QMCO

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 5:00 p.m. ET President and Chief Executive Officer - Hugues Meyrath Chief Financial Officer - William White General Counsel - Tara Ilges Operator: Ladies and gentlemen, greetings, and welcome to the Quantum Corporation Fiscal First Quarter 2027 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. It is now my pleasure to introduce your host, Quantum's General Counsel, Tara Ilges. Please go ahead. Tara Ilges: Good afternoon, and thank you for joining today's conference call to discuss Quantum's fiscal first quarter 2027 financial results. With me on today's call are Hugues Meyrath, Quantum President and Chief Executive Officer, and William White, our Chief Financial Officer. Following management's prepared remarks, we will open the call up to questions from analysts. Before we begin, I would like to remind you that comments made on today's call may include forward-looking statements. All statements other than statements of historical fact should be viewed as forward-looking, including any projections of revenue, demand, backlog, supply constraints, margins, expenses, adjusted EBITDA, adjusted net income, growth, profitability, cash flows, liquidity, or other financial, operational, or performance metrics. These statements are based on our current expectations and projections and involve known and unknown risks and uncertainties that we refer to as risk factors. Risk factors may cause our actual results to differ materially from our forecast. For more information about risk factors, please refer to the detailed descriptions we provide under the Risk Factor section in our 10-K and 10-Qs filed with the Securities and Exchange Commission. The company does not intend to update forward-looking statements once they are issued, whether as a result of new information, future events, or otherwise, except when required by applicable law. Please note that today's press release and management statements during today's call will include certain financial information in GAAP and non-GAAP measures. We will include definitions and reconciliations of GAAP to non-GAAP items in our press release. With that, it's my pleasure to turn the call over to Quantum CEO, Hugues Meyrath. Hugues Meyrath: Thank you, Tara, and thank you to everyone for joining us today. We delivered another strong quarter as we continue executing against our strategy and helping customers address some of the biggest challenges they face around data growth, infrastructure costs, and power consumption. Revenue for the quarter was approximately $81 million, well above our guidance of $75 million. We also delivered gross margin and EBITDA performance above expectations while growing our backlog. Our results continue to be driven by strong enterprise demand across the business. At the same time, we have significant hyperscaler opportunities that remain constrained primarily by supply chain challenges. As those constraints improve, we believe there's meaningful additional opportunity ahead. The key takeaway from the quarter is simple. We're executing better, demand remains strong, and we're delivering against the commitments we've made. We're hearing a consistent message from customers. Data volumes continue to grow at unprecedented rates while budgets, power availability, and infrastructure resources remain constrained. More than ever, organizations need the right data in the right place at the right cost. They're looking at ways to optimize storage economics, improve efficiency, reduce power consumption, and scale without continually adding cost and complexity. As these challenges grow, the value of what we do grows as well, driving increased demand for solutions that enable more efficient, resilient, and cost-effective data infrastructures. Revenue in the Americas increased more than 20% sequentially, while revenue in APAC increased more than 50% sequentially, reflecting strong customer demand across both enterprise and cloud-oriented environments. Importantly, we've now delivered growth in each of the last 2 quarters, periods that have historically been seasonally weaker for Quantum. We're seeing momentum across multiple areas of business. Service revenue increased approximately 10% quarter over quarter, reflecting stabilization after multiple years of decline. We're also seeing continued strength in tape-related royalty revenue, reflecting broader adoption of tape technologies across the industry. Recent LTO shipment data showed capacity shipments increasing 15% sequentially from the prior quarter, reinforcing what we're hearing from customers every day. Organizations are increasingly turning to tape to improve storage economics, reduce power consumption, and strengthen cyber resilience. That momentum is reflected in our pipeline with our tape opportunity funnel reaching the highest level we've seen in years. The scale of opportunities we're seeing continues to increase. This quarter we experienced a dramatic increase in deals valued at more than $1 million with the majority of these exceeding $3 million. ActiveScale combined with tape continues to be a cornerstone offering in our portfolio, and its strength is clearly reflected in customer wins. During the quarter, we secured a significant renewal and expansion of an ActiveScale deployment with a leading European biometrics institution. Once customers implement ActiveScale and experience its resilience, performance, and power efficiency, we typically see continued capacity extensions and footprint growth in subsequent quarters. We also secured a significant hyperscaler deployment in APAC centered around our Scalar i7 tape library. This transaction was valued at well over eight figures. The i7's unmatched density and power efficiency enabled us to secure this important technical win. We believe this win highlights the growing relevance of the Scalar i7 in modern tape architectures and hyperscale environments, while also validating the significant opportunity we see across the APAC region. The biggest challenge we continue to face is supply. Simply put, customers' demand remains stronger than our ability to fulfill it. During the quarter, we continued to face constraints around tape drive availability and certain disk drives. While we expect conditions to improve over the course of the year, component availability and pricing pressures remain areas of focus. Despite those challenges, our operations, supply chain and manufacturing teams did an outstanding job enabling us to deliver results above guidance. I also want to recognize Avnet, our primary partner, for helping us support customers and navigate a difficult supply environment. As we look ahead, we like what we're seeing. Demand remains strong. Our pipeline continues to grow, backlog is increasing, and the revenue has now grown sequentially for several quarters. We're winning larger and more strategic opportunities and seeing strength across all product lines and across every region. Factoring in our most recent fundraising, Quantum's now debt-free, cash flow positive, and profitable for the first time since 2023. Our team is stronger today than it was a year ago, and we're well positioned for continued growth and long-term value creation. And with that, I'll turn the call over to Will. William White: Thank you, Hugues. Good afternoon to those joining us on the phone and webcast. I'll provide an overview of the company's GAAP and non-GAAP financial results for our fiscal first quarter that ended on June 30, 2026. Revenue in the quarter was $80.8 million, increasing $2.8 million, or approximately 4% sequentially from $78 million in the prior quarter. This is an increase of 25.7% over $64.3 million in the prior year's first quarter. Revenue exceeded the high end of our guidance range of $75 million, plus or minus $2 million, driven by strong demand for our ActiveScale and tape storage solutions. As Hugues stated, our backlog has increased significantly and we expect it to continue to be strong throughout the current quarter. GAAP gross margins reached 39.3% in our first quarter, up 360 basis points sequentially, and nearly 400 basis points year over year, the highest level in 5 quarters. Gross profit grew 40% year over year on 26% revenue growth and 14% sequentially. The improvement was driven across our business with stronger pricing and disciplined cost execution together with favorable standard costs and inventory performance, as well as continued leverage on fixed costs. We