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olivLaw · US equity research

Quantum Corporation QMCO

Computer Storage Devices · SIC 3572 · Vertical: Computer Storage Devices (SIC 3572)

16.77USD−5.09% · 1 dayClose 04 Nov 2026

Quantum Corporation, listed on Nasdaq, offers data management solutions for unstructured data, from high-performance storage to data lakes and tape archiving, for organizations using artificial intelligence. The company returned to non-GAAP profitability in the first quarter of fiscal 2027 after eliminating all its debt, amid stronger demand for secondary storage, with revenue of 80.8 million USD in the quarter.

At the close of 04 Nov 2026, Quantum Corporation (QMCO) stock was 16.77 USD (−5.09% on the day), with market capitalisation 660.9 m USD, beta 1.96, 52-week range 4.31–34.50 USD. Latest reported quarter (Q1 2027): revenue of 80.8 m USD (+25.7% YoY), net income of -155.3 m USD, diluted EPS -7.06 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
660.9 m USD
shares as of 06 Aug 2026
P/E (TTM)
unavailable
Diluted EPS TTM -13.24 · TTM to 30 Jun 2026
E/P (TTM)
-78.94%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
1.96
Volatility (1y) 110%
52-week range
4.3134.50

Price history

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Technical reading

RSI (14)
35.2
weak (30–45)
Bollinger (20, 2)
12.43 – 29.26
in the lower half of the band · %B 0.26 · band width 80.7%
SMA 50 / 200
24.43 / 13.23
mixed trend
MACD (12, 26, 9)
-2.29 / -1.99
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−50.7%−1.1%−49.6 pp—
3 months+44.8%−0.5%+45.3 pp—
6 months+67.2%+4.4%+62.8 pp—
Year to date+160.0%+12.3%+147.7 pp—
1 year+97.5%+13.5%+84.0 pp+98.3%
3 years+86.3%+76.4%+9.9 pp+419.9%
5 years−88.4%+63.7%−152.0 pp—
Max drawdown (1y)
−55.8%
11 Dec 2025 → 30 Mar 2026
Max drawdown (5y)
−98.2%
08 Nov 2021 → 06 Sept 2024
Compound annual growth (5y)
−35.0%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q1 2027 · 30 Jun 2026

Revenue
80.8 m USD
+25.7% YoY
Net income
-155.3 m USD
unavailable YoY
Diluted EPS
-7.06
unavailable YoY
net / operating
-192.2% / 6.2%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27
Revenue71.8 m68.7 m61.3 m64.3 m62.7 m74.6 m78.0 m80.8 m
Cost of revenue41.2 m40.8 m37.0 m41.6 m39.2 m45.7 m50.1 m49.1 m
Gross profit30.6 m27.9 m24.2 m22.7 m23.6 m28.9 m27.8 m31.7 m
Research & development8.3 m7.7 m6.9 m6.7 m5.7 m5.6 m5.6 m6.0 m
Operating income-5.6 m-7.7 m-11.6 m-12.6 m-8.2 m-1.2 m-2.6 m5.0 m
Depreciation & amortisation1.6 m ≈1.1 m ≈1.2 m1.0 m825.0 k ≈799.0 k ≈2.6 m1.2 m
Interest expense6.1 m6.8 m6.8 m6.5 m6.2 m5.9 m2.9 m2.1 m
Pre-tax income-11.8 m-75.2 m-7.6 m-17.0 m-46.3 m-27.3 m-9.5 m-154.6 m
Income tax370.0 k70.0 k146.0 k223.0 k157.0 k590.0 k38.0 k710.0 k
Net income-12.2 m-75.3 m-7.7 m-17.2 m-46.5 m-27.8 m-9.5 m-155.3 m
Diluted EPS-2.54-15.35-1.26 ≈-1.87-3.49-2.03-0.66 ≈-7.06
Operating cash flow-15.3 m ≈-3.2 m ≈-3.3 m-16.9 m-15.6 m ≈-4.9 m ≈-418.0 k947.0 k
Capex1.6 m ≈1.1 m ≈623.0 k1.2 m414.0 k ≈-681.0 k ≈781.0 k395.0 k

