Investment Thesis
Quantum Corp is in severe financial distress with negative stockholders' equity of -198.9M (technical insolvency), persistent operating losses of -24.5M, and negative free cash flow of -39.6M. The company faces critical liquidity constraints with a 0.55x current ratio and cannot service its 90M debt load from operations, indicating substantial bankruptcy risk despite stable revenue.
Strengths
- Positive gross margin of 36.9% indicates viable product economics
- Stable revenue base of 279.6M demonstrates market demand
- Low capital intensity with only 1.7M capex requirement
Risks
- Negative stockholders' equity of -198.9M represents technical insolvency
- Negative operating cash flow of -37.9M with ongoing cash burn unsustainable
- Critical liquidity position (0.55x current ratio) threatens near-term solvency
- Operating losses of -24.5M with negative interest coverage (-7.7x) prevent debt service
- Liabilities of 355.7M exceed total assets of 156.9M by 226%
Key Metrics to Watch
- Operating cash flow recovery (currently -37.9M)
- Path to operating profitability (currently -24.5M)
- Stockholders' equity trend (currently -198.9M)
- Current ratio and liquidity position (currently 0.55x)
- Debt restructuring or refinancing activity
Financial Metrics
Revenue
279.6M
Net Income
-101.0M
EPS (Diluted)
$-7.97
Free Cash Flow
-39.6M
Total Assets
156.9M
Cash
15.6M
Profitability Ratios
Gross Margin
36.9%
Operating Margin
-8.8%
Net Margin
-36.1%
ROE
N/A
ROA
-64.4%
FCF Margin
-14.2%
Balance Sheet & Liquidity
Current Ratio
0.55x
Quick Ratio
0.47x
Debt/Equity
N/A
Debt/Assets
226.7%
Interest Coverage
-7.66x
Long-term Debt
90.0M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-07-27T06:02:38.783844 |
Data as of: 2026-03-31 |
Powered by Claude AI