Qualstar Corporation Reports Fourth Quarter 2025 Results

Rhea-AI Summary

Qualstar (OTC: QBAK) reported results for the quarter and year ended December 31, 2025. Quarterly revenue fell 27% to $1.49M, while full-year revenue declined 18% to $6.595M. The company reported net income of $70,000 for 2025, held over $2.8M in cash, cash equivalents and marketable securities, and reported no debt. Gross margin improved year-over-year to 31.6%, though quarterly gross margin declined to 20.3%. Management noted Data Storage growth, a Q1000+ product launch, and ongoing acquisition efforts.

Positive

• Net income of $70,000 for 2025
• Holds over $2.8 million in cash, cash equivalents and marketable securities; no debt

Negative

• Quarterly revenue down 27% to $1.49M
• Full-year revenue down 18% to $6.595M
• Adjusted EBITDA for 2025 was a $242,000 loss

CAMARILLO, Calif., March 30, 2026 (GLOBE NEWSWIRE) -- Qualstar Corporation (OTC: QBAK), a trusted provider of scalable data storage and high-efficiency power solutions, today reported financial results for the quarter ended December 31, 2025.

2025 and Recent Highlights

• We achieved 9% year-over-year revenue growth in our Data Storage business.
• We recently launched the Q1000+ Powered by Orion, an enterprise tape library storage solution designed to be Simply Reliable™, offering superior performance and scalability for short-term backup, disaster recovery, and long-term archiving requirements.
• We hold over $2.8 million in cash, cash equivalents, and marketable securities, with no outstanding debt.
  
  

Management Commentary

“Despite a nearly $1.9 million decline in our Power Supply business and a slower fourth quarter overall, we delivered net income for the year, driven by growth in our Data Storage business and certain items of non-operating income,” said Steven N. Bronson, President and CEO. “We are confident that we are well-positioned for organic growth in 2026, supported by customer expansion and broader product offerings in data hardware and software solutions. Additionally, we continue to pursue acquisitions related to the data retention industry.”

Consolidated Financial Results (Unaudited)

(Amounts in thousands except per share data and percentages)

		Three Months Ended December 31,																		Year Ended December 31,
		2025					2024						$ ∆			% ∆					2025				2024					$ ∆			% ∆
Revenues		$	1,488				$	2,033				$	(545	)		(26.8	)	%		$	6,595			$	8,044				$	(1,449	)		(18.0	)	%
Gross profit		$	302				$	683				$	(381	)		(55.8	)	%		$	2,085			$	2,458				$	(373	)		(15.2	)	%
Gross margin			20.3		%			33.6		%											31.6		%		30.6		%
Income (loss) from operations		$	(519	)			$	62					(581	)						$	(340	)		$	(470	)				130
Net income (loss)		$	(536	)			$	(10	)				(546	)						$	70			$	(471	)				541
Earnings (loss) per share		$	(0.39	)			$	(0.01	)				(0.38	)						$	0.05			$	(0.33	)				0.38
Adjusted EBITDA		$	(366	)			$	91					(457	)						$	(242	)		$	(68	)				(174	)

Revenue for the quarter decreased 27% to $1.49 million, compared with $2.03 million in the prior-year period, primarily driven by lower sales of power-supply products. For the year ended December 31, 2025, revenue declined 18% compared with the prior year, reflecting reduced shipments of power-supply products, partially offset by higher sales of data-storage products.

Gross margin for the quarter was 20.3%, compared with 33.6% in the prior-year period, reflecting lower revenue and changes in product mix. For the year ended December 31, 2025, gross margin improved to 31.6%, compared with 30.6% in the prior year, primarily driven by a more favorable mix of products and services.

Net income/loss for the three months ended December 31, 2025 and 2024 included gains (losses) on marketable securities of $(35,000) and $(56,000), respectively, and for the years ended December 31, 2025 and 2024 included gains (losses) of $268,000 and $(49,000), respectively.

Adjusted EBITDA for the quarter declined to $(366,000), compared with $91,000 in the prior-year period. For the year ended December 31, 2025, Adjusted EBITDA was $(242,000), compared with $(68,000) for 2024.

The Company ended the quarter with $1.9 million in cash and cash equivalents and no debt.

