QUANTUM CORP /DE/ Q1 FY2026 earnings call

Key Points

• Hugues Meyrath highlighted his appointment as CEO and initial steps: established new Board operating plan, raised funds, reduced operating expenses, and rightsized the organization.
• Added key executives: Tony Craythorne as Chief Revenue Officer, Gregg Pugmire as Vice President of Americas Sales, and new Board members with expertise in supply chain, sales, etc.
• Focus on product execution: launched new DXi T-Series models, emphasized ActiveScale cold storage and Tape libraries, reinvigorated StorNext, and established a closed loop of feedback between sales and product development.

In the first quarter of Fiscal 2026, revenue was $64.3 million. Backlog at the end of the quarter was approximately $10 million. GAAP gross margin was 35.3%. GAAP operating expenses were $35.3 million, while non-GAAP operating expenses were $30 million. GAAP net loss was $17.2 million. Adjusted EBITDA was a negative $6.5 million. Cash, cash equivalents, and restricted cash at quarter end were approximately $37.5 million, and net debt was approximately $66.8 million.

Fiscal Second Quarter 2026 Guidance

• Revenue expected to be approximately $61 million, plus or minus $2 million.
• Non-GAAP operating expenses expected to be approximately $27 million, plus or minus $2 million.
• Non-GAAP adjusted net loss per share anticipated to be negative $0.26, plus or minus $0.10 per share.
• Adjusted EBITDA expected to be approximately breakeven.

Risks

• Comments made on the call include forward-looking statements which involve known and unknown risks and uncertainties. Actual results may differ materially from forecasts due to risk factors detailed in the company's 10-Qs and 10-Ks filed with the SEC.

Q: Curious if there was a change in strategy regarding products like Myriad or ActiveScale.

A: Hugues Meyrath stated they need to push DXi hard, see opportunities with ActiveScale, and are making changes to StorNext, focusing on Ethernet IP version of StorNext.

Q: Asked about operating expense change from $30 million non-GAAP in prior quarter to $27 million midpoint.

A: Laura Nash explained restructuring events and changes in early July are expected to materialize in fiscal Q2, causing the change in operating expenses.

Q: Asked about interest rate on term debt and if 10-Q was filed.

A: Laura Nash said full disclosure is in the 10-Q, which will be filed shortly.

Q: Asked about EBITDA guidance and gross margin expectation.

A: Laura Nash mentioned expected gross margin more in line with fiscal Q2 2025 but dependent on revenue mix.

Q: Asked about seasonality and segment data.

A: Laura Nash said seasonality peaks in fiscal Q3, segment data will be in footnote 12 of Q2 10-Q.

Q: Asked about product differentiation in areas like deduplication space.

A: Hugues Meyrath discussed retooling sales and marketing processes, changing sales compensation, and building an enterprise channel for DXi due to lead generation and conversion issues.