Quantum Corporation (QMCO) Q2 2027 earnings summary

Executive summary

• Q2 FY2027 revenue rose 43% YoY and 11% sequentially to $89.6M; adjusted EBITDA was $11.1M and adjusted net income was $9.8M.

• Record backlog approached $100M, with major Scalar i7 RAPTOR and ActiveScale Cold Storage orders; component availability constrained shipments.

Financial highlights

• Revenue was $89.6M versus $62.7M a year earlier; product revenue rose 77% to $62.6M, service and subscription revenue declined 2% to $25.0M, and royalties rose 18% to $2.0M.

• GAAP gross profit was $36.7M versus $23.6M; GAAP operating income was $6.8M versus an $8.2M loss.

• Adjusted net income was $9.8M, or $0.25/share, versus an adjusted net loss of $7.1M, or $0.54/share, YoY; adjusted EBITDA was $11.1M versus $0.5M.

• GAAP net loss was $44.9M, including a $51.6M non-cash warrant-liability fair-value charge; diluted loss per share was $1.14 versus $3.49 YoY.

• H1 revenue increased 34% to $170.4M; net loss widened to $200.1M, largely reflecting non-cash warrant and convertible-note fair-value losses.

Outlook and guidance

• Q3 revenue guidance is $91M ±$2M; upside depends on component supply and shipment timing.

• Q3 non-GAAP operating expenses are forecast at $28M ±$1M; non-GAAP EPS at $0.20 ±$0.10 and adjusted EBITDA at $9.1M ±$1M.

• Guidance assumes a 3% annual effective tax rate and ~39.5M average basic shares; GAAP reconciliation is unavailable due to unpredictable warrant values and other charges.

• Existing cash and expected operating cash flows are believed sufficient to fund operations, working capital and capital expenditures for at least 12 months from financial-statement issuance.