Earnings release
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August 10 , 2026 Quantum Quantum Reports Fiscal First Quarter 2027 Financial Results Delivers first profitable quarter since fiscal 2023 CENTENNIAL , Colo .-- ( BUSINESS WIRE ) -- Quantum Corporation ( Nasdaq : QMCO ) ( " Quantum " or the " Company " ) , today announced financial results for its fiscal first quarter of 2027 ended June 30 , 2026 . Fiscal First Quarter 2027 Financial Summary • Revenue was $ 80.8 million , exceeding the guidance range of $ 75.0 million , plus or minus $ 2.0 million • GAAP operating expenses were $ 26.7 million ; non - GAAP adjusted operating expenses were $ 25.1 million , reflecting a year - over - year reduction of approximately $ 4.9 million • GAAP net loss was $ 155.3 million , or ( $ 7.06 ) per share primarily due to one - time charges related to successful efforts to restructure its balance sheet and eliminate all debt • Non - GAAP adjusted net income was $ 4.0 million , or $ 0.18 per share • Non - GAAP adjusted EBITDA was $ 8.0 million " Quantum delivered another strong quarter with revenue of approximately $ 81 million , above the high - end of our guidance , along with better - than - expected gross margin and EBITDA results . In addition , we delivered our first non - GAAP profitable quarter since 2023 , " commented Hugues Meyrath , CEO of Quantum . " Our backlog also increased to record levels , reflecting continued robust demand for our tiered storage solutions as organizations confront explosive data growth , cost pressures and increasing power constraints . With our ActiveScale object storage and modern tape architecture , we are helping customers optimize existing environments with the right data in the right place at the right cost - solving real business problems that are critical in the Al era . " Although supply constraints continue to limit our ability to fully meet demand , our growing revenue and backlog is clear evidence of order strength . We have secured several multimillion - dollar deals in both APAC and the Americas , underscoring renewed momentum for our solutions globally . With the Company's debt eliminated and a strong cash position , we are operating from a position of financial strength and remain focused on procuring additional supply in support of our sales momentum and delivering sustainable growth and profitability . " Fiscal First Quarter 2027 vs. Prior Year Fiscal Quarter Revenue for the fiscal first quarter of 2027 was $ 80.8 million , compared to $ 64.3 million in the prior year first quarter , an increase of 26 % . GAAP gross profit in the fiscal first quarter of 2027 was $ 31.7 million , or 39.3 % of revenue , compared to $ 22.7 million , or 35.3 % of revenue , in the fiscal first quarter of 2026 .
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Total GAAP operating expenses in the fiscal first quarter of 2027 were $26.7 million, or 33.0% of revenue, compared to $35.3 million, or 54.9% of revenue, in the prior year. Total operating expenses on a non-GAAP basis for the fiscal first quarter of 2027 were $25.1 million, compared to $30.0 million in the fiscal first quarter of 2026. GAAP net loss in the fiscal first quarter of 2027 was $155.3 million, or ($7.06) per share, compared to a net loss of $17.2 million, or ($1.87) per share, in the fiscal first quarter of 2026. The first quarter net loss includes one-time items related to the extinguishment of the Company’s debt and convertible notes. These include charges of $129.7 million related to the fair value of our convertible notes, $16.3 million related to our outstanding warrants, and $11.7 million of loss on debt extinguishment. Excluding these debt-related items and $0.8 million of other nonrecurring costs as well as stock-based compensation, non-GAAP adjusted net income in the fiscal first quarter of 2027 was $4.0 million, or $0.18 per diluted share, compared to adjusted net loss of $14.5 million, or ($1.58) per share, in the prior year first quarter. Non-GAAP adjusted EBITDA in the fiscal first quarter of 2027 was a positive $8.0 million, compared to negative $6.5 million in the fiscal first quarter of 2026. For a reconciliation of GAAP to non-GAAP financial results, please see the financial reconciliation tables below. Liquidity and Debt (as of June 30, 2026) Cash, cash equivalents and restricted cash were $54.6 million, compared to $37.5 million as of June 30, 2025. Total interest expense for the quarter was $2.1 million, compared to $6.5 million for the same period a year ago. Total outstanding debt is zero, as a result of the successful completion of the Company's debt elimination transactions, compared to $104.3 million as of June 30, 2025. Business Outlook Fiscal second quarter 2027 guidance