EL7.AI
StocksMedium•14 November 2026•
3 min read

Quantum Revenue Rises 42.9% to $89.6 Million in Second Quarter

Key Facts

1Fiscal second-quarter revenue was $89.6 million, up 42.9% year over year.
2Demand from hyperscale computing customers for tape products rose more than 2.6 times year over year.
3Gross margin widened to 41.0%.
4The company recorded adjusted net income of $9.8 million, or $0.25 per share.
5Backlog reached a record level of nearly $100 million.

Quantum reported fiscal second-quarter 2027 revenue of $89.6 million, up 42.9% from $62.7 million in the year-earlier period, for the quarter ended September 30, 2026. The chief executive said revenue also rose 11% from the previous quarter, marking a fourth consecutive quarter of sequential growth. The company attributed strong demand to its secondary storage portfolio, with tape remaining its most consistent growth driver. Demand from hyperscale computing customers for tape products rose more than 2.6 times year over year. The company said supply constraints continued to affect the timing of shipments in some areas.

Gross margin widened to 41.0%, up 170 basis points from the previous quarter and 340 basis points from the year-earlier period. Operating expenses were $29.9 million on a GAAP basis, compared with $26.9 million on an adjusted, non-GAAP basis. The company, meanwhile, posted an accounting net loss of $44.8 million, or $1.14 per share. The loss included a noncash adjustment of $51.6 million resulting from a change in the fair value of warrant liabilities. On an adjusted basis, the company swung from a net loss of $7.1 million, or $0.54 per share, in the year-earlier quarter to net income of $9.8 million, or $0.25 per share.

Adjusted earnings before interest, taxes, depreciation and amortization were $11.1 million, compared with $0.5 million in fiscal second-quarter 2026. The company ended the quarter with $67.5 million in cash and restricted cash and no outstanding debt. It repaid its term loan in June 2026. The company also reported a record backlog of nearly $100 million at quarter-end. It said the orders included a major deployment of its Scalar i7 Raptor system with a hyperscale computing customer, following an evaluation that lasted several years, as well as the largest order in its history for an ActiveScale Cold Storage system.

Quantum forecast revenue of $91.0 million, plus or minus $2 million, for fiscal third-quarter 2027. It also forecast adjusted earnings before interest, taxes, depreciation and amortization of $9.1 million, with a margin of $1 million above or below that figure. The outlook follows revenue of $80.8 million in fiscal first-quarter 2027, which exceeded the midpoint of the $75.0 million guidance range by a margin of $2 million. The company said it reported second-quarter results on November 9, 2026, after the market close, and scheduled its investor call for 5 p.m. Eastern time. The company said its upcoming results depend on converting its backlog into shipments, while supply constraints continue to affect the timing of some deliveries.