Quantum Corporation reported preliminary revenue of $72.7 million for its fiscal third quarter ended December 31, 2025, a 0.1% increase from the $72.6 million recorded in the same quarter of fiscal 2025. The figure also exceeds the high end of the company’s guidance range of $67 million plus or minus $2 million, driven by robust demand for its AI‑enabled data platform and enterprise data‑management solutions. The revenue gain was partially offset by a modest decline in legacy software sales, which fell 3% year‑over‑year.
The company’s GAAP gross margin stood at 38%, a slight compression from 43.8% in Q3 FY2025 but an improvement over 37.6% in Q2 FY2026. Margin pressure stemmed from higher cost of goods sold, largely due to increased cloud‑infrastructure spend and rising raw‑material costs. The impact was mitigated by a higher mix of high‑margin AI platform contracts, which helped maintain the margin near the 38% target set by management.
Operating expenses rose 5% year‑over‑year to $28.1 million GAAP, with non‑GAAP operating expenses at $26.9 million. The increase reflects continued investment in AI platform development, marketing, and customer‑success initiatives. Management’s cost‑discipline program, launched as part of the recent restructuring, has helped keep expense growth in check, preventing a larger impact on operating income.
Management confirmed that it expects to deliver the final Q3 FY2026 results by mid‑February 2026 and has maintained its revenue guidance for the fiscal year at $67 million plus or minus $2 million. The unchanged outlook signals confidence in the company’s ability to sustain revenue momentum while continuing to execute its debt‑reduction and cost‑control plans.
Quantum’s recent debt‑reduction program, which included a $55 million term‑debt exchange for senior secured convertible notes, has cut outstanding term loans by roughly 50% and reduced total debt by $140 million since 2020. The improved balance‑sheet position provides additional financial flexibility and supports the company’s long‑term growth strategy in AI and unstructured‑data solutions.
The preliminary results suggest that Quantum is making progress on its turnaround plan: revenue is meeting or exceeding expectations, margins are stabilizing, and the company’s debt profile is improving. However, the modest margin compression and the need for continued investment in AI capabilities indicate that the company will need to balance growth initiatives with disciplined cost management to sustain profitability in the coming quarters.
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