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue402.7 m402.9 m349.6 m372.8 m422.1 m311.6 m274.1 m279.6 m
Revenue YoY−8.0%+0.1%−13.2%+6.7%+13.2%−26.2%−12.0%+2.0%
Net income-42.8 m-5.2 m-35.5 m38.4 m-18.4 m-41.3 m-115.1 m-101.0 m
Net income YoYunavailableunavailableunavailableunavailable−147.9%unavailableunavailableunavailable
Diluted EPS-1.20-0.14-0.83-0.32-0.28-8.68-22.35-7.97
Diluted EPS YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
net %-10.6%-1.3%-10.1%10.3%-4.4%-13.2%-42.0%-36.1%
Free cash flow-19.6 m-3.8 m-7.7 m-40.0 m-17.5 m-16.0 m-28.6 m-39.6 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 31 Mar 2026

Cash
15.6 m USD
Financial debt
144.8 m USD
Net debt
129.3 m USD
Equity
-198.9 m USD
Total assets
156.9 m USD
Debt / equity
unavailable
Current ratio
0.55x
ROE
unavailable
ROA
-64.7%
FCF margin
-14.2%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
311.6 m
2025
274.1 m
2026
279.6 m

SEC (XBRL)· 25 Jun 2026verified

Cost of revenue
2024
186.7 m
2025
164.2 m
2026
176.5 m

SEC (XBRL)· 25 Jun 2026verified

Gross profit
2024
124.9 m
2025
109.8 m
2026
103.0 m

SEC (XBRL)· 25 Jun 2026verified

Research & development
2024
38.0 m
2025
31.1 m
2026
23.5 m

SEC (XBRL)· 25 Jun 2026verified

Operating income
2024
-28.9 m
2025
-41.7 m
2026
-24.5 m

SEC (XBRL)· 25 Jun 2026verified

Depreciation & amortisation
2024
9.3 m
2025
5.6 m
2026
5.3 m

SEC (XBRL)· 25 Jun 2026verified

EBITDA
2024
-19.6 m ≈
2025
-36.1 m ≈
2026
-19.2 m ≈

SEC (XBRL)· 25 Jun 2026derived

Interest expense
2024
15.1 m
2025
23.6 m
2026
21.6 m

SEC (XBRL)· 25 Jun 2026verified

Pre-tax income
2024
-40.6 m
2025
-114.3 m
2026
-100.0 m

SEC (XBRL)· 25 Jun 2026verified

Income tax
2024
711.0 k
2025
821.0 k
2026
1.0 m

SEC (XBRL)· 25 Jun 2026verified

Net income
2024
-41.3 m
2025
-115.1 m
2026
-101.0 m

SEC (XBRL)· 25 Jun 2026verified

Diluted EPS
2024
-8.68
2025
-22.35
2026
-7.97

SEC (XBRL)· 25 Jun 2026verified

Weighted average diluted shares
2024
4.8 m
2025
5.2 m
2026
12.7 m

SEC (XBRL)· 25 Jun 2026verified

Balance sheet · USD

Cash
2024
25.7 m
2025
16.5 m
2026
15.6 m

SEC (XBRL)· 25 Jun 2026verified

Receivables
2024
67.8 m
2025
52.5 m
2026
69.7 m

SEC (XBRL)· 25 Jun 2026verified

Inventories
2024
—
2025
22.4 m
2026
16.1 m

SEC (XBRL)· 25 Jun 2026verified

Current assets
2024
131.8 m
2025
102.8 m
2026
112.5 m

SEC (XBRL)· 25 Jun 2026verified

Property, plant & equipment, net
2024
12.0 m
2025
11.4 m
2026
9.3 m

SEC (XBRL)· 25 Jun 2026verified

Goodwill
2024
13.0 m
2025
13.0 m
2026
13.0 m

SEC (XBRL)· 25 Jun 2026verified

Intangibles (excl. goodwill)
2024
1.7 m
2025
281.0 k
2026
0

SEC (XBRL)· 25 Jun 2026verified

Total assets
2024
187.6 m
2025
155.4 m
2026
156.9 m

SEC (XBRL)· 25 Jun 2026verified

Accounts payable
2024
26.1 m
2025
31.5 m
2026
29.3 m

SEC (XBRL)· 25 Jun 2026verified

Short-term debt
2024
82.5 m
2025
96.5 m
2026
54.8 m

SEC (XBRL)· 25 Jun 2026verified

Long-term debt
2024
0
2025
0
2026
90.0 m

SEC (XBRL)· 25 Jun 2026verified

Current liabilities
2024
249.9 m
2025
257.6 m
2026
205.8 m

SEC (XBRL)· 25 Jun 2026verified

Total liabilities
2024
309.1 m
2025
319.8 m
2026
355.7 m

SEC (XBRL)· 25 Jun 2026verified

Equity
2024
-121.5 m †
2025
-164.4 m †
2026
-198.9 m †

SEC (XBRL)· 25 Jun 2026verified

Cash flow · USD

Operating cash flow
2024
-10.2 m
2025
-23.6 m
2026
-37.9 m

SEC (XBRL)· 25 Jun 2026verified

Capex
2024
5.9 m
2025
4.9 m
2026
1.7 m

SEC (XBRL)· 25 Jun 2026verified

Free cash flow
2024
-16.0 m ≈
2025
-28.6 m ≈
2026
-39.6 m ≈

SEC (XBRL)· 25 Jun 2026derived

Investing cash flow
2024
