Quantum Corporation (QMCO Quick QuoteQMCO - Free Report) stock remained resilient amid a volatile market environment, with a 328.9% gain in the past six months against the Zacks Computer- Storage Devices industry's decline of 19.9%. It has also outperformed the Zacks Computer and Technology sector’s decline of 2.5% and the S&P 500 composite’s decrease of 0.5%. QMCO’s hares have risen 27.3% in the past month.

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Let’s analyze QMCO’s potential upsides and risks to make an informed portfolio decision.

Myriad and ActiveScale Drive QMCO’s Growth Momentum

QMCO is a leading provider of end-to-end data management solutions. It offers solutions for capturing, sharing and preserving digital assets over the entire data lifecycle. It caters to leading organizations in life sciences, government, media and entertainment, research and industrial technology verticals. Its premium Myriad and ActiveScale products continue to witness healthy demand trends.

In January 2025, Quantum enhanced its Quantum Myriad all-flash file system, offering the first-ever in-place scaling with automatic data leveling. These upgrades provide greater flexibility and adaptability, allowing customers to effectively manage the evolving storage needs of the artificial intelligence (AI) era. In December 2024, Quantum extended support for the NVIDIA GPUDirect Storage capability by introducing an advanced parallel file system client for its Myriad all-flash file system.

Quantum’s continuous efforts to elevate cyber resiliency for modern enterprises through fresh launches and collaborations bode well. In October 2024, QMCO’s flagship ActiveScale platform expanded its Veeam Ready qualifications. Veeam Software supports Quantum's ActiveScale 7.0, which includes all-flash solutions for rapid ransomware recovery and reportedActiveScale Cold Storage for budget-friendly, air-gapped retention in the Veeam Archive Tier.

In the fiscal third quarter of 2025, ActiveScale experienced notable growth while Myriad continued to drive innovation by partnering with an AI pioneer fusing quantum computing-inspired algorithms and AI/ML (machine learning) to solve complex challenges.

Momentum in DXi Bodes Well for QMCO

Quantum gained strong traction with DXi data protection appliances, securing major deals, including a multi-million-dollar refresh at a top European retailer and new business with a global tech manufacturer in the fiscal third quarter.

In March 2025, Quantum launched Quantum GO Refresh for DXi T-Series, which is a flexible subscription program designed to keep businesses secure and prepared against ransomware and other cyber threats. This new offering, part of the Quantum GO portfolio, provides an all-in-one subscription model that includes hardware, software and support while ensuring regular hardware refreshes as technology evolves.

In November 2024, Quantum unveiled its latest innovation — the DXi9200 — to address threats associated with rapidly evolving cyberattacks, including ransomware. As the newest addition to the successful DXi9000 Series, this hybrid data protection appliance is tailored for scalability, security and efficiency in backup and recovery solutions, with advanced capabilities to protect and empower enterprises.

QMCO Faces Obstacles in Growth Journey

Quantum continues to navigate several operational and financial challenges. Supply chain lead times remain extended, which could adversely impact future performance by delaying product availability and affecting customer satisfaction.

Despite efforts to reduce outstanding debt, outstanding term loan debt, excluding debt issuance costs, was $105.9 million as of Dec. 31, 2024, up from $87.3 million on Dec. 31, 2023. Borrowings under the revolving credit facility also increased to $37.5 million from $32.0 million over the same period. The company is still working toward achieving positive cash flow and becoming debt-free, underscoring persistent financial hurdles. Adding to these challenges is the presence of stiff competition in the market, which puts further pressure.

QMCO’s Cheap Valuation

Quantum presents a compelling investment opportunity with its attractive forward 12-month price-to-sales ratio of 0.3, lower than the industry average of 0.96 in the past year.

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How to Play the QMCO Stock?

Quantum’s Myriad and ActiveScale products are witnessing strong demand, and DXi data protection appliances continue to gain solid traction. However, extended supply chain lead times, high debt levels and stiff competition pose challenges.

Therefore, we believe new investors should wait for a better entry point and existing investors should retain the QMCO stock, which currently carries a Zacks Rank #3 (Hold). 

Stocks to Consider From the Computer and Technology Space

Some better-ranked stocks from the broader technology space are Unity Software Inc. (U Quick QuoteU - Free Report) , Iridium Communications Inc. (IRDM Quick QuoteIRDM - Free Report) and Gilat Satellite Networks Ltd. (GILT Quick QuoteGILT - Free Report) . U sports a Zacks Rank #1 (Strong Buy), while IRDM and GILT carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Unity Software’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 65.52%. In the last reported quarter, U delivered an earnings surprise of 14.29%. The company’s long-term earnings growth rate is 5.7%. Its shares have lost 17.3% in the past year.

Iridium’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 35.22%. In the last reported quarter, IRDM delivered an earnings surprise of 93.75%. Its shares have advanced 12.9% in the past year.

The Zacks Consensus Estimate for Gilat’s 2025 earnings per share is pegged at 50 cents, unchanged in the past 30 days. In the last reported quarter, GILT delivered an earnings surprise of 7.14%. Its shares have jumped 25.8% in the past six months.