Quantum Corporation (QMCO) Q2 2025 Earnings Report

Quantum Corporation’s QQ2 2025 results reflect a work-in-progress turnaround as the company continues to execute on its restructuring and product portfolio refresh. Revenue for the quarter was $70.5 million, with GAAP gross margin at 41.5% and adjusted EBITDA essentially breakeven (-$0.3 million). Management emphasized healthy operational improvements and a higher backlog of roughly $14 million, above the typical run rate, which supports a favorable path to revenue leverage and EBITDA growth in the second half of FY2025. The company is leveraging cost discipline, process automation, and a tilt toward higher-margin, recurring revenue through subscriptions to drive profitability, while aggressively advancing marquee products such as Myriad, ActiveScale, DXi T-Series All-Flash data protection, and Scalar i7 RAPTOR for AI data workflows.

Management guidance underscores a deliberate shift to ARR-driven economics. ARR trailing twelve months stood at approximately $146 million (about 51% of revenue), with subscription ARR at $19.6 million in the quarter, up 28% YoY and 5% QoQ, and over 88% of new unit sales being subscription-based. The company guided Q3 revenue of around $72 million and FY2025 revenue of $280 million ±$5 million, with FY2025 adjusted EBITDA targeted at $3 million ±$2 million. While headwinds persist from supply-chain constraints and a manufacturing transition, Quantum argues that its cost actions, portfolio refresh, and GTM reorganization will yield free cash flow positive in the back half of FY2025 and a cash-flow-positive FY2026 for the first time in five years. The path to sustainable profitability remains contingent on sustaining ARR growth, improving product mix, and completing the factory transition with minimal disruption to revenue execution.