Free cash flow remains persistently negative, reaching a low margin of -28.1% in 2026Q1, indicating that the current business model fails to self-fund its operational requirements.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Cash from Operations | -37.86M | -23.61M | -10.16M | -4.89M | -33.73M | -767K | -1.18M | -16.86M | -5.03M | 8.56M | -11.72M | 6.03M | 35.47M | 7.74M | 45.66M | 52.33M | 100.16M | 89.1M | 25.74M | 63.81M | 3.42M | 26.26M | -2.06M | 17.63M | 38.84M | 178.46M | 496.67M | 463.89M | 284.35M | 312.7M |
| Operating CF Margin % | -13.54% | -8.62% | -3.26% | -1.16% | -8.8% | -0.22% | -0.29% | -4.19% | -1.15% | 1.74% | -2.46% | 1.09% | 6.41% | 1.32% | 7% | 7.78% | 14.7% | 11.01% | 2.64% | 6.28% | 0.41% | 3.31% | -0.26% | 2.02% | 3.77% | 13.26% | 35% | 35.61% | 4.9% | 5.88% |
| Operating CF Growth % | -60.32% | -132.5% | -107.52% | 85.49% | -4297.39% | 35.05% | 92.99% | -235.04% | -158.81% | 173% | -294.23% | -82.99% | 358.62% | -83.06% | -12.74% | -47.76% | 12.42% | 246.14% | -59.66% | 1766.31% | -86.98% | 1372.9% | -111.71% | -54.62% | -78.24% | -64.07% | 7.07% | 63.14% | -9.07% | 290.55% |
| Net Income | -101.05M | -115.09M | -41.29M | -18.37M | -32.28M | -35.46M | -5.21M | -42.8M | -43.35M | -2.41M | -76.39M | 17.08M | -21.47M | -52.18M | -9.26M | 4.54M | 16.63M | -358.26M | -60.23M | -64.09M | -41.48M | -3.5M | -63.72M | -226.39M | -49M | 197.83M | 40.84M | -29.54M | 170.8M | 148.5M |
| Depreciation & Amortization | 5.28M | 5.6M | 9.31M | 10.12M | 9.42M | 5.7M | 4.29M | 4.27M | 4.97M | 5.63M | 6.69M | 11.98M | 19.61M | 25.71M | 34.88M | 41.96M | 50.56M | 57.74M | 99.9M | 85.2M | 43.42M | 42.47M | 50.18M | 52.32M | 67.47M | 61.37M | 130.57M | 112.94M | 91.6M | -124.4M |
| Stock-Based Compensation | -849K | 2.83M | 4.72M | 10.75M | 13.83M | 9.62M | 6.75M | 3.41M | 5.39M | 6.7M | 8.92M | 11.58M | 13.46M | 15.14M | 13.74M | 10.42M | 9.79M | 10.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -577K | 0 | 2.36M | -3.88M | 497K | -85K | -160K | 36K | -142K | -1.28M | -184K | -466K | -352K | -260K | 1.01M | -40K | 2K | 20.89M | -19.12M | -23.16M | 26.2M | -7.32M | 22.9M | -6M | 9.1M |
| Other Non-Cash Items | 58.76M | 65.5M | 10.04M | 8.35M | 19.62M | 23.59M | 13.94M | 28.68M | 19.06M | 8.37M | 62.65M | -8.44M | 12.94M | 11.43M | 13.05M | 15.28M | -4.19M | 359.69M | 12.44M | 21.11M | 901K | 1.42M | 2.51M | 163.04M | 21.06M | -108.05M | 135.34M | 219.44M | 70.3M | 251.3M |
| Working Capital Changes | 0 | 17.55M | 7.06M | -15.74M | -30.49M | -3.65M | -20.94M | -12.78M | 12.77M | -10.23M | -13.49M | -26.01M | 10.9M | 7.78M | -5.46M | -19.7M | 27.84M | 19.69M | -26.11M | 20.59M | 613K | -14.13M | -11.93M | 47.78M | 22.48M | 1.11M | 197.24M | 138.14M | -42.34M | 28.2M |
| Change in Receivables | -19.88M | 15.21M | 4.85M | -2.97M | 3.65M | -1.63M | 15.24M | 8.05M | 6.51M | -370K | 18.04M | -22.55M | -4.77M | 11.88M | 4.52M | -14.94M | 4.45M | 75.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -176.4M |
| Change in Inventory | 944K | 801K | 10.46M | -5.34M | -16.47M | -4.96M | -14.91M | 9.55M | -9.37M | 423K | 6M | -20.7M | 16.03M | 1.64M | -17.73M | 495K | 5.54M | 8.25M | 8.13M | 26.43M | -23.97M | 1.15M | 13.39M | 41.8M | 25.57M | -20.36M | 49.3M | 67.15M | -62.23M | 206.7M |
| Change in Payables | -793K | 6.15M | -11.19M | 1.16M | -1.94M | -1.99M | -768K | -25.36M | 21.65M | -5.28M | -8.18M | 12.85M | -5.88M | -8.63M | 4.11M | -1.47M | 11.49M | -52.69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.2M |
| Cash from Investing | -1.71M | -4.95M | -5.87M | -15.6M | -14.12M | -9.59M | -4.6M | 235K | -2.3M | -1.43M | -3.62M | 11.64M | -6.65M | -10.91M | -21.97M | -10.1M | -8.54M | -4.68M | 21.51M | -489.5M | -115.04M | -19.55M | 23.94M | -103.98M | -93.61M | -117.59M | -56.62M | -70.12M | -144.21M | -171.4M |
