| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 39 | — | 17.3x | Bottom tier | |
Growth | 32 | 10.9% | 7.1% | Bottom tier | |
Quality | 52 | — | 4.5% | Around median | |
Safety | 13 | — | 2.6x | Bottom tier | |
Capital Return | 30 | 0.00% | 0.06% | Bottom tier | |
Momentum | 80 | 132.4% | -1.6% | Top tier | |
Sentiment | 21 | 1 | 3 | Bottom tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Quantum Corporation provides data storage and management solutions, with its portfolio centered on the ActiveScale platform for unstructured data storage and Scalar tape libraries, including Scalar i7. The company generates revenue from sales of storage systems and related expansions, support services, and royalties associated with tape technologies; services revenue increased by approximately 10% quarter over quarter in Q1 fiscal 2027, while management indicated continued strength in tape royalties without disclosing each business activity's share of total revenue.
In Q1 fiscal 2027 ended June 30, 2026, revenue was $80.8 million, up 25.7% from $64.3 million in the corresponding period and approximately 4% from $78.0 million in the previous quarter, exceeding the high end of the $73–77 million guidance range. Gross profit was $31.7 million, and GAAP gross margin reached 39.3%, up 360 basis points quarter over quarter and approximately 400 basis points year over year, with gross profit growing 40% year over year.
The company recorded a GAAP net loss of $155.3 million, or $7.06 per share, but this result included $157.7 million in non-cash items related to convertible notes, warrant liabilities, and debt amortization. After excluding specified items, non-recurring costs, and stock-based compensation, adjusted net income was $4.0 million, or $0.18 per share, and adjusted EBITDA reached $8.0 million; the company also generated positive operating cash flow of approximately $0.9 million.
The analyst consensus is “Buy,” with an average target of $26.5 and a target range of $24 to $29; the average is only $1.3 below the 52-week range high of $27.8. No positive P/E ratio is available due to the fiscal 2027 trailing-twelve-month loss of $239.1 million, so valuation depends more heavily on continued revenue growth and the conversion of adjusted profitability and cash flow into sustainable GAAP results. The wide 52-week range of $4.19 to $27.8 reflects valuation sensitivity to balance-sheet and margin improvements on the one hand, and supply risks and accounting losses on the other.
Figures in the text are as of 2026-09-22; the live price is shown at the top of the page.
Revenue was $80.8 million, up 25.7% year over year and approximately 4% quarter over quarter, driven by demand for ActiveScale and tape solutions. Americas revenue increased by more than 20%, and Asia-Pacific revenue increased by more than 50% quarter over quarter. Services revenue also increased by approximately 10% quarter over quarter, and large deals exceeding $1 million helped support growth.
The Q1 fiscal 2027 result included a non-cash loss of $129.7 million from the change in the fair value of convertible notes, a loss of $16.3 million from the change in the value of warrant liabilities, and a loss of $11.7 million from debt amortization. These items totaled $157.7 million, in addition to $0.8 million in other non-recurring costs. After specified exclusions and stock-based compensation, the company recorded adjusted net income of $4.0 million and adjusted earnings of $0.18 per share.
Automated analysis for informational purposes only — not investment advice.
Total debt was zero as of June 30, 2026, compared with $144.8 million of term debt and convertible notes on March 31, 2026. The company raised $94.6 million in net proceeds from a private placement and used $56.8 million to repay debt, while cash, cash equivalents, and restricted cash increased to $54.6 million from $16.2 million. The company generated positive operating cash flow of approximately $0.9 million, with capital expenditures of $0.4 million.
The company expects revenue of $82 million, plus or minus $2 million, representing approximately 31% year-over-year growth at the midpoint. It is targeting adjusted EBITDA of $6 million, plus or minus $1 million, and adjusted earnings of $0.12 per share, plus or minus $0.10. It also expects adjusted operating expenses of $27 million, plus or minus $1 million, with the increase related to sales commissions and a faster pace of hiring in research and development.
The main obstacle is the availability of tape drives and certain disk drives, as management stated on the August 10, 2026 call that demand exceeds the company's ability to ship. Hugues Meyrath said tape drive supplies remained stable without meaningful improvement through August 2026, despite expectations for increased production in the second half of the year. Therefore, exceeding Q2 fiscal 2027 revenue guidance depends heavily on Quantum's ability to obtain components and fulfill its backlog.