continue to focus on gross margin and expect pricing volatility as we navigate ongoing component shortages. Much of the past year's improvement is structural, and we anticipate year-over-year improvement in second quarter gross margins. GAAP operating expenses for the first quarter were $26.7 million compared to $30.4 million in the prior quarter and $35.3 million in the year-ago quarter. Operating expenses on a non-GAAP basis for the first quarter were $25.1 million, below the low end of our guidance range of $27 million, plus or minus $1 million, and down 16% year over year on 26% higher revenue. This compares with the fiscal fourth quarter at $27.5 million and $30 million in the first quarter of fiscal year 2026. The sequential decrease was driven by lower sales and marketing expenses, as well as continued commitment to operating expense discipline. The year-over-year decrease reflects the continued realized savings from a lowered cost structure following our restructuring actions throughout the fiscal year. Operating income was $5 million on a GAAP basis and $6.6 million on a non-GAAP basis compared to operating losses of $12.6 million and $7.4 million, respectively, in the prior year quarter. We also generated positive cash flow from operations of approximately $0.9 million with capital expenditures of $0.4 million, or under 0.5% of revenue. GAAP net loss in the fiscal first quarter was $155.3 million, or a loss of $7.06 per share, compared to a net loss of $9.5 million, or a loss of $0.66 per share, in the previous quarter, and a net loss of $17.2 million, or a loss of $1.87 per share, in the prior year's first quarter. The first quarter net loss includes one-time, non-cash items related to the extinguishment of debt and convertible notes. These include a $129.7 million loss on the change in fair value of our convertible notes, a $16.3 million loss on the change of fair value of warrant liabilities, and an $11.7 million loss on debt extinguishment, representing $157.7 million in total. Excluding these debt-related items and $0.8 million of other non-recurring costs, as well as stock-based compensation, non-GAAP income for the first quarter was $4 million, or income of $0.18 per share, compared to a net loss of $3.1 million, or a loss of $0.21 per share, in the prior quarter, and a net loss of $14.5 million, or a loss of $1.58 per share, in the prior year's first quarter. The achievement of a non-GAAP adjusted net income for the first quarter reflected a combination of higher revenue and lower expenses, as well as favorable gross margin, as I mentioned earlier. Adjusted EBITDA for the first quarter was a positive $8 million, which is $5.5 million above the high end of our guidance range. This compares to a positive $1 million in the fiscal fourth quarter of 2026 and a negative $6.5 million in the prior year quarter. The year-over-year improvement in EBITDA of approximately $14.5 million came on $16.5 million of incremental revenue, reflecting the benefit of our previous restructuring and ongoing cost discipline. Turning to debt and liquidity. Cash, cash equivalents, and restricted cash at the end of the fiscal first quarter were approximately $54.6 million, up from $16.2 million at the end of fiscal 2026. During the quarter, we generated approximately $94.6 million of net proceeds from our private placement, of which $56.8 million was used to repay debt as of June 30. Total outstanding debt was zero compared to $144.8 million of term debt and convertible notes on March 31. Interest expense in the quarter was $2.1 million, down from $6.5 million a year ago. With our debt fully eliminated, we expect interest expense to be minimal going forward, against $21.6 million of interest expense in fiscal 2026. Turning to the company's outlook for the fiscal second quarter of 2027, as we discussed today, we expect demand from customers to remain strong. Given our substantial backlog and continued strong bookings, we expect near-term revenue upside will be determined largely to the extent to which we can fulfill and ship orders in a supply-constrained market. As such, we expect fiscal second quarter revenue to be approximately $82 million, plus or minus $2 million. At the midpoint, this represents approximately 31% year-over-year growth. We expect second quarter non-GAAP adjusted operating expenses to be approximately $27 million, plus or minus $1 million, with a sequential increase reflecting sales commissions on stronger performance and an increase in the pace of R&D hiring. As a result, non-GAAP adjusted net income per share for the second quarter is anticipated to be $0.12, plus or minus $0.10 per share, based on an estimated 39.4 million weighted average basic shares outstanding. Adjusted EBITDA for the second quarter is expected to be $6 million, plus or minus $1 million. Stepping back, we delivered our third consecutive year-over-year revenue growth, our strongest gross margin in 5 quarters, positive non-GAAP adjusted net income for the first time since 2023, positive cash flow from operations, and a debt-free balance sheet with $54.6 million in cash. Our priorities from here are straightforward. Hold the cost discipline we built and generate consistent positive cash flow. With that, I'll turn the call over to the operator for questions. Operator: [Operator Instructions] Our first question is from Jacob Stephan with Lake Street Capital Markets. Jacob Stephan: Congrats on a really nice quarter and guidance here. Maybe just first, on the adjusted EBITDA guide, you guys just posted $8 million of EBITDA on $80 million of revenue -- $81 million of revenue. You're guiding for $6 million on $82 million. Wondering about the step-down, is that more OpEx related or are you seeing something in gross margin that might ultimately result in that? William White: So, two parts. One, it is related to OpEx. As I mentioned, there are two main drivers there. I previously said that we're investing in R&D. That's our main growth area from an OpEx standpoint. We're also, given the beat we've had on revenue, we're anticipating commissions to be higher. So that's factoring into OpEx. From a margin standpoint, as mentioned, we're just simply honestly looking and saying that we have some large deals coming in the pipe. We still have a lot of uncertainty, so we're being conservative in how we're doing margin going into Q2. Jacob Stephan: Okay, got it. And then just touching on backlog, you know, I know you guys said record levels, you know, last quarter was $45 million. I might have just missed the number, but can you give us an update on what you exited this quarter with? Hugues Meyrath: I know we didn't give the number, Jacob, but it's significantly higher. Jacob Stephan: Okay. I guess, so just touching on supply. I know you guys have continued to say that demand significantly outpaces, but I guess with IBM kind of easing the projected easing in Q2 and Q3 here, towards the back half of calendar '27. How are you thinking about that versus just a month and a half ago when we last got an update? Hugues Meyrath: Right now, the reason we're guiding to around $82 million, which is mildly up, is because we're still not getting adequate supply of tape drives. So it's looking right now, it's continuing to be flat for the past handful of months. So I'm hoping to get a further update from IBM in the next week when I go there, but they've mentioned that they would increase production towards the back half of the year, but right now, as of the latest month, which is August, we're still not seeing the inflection point. Jacob Stephan: Okay, got it. And maybe just one last one, you touched on some of the larger deals in the quarter with several being over $3 million. I guess, how should we think about that for the balance of the year as we look at kind of Q2 through Q3 and even into Q4? Do you expect the pipeline growing from larger deals or that continue to be kind of on the enterprise side, maybe medium-sized business? Hugues Meyrath: Yes, good question. A lot of those large deals were actually enterprise deals. There was one hyperscaler there, but a lot of them are also large enterprise deals. So as ActiveScale gains a stronger and stronger foothold in the enterprise, these are typically very large deals as well. Yes. As the company's growing, I think you can expect most of those. Jacob Stephan: Got it. I appreciate all the color, guys. Nice quarter. Operator: [Operator Instructions] Our next question is from Nehal Chokshi with Northland