Quantum (QMCO) Q2 Earnings call transcript Nov 13, 2025

In the latest earnings call for Quantum Corporation, CEO Jamie Lerner and CFO Kenneth Gianella provided a detailed update on the company's financial performance and strategic initiatives for the second quarter of fiscal 2025. Despite facing operational challenges, particularly in the supply chain, the company is focusing on operational improvements and strategic product innovations to drive growth and profitability.

Financial Performance and Operational Efficiency

Quantum reported a second-quarter revenue of $70.5 million, slightly below expectations, but with a positive trend in terms of gross margin and adjusted EBITDA. The company has managed to improve gross margin by 490 basis points sequentially, reaching above 41%, and has achieved breakeven adjusted EBITDA for the quarter. This achievement underscores the company's efforts to streamline operations and reduce non-GAAP operating expenses by approximately 9% year-over-year. These actions are expected to result in significant savings and improved free cash flow.

Strategic Initiatives and Innovation

One of the most notable aspects of Quantum's earnings call was the emphasis on strategic initiatives and innovation. The company highlighted several key achievements, including a significant deal with a leading broadcaster in the Americas, who expanded their ActiveScale environment with Quantum's Myriad solution, and the successful launch of the DXi T-Series All-Flash data protection appliance. These initiatives demonstrate Quantum's commitment to accelerating future growth through innovation and customer-centric solutions.

Supply Chain Challenges and Future Outlook

Despite the operational challenges, particularly in the supply chain, Quantum remains optimistic about its future outlook. The company anticipates continued improvements in the second half of fiscal 2025, with a focus on driving new and innovative products into the marketplace. The updated fiscal year 2025 outlook includes a target of $280 million in revenue, with adjusted EBITDA expected to be $3 million. This outlook reflects the company's commitment to operational efficiency and cost savings, as well as its strategic focus on high-priority growth initiatives.

Key Takeaways

Quantum's earnings call provided insights into the company's financial performance, strategic initiatives, and operational challenges. The company's focus on operational efficiency and strategic innovation is evident in its achievements, such as the successful launch of new products and the improvement in gross margin. However, the company also faces operational challenges, particularly in the supply chain, which could impact its revenue growth. The updated fiscal year 2025 outlook reflects a cautious optimism, with a focus on operational improvements and strategic product innovations to drive growth and profitability.

Overall, Quantum's earnings call underscores the company's resilience and strategic focus in a challenging business environment. The company's commitment to operational efficiency, strategic innovation, and customer-centric solutions is a testament to its long-term growth prospects. As the company navigates operational challenges and continues to innovate, it remains well-positioned to capitalize on emerging opportunities and drive sustainable growth.