is as follows: Revenue of $82.0 million, plus or minus $2 million Non-GAAP adjusted operating expenses of $27 million, plus or minus $1 million Non-GAAP adjusted basic net income per share of $0.12, plus or minus $0.10 Non-GAAP adjusted EBITDA of $6 million, plus or minus $1 million This assumes an effective annual tax rate of 3%; non-GAAP adjusted net loss per share assumes an average basic share count of approximately 39.4 million in the fiscal second quarter of 2027. Conference Call and Webcast Management will host a live conference call today at 5:00 p.m. ET (2:00 p.m. PT) to discuss these results. The conference call will be accessible by dialing 1-866-424-3436 (U.S. Toll- Free) or +1-201-689-8058 (International) and entering conference ID 13762011 . This
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conference call will be broadcast live over the Internet with a slide presentation and can be accessed by all interested parties on the investor relations section of the Company's website at www.investors.quantum.com under the events and presentations tab. A telephone replay of the conference call will be available approximately two hours after the conference call and will be available for 7 days. To access the replay dial 1-877-660-6853 and enter the conference ID 13762011 at the prompt. International callers should dial +1- 201-612-7415 and enter the same conference ID. Following the conclusion of the live call, a replay of the webcast will be available on the Company's website at www.quantum.com for at least 90 days. About Quantum Quantum delivers end-to-end data management solutions designed for the AI era. With over four decades of experience, our data platform has allowed customers to extract the maximum value from their unique, unstructured data. From high-performance ingest that powers AI applications and demanding data-intensive workloads, to massive, durable data lakes to fuel AI models, Quantum delivers the most comprehensive and cost-efficient solutions. Leading organizations in life sciences, government, media and entertainment, research, and industrial technology trust Quantum with their most valuable asset - their data. For more information visit www.quantum.com . Quantum is listed on Nasdaq (QMCO). Quantum and the Quantum logo are registered trademarks of Quantum Corporation and its affiliates in the United States and/or other countries. All other trademarks are the property of their respective owners. Forward-Looking Information The information provided in this press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting our business. Such forward-looking statements include, in particular, statements related to future projections of our financial results, including for the second fiscal quarter of 2027; expectations regarding supply constraints and the impact thereof; expectations regarding our pipeline and backlog; expectations regarding market demand for our products and integrated platform solutions; and our focus, goals, momentum, opportunities and strategy. These forward-looking statements may be identified by the use of terms and phrases such as “anticipates”, “believes”, “can”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “plans”, “projects”, “targets”, “will”, and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters and other statements regarding matters that are not historical are forward-looking statements. Investors are cautioned that these forward-looking statements relate to future events or our future performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward- looking statements. These forward-looking statements involve risks and uncertainties that could cause actual
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results to differ materially from those projected, including without limitation, the following: risks related to the need to address the many challenges facing our business; the impact macroeconomic and inflationary conditions on our business, including potential disruptions to our supply chain, employees, operations, sales and overall market conditions; the competitive pressures we face; risks associated with executing our strategy; the timing, execution and realization of anticipated benefits from our cost reduction and restructuring initiatives; the effective distribution of our products and delivery of our services; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the outcome of any legal proceedings, claims and disputes; risks related to our ability to implement and maintain effective internal control over financial reporting in the future; and other risks that are described herein, including but not limited to the items discussed in “Risk Factors” in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K filed with the SEC on June 25, 2026, and any subsequent reports filed with the SEC. In addition, backlog is not necessarily indicative of future revenue or operating results as orders included in backlog may be delayed, modified, reduced or canceled and the timing of shipment, acceptance, installation or revenue recognition may differ from our current expectations. