Quantum Corporation (QMCO) Q1 2026 Earnings Report

Revenue and profitability
- Revenue: $64.286 million in Q1 2026 (YoY: -15.06%; QoQ: -11.39%). Net revenue reflects ongoing mix shift toward higher-value solutions and product transitions (base case disclosed in transcript and data).
- Gross profit and margin: Gross profit $22.712 million; gross margin 35.33% (vs. 39.6% in Q4 2025 and 37.4% in Q1 2025). The margin decline was driven by higher inventory provisions for end-of-life products and import tariffs, partially offset by service-organization efficiency gains.
- Operating expenses: GAAP operating expenses $35.3 million; non-GAAP operating expenses $30.0 million. The year-over-year decline in GAAP OpEx is attributed to nonrecurring restatement-related costs in the prior year, with ongoing run-rate savings from prior restructuring partly offset by higher compliance and legal costs. In Q2, the company expects a material OpEx reduction to ~ $27 million (±$2M).
- EBITDA and operating income: EBITDA is negative $12.596 million; EBITDAR margin -0.1959; operating income negative $12.596 million. The deterioration versus prior periods is driven by lower revenue and higher tailcosts that management attributes to the ongoing restructuring and the inventory/tariff headwinds.
- Net income and earnings per share: Net income -$17.206 million; EPS -$1.87 (diluted -$1.87) for the quarter. Non-GAAP net loss was -$14.5 million (EPS -$1.58).
- Cash flow and liquidity: Net cash from operating activities -$16.892 million; free cash flow -$18.084 million. Cash and cash equivalents at period end ~ $37.5 million. Management notes that revolver facilities were paid down and terminated, and an approx. $83 million capital raise via standby equity provided a stronger liquidity foundation.
- Backlog and working capital: Backlog at quarter end was approximately $10 million, in line with the higher end of the target run rate ($8–$10 million). Total current assets $118.443 million vs. total current liabilities $223.752 million; current ratio ~0.53, indicating tighter near-term liquidity but with improving leverage from debt actions.
- Balance-sheet complexion: Total assets ~$169.154 million; total liabilities ~$283.540 million; total stockholders’ equity negative at -$114.386 million, reflecting a capital structure that remains stressed but undergoing targeted repair through cost reductions, capital inflows, and debt-restructuring initiatives. Management highlighted a net-debt improvement, with reported net debt around the mid-$60s million range in the call, versus year-end 2025 levels, noting a >40% reduction (per management commentary).