Fourth Quarter Revenue Increases 27% Year-over-Year to $78.0 Million

Quantum Corporation (NASDAQ:QMCO) ("Quantum" or the "Company"), today announced financial results for its fiscal fourth quarter and full year 2026 ended March 31, 2026.

Fiscal Fourth Quarter 2026 Financial Summary

Revenue increased 27% year-over-year to $78.0 million, exceeding guidance of $68 million, plus or minus $2 million
GAAP operating expenses were $30.4 million; non-GAAP adjusted operating expenses were $27.5 million, reflecting a $2.0 million year-over-year reduction
GAAP net loss was $9.5 million, or ($0.66) per share
Non-GAAP adjusted net loss was $3.1 million, or ($0.21) per share, which is a $9 million improvement year-over-year
Adjusted EBITDA was $1.0 million

"Quantum delivered strong fourth quarter results with revenue of $78 million, representing 27% growth year-over-year. This performance reflects robust demand for our tiered storage solutions as the proliferation of AI-driven data rapidly reshapes the industry and enterprise storage infrastructure requirements," commented Hugues Meyrath, CEO of Quantum. "With the exploding volume of data, rising storage costs, and increasing power constraints, organizations are rethinking how they store, manage, and protect their most valuable assets. Quantum is uniquely positioned to help customers reduce their dependence on constrained, high-cost components with differentiated, power-efficient storage solutions that provide long-term data resilience.

"As we look to fiscal 2027, Quantum is operating from a position of renewed strength and expanding strategic relevance. Over the past year, we have transformed our business by significantly lowering our cost structure, while also sharpening our sales execution and go-to-market strategy. And more recently, we successfully completed a series of transactions that eliminated our outstanding debt and added cash to the balance sheet in support of our growth initiatives. Although supply chain constraints remain an industry-wide challenge, we are seeing clear momentum in our pipeline and backlog. We remain committed to executing with discipline as we continue to drive toward long-term sustainable growth, margin expansion and value creation for our shareholders."

Fiscal Fourth Quarter 2026 vs. Prior Fiscal Year

Revenue for the fiscal fourth quarter of 2026 was $78.0 million, compared to $61.3 million in the prior year fourth quarter. GAAP gross profit in the fiscal fourth quarter of 2026 was $27.8 million, or 35.7% of revenue, compared to $24.2 million, or 39.6% of revenue, in the fiscal fourth quarter of 2025.

Total GAAP operating expenses in the fiscal fourth quarter of 2026 were $30.4 million, or 39.0% of revenue, compared to $35.8 million, or 58.5% of revenue, in the prior year. Total operating expenses on a non-GAAP basis for the fiscal fourth quarter of 2026 were $27.5 million, compared to $29.4 million in the fiscal fourth quarter of 2025.

GAAP net loss in the fiscal fourth quarter of 2026 was $9.5 million, or ($0.66) per share, compared to a net loss of $7.7 million, or ($1.26) per share, in the fiscal fourth quarter of 2025. Excluding stock compensation, restructuring charges and other non-recurring costs, non-GAAP adjusted net loss in the fiscal fourth quarter of 2026 was $3.1 million, or ($0.21) per share, compared to adjusted net loss of $12.1 million, or ($1.98) per share, in the prior year fourth quarter.

Non-GAAP adjusted EBITDA in the fiscal fourth quarter of 2026 was $1.0 million, compared to negative $3.9 million in the fiscal fourth quarter of 2025.

For a reconciliation of GAAP to non-GAAP financial results, please see the financial reconciliation tables below.

Liquidity and Debt (as of March 31, 2026)

Cash, cash equivalents and restricted cash were $16.2 million, compared to $16.6 million as of March 31, 2025.
Total interest expense for the three- and twelve-month periods were $2.9 million and $21.6 million, respectively, compared to $6.8 million and $24.0 million for the same periods a year ago.
Outstanding term loan debt, excluding debt issuance costs, was $55.9 million, compared to $102.5 million as of March 31, 2025.
The new convertible note was fair valued at $90.0 million.

Business Outlook

Fiscal first quarter 2027 guidance is as follows:

Revenue of $75.0 million, plus or minus $2 million
Non-GAAP adjusted operating expenses of $27 million, plus or minus $1 million
Non-GAAP adjusted basic net loss per share of ($0.15), plus or minus $0.10
Non-GAAP adjusted EBITDA of $1.5 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 24 million in the fiscal first 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 13760869. 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 through July 1, 2026. To access the replay dial 1-877-660-6853 and enter the conference ID 13760869 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.

