Quantum 2026 Q1 Earnings Narrowed Losses with 54.9% EPS Improvement

Quantum reported its fiscal 2026 Q1 earnings on September 11, 2025, delivering a significant reduction in losses. The company narrowed its net loss to $17.21 million, a 13.5% improvement from $19.90 million in the prior year. The earnings results narrowly missed expectations, with the company projecting a non-GAAP adjusted net loss per share of approximately -$0.26, a modest improvement from its recent performance.

Quantum’s total revenue declined 11.0% year-over-year to $64.29 million in Q1 2026. The decline was evident across several core product lines, with product revenue standing at $40.98 million. Primary and secondary storage systems accounted for $12.53 million and $18.51 million, respectively, while device and media revenue totaled $9.94 million. The service segment contributed $21.50 million, and royalties added $1.81 million to the company’s overall revenue.

The company narrowed its losses to $1.87 per share in Q1 2026, representing a 54.9% improvement compared to a loss of $4.15 per share in Q1 2025. This reduction in losses reflects ongoing cost optimization and restructuring efforts. Despite the year-over-year improvement, the company still reported a net loss of $17.21 million, down from $19.90 million in the prior year.

In terms of price action, Quantum’s stock price has experienced a mixed performance in recent weeks. The stock has dropped 3.72% during the latest trading day and has edged down 0.91% during the most recent full trading week. Month-to-date, the stock has fallen 7.11%, signaling investor caution in the near term.

Following the earnings release, Hugues Meyrath, President, CEO & Director, emphasized Quantum’s strategic focus on transformation and innovation. He outlined priorities such as strengthening sales execution, enhancing partner ecosystems, and product innovation, particularly in DXi, ActiveScale cold storage, and StorNext. Meyrath highlighted recent leadership additions, including Tony Craythorne as Chief Revenue Officer and Gregg Pugmire as Vice President of Americas Sales, and emphasized a culture of accountability, integrity, and urgency. Operational execution has also been a key focus, with restructuring efforts to align costs with current revenue levels and improve EBITDA, while investing in growth areas.

Quantum expects Q2 2026 revenue of approximately $61 million, with non-GAAP operating expenses projected at around $27 million, a reduction from $30 million in Q1. The company anticipates a non-GAAP adjusted net loss per share of approximately -$0.26, based on 13.3 million shares outstanding, with adjusted EBITDA expected to be approximately breakeven. These projections reflect the impact of recent cost reductions and the absence of certain one-time charges.

In the weeks leading up to the earnings report, Quantum announced several key developments. On September 3, 2025, the company appointed Gregg Pugmire as Vice President, Americas Sales, aiming to strengthen its go-to-market strategy. On August 28, Quantum expanded its Board of Directors with the appointment of two new members, signaling governance improvements. Additionally, on August 5, Quantum expanded its distribution network across China, India, and ASEAN to accelerate growth and enhance customer experience in high-growth, data-driven markets. These moves indicate a broader strategy to position Quantum for long-term success in a competitive market environment.