-5.9 m
2025
-4.9 m
2026
-1.7 m

SEC (XBRL)· 25 Jun 2026verified

Financing cash flow
2024
15.7 m
2025
19.3 m
2026
39.2 m

SEC (XBRL)· 25 Jun 2026verified

Computed indicators

Growth

Revenue growth (YoY)
2.0%
computed by olivLawFY 2026
Revenue CAGR 3Y
-12.8%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
-4.4%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
37.8%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
-0.5%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
-2.3%
computed by olivLawTTM to 30 Jun 2026
Net margin
-80.8%
computed by olivLawTTM to 30 Jun 2026
FCF margin
-7.1%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
ROA
-132.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
equity is negative: buybacks shrink the invested capital and ROIC would come out large without meaning anything
ROCE
-21.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-54.4 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
unavailable
insufficient data
Debt / equity
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Interest coverage
-0.4x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
0.9x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.3x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
-20.0 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
909.0 k USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
-20.9 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
71 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
53 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
660.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
606.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-78.9%
computed by olivLawTTM to 30 Jun 2026
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
P/S
2.2x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
insufficient data
EV/EBIT
unavailable
insufficient data
EV/Sales
2.0x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-3.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

4 indicators that do not apply to the sector.

Valuation

olivLaw classification

Unattractive profile

Score: 20 / 100

A scoring methodology on indicators and valuation, not investment advice.

score < 40

Closing price

16.77 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 660.9 m USD

Key indicators

Market capitalisation
660.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
EV/EBITDA
unavailable
insufficient data
ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Net margin
-80.8%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
2.0%
computed by olivLawFY 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 06 Aug 2026
Source: SEC (XBRL)published 11 Aug 2026
verified 2395derived 163

Score by group

  • Balance sheet8
  • Growth0
  • Valuation57
  • Quality0

Estimated value range

Low
54.53
USD per share
Mid
64.00
USD per share
High
67.80
USD per share
Price: 16.77 USD
The price is below the range
Potential to the central value: 281.6% (value / price − 1)
Margin of safety: 73.8% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 54.53 – 67.80 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the base of the ratio is not positive
  • Peers: EV/Sales54.53 – 67.80 (Mid 64.00)
    3 companies used · median multiple 8.3x · quartiles 7.1x – 8.8x
    NTAP, STX, WDC
  • Peers: EV/EBITDAunavailable · the base of the ratio is not positive
Multiple comparisons use the SIC vertical: Computer Storage Devices (SIC 3572)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Unattractive profile · Score 20/100

