Investment Thesis
Quantum Corp faces imminent financial distress with negative stockholders equity of -$184.2M, severe liquidity crisis (current ratio 0.51x), and negative operating cash flow of -$37.4M. The company is technically insolvent with only $13.2M in cash against significant obligations, creating acute bankruptcy risk within months.
Strengths
- Gross margin of 37.3% indicates core product profitability at unit level
- Company retains minimal operational assets worth $149.3M despite negative equity
- Moderate insider filing activity suggests management engagement
Risks
- Negative stockholders equity of -$184.2M indicates technical insolvency
- Liquidity crisis: current ratio 0.51x with only $13.2M cash and $75.9M long-term debt
- Negative operating cash flow of -$37.4M with estimated <4 month cash runway
- Revenue declining 12% YoY while burning $91.5M annually in net losses
- Interest coverage ratio of -6.9x shows inability to service debt from operations
- High risk of covenant breach and forced restructuring or bankruptcy
Key Metrics to Watch
- Monthly operating cash flow and cash balance (critical for solvency timeline)
- Debt covenant compliance and refinancing negotiations
- Quarterly revenue trend (stabilization required for survival)
- Liabilities reduction through asset sales or restructuring
- Path to positive operating income and cash flow generation
Financial Metrics
Revenue
201.6M
Net Income
-91.5M
EPS (Diluted)
$-7.58
Free Cash Flow
-38.4M
Total Assets
149.3M
Cash
13.2M
Profitability Ratios
Gross Margin
37.3%
Operating Margin
-10.9%
Net Margin
-45.4%
ROE
N/A
ROA
-61.3%
FCF Margin
-19.0%
Balance Sheet & Liquidity
Current Ratio
0.51x
Quick Ratio
0.42x
Debt/Equity
N/A
Debt/Assets
223.4%
Interest Coverage
-6.86x
Long-term Debt
75.9M
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: 2026-04-14T20:51:21.958063 |
Data as of: 2025-12-31 |
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