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Quantum's Q4 Adjusted Loss Narrows Y/Y, Revenues Match Estimates
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Key Takeaways
QMCO posted a narrower Q4 fiscal 2026 loss as revenue rose 27% year over year.
Quantum cut operating expenses through restructuring despite lower gross margin.
QMCO guided Q1 fiscal 2027 sales near $75M and adjusted EBITDA of about $1.5M.
Quantum Corporation (QMCO - Free Report) reported a fourth-quarter fiscal 2026 non-GAAP loss of 21 cents per share, considerably narrower than the Zacks Consensus Estimate of a loss of 35 cents. The company incurred a loss of $1.98 per share in the year-ago quarter. The company's loss narrowed year over year because it generated more revenue while significantly cutting costs. Although it still incurred approximately $2.9 million in interest expense during the quarter, that expense is expected to be eliminated following the recent repayment of its debt, providing an additional boost to future profitability.
Quantum reported revenue of $78 million, representing a 27% year-over-year increase, comfortably exceeding management's guidance of $68 million (+/-$2 million), making this one of the company's strongest quarters in recent years. The top line met the consensus mark. For full fiscal 2026, revenues totaled $279.6 million, up 2% year over year.
Demand for storage solutions remained robust, supported by ongoing data growth and increasing AI workloads. Growth was temporarily constrained by supply chain and fulfillment delays, especially for disk and tape drives. While these headwinds are expected to continue in the near term, the company expects stronger backlog conversion in the second half of the fiscal year, which should support improved revenue growth.
However, management acknowledged that supply chain constraints remain an industry-wide challenge. Storage hardware continues to depend on various components that have experienced periodic shortages. If component availability worsens, Quantum could experience delayed shipments, increased costs and slower revenue recognition. Nonetheless, management also noted improving backlog visibility and continued pipeline momentum, suggesting customer demand remains healthy.
Quantum Corporation Price, Consensus and EPS Surprise
Product revenues gained 11.8% year over year to $172.4 million.
Service and subscription revenues totaled $99.2 million compared with $110.7 million in the previous year.
Royalty business generated $8 million in revenues.
QMCO’s Gross Margin Shows Some Pressure
Despite strong revenue growth, gross margins declined. Non-GAAP gross margin fell to 35.7% from 39.8%. Possible reasons include product mix changes, supply chain constraints, component costs and pricing dynamics. Management acknowledged that supply chain challenges remain across the industry. While margin compression deserves monitoring, higher revenue and improved operating efficiency more than offset the impact during the quarter.
Non-GAAP operating expenses were $27.5 million, in line with guidance and down from $29.4 million a year ago. The decline reflects ongoing cost savings from the company's restructuring efforts.
Adjusted EBITDA reached $1 million, beating guidance and improving from a $3.9 million loss last year, driven by restructuring benefits and disciplined cost management.
QMCO’s Balance Sheet Strength Improves
For the year ended on March 31, 2026, QMCO used $101 million of net cash from operating activities compared with $115 million used in the year-earlier.
As of March 31, 2026, cash and restricted cash totaled $16.2 million, while outstanding term loan debt declined from $102.5 million to $55.9 million.
Fiscal Q1 2027 Guidance
Quantum's guidance for first-quarter fiscal 2027 suggests that management expects its momentum to continue. Net sales are estimated at $75 million (+/-$2 million).
Non-GAAP adjusted operating expenses are expected to be $27 million (+/-$1 million).
Non-GAAP adjusted basic net loss per share is projected at a loss of 15 cents (+/-10 cents).
Adjusted EBITDA is expected to be $1.5 million (+/-$1 million).
NetApp, Inc. (NTAP - Free Report) reported strong fourth-quarter fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate. Non-GAAP net income in the reported quarter was $483 million or $2.43 per share compared with $397 million or $1.93 per share in the prior-year quarter. The bottom line surpassed the consensus estimate by 16 cents and exceeded the company’s guided range of $2.21-$2.31. Net sales during the quarter increased to $1.95 billion from $1.73 billion in the year-ago quarter. The figure exceeded the guidance of $1.795-$1.945 billion. The top line also beat the consensus estimate of $1.86 billion.
Everpure (P - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 47 cents per share, which surpassed the Zacks Consensus Estimate by 17.5%. The company had posted non-GAAP EPS of 29 cents in the prior-year quarter. Quarterly revenues of $1.1 billion surpassed the consensus mark by 4.47%. Revenues increased 35% year over year, driven by strong enterprise demand, accelerating AI infrastructure deployments and higher adoption of subscription offerings.
Teradata Corporation (TDC - Free Report) delivered solid first-quarter 2026 results, with non-GAAP earnings of 88 cents per share, beating the Zacks Consensus Estimate by 14.29%. The metric rose 33.3% year over year. Revenues of $444 million surpassed the consensus mark by 4.13% and increased 6.2% from the year-ago quarter. Public cloud ARR climbed 13% year over year and 12% in constant currency to $686 million, highlighting continued traction for the company’s cloud offerings.