FactorValueScoreWeight used
Gross margin · Quality37.8%0 (on a fixed band)12%
EBIT margin · Quality-2.3%0 (vs peers)10%
FCF margin · Quality-7.1%0 (on a fixed band)10%
Revenue CAGR 3Y · Growth-12.8%0 (on a fixed band)19%
Revenue growth (YoY) · Growth2.0%0 (vs peers)10%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Current ratio · Balance sheet0.9x8 (on a fixed band)7%
EV/Sales · Valuation2.0x100 (on a fixed band)19%
FCF yield · Valuation-3.2%0 (on a fixed band)14%
Shareholder yield (distributions) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial8/100 · 1/2 factors with a value
  • Growth0/100 · 2/2 factors with a value
  • Quality0/100 · 3/3 factors with a value
  • Returns· partialunavailable · 0/1 factors with a value
  • Valuation57/100 · 2/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

QUANTUM CORP /DE/ (QMCO). Latest full fiscal year: 2026; data up to 2026-06-30.

Figures computed from the financial statements: revenue 279.6 m USD in 2026; YoY growth 2.0%; net margin -80.8%.

The estimated value range is 54.53–67.80 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 64.00 USD, the price of 16.77 USD leaves a potential of 281.6% (value / price − 1) and a margin of safety of 73.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 20/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • EV/Sales: 2.0x
  • The price is below the estimated value range

What contradicts it

  • Gross margin: 37.8%
  • EBIT margin: -2.3%
  • FCF margin: -7.1%
  • Revenue CAGR 3Y: -12.8%
  • Revenue growth (YoY): 2.0%
  • Current ratio: 0.9x
  • FCF yield: -3.2%

Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, Shareholder yield (distributions).

Versus the vertical median

Computer Storage Devices (SIC 3572) · same industry (4-digit SIC) · compared with 5 companies

Multiples and returns vs the median

P/E
—
vertical median 26.4x
EV/EBITDA
—
vertical median 19.8x
P/S
2.2x
vertical median 8.4x
below median (−73.3%)
P/B
—
vertical median 24.2x
ROE
—
vertical median 131.5%
Net margin
-80.8%
vertical median 31.9%
below median (−353.5%)
EBIT margin
-2.3%
vertical median 39.4%
below median (−105.9%)
Revenue YoY
2.0%
vertical median 34.1%
below median (−94.1%)
Net debt/EBITDA
—
vertical median 0.2x
Dividend yield
—
vertical median 0.5%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SNDKSandisk Corporation147.6 bn8.3141.2%67.0%+175.3%+365% / unavailable
STXSeagate Technology Holdings plc127.9 bn29.3259.4%31.9%+34.1%+101% / +604%
WDCWestern Digital Corporation121.2 bn12.6131.5%69.2%+35.7%+98% / +787%
PEverpure, Inc.37.2 bn153.717.7%5.9%+15.6%+26% / +236%
NTAPNetApp, Inc.36.9 bn26.4114.8%21.8%+5.6%+68% / +105%
QMCOQuantum Corp660.9 m——-80.8%+2.0%+98% / +86%

1- and 3-year price returns: for QMCO from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    In brief

    Quantum Corporation, listed on Nasdaq, offers data management solutions for unstructured data, from high-performance storage to data lakes and tape archiving, for organizations using artificial intelligence. The company returned to non-GAAP profitability in the first quarter of fiscal 2027 after eliminating all its debt, amid stronger demand for secondary storage, with revenue of 80.8 million USD in the quarter 23.

    SWOT

    Strengths

    • A tape and object storage portfolio recognized by hyperscale and enterprise customers, with an extensive patent base and royalty revenue.
    • Full debt elimination and a stronger cash position give operational flexibility.
    • Global support services available in over one hundred countries help customer retention.

    Weaknesses

    • Reliance on a single contract manufacturer and sole-source suppliers increases exposure to disruptions.
    • The GAAP net loss in the first quarter of fiscal 2027 was large, due to one-time items linked to debt.
    • Primary storage and service revenue have declined in recent years.

