Summary
Quantum Corp. reports positive adjusted EBITDA and improved cash flow in fiscal 3Q25, exceeding expectations. Revenue increased, and the company made progress in its debt reduction strategy. Quantum anticipates continued growth and improvements in the upcoming fiscal quarter.
TrueNAS is trusted by industry leadersjoin the ranks of satisfied businesses today.
** Main Story**
Quantum Corporation, a prominent player in AI and unstructured data solutions, revealed its financial results for the fiscal third quarter of 2025, ended December 31, 2024. The company demonstrated significant year-over-year improvements, driven by its ongoing business transformation initiatives.
Financial Highlights of 3Q25
- Revenue Growth: Quantum’s revenue reached \$72.6 million, a slight increase from \$71.9 million in the same period of the prior fiscal year.
- Subscription ARR Surge: Subscription Annual Recurring Revenue (ARR) saw a substantial 29% year-over-year increase, landing at \$21.3 million. This demonstrates the success of Quantum’s subscription-based offerings.
- Gross Profit and Margin Expansion: GAAP gross profit reached \$31.8 million, representing a gross margin of 43.8%. This is a notable improvement from the 40.6% gross margin in 3Q24.
- Net Loss and Adjusted Metrics: While the company reported a GAAP net loss of \$71.4 million (or (\$14.56) per share), this includes a significant non-cash adjustment of \$61.6 million related to warrant liabilities. The adjusted non-GAAP net loss was a much smaller \$4.0 million, or (\$0.81) per share.
- Positive Adjusted EBITDA: Notably, Quantum achieved a positive adjusted EBITDA of \$4.7 million, a substantial improvement from the (\$2.6) million in 3Q24 and a \$5 million sequential improvement. This positive swing indicates progress in the company’s financial health.
Operational and Strategic Wins
Quantum’s positive financial results are underpinned by several operational and strategic achievements:
- DXi Success: The launch of new DXi data protection appliances gained traction, securing key wins including a substantial multi-million dollar refresh deal with a major European retailer and new business with a multinational technology manufacturer.
- ActiveScale Momentum: The ActiveScale solution continued its growth trajectory with a significant seven-figure win from a Japanese research institute and a prominent cloud service provider.
- Myriad Collaboration: Quantum collaborated with a leading player in AI and quantum computing-inspired algorithms on the Myriad product, further strengthening its position in the AI landscape.
Debt Reduction and Financial Stability
Quantum also made strides in its efforts to reduce debt and improve financial stability:
- Standby Equity Purchase Agreement: The company secured a standby equity purchase agreement with a new financial partner, providing access to additional capital and liquidity. This move represents a significant step towards financial independence.
- SEC Registration Effective: Quantum’s registration statement on Form S-1 became effective, enabling the resale of up to approximately 2.3 million shares.
Looking Forward
Quantum projects the following financial outlook for fiscal fourth quarter 2025:
- Revenue: Approximately \$66 million, plus or minus \$2.0 million.
- Non-GAAP Adjusted Net Loss per Share: Approximately (\$1.16), plus or minus \$0.05.
- Adjusted EBITDA: Around \$1.7 million.
These projections, though showing a slightly lower EBITDA and revenue compared to 3Q25, suggest a continued positive trajectory for Quantum’s financial performance. The progress made in fiscal 3Q25, along with the company’s strategic initiatives, positions Quantum favorably for future growth in the burgeoning AI and unstructured data market.
Please note that this information is current as of February 23, 2025, and the financial outlook provided by Quantum is subject to change.
The 29% surge in subscription ARR to $21.3 million highlights the growing importance of recurring revenue models. How is Quantum planning to further leverage its subscription-based offerings to enhance customer retention and attract new clients in the competitive AI and unstructured data solutions market?
Great question! The 29% ARR surge is something we’re very proud of. Quantum is exploring bundling additional services into our subscription tiers and offering more flexible payment options. We’re also investing in customer success programs to ensure our clients get the most value from our solutions and stay with us long-term. This will provide higher value for customers, and help attract new clients.
Editor: StorageTech.News
Thank you to our Sponsor Esdebe
\$71.4 million net loss…Ouch! But hey, that adjusted EBITDA looking healthier than my last attempt at a green smoothie! Seriously though, focusing on AI and unstructured data seems like a smart move. Wonder if they’ll start offering courses on how *not* to lose \$71.4 million? Asking for a friend…
Haha, that’s a great point! While we might not offer courses on *avoiding* losses specifically, we are heavily investing in resources and support to ensure our customers maximize their ROI with AI and unstructured data solutions. Perhaps understanding the *wins* is the best defense!
Editor: StorageTech.News
Thank you to our Sponsor Esdebe
A “slight” revenue increase, eh? I guess when you’re swimming in that much red ink, every drop counts. How many more “strategic initiatives” until the losses are strategically eliminated altogether? Inquiring minds want to know.
That’s a fair question! While the revenue increase was modest this quarter, the focus on strategic initiatives like our DXi and ActiveScale solutions is already yielding positive results and key wins, which will provide higher value for customers and help attract new clients. We believe we are on the right track for continued improvements!
Editor: StorageTech.News
Thank you to our Sponsor Esdebe
“$21.3 million ARR, eh? So, if I subscribe now, can I pay with actual dollars or do I need to start mining for QuantumCoin? Asking for a friend who is suspiciously good at building crypto farms.”
That’s a creative payment solution! While we aren’t quite ready for QuantumCoin, we’re always open to new ideas. Maybe your friend’s crypto skills could help us build the next generation of secure data storage! What algorithms are they working with?
Editor: StorageTech.News
Thank you to our Sponsor Esdebe