Capital Markets. Nehal Chokshi: I'm sorry I missed the opening remarks of the last question here. But I do want to, and this may have been answered then, but I would like to see if you have any updates with respect to ActiveScale customer adoption. And I probably would have some follow-up based on this here. Hugues Meyrath: Yes, we've seen an increase of seven-digit deals in the enterprise with ActiveScale, so it continues to grow super fast and it's getting more and more traction. We're also seeing a lot of customer expansions around ActiveScale because once the solution is in there, people see the benefit and what it can do from a cost perspective and power perspective and scaling and availability. So, yes, the product is really nicely ramping up right now. Nehal Chokshi: So I think I asked this question last quarter, and I got it too early to give sort of a perspective on it. So I'm going to ask it again, because maybe it's no longer too early now. Where is ActiveScale in terms of percent of bookings on say last quarter or last two-quarter basis and where do you think it can go one year or two year out from here or on an absolute dollar term as well? Hugues Meyrath: Well, it's not too early to give. We just don't give a product bookings. We don't give a bookings breakdown by product for that purpose, but ActiveScale continues to grow and it's a larger and larger part of our solution going forward, and it's very attractive to large enterprise customers and some of hyperscalers and neoscalers that need more turnkey solutions. So it's been a good growing business for us. Nehal Chokshi: Okay. And so these 3 customer types of enterprises, hyperscalers, and neoclouds, could you characterize what they represent in terms of the ActiveScale pipeline? Hugues Meyrath: We don't break down our bookings or our pipeline by product, Nehal. Operator: Thank you. This does conclude our question and answer session and our conference for today. We thank you again for your participation. You may now disconnect your lines. Before you buy stock in Quantum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Quantum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 17, 2026. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved first non-GAAP profitability and positive cash flow since 2023, driven by a combination of 26% year-over-year revenue growth and structural cost reductions from prior restructuring. Performance was bolstered by strong enterprise demand for ActiveScale and tape storage as organizations seek to optimize storage economics and power efficiency amidst unprecedented data growth. Sequential revenue growth in the Americas (20%+) and APAC (50%+) reflects a successful pivot toward larger, more strategic deals, with a majority of million-dollar transactions now exceeding $3 million. Service revenue stabilized with a 10% sequential increase, ending a multi-year decline and signaling a healthier installed base and recurring revenue profile. Management highlighted a significant technical win with a leading APAC hyperscaler for the Scalar i7 tape library, validating the product's density and power efficiency in large-scale environments. Supply chain challenges remain the primary headwind, specifically regarding tape drive and certain disk drive availability, which prevented the company from fully meeting customer demand. The company successfully eliminated all $144.8 million of term debt and convertible notes through a private placement, significantly reducing future interest expense and financial risk. Q2 revenue guidance of approximately $82 million assumes that near-term upside remains capped by the company's ability to fulfill orders in a supply-constrained market. Management expects gross margins to remain strong but anticipates potential pricing volatility as they navigate ongoing component shortages and large-deal mix. Operating expenses are projected to increase sequentially to approximately $27 million due to higher sales commissions and a strategic acceleration in R&D hiring to support growth. Supply chain improvements for tape drives are anticipated toward the back half of the calendar year, though management noted they have not yet seen a production inflection point from their primary supplier. Backlog is expected to remain at elevated levels throughout the current quarter as demand continues to outpace fulfillment capabilities. Reported a GAAP net loss of $155.3 million primarily due to $157.7 million in one-time, non-cash charges related to the extinguishment of debt and fair value changes in convertible notes. The company is now debt-free following a $94.6 million private placement, which management expects will result in minimal interest expense moving forward compared to $21.6 million in fiscal 2026. Tape drive availability remains a critical dependency, with management actively monitoring production schedules from IBM to determine the timing of backlog realization. ActiveScale is increasingly being paired with tape technologies to address cyber resilience and power consumption, forming a cornerstone of the company's long-term portfolio strategy. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributed the lower EBITDA guide to increased OpEx from R&D investments and higher sales commissions following the revenue beat. They also noted a conservative approach to margin forecasting due to the inclusion of several large deals in the pipeline and ongoing component pricing uncertainty. CEO Hugues Meyrath stated that supply has remained flat for several months and the company has not yet seen the production inflection point previously projected by IBM. Quantum is maintaining a cautious near-term outlook until they see tangible evidence of increased production, expected potentially in the back half of the year. Management reported a dramatic increase in seven-digit enterprise deals for ActiveScale, noting that once implemented, customers typically expand their footprint in subsequent quarters. While declining to provide specific product-level booking percentages, management emphasized that ActiveScale is becoming a larger and more vital part of their total solution offering.

This article first appeared on GuruFocus. Revenue: $80.8 million, up 2.8% sequentially and 26% year over year, exceeding the high end of guidance. GAAP Gross Margin: 39.3%, up 360 basis points sequentially and nearly 400 basis points year over year, the highest level in five quarters. GAAP Operating Expenses: $26.7 million, down from $30.4 million in the prior quarter and $35.3 million in the year-ago quarter. Non-GAAP Operating Expenses: $25.1 million, down 16% year over year on 26% higher revenue. GAAP Operating Income: $5 million, compared to an operating loss of $12.6 million in the prior year quarter. Non-GAAP Operating Income: $6.6 million, compared to an operating loss of $7.4 million in the prior year quarter. GAAP Net Loss: $155.3 million, or a loss of $7.06 per share, including one-time non-cash items related to debt extinguishment and convertible notes. Non-GAAP Adjusted Net Income: $4 million, or income of $0.18 per share, compared to a net loss of $3.1 million in the prior quarter. Adjusted EBITDA: Positive $8 million, $5.5 million above the high end of guidance, compared to positive $1 million in the prior quarter and negative $6.5 million in the prior year quarter. Cash Flow from Operations: Positive approximately $0.9 million. Capital Expenditures: $0.4 million, or under 0.5% of revenue. Cash Position: Cash, cash equivalents, and restricted cash of approximately $54.6 million, up from $16.2 million at the end of fiscal 2026. Debt: Total outstanding debt was zero, compared to $144.8 million of term debt and convertible notes on March 31. Interest Expense: $2.1 million in the quarter, down from $6.5 million a year ago. Revenue by Region: Americas revenue increased more than 20% sequentially; APAC revenue increased more than 50% sequentially. Service Revenue: Increased approximately 10% quarter over quarter. Fiscal Second Quarter 2027 Guidance: Revenue expected to be approximately $82 million, plus or minus $2 million; non-GAAP adjusted net income per share anticipated to be $1, plus or minus $0.10; adjusted EBITDA expected to be $6 million, plus or minus $1 million. Warning! GuruFocus has detected 7 Warning Signs with QMCO. Is QMCO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue of $80.8 million exceeded guidance of $75 million, driven by strong demand for ActiveScale and tape storage solutions. GAAP