Tech news in 3 minutes
Upscale AI Adds $190 Million in Extension to Series A, Reaching Half-Billion Dollars in Total Funding
Quantum Corp. reported financial results for its fiscal fourth quarter and full year 2026, ending March 31, 2026. Fourth-quarter revenue rose 27% year-over-year to $78.0 million, exceeding guidance of $68 million ± $2 million. GAAP operating expenses were $30.4 million; non-GAAP adjusted operating expenses were $27.5 million, a $2.0 million reduction from the prior year. GAAP net loss was $9.5 million, or ($0.66) per share. Non-GAAP adjusted net loss was $3.1 million, or ($0.21) per share, a $9 million improvement YoY. Adjusted EBITDA was $1.0 million. CEO Hugues Meyrath attributed the strong performance to robust demand for tiered storage solutions driven by AI data proliferation, rising storage costs, and power constraints. He noted the company has transformed its business by lowering costs, sharpening sales execution, and completing transactions that eliminated outstanding debt and added cash to the balance sheet. Compared to the prior year's fourth quarter, GAAP gross profit was $27.8 million (35.7% of revenue) versus $24.2 million (39.6%). Total GAAP operating expenses were $30.4 million (39.0% of revenue) versus $35.8 million (58.5%). Non-GAAP operating expenses were $27.5 million versus $29.4 million. GAAP net loss was $9.5 million versus $7.7 million; non-GAAP adjusted net loss was $3.1 million versus $12.1 million. Adjusted EBITDA improved from negative $3.9 million to positive $1.0 million. As of March 31, 2026, cash and equivalents were $16.2 million, comparable to $16.6 million a year earlier. Total interest expense for the quarter was $2.9 million, down from $6.8 million. Outstanding term loan debt was reduced to $55.9 million from $102.5 million, and a new convertible note was fair valued at $90.0 million. For fiscal first quarter 2027, Quantum expects revenue of $75.0 million ± $2 million, non-GAAP adjusted operating expenses of $27 million ± $1 million, non-GAAP adjusted basic net loss per share of ($0.15) ± $0.10, and adjusted EBITDA of $1.5 million ± $1 million, assuming an effective annual tax rate of 3% and an average basic share count of approximately 24 million.