Quantum (NASDAQ:QMCO) Announces Quarterly Earnings Results

Quantum (NASDAQ:QMCO) issued its earnings results on Monday. The company reported $0.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.12 by $0.13, FiscalAI reports. The business had revenue of $89.63 million during the quarter, compared to analyst estimates of $82.30 million. Quantum had a negative return on equity of 3.52% and a negative net margin of 73.54%. 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 Stock Up 6.6%

Shares of Quantum stock traded up $1.08 on Wednesday, reaching $17.38. The stock had a trading volume of 1,001,582 shares, compared to its average volume of 1,144,788. The company has a 50 day moving average price of $23.79 and a 200 day moving average price of $13.39. Quantum has a 1 year low of $4.19 and a 1 year high of $35.65. The stock has a market capitalization of $684.87 million, a P/E ratio of -1.60 and a beta of 3.23.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Litchfield Hills Research started coverage on shares of Quantum in a report on Monday, August 10th. They set a “buy” rating on the stock. Cantor Fitzgerald boosted their price target on shares of Quantum from $29.00 to $32.00 and gave the company an “overweight” rating in a report on Tuesday. Wall Street Zen raised shares of Quantum from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Quantum in a research report on Monday, September 21st. Finally, Lake Street Capital set a $29.00 price objective on shares of Quantum and gave the company a “buy” rating in a research note on Monday, September 14th. Five investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Quantum currently has a consensus rating of “Moderate Buy” and an average target price of $28.33.

Quantum News Summary

Investors following QMCO have been watching these news items:

• Positive Sentiment: Q3 guidance calls for revenue of $89 million–$93 million, above the roughly $85.5 million consensus estimate. Hyperscale tape demand has risen more than 2.6 times, and the order backlog is nearing $100 million. Earnings call takeaways
• Positive Sentiment: Cantor Fitzgerald raised its price target from $29 to $32 and maintained an Overweight rating. Call-option trading volume was also reported at 205% above its average, suggesting increased bullish speculation, though options activity alone does not establish investor sentiment. Cantor Fitzgerald rating
• Negative Sentiment: Component shortages could limit the company’s ability to convert strong demand and backlog into near-term revenue. Quantum also reported a substantial net loss despite improved sales and margins. Supply constraints discussion

Quantum Company Profile

Quantum Corporation provides data storage and management solutions for organizations that create and retain large volumes of unstructured data, including video, images and other digital content. Its customers include businesses and institutions in areas such as media and entertainment, government, life sciences and industrial markets. The company’s offerings include StorNext shared-storage and data-management software, Scalar tape libraries for backup and archiving, and ActiveScale object storage.