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 fourth fiscal quarter of 2026; expectations related to the continued benefits of our revitalized sales organization and restructuring initiatives; expectations regarding our pipeline and backlog; expectations regarding market demand for AI-ready infrastructure leveraging our integrated platform solutions; the evaluation of options with respect to our remaining term debt in furtherance of our goal of further strengthening our balance sheet; and our focus, goals, 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 sales organization revitalization and restructuring initiatives; the distribution of our products and the delivery of our services effectively; 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; the ability to meet stock exchange continued listing standards; 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 August 26, 2025, and any subsequent reports filed with the SEC. 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.

QUANTUM CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts)

	March 31,
	2026			2025
Assets
Current assets:
Cash and cash equivalents	$	15,572		$	16,464
Restricted cash		662			139
Accounts receivable, net of allowance for credit losses of $3,234 and $99, respectively		69,650			52,502
Inventories		16,103			22,434
Prepaid expenses		2,431			2,738
Other current assets		8,068			8,529
Total current assets		112,486			102,806

Property and equipment, net		9,284			11,378
Intangible assets, net		—			281
Goodwill		12,969			12,969
Right-of-use assets, net		7,416			8,580
Other long-term assets		14,737			19,388
Total assets	$	156,892		$	155,402
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	29,342		$	31,463
Accrued compensation		11,862			9,214
Deferred revenue, current portion		75,654			75,076
Accrued restructuring charges		566			786
Term debt		54,811			96,486
Revolving credit facility		—			26,600
Warrant liabilities		14,105			—
Other accrued liabilities		19,457			17,982
Total current liabilities		205,797			257,607
Deferred revenue, net of current portion		39,030			38,847
Convertible note		90,034			—
Operating lease liabilities		8,172			8,934
Other long-term liabilities		12,716			14,380
Total liabilities		355,749			319,768
Commitments and contingencies (Note 10)
Stockholders’ deficit
Preferred stock:
Preferred stock, 20,000 shares authorized; no shares issued as of March 31, 2026 and 2025, respectively		—			—
Common stock:
Common stock, $0.01 par value; 225,000 shares authorized; 14,638 and 6,962 shares issued and outstanding at March 31, 2026 and 2025, respectively		146			70
Additional paid-in capital		853,974			779,645
Accumulated deficit		(1,043,517	)		(942,471	)
Accumulated other comprehensive loss		(9,460	)		(1,610	)
Total stockholders' deficit		(198,857	)		(164,366	)
Total liabilities and stockholders' deficit	$	156,892		$	155,402

QUANTUM CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except per share amounts)

	Year Ended March 31,
	2026			2025
Revenue
Product	$	172,385		$	154,182
Service and subscription		99,226			110,658
Royalty		7,970			9,218
Total revenue		279,581			274,058
Cost of revenue
Product		136,199			119,730
Service and subscription		40,341			44,496
Total cost of revenue		176,540			164,226
Gross profit		103,041			109,832
Operating expenses
Sales and marketing		52,016			52,320
General and administrative		43,917			63,961
Research and development		23,503			31,141
Restructuring charges		8,112			4,090
Total operating expenses		127,548			151,512
Loss from operations		(24,507	)		(41,680	)
Other expense, net		(1,511	)		(710	)
Interest expense		(21,575	)		(23,607	)
Change in fair value of warrant liability		11,315			(45,270	)
Change in fair value of convertible note		(4,119	)		—
Loss on debt extinguishment, net		(59,641	)		(3,003	)
Loss before income taxes		(100,038	)		(114,270	)
Income tax provision		1,008			821
Net loss	$	(101,046	)	$	(115,091	)

Net loss per share - basic and diluted	$	(7.97	)	$	(22.35	)
Weighted average shares - basic and diluted		12,674			5,150

Net loss	$	(101,046	)	$	(115,091	)
Change in fair value of convertible note		(8,444	)		—
Foreign currency translation adjustments, net		594			583
Total comprehensive loss	$	(108,896	)	$	(114,508	)

