Quantum Corp (QMCO) had a Tuesday to remember. The data storage company's stock shot up more than 56% after it reported fiscal first-quarter results that beat expectations and gave second-quarter guidance that made analysts look conservative.
The headline: Quantum posted its first non-GAAP profitable quarter since 2023. That's a big deal for a company that's been working through a turnaround. The driver? Record backlog growth and strong demand for its tiered data storage solutions, which help companies manage exploding data growth without blowing up their budgets.
Guidance That Beats the Street
On Monday, Quantum laid out its outlook for the fiscal second quarter of 2027. The company expects revenue between $80 million and $84 million. Analysts were looking for $74.75 million. That's a meaningful beat.
Even better, Quantum forecasts non-GAAP adjusted basic net income per share of 2 cents to 22 cents. The Street was modeling a loss of three cents per share. So the company is not just talking about growth; it's talking about profitability.
Operating expenses are projected at $27 million, plus or minus $1 million. Adjusted EBITDA is expected at $6 million, plus or minus $1 million. All in all, the numbers point to a company that's found its footing.
CEO Says Demand Is 'Robust'
CEO Hugues Meyrath sounded confident in the company's direction. "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," he said.
He also highlighted the record backlog, attributing it to "continued robust demand for our tiered storage solutions as organizations confront explosive data growth, cost pressures and increasing power constraints."
Meyrath emphasized that Quantum's ActiveScale object storage and modern tape architecture 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."
Debt? What Debt?
One of the most striking parts of the report was the balance sheet cleanup. Quantum ended the quarter with zero total outstanding debt, down from $104.3 million as of June 30, 2025. The company completed debt elimination transactions that wiped the slate clean.
Cash and equivalents also grew to $54.6 million, up from $37.5 million at the end of the prior fiscal year. And interest expense? It dropped to $2.1 million from $6.5 million in the same quarter last year. Less debt means less drag on earnings, which is a nice tailwind going forward.
Stock Price Action
Investors clearly liked what they saw. Quantum shares were up 56.37% to $18.42 at the time of publication on Tuesday. That puts the stock right near its 52-week high of $18.48.
It's a big move for a company that's been flying under the radar. But with a profitable quarter, strong guidance, and a clean balance sheet, Quantum is making a case that it's more than just a storage play. It's a company that's executing.
