Quantum Corporation (NASDAQ: QMCO) turns non-GAAP profit and wipes out debt
Rhea-AI Filing Summary
Quantum Corporation reported results for its fiscal first quarter 2027 ended June 30, 2026. Revenue was $80.8 million, up 26% from $64.3 million a year earlier and above guidance. GAAP gross margin improved to 39.3%, and GAAP operating expenses dropped to $26.7 million from $35.3 million.
The company recorded a GAAP net loss of $155.3 million (‑$7.06 per share), driven largely by one‑time noncash charges tied to eliminating its debt and convertible notes, including $129.7 million from the change in fair value of its convertible note and $16.3 million related to warrants. Excluding these and other adjustments, non‑GAAP adjusted net income was $4.0 million ($0.18 per share), and non‑GAAP adjusted EBITDA was $8.0 million, the first non‑GAAP profitable quarter since fiscal 2023.
Liquidity strengthened, with cash, cash equivalents and restricted cash at $54.6 million and total outstanding debt reduced to zero from $104.3 million a year earlier; quarterly interest expense fell to $2.1 million from $6.5 million. For fiscal second quarter 2027, Quantum targets revenue around $82 million, non‑GAAP operating expenses of about $27 million, non‑GAAP basic EPS of roughly $0.12, and non‑GAAP adjusted EBITDA of about $6 million.
Positive
- Revenue grew 26% year over year to $80.8 million, exceeding the guidance range and indicating stronger demand for Quantum’s storage solutions.
- Quantum achieved its first non‑GAAP profitable quarter since 2023, with adjusted net income of $4.0 million and adjusted EBITDA of $8.0 million.
- The company eliminated all outstanding debt, reducing total debt from $104.3 million to zero and cutting quarterly interest expense from $6.5 million to $2.1 million.
- Operating efficiency improved: GAAP operating expenses fell from $35.3 million to $26.7 million, and gross margin rose from 35.3% to 39.3%.
- Liquidity strengthened, with cash, cash equivalents and restricted cash rising to $54.6 million from $37.5 million a year earlier.
Negative
- GAAP results show a large net loss of $155.3 million (‑$7.06 per share), substantially worse than the prior‑year loss of $17.2 million, reflecting significant one‑time charges tied to debt and warrant revaluation.
- Supply constraints are explicitly cited as limiting Quantum’s ability to fully meet demand, which could affect revenue conversion despite strong backlog and order strength.
Filing Explained
Debt elimination was completed, while note conversion left 39,375 thousand common shares outstanding at June 30, 2026.
Quantum reports that its debt-elimination transactions were completed: total outstanding debt was zero at June 30, 2026, and 14,104,620 common shares were issued upon conversion of the convertible note. The balance sheet shows common shares issued and outstanding rising from 14,638 thousand at March 31, 2026, to 39,375 thousand at June 30, 2026; under the supplied dilution definition, additional shares reduce an existing holder’s percentage ownership absent offsetting changes.
The cash-flow statement separately reports
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue: $80.8 million
GAAP Net Loss: $155.3 million
Non-GAAP Adjusted Net Income: $4.0 million
+5 more
8 metrics
Revenue
$80.8 million
Fiscal Q1 2027 revenue, up from $64.3 million in prior-year quarter
GAAP Net Loss
$155.3 million
Fiscal Q1 2027 net loss, versus $17.2 million a year earlier
Non-GAAP Adjusted Net Income
$4.0 million
Fiscal Q1 2027 non-GAAP adjusted net income; first non-GAAP profitable quarter since 2023
Non-GAAP Adjusted EBITDA
$8.0 million
Fiscal Q1 2027 adjusted EBITDA, versus negative $6.5 million in prior-year quarter
Cash and Restricted Cash
$54.6 million
Cash, cash equivalents and restricted cash as of June 30, 2026
Total Outstanding Debt
Zero
Debt balance as of June 30, 2026, down from $104.3 million as of June 30, 2025
Gross Margin
39.3%
GAAP gross profit as a percentage of revenue in fiscal Q1 2027
Q2 2027 Revenue Guidance
$82.0 million ± $2 million
Fiscal second quarter 2027 revenue outlook
Key Terms
non-GAAP adjusted EBITDA, debt extinguishment, warrant liabilities, restricted cash, +2 more
6 terms
non-GAAP adjusted EBITDA financial
"Non-GAAP adjusted EBITDA in the fiscal first quarter of 2027 was a positive $8.0 million"
Non-GAAP adjusted EBITDA is a measure of a company's profitability that shows earnings before interest, taxes, depreciation, and amortization, with certain adjustments made to exclude irregular or non-recurring expenses and income. It provides a clearer picture of ongoing operational performance by filtering out items that might distort the core business results. Investors use it to better compare how well different companies are performing without the noise of one-time events.
debt extinguishment financial
"The first quarter net loss includes one-time items related to the extinguishment of the Company’s debt"
Debt extinguishment is the process of eliminating a company's obligation to repay borrowed money, whether by paying it off, refinancing it with new borrowing, or settling it for less than the original amount. For investors, it matters because removing or replacing debt changes a business’s cash needs, risk profile and reported profit—much like paying off a mortgage early or refinancing at a different rate alters your monthly budget and long‑term costs.
