TLDR
- Quantum stock plunges 15% after weak Q1 results despite new CEO’s efforts.
- Losses deepen, and revenue falls. Quantum faces critical tests in the turnaround bid.
- Quantum trims costs, but debt and sales slump weigh on recovery hopes.
- New CEO launches reset, but Q1 miss sparks sharp after-hours stock slide.
- Quantum guides to breakeven EBITDA, yet revenue outlook stays pressured.
Quantum Corporation(QMCO) shares dropped sharply in after-hours trading on Tuesday, falling 15.75% to $7.22. This sharp decline followed a regular session close at $8.57, which had posted a gain of over 7%.
The after-hours plunge erased those earlier gains after the company released its fiscal first quarter 2026 results.
Revenue declined to $64.3 million from $72.3 million in the same quarter last year. Gross margin also slipped to 35.3%, down from 37.4%, indicating pressure on profitability. The company reported a GAAP net loss of $17.2 million, or $1.87 per share, compared to a $19.9 million loss a year earlier.
Non-GAAP figures also showed some deterioration, with adjusted net loss increasing to $14.5 million. Adjusted EBITDA dropped to negative $6.5 million, worsening from negative $2.2 million last year. Despite these figures, Quantum highlighted efforts to improve its cost base and financial structure.
CEO Pushes Leadership Refresh Amid Weak Financials
Newly appointed CEO Hugues Meyrath assumed leadership in June 2025 and has started a broad review of business operations. He outlined immediate cost-cutting initiatives and introduced a refreshed go-to-market strategy. Quantum also expanded its board and made strategic hires in sales and marketing to aid the recovery effort.
Meyrath stated that the company raised $83 million through a standby equity purchase agreement to shore up liquidity. As of June 30, 2025, cash and equivalents stood at $37.5 million, more than double from March. However, the term loan debt grew slightly to $104.3 million, continuing to weigh on the balance sheet.
With a renewed focus on debt reduction and operational streamlining, the company hopes to stabilize performance in the near term. The leadership changes signal an aggressive push for recovery despite current losses. Management expects the improvements to reflect in earnings from the September quarter onward.
Guidance Points to Breakeven EBITDA But Shrinking Revenue
Quantum issued guidance for the fiscal second quarter of 2026, forecasting revenue around $61 million. The company expects non-GAAP adjusted operating expenses to be near $27 million and a net loss per share of approximately $0.26. Adjusted EBITDA is projected to break even, offering some hope for margin recovery.
This guidance reflects lower expected sales but an improved expense structure due to ongoing cost control. The company is betting that operational changes and leadership adjustments will yield better results in the short term. However, sustained revenue pressure could continue to test its turnaround plans.
The decline in revenue and deepening losses pose major hurdles despite internal efforts to reposition the business. With debt levels still high and cash burn continuing, Quantum faces a critical phase. The coming quarters will determine if the leadership reset can translate into financial stability.
