Quantum Corporation (QMCO) Q2 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 13 2025
0mins
Should l Buy QMCO?
Source: SeekingAlpha
Revenue $62.7 million compared to $64.3 million in the first fiscal quarter of 2026 and $71.8 million in the prior year second quarter. The decline year-over-year was due to market conditions and operational adjustments.
Backlog Over $25 million at the end of the second quarter, significantly above the historical target run rate of $8 million to $10 million, indicating strong sales traction and customer confidence.
GAAP Gross Margin 37.6%, compared to 35.3% in the prior quarter and 42.7% in the fiscal second quarter of 2025. The year-over-year decline was attributed to market conditions, but sequential improvement reflects initial operating efficiencies from restructuring.
GAAP Operating Expenses $31.7 million, compared to $35.3 million in the prior quarter and $36.2 million in the year-ago quarter. The year-over-year reduction of $5.6 million was due to realized savings from a lowered cost structure following restructuring actions.
Non-GAAP Operating Expenses $24.8 million compared to $30 million in the fiscal first quarter of 2026 and $30.4 million in the year-ago quarter. The $5.6 million reduction year-over-year reflects cost savings from restructuring.
GAAP Net Loss $46.5 million or a loss of $3.49 per share compared to a net loss of $12.2 million or a loss of $2.54 per share in the year-ago second quarter. The increase in net loss was primarily due to a noncash loss from the issuance of forbearance warrants related to debt amendments.
Non-GAAP Net Loss $7.1 million or a loss of $0.54 per share compared to a net loss of $7.4 million or a loss of $1.54 per share in the same quarter a year ago. The improvement reflects better gross margin and reduced operating expenses.
Adjusted EBITDA Positive $0.5 million compared to a positive $1.1 million in the prior year quarter. The improvement from the prior quarter was driven by restructuring initiatives that lowered the cost structure.
Cash, Cash Equivalents, and Restricted Cash Approximately $15.3 million at the end of the fiscal second quarter.
Total Outstanding Term Debt $106.1 million at quarter end, with a net debt position of approximately $90.8 million.
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Analyst Views on QMCO
Wall Street analysts forecast QMCO stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 5.790
Low
9.00
Averages
11.00
High
13.00
Current: 5.790
Low
9.00
Averages
11.00
High
13.00
About QMCO
Quantum Corporation provides solutions for artificial intelligence (AI) and unstructured data. The Company's data platform has allowed customers to extract the maximum value from their unstructured data. From high-performance ingest that powers AI applications and demanding data-intensive workloads, to massive, durable data lakes to fuel AI models, the Company delivers comprehensive solutions. It specializes in solutions for video, images, audio, and other large files. Its portfolio of products includes primary storage software and systems, secondary storage software and systems, as well as devices and media. Its products and services include high-performance platforms, Al-enabled workflow management, data protection and archiving, and services. Its high-performance platforms include Myriad all-flash file and object storage, StorNext file system, and ActiveScale object storage. Its Al-enabled workflow management includes CatDV media asset management and cloud-based analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Quantum Corp. Appoints New CFO William White Amid Turnaround Efforts
- Executive Appointment: Quantum Corp. has appointed William White as CFO, who previously served as CFO and head of revenue operations at Emotive, and his extensive SaaS experience is expected to enhance the company's financial management and strategic execution.
- Turnaround Progress: The company is undergoing a high-risk turnaround, and while its stock price has yet to reflect this potential, market expectations for its future performance have improved, indicating cautious optimism among investors.
- Financial Outlook: Quantum estimates that its FQ3 revenue will exceed prior guidance, signaling substantial progress in revenue growth, which may bolster investor confidence moving forward.
- Policy Support: Senators have introduced a bipartisan quantum bill aimed at advancing quantum technology, which will provide policy support for Quantum Corp. and further enhance its competitiveness in the quantum computing sector.
See More
Quantum Corporation Executives Accused of Breach of Duty
- Financial Reporting Error: Quantum Corporation improperly recognized revenue during the fiscal year ending March 31, 2025, necessitating a restatement of its financial statements for Q3 2024, which could undermine investor confidence in the company's financial health.
- Legal Investigation Initiated: Kuehn Law is investigating whether Quantum executives breached their fiduciary duties to shareholders, and if substantiated, this could lead to legal repercussions for the executives involved.
- Improper Disclosure: The failure to timely disclose financial issues has rendered statements regarding the company's business, operations, and prospects materially false and misleading, potentially impacting shareholder decision-making.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased QMCO stock before November 15, 2024, to contact them promptly to safeguard their rights, emphasizing the critical role shareholders play in maintaining market integrity.
