📊 QMCO Key Takeaways
Is Quantum Corp. /DE/ (QMCO) a Good Investment?
Quantum Corp is in severe financial distress with negative stockholders' equity of -198.9M (technical insolvency), persistent operating losses of -24.5M, and negative free cash flow of -39.6M. The company faces critical liquidity constraints with a 0.55x current ratio and cannot service its 90M debt load from operations, indicating substantial bankruptcy risk despite stable revenue.
Quantum's modest 2.0% revenue growth is low quality because the company remains deeply unprofitable and generated negative operating and free cash flow. Negative equity, weak liquidity, substantial liabilities, and inadequate interest coverage indicate severe financial distress despite improved year-over-year net income and EPS.
Quantum Corp. /DE/ Key Strengths (QMCO)
- Positive gross margin of 36.9% indicates viable product economics
- Stable revenue base of 279.6M demonstrates market demand
- Low capital intensity with only 1.7M capex requirement
- Revenue increased 2.0% year over year
- Gross margin remained meaningful at 36.9%
- Net income and diluted EPS improved year over year
QMCO Stock Risks: Quantum Corp. /DE/ Investment Risks
- Negative stockholders' equity of -198.9M represents technical insolvency
- Negative operating cash flow of -37.9M with ongoing cash burn unsustainable
- Critical liquidity position (0.55x current ratio) threatens near-term solvency
- Operating losses of -24.5M with negative interest coverage (-7.7x) prevent debt service
- Liabilities of 355.7M exceed total assets of 156.9M by 226%
- Negative $198.86M stockholders equity and liabilities exceeding assets by a wide margin
- Negative $39.56M free cash flow relative to only $15.57M of cash
- Weak 0.55x current ratio and negative interest coverage indicate significant liquidity and debt-servicing risk
Key Metrics to Watch
- Operating cash flow recovery (currently -37.9M)
- Path to operating profitability (currently -24.5M)
- Stockholders' equity trend (currently -198.9M)
- Current ratio and liquidity position (currently 0.55x)
- Debt restructuring or refinancing activity
- Operating cash flow and cash balance
- Operating margin and current ratio
Quantum Corp. /DE/ (QMCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
QMCO Profit Margin, ROE & Profitability Analysis
QMCO vs Technology Sector: How Quantum Corp. /DE/ Compares
How Quantum Corp. /DE/ compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Quantum Corp. /DE/ Stock Overvalued? QMCO Valuation Analysis 2026
Based on fundamental analysis, Quantum Corp. /DE/ has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Quantum Corp. /DE/ Balance Sheet: QMCO Debt, Cash & Liquidity
QMCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Quantum Corp. /DE/'s revenue has declined by 31% over the 5-year period, indicating business contraction. The most recent EPS of $-22.35 indicates the company is currently unprofitable.
QMCO Revenue Growth, EPS Growth & YoY Performance
QMCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $64.3M | -$17.2M | $-1.87 |
| Q3 2026 | $68.7M | -$27.8M | $-2.03 |
| Q2 2026 | $62.7M | -$12.2M | $-2.54 |
| Q1 2026 | $64.3M | -$17.2M | $-1.87 |
| Q3 2025 | $71.9M | -$9.9M | $-2.08 |
| Q2 2025 | $70.5M | -$3.3M | $-0.70 |
| Q1 2025 | $71.3M | -$9.1M | $-0.10 |
| Q3 2024 | $71.9M | $113.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Quantum Corp. /DE/ Dividends, Buybacks & Capital Allocation
QMCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Quantum Corp. /DE/ (CIK: 0000709283)
📋 Recent SEC Filings
❓ Frequently Asked Questions about QMCO
What is the AI rating for QMCO?
Quantum Corp. /DE/ (QMCO) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 94% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are QMCO's key strengths?
Claude: Positive gross margin of 36.9% indicates viable product economics. Stable revenue base of 279.6M demonstrates market demand. ChatGPT: Revenue increased 2.0% year over year. Gross margin remained meaningful at 36.9%.
What are the risks of investing in QMCO?
Claude: Negative stockholders' equity of -198.9M represents technical insolvency. Negative operating cash flow of -37.9M with ongoing cash burn unsustainable. ChatGPT: Negative $198.86M stockholders equity and liabilities exceeding assets by a wide margin. Negative $39.56M free cash flow relative to only $15.57M of cash.
What is QMCO's revenue and growth?
Quantum Corp. /DE/ reported revenue of $279.6M.
Does QMCO pay dividends?
Quantum Corp. /DE/ does not currently pay dividends.
Where can I find QMCO SEC filings?
Official SEC filings for Quantum Corp. /DE/ (CIK: 0000709283) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is QMCO's EPS?
Quantum Corp. /DE/ has a diluted EPS of $-7.97.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is QMCO's fundamental grade?
Based on our AI fundamental analysis in August 2026, Quantum Corp. /DE/ has a D grade with 94% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is QMCO stock overvalued or undervalued?
Valuation metrics for QMCO: ROE of N/A (sector avg: 22%), net margin of -36.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is QMCO's AI grade for 2026?
Our dual AI analysis gives Quantum Corp. /DE/ a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is QMCO's free cash flow?
Quantum Corp. /DE/'s operating cash flow is $-37.9M, with capital expenditures of $1.7M. FCF margin is -14.2%.
How does QMCO compare to other Technology stocks?
Vs Technology sector averages: Net margin -36.1% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.55 (avg: 2.5).