Quantum(QMCO) - 2025 Q2 - Quarterly Results

Revenue and Profit - Revenue for fiscal Q2 2025 was $70.5 million, compared to $75.7 million in the prior year quarter, reflecting lower revenue from primary storage[3] - Total revenue for the three months ended September 30, 2024, was $70.469 million, a decrease from $75.680 million in the same period in 2023[17] - GAAP gross profit for Q2 2025 was $29.3 million, or 41.5% of revenue, compared to $32.7 million, or 43.3% of revenue in Q2 2024[3] - Gross profit for the three months ended September 30, 2024, was $29.268 million, down from $32.736 million in the same period in 2023[17] Net Loss and Adjusted EBITDA - GAAP net loss for Q2 2025 was $13.5 million, or ($2.82) per share, compared to a net loss of $3.3 million, or ($0.70) per share in Q2 2024[5] - Net loss for the three months ended September 30, 2024, was $13.527 million, compared to a net loss of $3.331 million in the same period in 2023[17] - Adjusted EBITDA for Q2 2025 was approximately breakeven at ($0.3) million, a $3.0 million improvement sequentially[6] - Adjusted EBITDA for the six months ended September 30, 2024, was $(3.391) million, compared to $3.164 million in the same period in 2023[27] - Net loss for the six months ended September 30, 2024, was $34.347 million, compared to $12.473 million in the same period in 2023[18] - GAAP net loss for the three months ended September 30, 2024, was $13.53 million, compared to $3.33 million in the same period in 2023[28] - GAAP net loss for the six months ended September 30, 2024, was $34.35 million, compared to $12.47 million in the same period in 2023[28] Subscription ARR - Subscription ARR increased 28% year-over-year to $19.6 million[1] Interest Expense and Debt - Total interest expense for Q2 2025 was $6.1 million, compared to $3.9 million in the same period last year[6] - Outstanding term loan debt as of September 30, 2024, was $104.7 million, compared to $87.9 million as of September 30, 2023[6] - Borrowings of long-term debt, net of debt issuance costs for the six months ended September 30, 2024, were $24.655 million, compared to $14.083 million in the same period in 2023[18] Cash and Cash Equivalents - Cash, cash equivalents, and restricted cash as of September 30, 2024, were $17.0 million, compared to $25.8 million as of September 30, 2023[6] - Cash and cash equivalents decreased to $16.719 million as of September 30, 2024, from $25.692 million as of March 31, 2024[16] - Cash, cash equivalents, and restricted cash at the end of the period for the six months ended September 30, 2024, were $16.960 million, compared to $25.754 million in the same period in 2023[18] Assets and Liabilities - Total assets as of September 30, 2024, were $163.146 million, down from $187.615 million as of March 31, 2024[16] - Accounts receivable decreased to $51.073 million as of September 30, 2024, from $67.788 million as of March 31, 2024[16] - Total current liabilities decreased to $134.601 million as of September 30, 2024, from $249.944 million as of March 31, 2024[16] - Deferred revenue, current portion, decreased to $69.369 million as of September 30, 2024, from $78.511 million as of March 31, 2024[16] Research and Development Expenses - Research and development expenses for the three months ended September 30, 2024, were $8.264 million, down from $9.152 million in the same period in 2023[17] Comprehensive Loss - Total comprehensive loss for the three months ended September 30, 2024, was $12.868 million, compared to $4.051 million in the same period in 2023[17] Operating Activities and Cash Flow - Net cash used in operating activities for the six months ended September 30, 2024, was $17.194 million, compared to $11.345 million in the same period in 2023[18] Stock-Based Compensation - Stock-based compensation expense for the six months ended September 30, 2024, was $1.641 million, compared to $2.831 million in the same period in 2023[18] - Stock-based compensation expense for the three months ended September 30, 2024, was $716 thousand, compared to $939 thousand in the same period in 2023[28] Depreciation and Amortization - Depreciation and amortization expense for the six months ended September 30, 2024, was $3.347 million, compared to $5.295 million in the same period in 2023[18] Loss on Debt Extinguishment - Loss on debt extinguishment for the six months ended September 30, 2024, was $3.003 million, compared to $0 in the same period in 2023[18] Non-Recurring Project Costs - Non-recurring project costs for the six months ended September 30, 2024, were $12.728 million, compared to $1.853 million in the same period in 2023[27] Adjusted Net Income (Loss) - Adjusted net income (loss) is a non-GAAP financial measure defined by the company as net loss before restructuring charges, stock-based compensation expense, amortization of acquisition-related intangible assets, loss on debt extinguishment, non-recurring project costs, and fair value of warrants adjustments[21] - Non-GAAP adjusted net loss for the three months ended September 30, 2024, was $8.74 million, compared to $4.38 million in the same period in 2023[28] - Non-GAAP adjusted net loss for the six months ended September 30, 2024, was $17.19 million, compared to $8.53 million in the same period in 2023[28] Adjusted Net Loss Per Share - Adjusted net loss per share – basic and diluted for the three months ended September 30, 2024, was $1.82, compared to $0.93 in the same period in 2023[28] - Adjusted net loss per share – basic and diluted for the six months ended September 30, 2024, was $3.59, compared to $1.81 in the same period in 2023[28] Restructuring Charges - Restructuring charges for the three months ended September 30, 2024, were $1.42 million, compared to $1.34 million in the same period in 2023[28] Fair Value of Warrants Adjustments - Fair value of warrants adjustments for the three months ended September 30, 2024, was a gain of $3.55 million, compared to a gain of $4.40 million in the same period in 2023[28] Weighted Average Shares - Weighted average shares – basic and diluted for the three months ended September 30, 2024, were 4.79 million, compared to 4.75 million in the same period in 2023[28] Future Expectations - For fiscal Q3 2025, the company expects revenue of $72.0 million, plus or minus $2.0 million, and adjusted EBITDA of approximately $2.0 million[7] - Non-GAAP adjusted basic net loss per share for Q3 2025 is expected to be ($0.75), plus or minus $0.05[7]