level. The company also cited a record ActiveScale order and a major Scalar i7 RAPTOR hyperscaler deployment.
• Component shortages continue to limit shipments, especially for tape media and drives, and management said demand exceeds available supply in some areas. Disk-drive availability improved during the quarter but at higher prices, while the timing of IBM tape-drive production increases remains uncertain.
• Quantum ended the quarter debt-free with $67.5 million in cash and restricted cash, up from $54.6 million in the prior quarter. Operating cash flow was approximately $14 million, though management noted it benefited in part from working-capital timing.
• For fiscal Q3, the company expects revenue of approximately $91 million, plus or minus $2 million, representing about 22% year-over-year growth at the midpoint. Management said results will depend on securing components and shipping orders; adjusted EBITDA is forecast at $9.1 million, below Q2’s $11.1 million, as operating expenses rise with commissions and R&D hiring.

Quantum Price Performance

Shares of QMCO traded up $2.52 during midday trading on Monday, reaching $16.99. The stock had a trading volume of 3,128,003 shares, compared to its average volume of 1,135,457. The company has a market cap of $669.58 million, a price-to-earnings ratio of -1.28 and a beta of 3.23. The company’s fifty day simple moving average is $24.06 and its two-hundred day simple moving average is $13.29. Quantum has a 1-year low of $4.19 and a 1-year high of $35.65.

Analyst Ratings Changes

A number of research firms recently issued reports on QMCO. Litchfield Hills Research started coverage on Quantum in a report on Monday, August 10th. They issued a “buy” rating for the company. Cantor Fitzgerald began coverage on Quantum in a report on Friday, October 23rd. They set an “overweight” rating and a $29.00 price target on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Quantum in a research report on Monday, September 21st. Northland Securities raised Quantum from a “market perform” rating to an “outperform” rating and set a $24.00 price target on the stock in a research report on Tuesday, August 11th. Finally, Lake Street Capital set a $29.00 price objective on Quantum and gave the company a “buy” rating in a research note on Monday, September 14th. Five analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $27.33.

Quantum Company Profile

Quantum Corporation (NASDAQ: QMCO) provides data storage, management and protection solutions for organizations that generate and retain large volumes of unstructured data. Its offerings are designed to help customers store, protect, archive and access information across on-premises, cloud and hybrid environments.

The company’s product portfolio has included Scalar tape libraries and LTO tape storage products, DXi deduplication and backup appliances, and software-defined storage solutions such as ActiveScale object storage.