gross margin reached 39.3%, up 360 basis points sequentially and nearly 400 basis points year over year, the highest level in five quarters. Adjusted EBITDA was positive $8 million, $5.5 million above the high end of guidance, and non-GAAP adjusted net income was positive for the first time since 2023. The company is now debt-free with $54.6 million in cash, eliminating interest expense and strengthening its balance sheet. Backlog increased significantly, with a dramatic rise in deals valued over $1 million, including a hyperscaler deployment in APAC valued at over eight figures. Supply chain constraints, particularly tape drive and certain disk drive availability, continue to limit the company's ability to fulfill strong customer demand. The company expects only modest sequential revenue growth to $82 million in Q2 due to ongoing supply constraints, with no clear inflection point yet. GAAP net loss was $155.3 million due to one-time non-cash charges related to debt extinguishment and convertible notes. Operating expenses are expected to increase sequentially in Q2 due to higher sales commissions and increased R&D hiring, pressuring EBITDA guidance. The company remains cautious on gross margin outlook due to component shortages and pricing volatility, despite recent improvements. Q: Can you provide an update on the backlog level exiting the quarter, given it was $45 million last quarter? A: Hugues Meyrath (CEO) confirmed that while the exact number wasn't disclosed, the backlog is "significantly higher" than the previous quarter's level, reflecting continued strong demand that outpaces the company's ability to fulfill orders due to supply constraints. Q: The company posted $8 million in adjusted EBITDA on $81 million in revenue but is guiding to only $6 million on $82 million for the next quarter. What is driving this step-down? A: William White (CFO) explained that the sequential decline is primarily due to increased operating expenses, specifically planned investments in R&D hiring and higher sales commissions tied to the strong revenue performance. He also noted that the company is being conservative with its gross margin outlook for Q2 due to uncertainty around large deals and ongoing supply chain volatility. Q: Given the ongoing supply constraints, how are you thinking about the tape drive supply situation, especially with IBM's projected easing in the back half of the calendar year? A: Hugues Meyrath (CEO) stated that the company is still not seeing an adequate supply of tape drives, which is why the Q2 revenue guide is only mildly up. He noted that supply has remained flat for the past few months and that while IBM has indicated they will increase production towards the back half of the year, the inflection point has not yet been observed as of August. Q: You mentioned several large deals in the quarter, with many exceeding $3 million. How should we think about the pipeline for larger deals for the balance of the year? A: Hugues Meyrath (CEO) clarified that while there was one hyperscaler deal, the majority of the large deals were from large enterprise customers. He indicated that as ActiveScale gains more traction in the enterprise, these types of large deals are expected to continue, suggesting a strong pipeline for larger opportunities. Q: Do you have any updates on ActiveScale customer adoption, and can you characterize the breakdown of the ActiveScale pipeline between enterprises, hyperscalers, and neoclouds? A: Hugues Meyrath (CEO) noted a significant increase in seven-digit deals for ActiveScale in the enterprise, with strong customer expansion as they realize the cost, power, and scalability benefits. However, he declined to provide a specific breakdown of bookings or pipeline by product or customer type, stating the company does not disclose that level of detail. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Quantum Corporation? Here are five stocks we like better. Revenue and profitability improved: Fiscal Q1 2027 revenue rose 25.7% year over year to $80.8 million, exceeding guidance, while gross margin expanded to 39.3% and non-GAAP operating income reached $6.6 million. The company still posted a $155.3 million GAAP net loss because of $157.7 million in one-time, non-cash debt-related charges. Demand is strong but supply constrained: Quantum reported significantly higher backlog, growing interest in ActiveScale and tape storage, and several large customer wins, including a hyperscaler deployment in APAC valued at more than $10 million. However, shortages of tape drives and disk components continue to limit fulfillment and constrain hyperscale opportunities. Balance sheet strengthened, but outlook remains cautious: Quantum used proceeds from a private placement to repay its debt, leaving zero outstanding debt and $54.6 million in cash and restricted cash at quarter-end. It expects roughly $82 million in second-quarter revenue, while forecasting lower adjusted EBITDA amid higher expenses, uncertain margins and ongoing supply limitations. Quantum (NASDAQ:QMCO) reported fiscal first-quarter 2027 revenue above its guidance range, citing demand for its ActiveScale and tape storage offerings, while supply constraints continued to limit its ability to fulfill orders. Revenue for the quarter ended June 30, 2026, was $80.8 million, up 4% sequentially from $78 million and 25.7% from $64.3 million a year earlier. The result exceeded the company’s guidance of $75 million, plus or minus $2 million. → MarketBeat Week in Review – 08/03 - 08/07 President and Chief Executive Officer Hugues Meyrath said the company’s results reflected strong enterprise demand, though opportunities with hyperscale customers remain constrained primarily by supply-chain conditions. “Customers’ demand remains stronger than our ability to fulfill it,” Meyrath said, pointing to continuing constraints in tape-drive availability and certain disk drives. He said the company expects supply conditions to improve over the course of the year, but component availability and pricing remain areas of focus. → Quantum Earnings Week: Winners and Losers Are Finally Emerging GAAP gross margin reached 39.3%, rising 360 basis points sequentially and nearly 400 basis points year over year. Chief Financial Officer William White said the company’s gross profit increased 40% from the prior-year period, supported by stronger pricing, cost controls, favorable standard-cost and inventory performance, and leverage on fixed costs. GAAP operating expenses were $26.7 million, down from $30.4 million in the prior quarter and $35.3 million a year earlier. Non-GAAP operating expenses were $25.1 million, below the company’s guided range of $27 million, plus or minus $1 million. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Quantum recorded GAAP operating income of $5 million, compared with a GAAP operating loss of $12.6 million in the year-earlier quarter. Non-GAAP operating income was $6.6 million, compared with a non-GAAP operating loss of $7.4 million a year earlier. The company generated approximately $0.9 million of operating cash flow during the quarter and reported adjusted EBITDA of $8 million, exceeding its guidance range. Adjusted EBITDA was $1 million in the preceding quarter and negative $6.5 million in the prior-year period. Despite the operational improvement, Quantum reported a GAAP net loss of $155.3 million, or $7.06 per share. White said the loss included $157.7 million in one-time, non-cash debt-related items, including losses associated with changes in the fair value of convertible notes and warrant liabilities, as well as debt extinguishment. On a non-GAAP basis, the company reported net income of $4 million, or $0.18 per share, compared with a non-GAAP loss of $3.1 million in the prior quarter and a non-GAAP loss of $14.5 million a year earlier. Meyrath said Quantum’s backlog increased significantly during the quarter, although the company did not disclose an updated dollar figure. In response to an analyst question, he said the backlog was “significantly higher” than the $45 million reported in the prior quarter. The company reported sequential revenue growth of more than 20% in the Americas and more than 50% in APAC. Service revenue increased approximately 10% from the prior quarter, which Meyrath described as a stabilization after multiple years of decline. Quantum also cited continued strength in tape-related royalty revenue. Meyrath said recent LTO shipment data showed capacity shipments rising 