Quantum Corporation

Revenue was $80.8 million, up 4% sequentially from $78 million and up 25.7% from $64.3 million a year ago. GAAP gross margin was 39.3%, up 360 basis points sequentially and nearly 400 basis points year over year; gross profit grew 40% year over year on 26% revenue growth. GAAP operating income was $5 million versus a $12.6 million operating loss a year ago, and non-GAAP operating income was $6.6 million versus a $7.4 million loss. GAAP net loss was $155.3 million, or $7.06 per share, driven by $157.7 million of non-cash debt-related items; non-GAAP income was $4 million, or $0.18 per share. Adjusted EBITDA was $8 million, above guidance, and operating cash flow was about $0.9 million with capital expenditures of $0.4 million. Cash, cash equivalents and restricted cash were about $54.6 million, and total outstanding debt was zero after $56.8 million of proceeds were used to repay debt. For fiscal second quarter 2027, revenue is expected to be about $82 million plus or minus $2 million, non-GAAP adjusted operating expenses about $27 million plus or minus $1 million, non-GAAP adjusted net income per share about $0.12 plus or minus $0.10, and adjusted EBITDA about $6 million plus or minus $1 million.

Hugues Meyrath said the quarter showed Quantum is executing better, with strong enterprise demand, growing backlog, and improving momentum across regions and product lines. He highlighted strength in ActiveScale and tape, including large enterprise wins and a significant APAC hyperscaler deployment, while stressing that supply chain constraints, especially tape drive availability, are still the main limiter. His tone was upbeat and confident, but he repeatedly framed near-term upside as constrained by fulfillment capacity rather than demand.

William White emphasized the quarter’s financial outperformance: revenue of $80.8 million, GAAP gross margin of 39.3%, non-GAAP operating expenses of $25.1 million, and adjusted EBITDA of $8 million. He noted positive cash flow from operations of about $0.9 million, capex of $0.4 million, and a debt-free balance sheet with $54.6 million of cash after $94.6 million of net proceeds from the private placement and $56.8 million used to repay debt. He also said interest expense should be minimal going forward versus $21.6 million in fiscal 2026, and that Q2 guidance implies higher operating expenses mainly from R&D hiring and sales commissions, with gross margin still expected to be conservative due to supply uncertainty.

Analysts focused on why Q2 adjusted EBITDA guidance steps down to $6 million from Q1’s $8 million despite similar revenue; management said the decline is mainly due to higher operating expenses from R&D hiring and commissions, plus conservative gross margin assumptions amid uncertainty. Questions also centered on backlog, with management saying it is 'significantly higher' than the prior quarter but declining to provide a number. Analysts pressed on supply timing, and Hugues said tape drive availability remains insufficient, with IBM talking about later-year improvement but no clear inflection yet as of August. There were also questions about ActiveScale adoption and whether it is becoming a larger share of bookings; management said it does not break out product bookings, but ActiveScale is growing quickly and attracting more large enterprise and some hyperscaler customers.