Qualstar makes available its annual financial statements, quarterly financial statements, and other significant reports and amendments to such reports, free of charge, on its website as soon as reasonably practicable after such reports are prepared. Please visit www.qualstar.com to view the Company’s financial results in more detail.

About Qualstar Corporation

Qualstar Corporation, founded in 1984, manufactures and markets data storage system products and compact, high-efficiency power solutions.

Our data storage systems are marketed under the Qualstar™ brand and include highly scalable automated magnetic tape libraries used to store, retrieve and manage electronic data primarily in the network computing environment. Our products, sold through resellers, system integrators and OEMs, range from entry-level to enterprise and are a cost-effective solution for organizations requiring backup, recovery and archival storage of critical electronic information.

The Company’s power solutions, marketed under the N2Power™ brand, include standard, semi-custom and custom versions and provide OEM designers with increased functionality while reducing thermal loads and cooling requirements and lowering operating costs. These products are sold to OEMs in a wide range of markets, including telecom/networking equipment, audio/visual, industrial, gaming and medical.

More information is available at www.qualstar.com and www.n2power.com or by phone at 805-583-7744.

Non-GAAP Financial Measure

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with United States generally accepted accounting principles (“GAAP”), we use the following non-GAAP financial measure: Adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We define Adjusted EBITDA for a particular period as net income (loss) before interest, taxes, depreciation and amortization, and as further adjusted for non-routine expenses that may not be indicative of our core business operating results such as severance compensation, provisions (recoveries) for inventory net realizable value, gains/losses on marketable securities, gains/losses on foreign currency transactions, and non-cash expenses such as stock-based compensation expense.

We use this non-GAAP financial measure for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business operating results. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. This non-GAAP financial measure also facilitates management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe this non-GAAP financial measure is useful to investors both because (1) is allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) it is used by our investors to help them analyze the health of our business.

There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.

The following table reconciles Net Income (Loss) to Adjusted EBITDA for the three months and years ended December 31, 2025 and 2024:

		Three Months Ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
			(in thousands)
Net income (loss)		$	(536	)		$	(10	)		$	70			$	(471	)
Adjustments to arrive at earnings before interest, taxes, depreciation, and amortization (EBITDA):
Interest income			(17	)			(20	)			(114	)			(79	)
Income taxes			3				3				3				3
Depreciation and amortization expense			2				2				7				26
EBITDA			(548	)			(25	)			(34	)			(521	)
Adjustments to arrive at Adjusted EBITDA:
Stock-based compensation expense			47				46				191				175
(Gains) losses on marketable securities, net			35				56				(268	)			49
(Gains) losses on foreign currency transactions, net			(4	)			33				(31	)			28
Provisions for inventory net realizable value, net			104				(19	)			139				144
Employee Retention Credits			—				—				(239	)			—
Severance compensation			—				—				—				57
Adjusted EBITDA		$	(366	)		$	91			$	(242	)		$	(68	)

Contact Information:

Steven N. Bronson
Chief Executive Officer
Qualstar Corporation
805-617-4419
IR@Qualstar.com

FAQ

What were Qualstar (QBAK) revenues for Q4 2025 and how did they change year-over-year?

Quarterly revenue was $1.49 million, down about 27% year-over-year. According to the company, the decline was primarily driven by lower power‑supply product sales, partly offset by data‑storage strength.

Did Qualstar (QBAK) report net income or a loss for fiscal 2025?

Qualstar reported a $70,000 net income for fiscal 2025. According to the company, data storage growth and non-operating gains supported profitability despite lower power supply sales.

How much cash and debt did Qualstar (QBAK) report at December 31, 2025?

The company reported over $2.8 million in cash, cash equivalents and marketable securities and no outstanding debt. According to the company, this supports liquidity and operating flexibility.

What drove the change in Qualstar (QBAK) gross margin in 2025?

Full-year gross margin improved to 31.6%, while Q4 fell to 20.3%. According to the company, product mix shifts—more data‑storage sales—drove the annual margin improvement.

What did Qualstar (QBAK) report for adjusted EBITDA in 2025 and Q4 2025?

Adjusted EBITDA was a $242,000 loss for 2025 and a $366,000 loss for Q4 2025. According to the company, declines reflect lower power‑supply revenue and quarterly mix effects.