15% sequentially, reflecting increased industry adoption of tape technology for storage economics, lower power consumption and cyber resilience. The company said its tape opportunity funnel reached its highest level in years and that it saw a “dramatic increase” in deals valued above $1 million, with most of those opportunities exceeding $3 million. Quantum secured a renewal and expansion of an ActiveScale deployment with a European biometrics institution. The company won a hyperscaler deployment in APAC centered on its Scalar i7 tape library, a transaction valued at more than eight figures, according to Meyrath. Management said ActiveScale is gaining traction among enterprise customers and is generating more seven-digit deals and customer expansions. Meyrath said the company does not provide a product-level breakdown of bookings or pipeline, but described ActiveScale as a growing portion of Quantum’s business and an offering that is attracting large enterprises, hyperscalers and neoscalers seeking turnkey storage solutions. Cash, cash equivalents and restricted cash totaled approximately $54.6 million at quarter-end, compared with $16.2 million at the end of fiscal 2026. During the quarter, Quantum generated approximately $94.6 million of net proceeds from a private placement and used $56.8 million to repay debt as of June 30. Total outstanding debt was zero at quarter-end, compared with $144.8 million of term debt and convertible notes as of March 31. White said the company expects interest expense to be minimal going forward after reporting $2.1 million of interest expense for the first quarter. For fiscal second-quarter 2027, Quantum forecast revenue of approximately $82 million, plus or minus $2 million. At the midpoint, the outlook would represent roughly 31% year-over-year growth. The company expects non-GAAP adjusted operating expenses of about $27 million, plus or minus $1 million, with the sequential increase reflecting higher sales commissions tied to performance and an increased pace of research-and-development hiring. Quantum projected non-GAAP adjusted net income of $0.12 per share, plus or minus $0.10, based on estimated weighted average basic shares outstanding of 39.4 million. It forecast adjusted EBITDA of $6 million, plus or minus $1 million. White said the lower EBITDA outlook relative to the first quarter reflects anticipated higher operating expenses and a conservative view of gross margins amid uncertainty around large deals and component shortages. Meyrath said tape-drive supply had remained largely flat through August, despite expectations from IBM for increased production later in the year. Quantum Corporation (NASDAQ: QMCO) is a technology company that develops and delivers data management and storage solutions for businesses and organizations worldwide. The company's product portfolio includes hardware, software and cloud-based offerings designed to address backup, archive, primary storage and long-term retention needs. Quantum's solutions are geared toward data-intensive environments such as media and entertainment, surveillance, government, education and healthcare, where large volumes of digital content must be reliably stored, managed and accessed. Quantum's flagship products include the StorNext® data management platform, which provides high-performance shared file storage and workflow acceleration, and the DXi® series of deduplication appliances, which optimize backup and recovery by reducing storage footprints and data transfer times. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Quantum Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Delivers first profitable quarter since fiscal 2023 CENTENNIAL, Colo., August 10, 2026--(BUSINESS WIRE)--Quantum Corporation (Nasdaq: QMCO) ("Quantum" or the "Company"), today announced financial results for its fiscal first quarter of 2027 ended June 30, 2026. Fiscal First Quarter 2027 Financial Summary Revenue was $80.8 million, exceeding the guidance range of $75.0 million, plus or minus $2.0 million GAAP operating expenses were $26.7 million; non-GAAP adjusted operating expenses were $25.1 million, reflecting a year-over-year reduction of approximately $4.9 million GAAP net loss was $155.3 million, or ($7.06) per share primarily due to one-time charges related to successful efforts to restructure its balance sheet and eliminate all debt Non-GAAP adjusted net income was $4.0 million, or $0.18 per share Non-GAAP adjusted EBITDA was $8.0 million "Quantum delivered another strong quarter with revenue of approximately $81 million, above the high-end of our guidance, along with better-than-expected gross margin and EBITDA results. In addition, we delivered our first non-GAAP profitable quarter since 2023," commented Hugues Meyrath, CEO of Quantum. "Our backlog also increased to record levels, reflecting continued robust demand for our tiered storage solutions as organizations confront explosive data growth, cost pressures and increasing power constraints. With our ActiveScale object storage and modern tape architecture, we are helping customers optimize existing environments with the right data in the right place at the right cost - solving real business problems that are critical in the AI era. "Although supply constraints continue to limit our ability to fully meet demand, our growing revenue and backlog is clear evidence of order strength. We have secured several multimillion-dollar deals in both APAC and the Americas, underscoring renewed momentum for our solutions globally. With the Company’s debt eliminated and a strong cash position, we are operating from a position of financial strength and remain focused on procuring additional supply in support of our sales momentum and delivering sustainable growth and profitability." Fiscal First Quarter 2027 vs. Prior Year Fiscal Quarter Revenue for the fiscal first quarter of 2027 was $80.8 million, compared to $64.3 million in the prior year first quarter, an increase of 26%. GAAP gross profit in the fiscal first quarter of 2027 was $31.7 million, or 39.3% of revenue, compared to $22.7 million, or 35.3% of revenue, in the fiscal first quarter of 2026. Total GAAP operating expenses in the fiscal first quarter of 2027 were $26.7 million, or 33.0% of revenue, compared to $35.3 million, or 54.9% of revenue, in the prior year. Total operating expenses on a non-GAAP basis for the fiscal first quarter of 2027 were $25.1 million, compared to $30.0 million in the fiscal first quarter of 2026. GAAP net loss in the fiscal first quarter of 2027 was $155.3 million, or ($7.06) per share, compared to a net loss of $17.2 million, or ($1.87) per share, in the fiscal first quarter of 2026. The first quarter net loss includes one-time items related to the extinguishment of the Company’s debt and convertible notes. These include charges of $129.7 million related to the fair value of our convertible notes, $16.3 million related to our outstanding warrants, and $11.7 million of loss on debt extinguishment. Excluding these debt-related items and $0.8 million of other nonrecurring costs as well as stock-based compensation, non-GAAP adjusted net income in the fiscal first quarter of 2027 was $4.0 million, or $0.18 per diluted share, compared to adjusted net loss of $14.5 million, or ($1.58) per share, in the prior year first quarter. Non-GAAP adjusted EBITDA in the fiscal first quarter of 2027 was a positive $8.0 million, compared to negative $6.5 million in the fiscal first quarter of 2026. For a reconciliation of GAAP to non-GAAP financial results, please see the financial reconciliation tables below. Liquidity and Debt (as of June 30, 2026) Cash, cash equivalents and restricted cash were $54.6 million, compared to $37.5 million as of June 30, 2025. Total interest expense for the quarter was $2.1 million, compared to $6.5 million for the same period a year ago. Total outstanding debt is zero, as a result of the successful completion of the Company's debt elimination transactions, compared to $104.3 million as of June 30, 2025. Business Outlook Fiscal second quarter 2027 guidance is as follows: Revenue of $82.0 million, plus or minus $2 million Non-GAAP adjusted operating expenses of $27 million, plus or minus $1 million Non-GAAP adjusted basic net income per share of $0.12, plus or minus $0.10 Non-GAAP adjusted EBITDA of $6 million, plus or minus $1 million This assumes an effective annual tax rate of 3%; non-GAAP adjusted net loss per share assumes an average basic share count of approximately 39.4 