Quantum (NASDAQ:QMCO) Posts Earnings Results, Beats Estimates By $0.09 EPS

Quantum (NASDAQ:QMCO) released its quarterly earnings results on Tuesday. The company reported ($0.36) earnings per share for the quarter, topping the consensus estimate of ($0.45) by $0.09, FiscalAI reports. The firm had revenue of $74.59 million for the quarter, compared to analysts’ expectations of $66.36 million. Quantum updated its Q4 2026 guidance to -0.430–0.230 EPS.

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

• Quantum beat expectations in Q3 with $74.6 million revenue, a sequential improvement to positive adjusted EBITDA of $2.9 million, and exited the quarter with backlog well above historical levels (reported at > $20 million).
• Tape demand doubled quarter-over-quarter and the company highlighted large strategic wins — including an initial 100 petabyte deployment (planned to scale to 400PB) combining ActiveScale Cold Storage and Scalar tape as customers repatriate cloud data to on-prem archive.
• Shareholders approved a debt exchange that cut term debt roughly in half but triggered a $28.9 million GAAP debt-extinguishment charge; the issued convertible note and forbearance warrants will create ongoing GAAP volatility tied to the stock price, and net debt remains elevated (~$116.7 million).
• Management warned of severe industry-wide supply-chain disruption and rapid component price inflation (prices reportedly doubled or tripled in days), which is constraining fulfillment and pressuring margins; Q4 guidance is conservative at ~$68 million ± $2 million revenue and adjusted EBITDA expected around breakeven ± $2 million.
• Restructuring and a sales realignment have reduced the cost base and improved execution, producing lower operating expenses, stronger lead generation, and a growing pipeline of multi-product, multi-million-dollar deals that management says is driving momentum.

Quantum Stock Performance

Shares of Quantum stock opened at $5.47 on Thursday. The stock has a market capitalization of $75.05 million, a P/E ratio of -1.80 and a beta of 2.66. Quantum has a 52-week low of $4.89 and a 52-week high of $24.40. The stock’s 50-day simple moving average is $6.98 and its 200 day simple moving average is $8.17.

Institutional Trading of Quantum

A number of institutional investors have recently modified their holdings of QMCO. XTX Topco Ltd purchased a new position in Quantum in the 4th quarter valued at approximately $77,000. Millennium Management LLC purchased a new stake in shares of Quantum during the fourth quarter worth $73,000. Engineers Gate Manager LP bought a new position in shares of Quantum in the fourth quarter worth $106,000. Price T Rowe Associates Inc. MD bought a new stake in shares of Quantum during the 4th quarter valued at $103,000. Finally, Barclays PLC lifted its holdings in Quantum by 3,020.2% during the 4th quarter. Barclays PLC now owns 14,197 shares of the company’s stock worth $92,000 after purchasing an additional 13,742 shares in the last quarter. 63.66% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Quantum in a report on Monday, December 29th. Lake Street Capital set a $7.00 price objective on Quantum in a research note on Wednesday. Finally, Northland Securities raised Quantum from a “market perform” rating to an “outperform” rating and set a $13.00 target price for the company in a research report on Friday, November 14th. Three investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $13.33.

Quantum Company Profile

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.