| Capital Expenditures | -1.71M | -4.95M | -5.87M | -12.58M | -6.32M | -6.93M | -2.63M | -2.71M | -2.58M | -2.22M | -3.48M | -3.24M | -5.96M | -10.1M | -11.41M | -12.34M | -8.6M | -5.42M | -21.11M | -17.2M | -20.02M | -19.79M | -22.26M | -18.52M | -41.3M | -58.57M | -85.61M | -115.66M | -175.6M | -175M |
| CapEx % of Revenue | 0.61% | 1.81% | 1.88% | 2.98% | 1.65% | 1.98% | 0.65% | 0.67% | 0.59% | 0.45% | 0.73% | 0.59% | 1.08% | 1.72% | 1.75% | 1.84% | 1.26% | 0.67% | 2.16% | 1.69% | 2.4% | 2.49% | 2.75% | 2.13% | 4.01% | 4.35% | 6.03% | 8.88% | 3.02% | 3.29% |
| Acquisitions | 0 | 0 | 0 | -3.02M | -7.81M | -2.65M | -1.97M | 51K | 0 | 0 | 0 | -517K | 0 | 0 | -8.15M | 0 | 0 | 0 | 2.18M | -545.38M | -20.04M | -35.83M | 0 | -4.96M | -15.21M | -46.94M | -2.5M | -1.75M | -19.89M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 51K | 10K | 736K | -139K | 212K | 426K | 1.11M | -2.5M | 32K | -112K | -295K | 0 | 6M | 0 | 10.27M | 0 | 11.02M | -9.55M | -46.49M | 3.13M | 3.79M | 59.11M | 9.7M |
| Cash from Financing | 39.17M | 19.31M | 15.71M | 41.16M | 20.16M | 31.33M | 1.21M | 16.21M | -11.23M | -7.89M | -18.72M | -48.64M | 1.28M | 20.98M | -48.35M | -81.29M | -62.4M | -90.04M | -13.53M | 362.98M | 9.78M | 3.82M | -29M | -35.79M | 1.11M | -177.94M | -294.16M | -263.55M | 156.88M | 39.1M |
| Debt Issued (Net) | 0 | 3.48M | 15.71M | -25.98M | 18.39M | -66.53M | 1.38M | 16.56M | -11.13M | -8.17M | -18.03M | -50M | -1.26M | 18.21M | -55.8M | -95.53M | -64.18M | -92M | -30.55M | 352.68M | -1.49M | -2.05M | -36.6M | -41.36M | -46.63M | -754K | -19.11M | -545K | 106.52M | -6.14M |
| Equity Issued (Net) | 0 | 15.83M | 0 | 67.15M | 1.76M | 98.09M | 0 | 0 | 1.72M | 1.02M | 2.48M | 3.74M | 4.43M | 4.8M | 10.39M | 16.55M | 1.78M | 2.74M | 17.02M | 10.29M | 11.27M | 5.87M | 7.6M | 5.48M | -1.17M | -110.75M | -275.04M | -263M | 50.36M | 45.26M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -305.29M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -354K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -46.63M | -146.25M | -324.7M | -305.29M | 0 | 0 |
| Other Financing | 39.17M | 0 | 0 | 0 | 0 | -236K | -171K | -354K | -1.82M | -738K | -3.18M | -2.38M | -1.88M | -2.04M | -2.94M | -2.31M | 0 | -779K | 0 | 0 | 0 | 0 | 0 | 0 | 48.91M | -66.43M | 0 | 305.29M | 0 | -18K |
| Net Change in Cash | -369K | -9.26M | -315K | 20.68M | -22.64M | 20.87M | -4.58M | -352K | -18.7M | -746K | -34.08M | -31.18M | 30.15M | 17.71M | -24.75M | -38.94M | 29.41M | -6.62M | 33.72M | -62.72M | -101.84M | 10.53M | -7.13M | -122.14M | -53.66M | -117.07M | 145.89M | 130.22M | 297.02M | 180.32M |
| Free Cash Flow | -39.56M | -28.56M | -16.02M | -17.48M | -40.04M | -7.7M | -3.81M | -19.57M | -7.62M | 6.34M | -15.2M | 2.79M | 29.52M | -2.36M | 34.25M | 39.99M | 91.57M | 83.68M | 4.63M | 46.61M | -16.61M | 6.47M | -24.33M | -900K | -2.46M | 119.9M | 411.06M | 348.23M | 108.75M | 137.7M |
| FCF Margin % | -14.15% | -10.42% | -5.14% | -4.14% | -10.44% | -2.2% | -0.95% | -4.86% | -1.74% | 1.29% | -3.19% | 0.51% | 5.34% | -0.4% | 5.25% | 5.95% | 13.44% | 10.34% | 0.47% | 4.59% | -1.99% | 0.81% | -3.01% | -0.1% | -0.24% | 8.91% | 28.97% | 26.73% | 1.87% | 2.59% |
| FCF Growth % | -38.52% | -78.22% | 8.3% | 56.36% | -420.19% | -101.84% | 80.51% | -156.92% | -220.15% | 141.7% | -644.29% | -90.54% | 1348.6% | -106.9% | -14.36% | -56.33% | 9.43% | 1706.89% | -90.07% | 380.72% | -356.73% | 126.59% | -2603% | 63.46% | -102.05% | -70.83% | 18.04% | 220.2% | -21.02% | 136.65% |
| FCF per Share | -3.12 | -5.55 | -3.37 | -3.83 | -11.82 | -3.46 | -1.69 | -11.01 | -4.39 | 3.72 | -9.26 | 1.72 | 19.12 | -1.58 | 23.55 | 27.85 | 65.45 | 64.02 | 3.66 | 38.81 | -14.44 | 5.71 | -22.12 | -0.89 | -2.50 | 126.16 | 396.78 | 346.84 | 104.77 | 168.16 |