million in the fiscal second quarter of 2027. Conference Call and Webcast Management will host a live conference call today at 5:00 p.m. ET (2:00 p.m. PT) to discuss these results. The conference call will be accessible by dialing 1-866-424-3436 (U.S. Toll-Free) or +1-201-689-8058 (International) and entering conference ID 13762011. This conference call will be broadcast live over the Internet with a slide presentation and can be accessed by all interested parties on the investor relations section of the Company's website at www.investors.quantum.com under the events and presentations tab. A telephone replay of the conference call will be available approximately two hours after the conference call and will be available for 7 days. To access the replay dial 1-877-660-6853 and enter the conference ID 13762011 at the prompt. International callers should dial +1-201-612-7415 and enter the same conference ID. Following the conclusion of the live call, a replay of the webcast will be available on the Company's website at www.quantum.com for at least 90 days. About Quantum Quantum delivers end-to-end data management solutions designed for the AI era. With over four decades of experience, our data platform has allowed customers to extract the maximum value from their unique, unstructured data. From high-performance ingest that powers AI applications and demanding data-intensive workloads, to massive, durable data lakes to fuel AI models, Quantum delivers the most comprehensive and cost-efficient solutions. Leading organizations in life sciences, government, media and entertainment, research, and industrial technology trust Quantum with their most valuable asset - their data. For more information visit www.quantum.com. Quantum is listed on Nasdaq (QMCO). Quantum and the Quantum logo are registered trademarks of Quantum Corporation and its affiliates in the United States and/or other countries. All other trademarks are the property of their respective owners. Forward-Looking Information The information provided in this press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting our business. Such forward-looking statements include, in particular, statements related to future projections of our financial results, including for the second fiscal quarter of 2027; expectations regarding supply constraints and the impact thereof; expectations regarding our pipeline and backlog; expectations regarding market demand for our products and integrated platform solutions; and our focus, goals, momentum, opportunities and strategy. These forward-looking statements may be identified by the use of terms and phrases such as "anticipates", "believes", "can", "could", "estimates", "expects", "forecasts", "intends", "may", "plans", "projects", "targets", "will", and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters and other statements regarding matters that are not historical are forward-looking statements. Investors are cautioned that these forward-looking statements relate to future events or our future performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: risks related to the need to address the many challenges facing our business; the impact macroeconomic and inflationary conditions on our business, including potential disruptions to our supply chain, employees, operations, sales and overall market conditions; the competitive pressures we face; risks associated with executing our strategy; the timing, execution and realization of anticipated benefits from our cost reduction and restructuring initiatives; the effective distribution of our products and delivery of our services; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the outcome of any legal proceedings, claims and disputes; risks related to our ability to implement and maintain effective internal control over financial reporting in the future; and other risks that are described herein, including but not limited to the items discussed in "Risk Factors" in our filings with the Securities and Exchange Commission (the "SEC"), including our Annual Report on Form 10-K filed with the SEC on June 25, 2026, and any subsequent reports filed with the SEC. In addition, backlog is not necessarily indicative of future revenue or operating results as orders included in backlog may be delayed, modified, reduced or canceled and the timing of shipment, acceptance, installation or revenue recognition may differ from our current expectations. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. NON-GAAP FINANCIAL MEASURES To provide investors with additional information regarding our financial results, we have presented certain non-GAAP financial measures in this press release, including non-GAAP adjusted operating expenses. Non-GAAP adjusted operating expenses is a non-GAAP financial measure defined by us as GAAP operating expenses with stock-based compensation expense, restructuring charges, amortization of acquisition related intangible assets and non-recurring project costs removed. We have provided below a reconciliation of non-GAAP adjusted operating expenses, to the most directly comparable U.S. GAAP financial measure. We believe that the exclusion of the amounts eliminated in this calculation can provide a useful measure for period-to-period comparisons of our core business performance. Accordingly, we believe that the use of non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and our board of directors. Our use of non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently, which reduces its usefulness as a comparative measure. Because of these and other limitations, you should consider non-GAAP adjusted operating expenses along with other U.S. GAAP-based financial performance measures, including various cash flow metrics and our U.S. GAAP financial results. Non-GAAP adjusted EBITDA Non-GAAP adjusted net loss and net income (loss) per share Non-GAAP operating expenses View source version on businesswire.com: https://www.businesswire.com/news/home/20260810079505/en/ Contacts Investor Relations Contacts: Shelton GroupLeanne K. Sievers | Brett L. PerryE: [email protected] Media Contact: Matter CommunicationsSara Beth FaheyE: [email protected] P: 401-351-9507

Quantum Corp. (QMCO) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of a loss of $0.17 per share. This compares to a loss of $1.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +205.88%. A quarter ago, it was expected that this computer storage device maker would post a loss of $0.31 per share when it actually produced a loss of $0.21, delivering a surprise of +32.26%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Quantum Corp., which belongs to the Zacks Computer- Storage Devices industry, posted revenues of $80.8 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.74%. This compares to year-ago revenues of $64.29 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Quantum Corp. shares have added about 86.7% since the beginning of the year versus the S&P 500's gain of 13.3%. While Quantum Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Quantum Corp. was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.05 on $78 million in revenues for the coming quarter and -$0.16 on $321 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer- Storage Devices is currently in the top 8% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. NetApp (NTAP), another stock in the same industry, has yet to report results for the quarter ended July 2026. This data storage company is expected to post quarterly earnings of $2.11 per share in its upcoming report, which represents a year-over-year change of +36.1%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. NetApp's revenues are expected to be $1.83 billion, up 17.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quantum Corporation (QMCO) : Free Stock Analysis Report NetApp, Inc. (NTAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Datadog DDOG reported second-quarter 2026 non-GAAP earnings per share (EPS) of 65 cents, which increased 41.3% from the year-ago quarter and exceeded the company's guidance of 57-59 cents. The figure beat the Zacks Consensus Estimate by 12.07%.The company's revenues of $1.121 billion rose 36% year over year and surpassed the prior guided range of $1.07-$1.08 billion. The figure beat the consensus mark by 3.85%. Quarter-over-quarter revenue growth of 11% marked the strongest sequential pace since the second quarter of 2022, with the company adding $115 million in sequential revenues, a record for Datadog. Revenue growth among non-AI customers also accelerated to the high-20% range year over year, up from the mid-20% range in the first quarter. Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote The company ended the second quarter with approximately 33,400 customers, up 6.4% from about 31,400 in the prior-year period.In the quarter under review, Datadog had about 4,720 customers with an Annualized Run Rate (ARR) of $100,000 or more, up 22.6% from about 3,850 in the year-ago quarter. These customers generated about 91% of total ARR, up from 89% a year ago.As of the end of the second quarter, 58% of customers used four or more products, up from 52% in the year-ago period. Furthermore, 37% of customers used six or more products, up from 29% a year ago, while 22% used eight or more products, up from 14%, and 13% used 10 or more products, up from 7% in the prior-year quarter. Datadog reported a trailing 12-month net revenue retention rate in the low-120% range in the second quarter, similar to the first quarter and up from about 120% in the year-ago period, while gross revenue retention remained in the mid-to-high 90% range.New logo annualized bookings in the enterprise segment more than doubled year over year, and new customers continued to ramp faster, contributing about 30% of year-over-year revenue growth, up from 25% in the first quarter. Real User Monitoring surpassed $200 million in ARR and accelerated to more than 50% growth year over year at that scale.Datadog's AI-native customer cohort continued to expand, with more than 750 AI-related customers as of the second quarter, including all of the top 10 AI leaders. The number of Model Context Protocol tool calls on the platform quadrupled sequentially and grew more than 22 times versus the fourth quarter of 2025. Management also disclosed that its largest customer reduced usage entering the third quarter, a development that has been incorporated into the company's third-quarter and full-year 2026 guidance; the customer renewed its contract with Datadog during the quarter. In the second quarter, non-GAAP gross profit increased 33.3% year over year, reaching $892.3 million. Datadog's non-GAAP gross margin was 79.6%, contracting from 80.9% in the year-ago quarter, primarily reflecting continued investment in new product innovation.Research & development expenses on a non-GAAP basis grew 23.5% year over year to $325.1 million. Research & development, as a percentage of revenues, contracted roughly 290 basis points to 29%.Sales and marketing expenses on a non-GAAP basis rose 30.2% year over year to $260.4 million. Sales and marketing expenses, as a percentage of revenues, contracted nearly 100 basis points to 23.2%.General & administrative expenses on a non-GAAP basis increased 18.8% year over year, reaching $49.8 million in the reported quarter. General and administrative expenses, as a percentage of revenues, contracted roughly 60 basis points to 4.4%.Datadog reported a non-GAAP operating income of $257 million, up 56.6% year over year. Its non-GAAP operating margin expanded to 23%, up from 20% in the prior-year quarter. As of June 30, 2026, Datadog had cash, cash equivalents and marketable securities of $5 billion, up 4.8% from $4.8 billion as of March 31, 2026.Operating cash flow was $316 million in the reported quarter, which declined from $335 million in the previous quarter but increased 57.9% year over year. Free cash flow during the quarter was $278.7 million compared with $291 million in the prior quarter and $165.4 million in the year-ago quarter, marking a 68.6% year-over-year increase, with a free cash flow margin of 25% compared with 20% a year ago.Billings totaled $1.18 billion in the quarter, up 38% year over year, while remaining performance obligations were $3.47 billion, up 43% year over year. Current remaining performance obligations grew about 40% year over year. For the third quarter of 2026, Datadog anticipates revenues between $1.135 billion and $1.145 billion, representing 28-29% year-over-year growth. Non-GAAP operating income is expected in the range of $260-$270 million, implying an operating margin of 23-24%. Non-GAAP EPS is expected in the range of 63-65 cents.For fiscal 2026, Datadog anticipates revenues between $4.45 billion and $4.47 billion, suggesting about 30% year-over-year growth. Non-GAAP operating income is expected in the range of $1.01-$1.03 billion, implying an operating margin of about 23%. Non-GAAP EPS is projected to be between $2.50 and $2.54.Management noted that the full-year guidance already reflects the expected usage reduction from its largest customer; excluding that customer, the underlying business has shown five consecutive quarters of accelerating growth. Datadog currently carries a Zacks Rank #2 (Buy).Kimball Electronics KE, Quantum QMCO and Lumentum LITE are among the top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, Kimball Electronics sports a Zacks Rank #1 (Strong Buy), while Quantum and Lumentum carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here. Kimball Electronics shares have inched up 1.8% in the past six months. KE is scheduled to report its fiscal fourth-quarter 2026 results on Aug. 13. Quantum's shares have surged 96% in the past six months. QMCO is scheduled to report its fiscal first-quarter 2027 results on Aug. 10, 2026. Lumentum shares have gained 48.9% in the past six months. LITE is slated to report its fiscal fourth-quarter 2026 results on Aug. 11. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report Quantum Corporation (QMCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TTM Technologies TTMI reported second-quarter 2026 non-GAAP earnings of 99 cents per share, up 70.7% year over year. The figure beat the Zacks Consensus Estimate by 7.61%.Revenues rose 37.4% to $1 billion, surpassing the consensus estimate by 4.1%. Robust AI-related demand in the Data Center and Networking market supported growth, while the total book-to-bill ratio improved to 1.49. In the reported quarter, Aerospace & Defense revenues increased 14.2% year over year to $382.8 million. Commercial revenues surged 57.1% to $621.6 million, reflecting strong demand across the company’s commercial end markets.Data Center and Networking represented 40% of quarterly sales, up from 29% year over year. Aerospace and Defense accounted for 37%, compared with 45% in the prior-year quarter. Medical, Industrial and Instrumentation contributed 15%, while Automotive represented 8%. TTM Technologies, Inc. price-consensus-eps-surprise-chart | TTM Technologies, Inc. Quote Management stated that Data Center and Networking revenues climbed 91% year over year, driven by continued AI demand. Medical, Industrial and Instrumentation revenues grew 33%, while Aerospace and Defense benefited from alignment with priority defense programs. The company’s commercial 90-day backlog increased 144% year over year to approximately $0.9 billion. The commercial book-to-bill ratio reached 1.63, indicating that new orders exceeded shipments during the quarter.Aerospace and Defense program backlog rose to more than $1.7 billion from $1.5 billion a year ago. The segment’s book-to-bill ratio improved to 1.30 from 0.71. Program bookings included the APS-153 Maritime Surveillance Radar, the ATP Sensor System for Targeting and Surveillance, Golden Dome and multiple restricted programs.TTMI also received its first development contract for an active electronically scanned array Detect and Avoid radar system for the Advanced Air Mobility market. Its first Golden Dome-related award supports a potential pipeline exceeding $600 million across interconnect and integrated electronics solutions. In the second quarter of 2026, TTM Technologies reported a non-GAAP gross margin of 21.9%, which expanded 100 basis points (bps) year over year, with non-GAAP gross profit of $219.8 million.Selling and marketing expenses increased 19.6% year over year to $25.5 million. General and administrative expenses rose 24.9% year over year to $62.1 million. Research and development expenses increased 13.8% year over year to $8 million.Non-GAAP operating income increased 70% to $138.4 million. The corresponding margin expanded 270 basis points to 13.8%.Adjusted EBITDA rose 52% to $166.8 million, while adjusted EBITDA margin increased 160 basis points to 16.6%. As of June 29, 2026, TTM Technologies’ cash and cash equivalents were $507.9 million, compared with $410 million as of March 30, 2026.Total debt, including short- and long-term