QUANTUM CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)	Year Ended March 31,
	2026			2025
Operating activities
Net loss	$	(101,046	)	$	(115,091	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		5,282			5,598
Amortization of debt issuance costs		6,613			5,475
Non-cash lease expense		1,277			1,606
Paid-in-kind interest		6,598			5,179
Provision for manufacturing and service inventories		5,333			4,877
Bad debt expense		2,733			77
Stock-based compensation		(849	)		2,828
Warrants issued in connection with debt amendments		25,420			—
Change in fair value of warrant liabilities		(11,315	)		45,270
Change in fair value of convertible note		4,119			—
Non-cash loss on debt extinguishment		34,221			3,003
Other non-cash		(331	)		16
Changes in assets and liabilities:
Accounts receivable		(19,881	)		15,209
Inventories		944			801
Accounts payable		(793	)		6,154
Prepaid expenses		307			(552	)
Operating lease liabilities		(931	)		(1,490	)
Deferred revenue		760			(2,764	)
Accrued restructuring charges		(220	)		786
Accrued compensation		2,647			(9,000	)
Other assets		686			2,110
Other liabilities		570			6,295
Net cash used in operating activities		(37,856	)		(23,613	)
Investing activities
Purchases of property and equipment		(1,706	)		(4,947	)
Net cash used in investing activities		(1,706	)		(4,947	)
Financing activities
Borrowings of long-term debt, net of debt issuance costs		45,045			25,000
Borrowing of convertible note		54,718			—
Repayment of long-term debt		—			(19,129	)
Repayments of long-term debt on Assignment		(52,270	)		—
Repayments of long-term debt on Exchange		(56,979	)		—
Borrowings of credit facility		102,914			416,418
Repayments of credit facility and payment of amendment fees		(129,514	)		(418,811	)
Proceeds from shares related to the SEPA, net		75,174			15,828
Proceeds from issuance of common stock, net		80			—
Net cash provided by financing activities		39,168			19,306
Effect of exchange rate changes on cash and cash equivalents		25			(3	)
Net change in cash, cash equivalents, and restricted cash		(369	)		(9,257	)
Cash, cash equivalents, and restricted cash at beginning of year		16,603			25,860
Cash, cash equivalents, and restricted cash at end of year	$	16,234		$	16,603
Supplemental disclosure of cash flow information
Cash paid for interest	$	5,170		$	11,927
Cash paid for income taxes, net of refunds	$	1,194		$	1,814
Non-cash transactions
Purchases of property and equipment included in accounts payable	$	116		$	850
Right-of-use assets obtained in exchange for new lease liabilities	$	112		$	678
Warrants issued	$	25,420		$	—

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows:
Cash and cash equivalents	$	15,572		$	16,464
Restricted cash		662			139
Total cash, cash equivalents and restricted cash at the end of year	$	16,234		$	16,603

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

	Quarter Ended March 31,
	2026		2025
GAAP net loss	(9,541	)	(7,744	)
Provision for income taxes	38		146
Interest expense, net	2,899		6,847
Depreciation and amortization expense	1,208		1,627
Stock-based compensation expense	324		452
Restructuring charges	1,049		1,906
Fair value of warrants adjustment	(2,230	)	(11,145	)
Fair value of convertible note adjustment	5,718		0
Non-recurring project costs	1,573		3,974
Adjusted EBITDA	1,038		(3,937	)

Non-GAAP adjusted net loss and net loss per share

	Quarter Ended March 31,
	2026		2025
GAAP net loss	(9,541	)	(7,744	)
Depreciation and amortization expense	1,208		1,627
Stock-based compensation expense	324		452
Interest expense, net	0		188
Restructuring	1,049		1,906
Fair value of warrants adjustment	(2,230	)	(11,145	)
Fair value of convertible note adjustment	5,718		0
Non-recurring project costs	1,573		3,974
Non-GAAP adjusted net loss	3,107		(12,140	)
Non-GAAP adjusted net loss per share – basic and diluted	($0.21	)	($1.98	)
Weighted average shares – basic and diluted	14,497		6,125

Non-GAAP cost of goods sold

	Quarter Ended March 31,
	2026	2025
GAAP cost of revenue	50,149	37,021
Stock-based compensation expense	12	(12	)
Restructuring	0	(157	)
Non-GAAP cost of revenue	50,161	36,851

Non-GAAP gross profit and gross margin

	Quarter Ended March 31,
	2026		2025
GAAP Revenue	77,994		61,262
Non-GAAP cost of revenue	50,161		36,851
Non-GAAP gross profit	27,833		24,411
Non-GAAP gross margin	35.7	%	39.8	%

Non-GAAP operating expenses

	Quarter Ended March 31,
	2026	2025
GAAP operating expenses	30,409	35,835
Stock-based compensation expense	336	440
Restructuring charges	1,049	1,749
Amortization of acquisition-related intangible assets	0	228
Non-recurring project costs	1,573	3,974
Non-GAAP operating expenses	27,451	29,443

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Investor Relations Contacts:

Shelton Group

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Media Contact:

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Sara Beth Fahey

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Quantum Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results