| FCF Conversion (FCF/Net Income) | 0.37x | 0.21x | 0.25x | 0.27x | -0.88x | 0.02x | 0.23x | 0.39x | 0.12x | -3.55x | 0.15x | 0.35x | -1.65x | -0.15x | -4.93x | 11.52x | 6.02x | -0.25x | -0.43x | -1.00x | -0.08x | -7.51x | 0.03x | -0.07x | 0.91x | 1.11x | 12.16x | -15.71x | 1.66x | 2.11x |
| Interest Paid | 0 | 11.93M | 12.31M | 8.7M | 9.14M | 24.32M | 16.49M | 17.68M | 10.24M | 5.97M | 6.87M | 8.5M | 8.25M | 5.67M | 8.27M | 16.48M | 24.78M | 26.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 1.81M | 1.78M | 1.42M | 0 | 2.28M | 490K | -68K | -1.46M | 677K | 579K | 750K | 574K | 2.6M | 1.86M | 1.87M | 1.86M | 926K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and operational scale
As reported in recent financial filings, Quantum's operating cash flow frequently fails to track with net losses, evidenced by an OCF/NI ratio that fluctuated wildly from 0.04 to 1.13, suggesting that accounting accruals and non-cash adjustments are masking the underlying volatility of the company's core cash generation.
The persistent gap between net income and operating cash flow indicates that the company's earnings quality is strained by significant working capital swings. Investors should monitor whether this divergence reflects genuine operational inefficiency or merely the timing of large-scale hardware contract settlements.
Based on the provided quarterly data, Quantum has struggled to achieve positive free cash flow, with margins reaching a low of -28.1% in 2026Q1, indicating that the company's current business model is unable to self-fund its ongoing operational and capital requirements without external liquidity support.
The consistent negative FCF trajectory suggests that the transition to a subscription-based model has yet to provide the necessary cash flow stability to offset hardware-related costs. This trend warrants further investigation into whether the company can reach a cash-flow-neutral state before its existing liquidity is exhausted.
According to the company's cash flow statements, working capital changes have been highly erratic, swinging from a $19.2 million inflow in 2024Q4 to a $13.5 million outflow in 2026Q4, which highlights the significant impact of inventory and receivables management on the firm's immediate cash availability.
These sharp fluctuations in working capital suggest that the company's cash position is highly sensitive to the timing of large hardware deployments and customer payment cycles. Such instability may indicate that the firm lacks the necessary leverage to manage its supply chain and customer credit terms effectively.
Analysis of recent SEC filings reveals that while stock-based compensation and depreciation provide minor non-cash add-backs, they are insufficient to offset the cash burn, suggesting that the company's reported cash flow figures may understate the true intensity of its ongoing operational and R&D investment requirements.
The reliance on non-cash adjustments to mitigate the appearance of cash burn may obscure the underlying structural challenges of the company's R&D-heavy cost base. Investors should be cautious, as these adjustments do not alleviate the fundamental need for consistent, organic cash generation to sustain operations.
Quick answers to the most common questions about buying QMCO stock.
Quantum Corporation (QMCO) generated $-37.9M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Quantum Corporation (QMCO) reported negative free cash flow of $39.6M in 2026, indicating capital requirements exceeded cash from operations.
Quantum Corporation (QMCO) spent $1.7M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.