Quantum Corp Q3 Revenue Rises to $74.6M with Adjusted EBITDA of $2.9M
Quantum Corp reported Q3 revenue of $74.6 million, up from $62.7 million last quarter, while adjusted EBITDA rose to $2.9 million versus $0.5 million. Non-GAAP net loss narrowed to $4.9 million ($0.36/share) and GAAP gross margin climbed to 38.8% from 37.6%, though supply constraints may hinder a 40% goal.
1. Q3 Financial Performance
Quantum Corp posted Q3 revenue of $74.6 million, up from $62.7 million last quarter, with adjusted EBITDA rising to $2.9 million from $0.5 million. Non-GAAP net loss narrowed to $4.9 million ($0.36/share) while GAAP net loss improved to $27.8 million ($2.03/share) from $46.5 million.
2. Cost Structure and Cash Flow
Restructuring initiatives reduced GAAP operating expenses to $30.1 million from $31.7 million and non-GAAP operating expenses to $26.9 million from $24.8 million. Cash equivalents and restricted cash totaled $13.8 million at quarter end, bolstering positive cash flow objectives.
3. Supply Chain Impact and Margin Guidance
GAAP gross margin improved to 38.8% from 37.6%, but pricing volatility and component availability challenges may limit achieving a 40% target. Management noted that maintaining Q3-level margins would be a solid outcome amid extended lead times and rising costs.
4. Demand Outlook and Backlog
Strong demand drove backlog growth faster than anticipated, with primary storage strength and tape sales to enterprise and hyperscale customers. Leadership emphasized the need for better services execution to stabilize that segment and highlighted a pipeline of multi-million-dollar deals.