qtm-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission File Number 001-13449


Quantum Corporation
(Exact name of registrant as specified in its charter)

Delaware

94-2665054

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

10770 E. Briarwood Avenue

Centennial

80112

(Address of Principal Executive Offices)

(Zip Code)


(408)			944-4000
Registrant's telephone number, including area code


224 Airport Parkway, Suite 550, San Jose, CA 95110
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.01 par value per share

QMCO

Nasdaq Global Market

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐

Yes

As of the close of business on September 9, 2025 there were 13,319,249 shares of Quantum Corporation’s common stock issued and outstanding.

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QUANTUM CORPORATION

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended June 30, 2025

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		Page

PART I
Item 1.	Financial Statements (unaudited):
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations and Comprehensive Loss	2
	Condensed Consolidated Statements of Cash Flows	3
	Condensed Consolidated Statements of Changes in Stockholders’ Deficit	4
	Index to Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	28
PART II
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 5.	Other Information	30
Item 6.	Exhibits	31

Signatures		32

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As used in this Quarterly Report on Form 10-Q, the terms "Quantum," the “Company,” "we," "us," and "our" refer to Quantum Corporation and its subsidiaries taken as a whole, unless otherwise noted or unless the context indicates otherwise.

Note Regarding Forward-Looking Statements

This report contains forward-looking statements. All statements contained in this report other than statements of historical fact, including, but not limited to, statements regarding our future operating results and financial position; our business strategy, focus and plans; our market growth and trends; our products, services and expected benefits thereof; and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “potentially,” “preliminary,” “likely,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including: the competitive pressures that we face; risks associated with executing our strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of our products and the delivery of our services effectively; the protection of our intellectual property assets, including intellectual property licensed from third parties; risks associated with our international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs; our response to emerging technological trends; the execution and performance of contracts by us and our suppliers, customers, clients and partners; the hiring and retention of key employees; risks associated with business combination and investment transactions; the execution, timing and results of any transformation or restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of the transformation and restructuring plans; the outcome of any legal proceedings, claims and disputes; the ability to meet stock exchange continued listing standards; the possibility that Nasdaq may delist our securities; risks related to our restatement and revisions to financial statements; risks related to our ability to implement and maintain effective internal control over financial reporting in the future; risks related to changes in our management; and those risks described under Part II, Item 1A. Risk Factors. Moreover, we operate in a competitive and changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the effect of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this report or to conform these statements to actual results or revised expectations.

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PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

QUANTUM CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts, unaudited)


	June 30, 2025		March 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	37,404	$	16,464
Restricted cash	143		139
Accounts receivable, net of allowance for credit losses of $100 and $99, respectively	48,445		52,502
Manufacturing inventories	18,507		20,336
Service parts inventories	1,523		2,098
Prepaid expenses	3,763		2,738
Other current assets	8,658		8,529
Total current assets	118,443		102,806
Property and equipment, net	11,025		11,378
Goodwill	12,969		12,969
Intangible assets, net	51		281
Right-of-use assets	8,314		8,580
Other long-term assets	18,352		19,388
Total assets	$	169,154	$	155,402
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	26,824	$	31,463
Accrued compensation	10,250		9,214
Deferred revenue, current portion	69,675		75,076
Accrued restructuring	1,779		786
Term debt	96,713		96,486
Revolving credit facility	—		26,600
Other accrued liabilities	18,511		17,982
Total current liabilities	223,752		257,607
Deferred revenue, net of current portion	36,580		38,847


Operating lease liabilities	8,787		8,934
Other long-term liabilities	14,421		14,380
Total liabilities	283,540		319,768
Commitments and contingencies (Note 10)
Stockholders' deficit
Preferred stock, 20,000 shares authorized; no shares issued and outstanding	—		—
Common stock, $0.01 par value; 225,000 shares authorized; 13,319 and 6,962 shares issued and outstanding	133		70
Additional paid-in capital	846,046		779,645
Accumulated deficit	(959,677)		(942,471)
Accumulated other comprehensive loss	(888)		(1,610)
Total stockholders’ deficit	(114,386)		(164,366)
Total liabilities and stockholders’ deficit	$	169,154	$	155,402

See accompanying Notes to Condensed Consolidated Financial Statements.

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QUANTUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share amounts, unaudited)


	Three Months Ended June 30,
	2025		2024

Revenue:
Product	$	37,535	$	42,652
Service and subscription	24,943		26,711
Royalty	1,808		2,902
Total revenue	64,286		72,265
Cost of revenue:
Product	30,745		32,555
Service and subscription	10,829		12,653
Total cost of revenue	41,574		45,208
Gross profit	22,712		27,057
Operating expenses:
Sales and marketing	12,655		13,295
General and administrative	13,569		21,065
Research and development	6,661		8,308
Restructuring charges	2,423		1,192
Total operating expenses	35,308		43,860
Loss from operations	(12,596)		(16,803)
Other income (expense), net	(430)		(41)
Interest expense	(6,516)		(3,790)
Change in fair value of warrant liabilities	—		1,666
Gain (loss) on debt extinguishment	2,559		(695)
Net loss before income taxes	(16,983)		(19,663)
Income tax provision	223		235
Net loss	$	(17,206)	$	(19,898)

Net loss per share - basic and diluted	$	(1.87)	$	(4.15)

Weighted average shares - basic and diluted	9,187		4,792


Net loss	$	(17,206)	$	(19,898)
Foreign currency translation adjustments, net	722		142
Total comprehensive loss	$	(16,484)	$	(19,756)

See accompanying Notes to Condensed Consolidated Financial Statements.

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QUANTUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)


	Three Months Ended June 30,
	2025		2024
Operating activities
Net loss	$	(17,206)	$	(19,898)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	1,032		1,780
Amortization of debt issuance costs	2,075		804
Noncash lease expense	343		464
Gain (loss) on debt extinguishment	(2,559)		695
Provision for product and manufacturing inventories	2,701		407
Stock-based compensation	(529)		925
Paid in kind interest	1,758		684
Change in fair value of warrant liabilities	—		(1,666)
Other non-cash	1,201		(409)
Changes in assets and liabilities:
Accounts receivable, net	4,043		6,346
Manufacturing inventories	(783)		(1,325)
Service parts inventories	486		1,475
Prepaid expenses	(1,024)		(1,694)
Operating lease liabilities	(283)		(87)
Accounts payable	(4,484)		6,828
Accrued compensation	1,036		(2,123)
Accrued restructuring charges	993		404
Deferred revenue	(7,668)		(6,048)
Other current assets	840		98

Other current liabilities	1,137		10,444

Net cash used in operating activities	(16,891)		(1,896)
Investing activities


Purchases of property and equipment	(1,192)		(1,620)



Net cash used in investing activities	(1,192)		(1,620)
Financing activities
Borrowings of long-term debt, net of debt issuance costs	—		—
Repayments of long-term debt	(909)		(13,537)
Borrowings of credit facility	71,625		105,568
Repayments of credit facility	(98,682)		(96,829)


Proceeds from shares issued related to the SEPA, net	66,993		—

SEC Form 10-Q filed by Quantum Corporation