    Opportunities

    • Demand for unstructured data storage and long-term archiving could grow as AI adoption expands.
    • More stable supply could allow the company to fulfil orders from its record backlog.
    • Subscription and cloud models, such as Quantum-as-a-Service, could diversify revenue.

    Threats

    • Larger competitors with greater resources could reduce the company's market share.
    • Import tariffs and geopolitical instability could affect costs and deliveries.
    • Cloud storage could partly replace the company's on-premises solutions.

    Risks

    • Supplier dependencehigh

      The company relies on a single contract manufacturer and sole-source suppliers without long-term agreements, which could delay shipments if problems arise.

    • Customer concentrationmedium

      The top five customers represented a significant part of revenue, and one customer exceeded the ten percent threshold in fiscal 2026 1.

    • Volatile GAAP resultsmedium

      Fair value changes in convertible notes and warrants produced large GAAP losses that do not reflect operating activity 23.

    • International exposuremedium

      Global operations expose the company to tariffs, currency fluctuations and political instability in several countries.

    • Indirect channelslow

      Distributors and resellers may promote competing products, and their financial difficulties could disrupt distribution.

    Investment thesis

    What would need to be true (bull case)

    • Demand for tiered storage solutions has grown and backlog reached record levels, which could support future growth if supply stabilizes 3.
    • Debt elimination could reduce financial pressure and allow investment in products and supply.
    • Product and service margins improved in the first quarter of fiscal 2027, which could indicate better operating efficiency 23.

    What would break the thesis

    • Supply constraints could prevent the company from converting demand and backlog into revenue in the coming period 3.
    • Primary storage and service revenue have declined, and if this continues it could offset growth in secondary storage.
    • Large GAAP losses in the latest quarter show that non-recurring financial items can strongly influence reported results.

    What to watch

    • Revenue guidance for the second quarter of fiscal 2027 and its deliveryQ2 2027
    • Development of the backlog and the ability to fulfil orders given supply constraints2027
    • Product gross margin, if temporary pricing benefits normalizeQ2 2027
    • Demand trends for object and tape storage among hyperscale and enterprise customersnext 10-K

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    The business

    Quantum designs, manufactures and sells technology and services that help customers capture, create, share and protect digital content, especially video and unstructured data 1. The portfolio includes primary storage software and systems, such as StorNext and the Unified Surveillance Platform, as well as secondary storage solutions such as ActiveScale, DXi and Scalar tape, plus CatDV asset management software 1. The company operates as a single reporting unit and relies on contract manufacturers in the U.S. and Mexico 1.

    Segments

    Secondary storage

    Covers Scalar tape systems, DXi backup appliances and ActiveScale object storage. In fiscal 2026 secondary storage revenue grew 36.7% 1, and in the first quarter of fiscal 2027 demand stayed strong, with product revenue up 44% 2.

    Primary storage and services

    Primary storage, including StorNext and the surveillance platform, declined in fiscal 2026 1. Service and subscription revenue fell 10% in fiscal 2026, as certain long-lived products reached end of service life 1.

    Market context

    Unstructured data such as video, images and large files represents more than 80% of data created, according to analysts cited by the company 1. Demand for long-term archiving and for data lakes that feed AI models supports the tape and object storage market. End customers are mainly in hyperscale, media, federal government, healthcare and financial services 1.

    Competitive position

    The market is highly competitive, with rivals that have greater financial resources, and cloud storage is an indirect alternative 1. Primary and object storage face Dell's EMC unit, IBM and NetApp, while tape storage competes with IBM and other tape library vendors 1.

    • Dell TechnologiesDELL

      Competes in primary storage and backup through its EMC unit, and supplies enterprise infrastructure.

    • IBMIBM

      Competes in primary and object storage as well as tape storage in mid-range and enterprise segments.

    • NetAppNTAP

      Competes in primary storage and enterprise storage solutions.

    • Hewlett Packard EnterpriseHPE

      Competes in backup products and data storage.

    News & filings

    In the press

    SEC filings

    Sources

    1. [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / Quantum Corporation · 25 Jun 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Quantum Corporation · 11 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Quantum Corporation · 10 Aug 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.