Quantum Corporation (QMCO) Q1 2027 earnings summary

Executive summary

• Revenue reached $80.8 million for the quarter ended June 30, 2026, up 26% year-over-year, driven by strong demand for secondary and tiered storage solutions, exceeding guidance.

• Achieved first non-GAAP profitable quarter since 2023, with non-GAAP net income of $4 million, or $0.18 per share.

• Gross margin improved to 39.3%, the highest in five quarters, reflecting favorable product mix and operational efficiencies.

• Net loss widened to $155.3 million due to $157.7 million in one-time non-cash losses from debt extinguishment and fair value adjustments.

• Backlog increased to record levels, reflecting robust enterprise and hyperscaler demand, though supply chain constraints persist.

Financial highlights

• Product revenue rose 44% year-over-year to $53.9 million, with secondary storage up 100%.

• Service and subscription revenue was flat at $24.7 million; royalty revenue increased 25% to $2.3 million.

• Non-GAAP operating expenses were $25.1 million, down 16% year-over-year.

• Adjusted EBITDA was $8 million, up from a loss of $6.5 million a year ago.

• Operating cash flow was $0.9 million, a turnaround from negative $16.9 million in the prior year.

Outlook and guidance

• Fiscal Q2 2027 revenue expected at $82 million ±$2 million, representing 31% year-over-year growth at the midpoint.

• Non-GAAP adjusted operating expenses for Q2 projected at $27 million ±$1 million.

• Non-GAAP adjusted net income per share for Q2 anticipated at $0.12 ±$0.10; adjusted EBITDA expected at $6 million ±$1 million.

• Management expects current cash, working capital, and operating performance to fund operations for at least one year.

• The macroeconomic environment remains unpredictable, with longer sales cycles and ongoing supply chain and inflationary pressures.