10-K · June 25, 2026
Quantum Corporation reported a modest increase in revenue for fiscal 2026, totaling $279.6 million, up 2% from $274.1 million in the previous year. The company saw improvements in gross margins, which fell to 36.9% from…
Earnings analysis · 10-Q
QMCO earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Quantum posted $78 million of revenue and a negative 3.3% operating margin, with revenue up sequentially but gross margin down 3.1 percentage points to 35.7%. Free cash flow improved to negative $1 million and diluted…
Read full summary
Quantum posted $78 million of revenue and a negative 3.3% operating margin, with revenue up sequentially but gross margin down 3.1 percentage points to 35.7%. Free cash flow improved to negative $1 million and diluted EPS improved to negative $0.39, but profitability remained negative. The most material filing issue is that management concluded internal controls were ineffective as of June 30, 2026, with material weaknesses spanning revenue recognition, inventory, income taxes and the control environment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.39
What stood out
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Revenue increased sequentially and year over year
Revenue was $78 million, up $3 million, or 4.0%, from $75 million in the prior quarter. Versus $61 million in the comparable 2025Q4 period, revenue increased $17 million, or 27.9%.
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Revenue growth came with margin pressure
Gross margin declined to 35.7% from 38.8% in the prior quarter, a 3.1 percentage-point contraction. Operating margin also weakened to negative 3.3% from negative 1.6%.
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EPS loss narrowed sequentially
Diluted EPS improved to negative $0.39 from negative $2.03 in the prior quarter, an improvement of $1.64 per share, although it remained negative.
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Cash burn materially improved
Free cash flow was negative $1 million, improving from negative $4 million in the prior quarter and negative $16 million in 2026Q2.
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Remediation efforts have defined milestones
Management expects to implement automated deferral-schedule controls by the end of the second fiscal quarter and sales-order data automation by the end of fiscal year 2027.
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Financial statements deemed fairly presented
The company stated that its condensed consolidated financial statements fairly represent its financial condition, results of operations and cash flows despite the identified control deficiencies.
What to watch
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Material weaknesses remain in financial controls
Management concluded that disclosure controls and internal control over financial reporting were not effective as of June 30, 2026 because of material weaknesses in revenue recognition, manufacturing inventory, income taxes and the control environment.
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Revenue recognition error risk
Revenue-recognition weaknesses involve three areas: deferral-schedule dates, sales-order inputs such as price and quantity, and allocation to performance obligations under Topic 606. Management expects sales-order automation to be implemented by the end of fiscal year 2027.
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Inventory and tax controls need remediation
Manufacturing-inventory controls were not adequately executed as of March 31, 2026, and remediation is targeted for completion by the end of the third fiscal quarter of fiscal year 2027. Income-tax control remediation is also expected by the end of fiscal year 2027.
Management's outlook
The 10-Q does not provide new quantitative revenue or EPS guidance. Prior numeric outlook was provided in the August 10, 2026 earnings release rather than this filing.
Earlier filings 4
10-Q · February 17, 2026
Quantum Corporation reported a revenue increase of 9% to $74.6 million in the latest quarter compared to the previous year, driven primarily by a 20% jump in product revenue, while service and subscription revenue…
10-Q · November 13, 2025
Quantum Corporation reported a challenging quarter with a 13% decline in total revenue, amounting to $62.7 million, compared to $71.8 million in the prior year. Despite higher than anticipated revenue, net losses…
10-Q · September 11, 2025
Quantum Corporation reported a revenue decline of 11% year-over-year, totaling $64.3 million for Q1 2025, down from $72.3 million in Q1 2024. This decline in revenue led to an operational loss of approximately $12.6…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.