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Quantum Corporation

QMCO
Computer Hardware · Technology
Price
$22.25
+1.76 (+8.59%)
Market Cap
$876.1M
Exchange
NASDAQ
Winston Score
Winston looking sleepy
No score yet — Winston is napping.
We couldn’t gather enough financial data to score this stock reliably.

Share count rising — dilution

+274.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 3.4M (2022) → 12.7M (2026)

Winston Score History

The full picture

Quantum Corporation makes hardware and software for storing and managing large amounts of data, especially video and other rich media files. Its main products include tape storage systems, disk-based storage, and data management software used by media companies, government agencies, research institutions, and large enterprises. Quantum is known for its long history in tape storage, a market where it competes with a small number of specialized rivals.

The company earns money through a mix of product sales and recurring service and subscription revenue, which helps smooth out lumpy hardware purchase cycles. Quantum operates primarily in North America but also sells internationally, and its installed base of customers provides some stickiness through maintenance contracts and software licenses. With a market cap around $100 million and a negative operating margin, the key challenge is returning to profitability while competing against larger storage vendors like Dell and IBM that have far greater resources.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+25.7% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-277.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$24M/ year

Declining (-25% vs prior year)

8.4% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

7.2%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$54M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Quantum Corporation grew revenue 26% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
39.3%
Modest — 39.3% gross margin
Profit after running costs
Operating Margin
6.2%
Modest — 6.2% operating margin
Return on the money invested
ROCE
N/A
Data not available

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Growth

Sales growth
Sales YoY
+10.9%
Steady sales growth (+10.9% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
-7.5%
Burning cash (-7.5%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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