warrant liabilities financial
"Change in fair value of warrant liability | (16,305)"
Warrant liabilities are the financial obligations a company records when it grants warrants—special rights allowing someone to buy shares at a set price in the future. If the warrants are expected to be exercised, they are treated as a liability because the company might need to deliver shares or cash later. This matters to investors because it affects the company’s reported financial health and the potential dilution of existing shares.
restricted cash financial
"Cash, cash equivalents and restricted cash were $54.6 million"
Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.
backlog financial
"Our backlog also increased to record levels, reflecting continued robust demand"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
stock-based compensation financial
"We have presented certain non-GAAP financial measures...with stock-based compensation expense removed"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
Earnings Snapshot
Revenue: $80.8 million · Guidance included
Fiscal first quarter 2027 ended June 30, 2026
Revenue
$80.8 million
Increased 26% from $64.3 million in prior-year quarter
GAAP Net Loss
$155.3 million
Widened from $17.2 million loss in prior-year quarter, driven by one-time debt-related charges
Non-GAAP Adjusted Net Income
$4.0 million
Improved from adjusted net loss of $14.5 million in prior-year quarter
Non-GAAP Adjusted EBITDA
$8.0 million
Improved from negative $6.5 million in prior-year quarter
Guidance
For fiscal Q2 2027, Quantum guides to revenue of $82.0 million ± $2 million, non-GAAP operating expenses of $27 million ± $1 million, non-GAAP basic EPS of $0.12 ± $0.10, and non-GAAP adjusted EBITDA of $6 million ± $1 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Quantum (QMCO) perform financially in fiscal Q1 2027?
Quantum reported revenue of $80.8 million, up 26% year over year, with non‑GAAP adjusted net income of $4.0 million and adjusted EBITDA of $8.0 million. GAAP results showed a $155.3 million net loss due to one‑time debt‑related charges.
Why was Quantum’s GAAP net loss so large in this quarter (QMCO)?
The $155.3 million GAAP net loss mainly reflects one‑time noncash charges from eliminating debt and convertible notes, including $129.7 million from the convertible note’s fair value and $16.3 million related to warrants, plus $11.7 million loss on debt extinguishment.
What is Quantum’s debt and cash position as of June 30, 2026 (QMCO)?
As of June 30, 2026, Quantum reported total outstanding debt of zero, down from $104.3 million a year earlier, and cash, cash equivalents and restricted cash of $54.6 million, up from $37.5 million, indicating a stronger balance sheet and lower interest burden.
What guidance did Quantum (QMCO) provide for fiscal Q2 2027?
For fiscal Q2 2027, Quantum projects revenue of $82.0 million, plus or minus $2 million, non‑GAAP operating expenses of $27 million ± $1 million, non‑GAAP basic EPS of $0.12 ± $0.10, and non‑GAAP adjusted EBITDA of $6 million ± $1 million.
How did Quantum’s margins and operating expenses change year over year (QMCO)?
GAAP gross margin improved to 39.3% from 35.3%, while GAAP operating expenses fell to $26.7 million from $35.3 million. On a non‑GAAP basis, adjusted operating expenses decreased to $25.1 million from $30.0 million, reflecting cost discipline and restructuring benefits.
What non-GAAP metrics does Quantum (QMCO) emphasize and why?
Quantum highlights non‑GAAP adjusted operating expenses, adjusted net income, and adjusted EBITDA, which exclude items like stock-based compensation, restructuring, debt‑related gains/losses and special projects, to provide additional insight into its underlying operating performance and cost structure.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 10, 2026
(Exact name of registrant as specified in its charter) | ||
| (State or other jurisdiction of incorporation or organization) | (Commission File No.) | (I.R.S. Employer Identification No.) | |||||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | ||||||||||||||||
| | |||||
| Registrant's telephone number, including area code | |||||
| N/A | |||||
| (Former name or former address, if changed since last report) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Financial Operations and Financial Condition.
On August 10, 2026, Quantum Corporation (the “Company”) reported its financial results for the fiscal quarter ended June 30, 2026. A copy of the Company’s earnings release is furnished as Exhibit 99.1 to this report.
The information in this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section. The information in this Item 2.02 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933 except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description | |||||||
| 99.1 | Press Release dated August 10, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Quantum Corporation | ||||||||||||||
| (Registrant) | ||||||||||||||
| August 10, 2026 | /s/ William H. White | |||||||||||||
| (Date) | William H. White | |||||||||||||
| Chief Financial Officer | ||||||||||||||
Quantum Reports Fiscal First Quarter 2027 Financial Results
Delivers first profitable quarter since fiscal 2023
CENTENNIAL, Colo. — Aug. 10, 2026 — 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 AI 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.
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.
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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 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.
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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 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.
Investor Relations Contacts: Media Contact:
Shelton Group Matter Communications
Leanne K. Sievers | Brett L. Perry Sara Beth Fahey
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E: sheltonir@sheltongroup.com E: quantum@matternow.com
P: 401-351-9507
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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)
(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 | — | |||||||||
| 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.
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
| 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 | ||||||||||