QUANTUM CORP /DE/

Distressed storage vendor with deep losses, cash burn, very weak liquidity, and negative equity, despite a growth year.

Strengths

• Revenue growth — +28.8% (78th)

Risks

• Deep losses and negative returns — net margin -42.0% (10th), ROA -74.1% (3rd)
• Very weak liquidity — current ratio 0.40 (2nd), quick ratio 0.40 — negative equity drives the 70% ROE artifact
• Cash burn — FCF -$28.6M (9th)

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Negative equityNegative book equity (debt/equity -0.45)
• Net lossNet loss (net margin -36.1%)
• Cash burnNegative free cash flow (-39.6M)
• Weak liquidityCurrent ratio 0.55 (<1)
• Material weakness• We have identified material weaknesses in our internal control over financial reporting, which could, if not properly remediated, result in additional material misstatements in our interim or annual
• Customer concentration~26% of revenue from one customer/distributor — 30 Table of Contents RESULTS OF OPERATIONS Year Ended March 31, (in thousands) 2026 2025 Total revenue $ 279,581 $ 274,058 Total cost of revenue (1) 176,540 164,226 Gross profit 10
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC
• Buying back stockNet buyback — share count -39%/yr over 4y
• Notable holderHeld by 1 notable fund(s): STATE STREET CORP (as of 2026-03-31)