borrowings, increased to $973.5 million, up from $915.7 million sequentially.In the reported quarter, cash flow from operations was $96.4 million. Net capital expenditures were $50.4 million, resulting in free cash flow of $46 million. For the third quarter of 2026, TTM Technologies expects revenues between $1.10 billion and $1.14 billion. Non-GAAP earnings are projected between $1.21 and $1.27 per share.For 2026, management now anticipates revenues of approximately $4.4 billion and non-GAAP earnings per share approaching $5. The outlook excludes contributions or other impacts from the pending STG and ILFA acquisitions, which are expected to close in the third quarter. TTM Technologies currently carries a Zacks Rank #4 (Sell).Kimball Electronics KE, Quantum QMCO and Lumentum LITE are among the better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, Kimball Electronics sports a Zacks Rank #1 (Strong Buy), while Quantum and Lumentum carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Kimball Electronics shares have inched up 1.8% in the past six months. KE is scheduled to report its fiscal fourth-quarter 2026 results on Aug. 13.Quantum's shares have surged 96% in the past six months. QMCO is scheduled to report its fiscal first-quarter 2027 results on Aug. 10, 2026.Lumentum shares have gained 48.9% in the past six months. LITE is slated to report its fiscal fourth-quarter 2026 results on Aug. 11. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TTM Technologies, Inc. (TTMI) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report Quantum Corporation (QMCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Quantum Corporation QMCO closed the fourth quarter of fiscal 2026 with stronger-than-expected revenues and a narrower adjusted loss, but management used the earnings call to focus less on the beat and more on the durability of demand, backlog conversion and a much stronger balance sheet. The central message from CEO Hugues Meyrath was that storage demand tied to AI, high-performance computing, and large-scale data management is rising faster than Quantum can currently ship, leaving supply constraints as the main near-term limiter. Meyrath said fourth-quarter revenues reached $78 million, up 27% year over year and above the company’s guidance midpoint by roughly $10 million. Adjusted loss was $0.21 per share, narrower than the Zacks Consensus Estimate of a loss of $0.35, while revenues also edged past the consensus mark of $77.5 million by 0.6%. Quantum Corporation price-consensus-eps-surprise-chart | Quantum Corporation Quote What stood out more on the call was the backlog. Quantum ended the quarter with a record $45 million backlog, far above its historical $8 million to $10 million range, with management tying that buildup largely to constrained availability of disk and tape components. Meyrath said that tape library demand and sales funnel activity remain strong, but IBM’s limited tape-drive supply is still capping fulfillment. He added that backlog conversion should improve in the second half of fiscal 2027 as component availability improves. Management repeatedly framed Quantum’s opportunity around customers trying to manage surging data volumes at lower cost and with less power consumption. Meyrath said that is pushing more enterprises toward tiered architectures that combine performance storage with lower-cost long-term storage. He pointed to strong momentum in ActiveScale, saying revenues from the object-storage platform tripled year over year. He also said demand is being driven by AI, HPC, media, genomics and research workloads, where customers need large-scale storage that remains accessible without relying entirely on primary storage. Meyrath highlighted examples meant to reinforce that positioning, including a partnership with European managed service provider Pink Elephant and a large win with a global sports network using ActiveScale cold storage with integrated tape libraries for content archiving. The main tension in the quarter was margin. GAAP gross margin fell to 35.7% from 39.6% a year ago as component cost inflation forced Quantum to fulfill some prior orders at less favorable economics. CFO William White said margin pressure also reflected product mix and lower service contribution. White said the company is putting in place tighter systems and processes to improve component-cost visibility and margin management, including requoting orders where appropriate. Management kept its longer-term goal of recovering gross margin toward 40%. The commentary showed a careful balance. Meyrath said Quantum does not want to protect margin in a way that damages customer and channel relationships, especially in government and research contracts where repricing can be difficult once budgets are set. Another major theme was financial flexibility. White said that as of March 31, cash, cash equivalents, and restricted cash totaled about $16.2 million, while outstanding term debt and convertible notes stood at $55.9 million and $90 million, respectively. After quarter-end, Quantum completed a $100 million private placement, used most of the proceeds to repay all term debt and saw Dialectic Technologies convert its convertible notes into common stock. White said those steps left the company with no outstanding debt and added about $36.9 million of cash net of interest and fees. Meyrath described the company as being in its strongest financial position in decades, and the call made clear that management views that reset as essential to supporting working capital needs and more aggressive component procurement. For the first quarter of fiscal 2027, Quantum guided revenues of about $75 million, plus or minus $2 million, indicating 17% year-over-year growth at the midpoint and implying better-than-typical seasonality despite supply constraints. The company also guided to non-GAAP operating expenses of about $27 million, plus or minus $1 million, adjusted net loss per share of negative $0.15, plus or minus $0.1, and adjusted EBITDA of $1.5 million, plus or minus $1 million. White said that Quantum expects to hold non-GAAP operating expenses flat year over year, setting up more operating leverage if revenues continue to improve as management expects through the back half of the year. The analyst Q&A centered on whether backlog can convert on time and if pricing volatility will keep weighing on profitability. A Lake Street Capital Markets analyst asked about confidence in backlog conversion. Meyrath answered that tape-drive availability should improve as the year progresses, while added capital should help Quantum secure disk, flash and server components more aggressively. The same analyst also pressed on whether the enlarged backlog creates ongoing margin risk. Meyrath said that industry pricing has become more stable than it was in the March quarter, giving Quantum a better chance to align supply costs with customer pricing, though some public-sector contracts remain highly sensitive. A Northland Capital Markets analyst focused on whether demand growth reflected pricing or unit volume. White said that fourth-quarter strength was primarily demand-driven rather than price-driven, while Meyrath said that ActiveScale has been the biggest year-over-year accelerator over the past several quarters. The call left little doubt about management’s priorities. Meyrath emphasized sustained revenue growth, a path back toward 40% gross margin, tighter operating discipline and continued execution against AI-driven storage demand. The tone was constructive but not carefree. Management repeatedly acknowledged that supply tightness and component inflation remain active constraints, even as demand, backlog and liquidity have all moved in Quantum’s favor. QMCO currently carries a Zacks Rank #3 (Hold), along with a Growth Score of A, a Momentum Score of A, a Value Score of D and a VGM Score of B. A Zacks Rank #3 is generally more consistent with holding than aggressive buying, while the stronger Growth, Momentum and VGM readings point to better characteristics in those styles than in value. The combination suggests the stock has some favorable style attributes, particularly outside pure valuation, but not the stronger setup usually associated with Zacks Rank #1 (Strong Buy) or 2 (Buy) names. As always, the Zacks Rank can change as earnings estimate revisions adjust following the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quantum Corporation (QMCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research