See More
Quantum Corporation Executives Under Investigation for Breach of Fiduciary Duties
- Financial Misrepresentation: Quantum Corporation improperly recognized revenue during the fiscal year ending March 31, 2025, necessitating a restatement of financial statements for the third quarter of 2024, which could undermine investor confidence in the company's financial health.
- Legal Investigation: Kuehn Law, PLLC is investigating whether Quantum's executives breached their fiduciary duties to shareholders, and if substantiated, this could lead to legal repercussions for the executives and damage the company's reputation.
- Improper Disclosure: Statements made by Quantum regarding its business, operations, and prospects have been accused of being materially false and misleading, potentially misguiding shareholders in their future investment decisions.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased QMCO stock before November 15, 2024, to contact the firm to protect their rights, highlighting the importance of shareholder involvement in maintaining market integrity.
See More
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- Technological Breakthrough Outlook: Analysts at UBS believe that the advantages of quantum computing could be realized as early as the 2030s, requiring computational power equivalent to 10²¹ GPUs at a construction cost of only tens of millions, showcasing its disruptive potential.
- Company Performance Volatility: IonQ, a leading player in quantum computing, has a market value exceeding $17 billion, with its stock rising 72% over the past 12 months but falling 34% since mid-October, reflecting its extreme market volatility.
- Competitive Landscape: Major companies like Alphabet, IBM, and Microsoft are actively investing in quantum computing, with Alphabet leading in quantum software and error correction, indicating that future success will depend on the winning qubit modality.
See More
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- Stock Price Surge: Quantum Corp. (QMCO) shares rose 5.6% to $7.91 in the last trading session, with significantly higher trading volume indicating strong market confidence in its future performance.
- Revenue Expectations Exceed Guidance: The company anticipates Q3 fiscal 2026 revenues of $72.7 million, surpassing the guided range of $67 million (+/- $2 million), reflecting robust demand for its products and potential for future growth.
- Cost Control: Non-GAAP adjusted operating expenses are expected to be $26.9 million, within the guided range ($25 million +/- $2 million), demonstrating effective cost management that could enhance profitability.
- Future Outlook: Although a quarterly loss of $0.45 per share is expected, representing a 44.4% year-over-year increase, the market remains optimistic about the convergence of quantum computing and artificial intelligence, which may present long-term growth opportunities for the company.
See More
Quantum Corporation Faces Class Action Over Financial Misstatements, Stock Drops Over 10%
- Class Action Notice: The Portnoy Law Firm has advised Quantum Corporation investors of a class action for those who purchased securities between November 15, 2024, and August 18, 2025, with a deadline of November 3, 2025, for filing a lead plaintiff motion to protect their legal rights.
- Annual Report Delay: On June 30, 2025, Quantum disclosed to the SEC that it would postpone its annual report due to a review of its revenue recognition accounting practices, resulting in a stock price drop of $1.00, or 10.03%, on July 1, 2025.
- Financial Restatement: On August 8, 2025, Quantum announced to the SEC that its Q3 2024 financials were unreliable and would be restated to reflect a $3.9 million revenue decrease, causing a stock price decline of $0.14, or 1.85%, on August 11, 2025.
- Executive Resignation Impact: Quantum's announcement on August 18, 2025, regarding the resignation of CFO Lewis Moorehead amid an internal accounting review led to a stock price drop of $0.61, or 8.2%, on August 19, 2025, highlighting significant governance risks within the company.
See More
Quantum Corp. Appoints New CFO William White Amid Turnaround Efforts
- Executive Appointment: Quantum Corp. has appointed William White as CFO, who previously served as CFO and head of revenue operations at Emotive, and his extensive SaaS experience is expected to enhance the company's financial management and strategic execution.
- Turnaround Progress: The company is undergoing a high-risk turnaround, and while its stock price has yet to reflect this potential, market expectations for its future performance have improved, indicating cautious optimism among investors.
- Financial Outlook: Quantum estimates that its FQ3 revenue will exceed prior guidance, signaling substantial progress in revenue growth, which may bolster investor confidence moving forward.
- Policy Support: Senators have introduced a bipartisan quantum bill aimed at advancing quantum technology, which will provide policy support for Quantum Corp. and further enhance its competitiveness in the quantum computing sector.