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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QUANTUM CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts, unaudited) June 30, 2026 March 31, 2026 Assets Current assets: Cash and cash equivalents 54,449 15,572 Restricted cash 141 662 Accounts receivable, net of allowance for credit losses of $3,778 and $3,234, respectively 66,659 69,650 Inventories 15,195 16,103 Prepaid expenses 4,717 2,431 Other current assets 7,557 8,068 Total current assets 148,720 112,486 Property and equipment, net 9,054 9,284 Goodwill 12,969 12,969 Right-of-use assets, net 7,275 7,416 Other long-term assets 13,879 14,737 Total assets $ 191,897 $ 156,892 Liabilities and Stockholders’ Deficit Current liabilities: Accounts payable $ 26,663 $ 29,342 Accrued compensation 10,120 12,428 Deferred revenue, current portion 76,158 75,654 Term debt — 54,811 Warrant liabilities 31,690 14,105 Other current liabilities 15,327 19,457 Total current liabilities 159,959 205,797 Deferred revenue, net of current portion 38,980 39,030 Convertible note — 90,034 Operating lease liabilities 7,979 8,172 Other long-term liabilities 12,805 12,716 Total liabilities 219,722 355,749 Stockholders’ deficit Preferred stock: Preferred stock, 20,000 shares authorized; no shares issued as of June 30, 2026 and March 31, 2026, respectively — — Common stock: Common stock, $0.01 par value; 225,000 shares authorized; 39,375 and 14,638 shares issued and outstanding at June 30, 2026 and March 31, 2026, respectively 393 146 Additional paid-in capital 1,171,684 853,974 Accumulated deficit (1,198,810 ) (1,043,517 ) Accumulated other comprehensive loss (1,092 ) (9,460 ) Total stockholders' deficit (27,825 ) (198,857 ) Total liabilities and stockholders' deficit $ 191,897 $ 156,892
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QUANTUM CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share amounts, unaudited) Three Months Ended June 30, 2026 2025 Revenue Product $ 53,871 $ 37,535 Service and subscription 24,668 24,943 Royalty 2,264 1,808 Total revenue 80,803 64,286 Cost of revenue Product 39,723 30,745 Service and subscription 9,360 10,829 Total cost of revenue 49,083 41,574 Gross profit 31,720 22,712 Operating expenses Sales and marketing 11,027 12,655 General and administrative 9,609 13,569 Research and development 6,023 6,661 Restructuring charges 23 2,423 Total operating expenses 26,682 35,308 Income (loss) from operations 5,038 (12,596 ) Other income (expense), net 211 (430 ) Interest expense (2,097 ) (6,516 ) Change in fair value of warrant liability (16,305 ) — Change in fair value of convertible note (129,715 ) — Gain (loss) on debt extinguishment, net (11,716 ) 2,559 Loss before income taxes (154,583 ) (16,983 ) Income tax provision 710 223 Net loss $ (155,293 ) $ (17,206 ) Net loss per share - basic and diluted $ (7.06 ) $ (1.87 ) Weighted average shares - basic and diluted 21,988 9,187 Net loss $ (155,293 ) $ (17,206 ) Reclassification of loss on Convertible Note to loss on debt extinguishment 8,444 — Foreign currency translation adjustments, net (76 ) 722 Total comprehensive loss $ (146,925 ) $ (16,484 ) QUANTUM CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) Three Months Ended June 30, 2026 2025 Operating activities Net loss $ (155,293 ) $ (17,206 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 1,170 1,032 Amortization of debt issuance costs 530 2,075 Non-cash lease expense 260 343 Paid-in-kind interest 924 1,758 Provision for manufacturing and service inventories 163 2,701 Stock-based compensation 748 (529 ) Warrants issued in connection with debt amendments 1,280 — Change in fair value of warrant liabilities 16,305 — Change in fair value of convertible note 129,715 —
