Quantum Corporation Reports FY 2025 Q3 Financial Results
On February 12, 2025, Quantum Corporation released its financial results marked by substantial growth and strategic initiatives for the fiscal third quarter ending December 31, 2024.
Financial Performance Overview
The company reported a revenue of $72.6 million, reflecting a slight increase from $71.9 million during the same period the previous year. Notably, the Adjusted EBITDA showed marked improvement, rising to $4.7 million, up from a loss of $2.6 million in Q3 of FY 2024.
Key Financial Metrics
- Revenue: $72.6 million
- Year-over-Year Subscription ARR Growth: 29%, totaling $21.3 million
- GAAP Gross Profit: $31.8 million (43.8% margin)
- Net Loss: $71.4 million ($14.56 per share), influenced by a $61.6 million non-cash adjustment
- Adjusted Non-GAAP Net Loss: $4.0 million ($0.81 per share)
Comparison with Previous Fiscal Year Quarter
| Metric | Q3 FY 2025 | Q3 FY 2024 |
|---|---|---|
| Revenue | $72.6 million | $71.9 million |
| GAAP Gross Profit | $31.8 million (43.8%) | $29.2 million (40.6%) |
| GAAP Operating Expenses | $35.6 million (49.1%) | $35.4 million (49.2%) |
| Net Loss | $71.4 million ($14.56/share) | $9.9 million ($2.08/share) |
Operational Efficiency and Strategic Moves
CEO Jamie Lerner highlighted how Quantum’s recent strategies have yielded positive adjustments in their operational metrics. The adjusted EBITDA was a key factor, showing evidence of the company’s refinements in efficiency. Overall, the gross margin increased by 230 basis points sequentially, contributing to improved cash flow.
Debt Management Initiatives
Quantum is focusing on reducing its debt load to enhance financial stability and facilitate growth opportunities. A recent standby equity purchase agreement will support liquidity and help in expediting the company’s debt reduction strategy.
Liquidity Position as of December 31, 2024
- Cash and equivalents: $20.6 million (down from $24.5 million year-over-year)
- Outstanding term loan debt: $105.9 million (up from $87.3 million)
- Total interest expense for the quarter: $6.8 million (compared to $3.9 million a year prior)
Future Outlook
For the upcoming fiscal fourth quarter of 2025, Quantum anticipates generating revenue in the range of $66 million, with an adjusted net loss per share between $1.16 and $0.05. Management’s expectations reflect ongoing operational adjustments and the pursuit of solidifying a foundation for future profitability.
Conference Call Details
A live conference call was held on February 12, 2025, to discuss these financial results in detail. The event was made available for replay on Quantum’s official website at www.quantum.com for a duration of 90 days.
Understanding Non-GAAP Measures
Quantum provides non-GAAP metrics such as adjusted net loss and EBITDA to offer stakeholders a clearer view of its operational performance. These measures exclude certain non-cash charges and one-time expenses that may distort the actual financial performance.
Limitations of Non-GAAP Measures
The use of non-GAAP financial metrics has limitations which include the exclusion of future cash requirements for capital expenditures and the impact of stock-based compensation. Stakeholders should consider these metrics alongside GAAP results for a comprehensive view of Quantum’s financial health.