See More
Quantum Corporation Executives Accused of Breach of Duty
- Financial Reporting Error: Quantum Corporation improperly recognized revenue during the fiscal year ending March 31, 2025, necessitating a restatement of its financial statements for Q3 2024, which could undermine investor confidence in the company's financial health.
- Legal Investigation Initiated: Kuehn Law is investigating whether Quantum executives breached their fiduciary duties to shareholders, and if substantiated, this could lead to legal repercussions for the executives involved.
- Improper Disclosure: The failure to timely disclose financial issues has rendered statements regarding the company's business, operations, and prospects materially false and misleading, potentially impacting shareholder decision-making.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased QMCO stock before November 15, 2024, to contact them promptly to safeguard their rights, emphasizing the critical role shareholders play in maintaining market integrity.
See More
Quantum Corporation Executives Under Investigation for Breach of Fiduciary Duties
- Financial Misrepresentation: Quantum Corporation improperly recognized revenue during the fiscal year ending March 31, 2025, necessitating a restatement of financial statements for the third quarter of 2024, which could undermine investor confidence in the company's financial health.
- Legal Investigation: Kuehn Law, PLLC is investigating whether Quantum's executives breached their fiduciary duties to shareholders, and if substantiated, this could lead to legal repercussions for the executives and damage the company's reputation.
- Improper Disclosure: Statements made by Quantum regarding its business, operations, and prospects have been accused of being materially false and misleading, potentially misguiding shareholders in their future investment decisions.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased QMCO stock before November 15, 2024, to contact the firm to protect their rights, highlighting the importance of shareholder involvement in maintaining market integrity.
See More
UBS Highlights Quantum Computing's Potential with IonQ Valued Over $17 Billion
- Market Potential Analysis: UBS's 103-page report highlights that quantum computing technology could significantly impact molecular simulation, optimization, AI, and cryptography, indicating substantial future market potential.
- Technological Breakthrough Outlook: Analysts at UBS believe that the advantages of quantum computing could be realized as early as the 2030s, requiring computational power equivalent to 10²¹ GPUs at a construction cost of only tens of millions, showcasing its disruptive potential.
- Company Performance Volatility: IonQ, a leading player in quantum computing, has a market value exceeding $17 billion, with its stock rising 72% over the past 12 months but falling 34% since mid-October, reflecting its extreme market volatility.
- Competitive Landscape: Major companies like Alphabet, IBM, and Microsoft are actively investing in quantum computing, with Alphabet leading in quantum software and error correction, indicating that future success will depend on the winning qubit modality.
See More
Quantum Corp. (QMCO) Expects $72.7M Q3 Revenue, Shares Rise 5.6%
- Stock Price Surge: Quantum Corp. (QMCO) shares rose 5.6% to $7.91 in the last trading session, with significantly higher trading volume indicating strong market confidence in its future performance.
- Revenue Expectations Exceed Guidance: The company anticipates Q3 fiscal 2026 revenues of $72.7 million, surpassing the guided range of $67 million (+/- $2 million), reflecting robust demand for its products and potential for future growth.
- Cost Control: Non-GAAP adjusted operating expenses are expected to be $26.9 million, within the guided range ($25 million +/- $2 million), demonstrating effective cost management that could enhance profitability.
- Future Outlook: Although a quarterly loss of $0.45 per share is expected, representing a 44.4% year-over-year increase, the market remains optimistic about the convergence of quantum computing and artificial intelligence, which may present long-term growth opportunities for the company.
See More
Quantum Corporation Faces Class Action Over Financial Misstatements, Stock Drops Over 10%
- Class Action Notice: The Portnoy Law Firm has advised Quantum Corporation investors of a class action for those who purchased securities between November 15, 2024, and August 18, 2025, with a deadline of November 3, 2025, for filing a lead plaintiff motion to protect their legal rights.
- Annual Report Delay: On June 30, 2025, Quantum disclosed to the SEC that it would postpone its annual report due to a review of its revenue recognition accounting practices, resulting in a stock price drop of $1.00, or 10.03%, on July 1, 2025.
- Financial Restatement: On August 8, 2025, Quantum announced to the SEC that its Q3 2024 financials were unreliable and would be restated to reflect a $3.9 million revenue decrease, causing a stock price decline of $0.14, or 1.85%, on August 11, 2025.
- Executive Resignation Impact: Quantum's announcement on August 18, 2025, regarding the resignation of CFO Lewis Moorehead amid an internal accounting review led to a stock price drop of $0.61, or 8.2%, on August 19, 2025, highlighting significant governance risks within the company.
See More