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Non-cash loss (gain) on debt extinguishment 8,372 (2,559 ) Other non-cash 282 1,201 Changes in assets and liabilities: Accounts receivable 2,690 4,043 Inventories 745 (297 ) Accounts payable (2,804 ) (4,484 ) Prepaid expenses (2,286 ) (1,024 ) Operating lease liabilities (236 ) (283 ) Deferred revenue 454 (7,668 ) Accrued restructuring charges (496 ) 993 Accrued compensation (1,811 ) 1,036 Other assets 895 840 Other liabilities (660 ) 1,137 Net cash provided by (used in) operating activities 947 (16,891 ) Investing activities Purchases of property and equipment (395 ) (1,192 ) Net cash used in investing activities (395 ) (1,192 ) Financing activities Repayment of long-term debt, net (56,830 ) — Repayments of long-term debt on Assignment — (909 ) Borrowings of credit facility — 71,625 Repayments of credit facility and payment of amendment fees — (98,682 ) Proceeds from shares related to the SEPA, net — 66,993 Proceeds from shares issued related to private placement, net 94,638 — Net cash provided by financing activities 37,808 39,027 Effect of exchange rate changes on cash and cash equivalents (4 ) — Net change in cash, cash equivalents, and restricted cash 38,356 20,944 Cash, cash equivalents, and restricted cash at beginning of period 16,234 16,603 Cash, cash equivalents, and restricted cash at end of period $ 54,590 $ 37,547 Supplemental disclosure of cash flow information Cash paid for interest $ — $ 2,987 Cash paid for income taxes, net of refunds $ 142 $ 141 Non-cash investing and financing transactions: Purchases of property and equipment included in accounts payable $ 164 $ 105 Right-of-use assets obtained in exchange for new lease liabilities $ 30 $ — Warrants issued in connection with debt amendments $ 1,280 $ — Common stock issued upon conversion of Convertible Note (14,104,620 shares) $ 222,571 $ — The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: Cash and cash equivalents $ 54,449 $ 37,404 Restricted cash 141 143 Total cash, cash equivalents and restricted cash at the end of period $ 54,590 $ 37,547 NON-GAAP FINANCIAL MEASURES To provide investors with additional information regarding our financial results, we have presented certain non-GAAP financial measures in this press release, including non-GAAP adjusted operating expenses. Non-GAAP adjusted operating expenses is a non-GAAP financial measure defined by us as GAAP operating expenses with stock-based compensation expense, restructuring charges, amortization of acquisition related intangible assets and non-recurring project costs removed.
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We have provided below a reconciliation of non-GAAP adjusted operating expenses, to the most directly comparable U.S. GAAP financial measure. We believe that the exclusion of the amounts eliminated in this calculation can provide a useful measure for period-to-period comparisons of our core business performance. Accordingly, we believe that the use of non- GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and our board of directors. Our use of non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently, which reduces its usefulness as a comparative measure. Because of these and other limitations, you should consider non-GAAP adjusted operating expenses along with other U.S. GAAP-based financial performance measures, including various cash flow metrics and our U.S. GAAP financial results. Non-GAAP adjusted EBITDA Three Months Ended June 30, (in thousands) 2026 2025 GAAP net loss $ (155,293 ) $ (17,206 ) Interest expense, net 2,097 6,516 Provision for income taxes 710 223 Depreciation expense 1,170 1,277 Amortization of acquisition-related intangible assets — 230 Stock-based compensation expense 748 (529 ) Restructuring charges 23 2,532 (Gain) loss on debt extinguishment 11,716 (2,559 ) Change in fair value of warrant liabilities 16,305 — Change in fair value of convertible note 129,715 — Other special projects 780 3,012 Adjusted EBITDA $ 7,971 $ (6,504 ) Non-GAAP adjusted net loss and net income (loss) per share Three Months Ended June 30, (in thousands) 2026 2025 GAAP net loss $ (155,293 ) $ (17,206 ) Amortization of acquisition-related intangible assets — 230 Stock-based compensation expense 748 (529 ) Restructuring charges 23 2,532 (Gain) loss on debt extinguishment 11,716 (2,559 ) Change in fair value of warrant liabilities 16,305 — Change in fair value of convertible note 129,715 — Other special projects 780 3,012 Non-GAAP adjusted net income (loss) $ 3,994 $ (14,520 ) Non-GAAP adjusted net income (loss) per share – basic and diluted $ 0.18 $ (1.58 ) Weighted average shares – basic and diluted 21,988 9,187 Non-GAAP operating expenses
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Three Months Ended June 30, (in thousands) 2026 2025 GAAP operating expenses $ 26,682 $ 35,308 Less: Amortization of acquisition-related intangible assets — 230 Stock-based compensation expense 740 (508 ) Restructuring charges 23 2,532 Other special projects 780 3,012 Non-GAAP operating expenses $ 25,139 $ 30,042 View source version on businesswire.com: https://www.businesswire.com/news/home/20260810079505/en/ Investor Relations Contacts: Shelton Group Leanne K. Sievers | Brett L. Perry E: sheltonir@sheltongroup.com Media Contact: Matter Communications Sara Beth Fahey E: quantum@matternow.com P: 401-351-9507 Source: Quantum Corporation