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Quantum's Q4 Adjusted Loss Narrows Y/Y, Revenues Match Estimates
Key Takeaways
Quantum Corporation (QMCO - Free Report) reported a fourth-quarter fiscal 2026 non-GAAP loss of 21 cents per share, considerably narrower than the Zacks Consensus Estimate of a loss of 35 cents. The company incurred a loss of $1.98 per share in the year-ago quarter. The company's loss narrowed year over year because it generated more revenue while significantly cutting costs. Although it still incurred approximately $2.9 million in interest expense during the quarter, that expense is expected to be eliminated following the recent repayment of its debt, providing an additional boost to future profitability.
Quantum reported revenue of $78 million, representing a 27% year-over-year increase, comfortably exceeding management's guidance of $68 million (+/-$2 million), making this one of the company's strongest quarters in recent years. The top line met the consensus mark. For full fiscal 2026, revenues totaled $279.6 million, up 2% year over year.
Demand for storage solutions remained robust, supported by ongoing data growth and increasing AI workloads. Growth was temporarily constrained by supply chain and fulfillment delays, especially for disk and tape drives. While these headwinds are expected to continue in the near term, the company expects stronger backlog conversion in the second half of the fiscal year, which should support improved revenue growth.
However, management acknowledged that supply chain constraints remain an industry-wide challenge. Storage hardware continues to depend on various components that have experienced periodic shortages. If component availability worsens, Quantum could experience delayed shipments, increased costs and slower revenue recognition. Nonetheless, management also noted improving backlog visibility and continued pipeline momentum, suggesting customer demand remains healthy.
Quantum Corporation Price, Consensus and EPS Surprise
Quantum Corporation price-consensus-eps-surprise-chart | Quantum Corporation Quote
Product revenues gained 11.8% year over year to $172.4 million.
Service and subscription revenues totaled $99.2 million compared with $110.7 million in the previous year.
Royalty business generated $8 million in revenues.
QMCO’s Gross Margin Shows Some Pressure
Despite strong revenue growth, gross margins declined. Non-GAAP gross margin fell to 35.7% from 39.8%. Possible reasons include product mix changes, supply chain constraints, component costs and pricing dynamics. Management acknowledged that supply chain challenges remain across the industry. While margin compression deserves monitoring, higher revenue and improved operating efficiency more than offset the impact during the quarter.
Non-GAAP operating expenses were $27.5 million, in line with guidance and down from $29.4 million a year ago. The decline reflects ongoing cost savings from the company's restructuring efforts.
Adjusted EBITDA reached $1 million, beating guidance and improving from a $3.9 million loss last year, driven by restructuring benefits and disciplined cost management.
QMCO’s Balance Sheet Strength Improves
For the year ended on March 31, 2026, QMCO used $101 million of net cash from operating activities compared with $115 million used in the year-earlier.
As of March 31, 2026, cash and restricted cash totaled $16.2 million, while outstanding term loan debt declined from $102.5 million to $55.9 million.
Fiscal Q1 2027 Guidance
Quantum's guidance for first-quarter fiscal 2027 suggests that management expects its momentum to continue. Net sales are estimated at $75 million (+/-$2 million).
Non-GAAP adjusted operating expenses are expected to be $27 million (+/-$1 million).
Non-GAAP adjusted basic net loss per share is projected at a loss of 15 cents (+/-10 cents).
Adjusted EBITDA is expected to be $1.5 million (+/-$1 million).
QMCO’s Zacks Rank
QMCO currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
Performance of Peers
NetApp, Inc. (NTAP - Free Report) reported strong fourth-quarter fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate. Non-GAAP net income in the reported quarter was $483 million or $2.43 per share compared with $397 million or $1.93 per share in the prior-year quarter. The bottom line surpassed the consensus estimate by 16 cents and exceeded the company’s guided range of $2.21-$2.31. Net sales during the quarter increased to $1.95 billion from $1.73 billion in the year-ago quarter. The figure exceeded the guidance of $1.795-$1.945 billion. The top line also beat the consensus estimate of $1.86 billion.
Everpure (P - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 47 cents per share, which surpassed the Zacks Consensus Estimate by 17.5%. The company had posted non-GAAP EPS of 29 cents in the prior-year quarter. Quarterly revenues of $1.1 billion surpassed the consensus mark by 4.47%. Revenues increased 35% year over year, driven by strong enterprise demand, accelerating AI infrastructure deployments and higher adoption of subscription offerings.
Teradata Corporation (TDC - Free Report) delivered solid first-quarter 2026 results, with non-GAAP earnings of 88 cents per share, beating the Zacks Consensus Estimate by 14.29%. The metric rose 33.3% year over year. Revenues of $444 million surpassed the consensus mark by 4.13% and increased 6.2% from the year-ago quarter. Public cloud ARR climbed 13% year over year and 12% in constant currency to $686 million, highlighting continued traction for the company’s cloud offerings.