Quantum (NASDAQ:QMCO – Get Free Report) released its earnings results on Monday. The company reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.17) by $0.35, FiscalAI reports. The business had revenue of $80.80 million during the quarter, compared to analysts’ expectations of $75.05 million. Quantum updated its Q2 2027 guidance to 0.020-0.220 EPS.
Here are the key takeaways from Quantum’s conference call:
- Revenue reached $80.8 million, up 25.7% year over year and above guidance, while gross margin improved to 39.3% and adjusted EBITDA reached $8 million. Management attributed the performance to strong demand, pricing, cost discipline, and operating leverage.
- Demand and backlog remain strong, with a growing pipeline of large enterprise and hyperscaler opportunities. ActiveScale adoption is expanding through seven-digit customer deals and expansions, while tape demand is benefiting from storage-cost, power-efficiency, and cyber-resilience requirements.
- Supply constraints remain the main limiter on near-term growth, particularly for tape drives and certain disk drives. Management said customer demand exceeds its ability to fulfill orders, and pricing volatility from component shortages could pressure margins.
- Quantum exited the quarter with zero debt, $54.6 million in cash and restricted cash, positive operating cash flow, and its first non-GAAP adjusted net income since 2023. Eliminating debt is expected to reduce interest expense substantially from the prior year’s $21.6 million.
- Fiscal second-quarter revenue is expected to be approximately $82 million, plus or minus $2 million, but adjusted EBITDA is guided to $6 million, below the first quarter’s $8 million. The sequential decline reflects planned R&D hiring, higher sales commissions, and conservative margin assumptions amid large deals and supply uncertainty.
Quantum Stock Up 44.9%
Shares of QMCO stock opened at $17.07 on Tuesday. Quantum has a 12 month low of $4.19 and a 12 month high of $18.48. The company has a market cap of $672.56 million, a PE ratio of -2.04 and a beta of 2.97. The business’s 50 day moving average is $11.98 and its two-hundred day moving average is $8.50.
Trending Headlines about Quantum
- Positive Sentiment: Quantum exceeded quarterly expectations. Fiscal Q1 2027 adjusted earnings were $0.18 per share, versus the consensus estimate of a $0.17 loss, while revenue reached $80.8 million, above the $75.05 million analyst estimate. The earnings result improved significantly from a $1.58-per-share loss a year earlier. Quantum Corp. Surpasses Q1 Earnings and Revenue Estimates
- Positive Sentiment: Revenue growth and balance-sheet improvements were notable. Revenue rose 26% year over year from $64.3 million, adjusted EBITDA was $8.0 million, and the company ended the quarter with $54.6 million in cash and no outstanding debt, compared with $104.3 million of debt a year earlier. Operating expenses also declined year over year. Quantum Reports $80.8 Million Revenue for Fiscal Q1 2027
- Positive Sentiment: Second-quarter guidance was ahead of expectations. Quantum forecast fiscal Q2 2027 revenue of $80 million to $84 million, versus the $75.4 million consensus estimate, and adjusted EPS of $0.02 to $0.22, compared with analyst expectations for a $0.04 loss. Quantum Earnings Report
- Neutral Sentiment: GAAP results remained deeply negative. Quantum reported a $155.3 million GAAP net loss, or $7.06 per share, primarily from one-time charges associated with debt-elimination transactions. This contrasts with the company’s positive non-GAAP results and may create volatility as investors distinguish recurring performance from accounting effects.
- Negative Sentiment: Recent insider activity was unfavorable. Insiders made four open-market sales over the past six months and no purchases, including sales by the CEO, chief revenue officer and chief accounting officer. Institutional positioning was mixed, with 18 investors adding shares and 21 reducing positions.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently bought and sold shares of QMCO. Bank of America Corp DE raised its holdings in Quantum by 337.5% in the 3rd quarter. Bank of America Corp DE now owns 2,896 shares of the company’s stock worth $29,000 after acquiring an additional 2,234 shares during the period. BNP Paribas Financial Markets grew its position in shares of Quantum by 322.1% in the third quarter. BNP Paribas Financial Markets now owns 3,461 shares of the company’s stock valued at $34,000 after purchasing an additional 2,641 shares during the last quarter. Raymond James Financial Inc. bought a new position in shares of Quantum in the second quarter worth about $46,000. Millennium Management LLC acquired a new position in shares of Quantum during the 4th quarter worth about $73,000. Finally, XTX Topco Ltd acquired a new position in shares of Quantum during the 4th quarter worth about $77,000. 63.66% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth
QMCO has been the subject of several research analyst reports. Litchfield Hills Research began coverage on Quantum in a research note on Monday. They issued a “buy” rating for the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Quantum in a research report on Wednesday, June 24th. Needham & Company LLC started coverage on Quantum in a research report on Wednesday, June 3rd. They set a “buy” rating for the company. Lake Street Capital restated a “buy” rating on shares of Quantum in a research note on Friday, June 26th. Finally, Northland Securities downgraded Quantum from an “outperform” rating to a “market perform” rating and set a $13.00 price objective on the stock. in a report on Friday, June 26th. Three research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $16.50.
Check Out Our Latest Research Report on Quantum
About Quantum
Quantum Corporation (NASDAQ: QMCO) is a technology company that develops and delivers data management and storage solutions for businesses and organizations worldwide. The company’s product portfolio includes hardware, software and cloud-based offerings designed to address backup, archive, primary storage and long-term retention needs. Quantum’s solutions are geared toward data-intensive environments such as media and entertainment, surveillance, government, education and healthcare, where large volumes of digital content must be reliably stored, managed and accessed.
Quantum’s flagship products include the StorNext® data management platform, which provides high-performance shared file storage and workflow acceleration, and the DXi® series of deduplication appliances, which optimize backup and recovery by reducing storage footprints and data transfer times.
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