CAMARILLO, Calif., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Qualstar Corporation (OTC: QBAK), a trusted provider of scalable data storage and high-efficiency power solutions, today reported financial results for the quarter ended June 30, 2026.
2026 and Recent Highlights
- Revenues increased 47% for the second quarter of 2026 and 14% for the first half of 2026 over the comparable 2025 periods, driven by higher sales of our tape-based data storage products, reflecting increased customer demand.
- We continue to make progress in expanding our data storage business, which has experienced significant growth driven by the continued expansion of the data and data storage markets.
- The audit of the Company’s 2025 financial statements is expected to be completed in the coming weeks. Following completion of the audit, we intend to continue pursuing the filing of our Form 10 and an uplisting of our securities.
Management Commentary
“The results for the current quarter reinforce our strategy of growing our data storage business and positioning the Company to benefit from the continued growth of this market,” said Steven N. Bronson, President and CEO. Mr. Bronson continued, “We remain focused on expanding our product offerings and exploring strategic product partnerships and acquisition opportunities within the data storage market.”
Consolidated Financial Results (Unaudited)
(Amounts in thousands except per share data and percentages)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
| 2026 | 2025 | $ ∆ | % ∆ | 2026 | 2025 | $ ∆ | % ∆ | |||||||||||||||||||||||
| Revenues | $ | 2,102 | $ | 1,430 | $ | 672 | 47.0 | % | $ | 3,527 | $ | 3,089 | $ | 438 | 14.2 | % | ||||||||||||||
| Adjusted gross profit | $ | 765 | $ | 482 | $ | 283 | 58.7 | % | $ | 1,135 | $ | 1,091 | $ | 44 | 4.0 | % | ||||||||||||||
| Adjusted gross margin | 36.4 | % | 33.7 | % | 32.2 | % | 35.3 | % | ||||||||||||||||||||||
| Adjusted income (loss) from operations | $ | 159 | $ | 5 | $ | (77 | ) | $ | 140 | |||||||||||||||||||||
| Adjusted net income (loss) | $ | (132 | ) | $ | 204 | $ | (194 | ) | $ | 387 | ||||||||||||||||||||
| Adjusted earnings (loss) per share | $ | (0.03 | ) | $ | 0.05 | $ | (0.05 | ) | $ | 0.09 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 170 | $ | (7 | ) | $ | (32 | ) | $ | 55 | ||||||||||||||||||||
Non-GAAP financial measures. To supplement our financial statements, which are prepared and presented in accordance with United States generally accepted accounting principles (“GAAP”), we use the following non-GAAP financial measures: Adjusted gross profit, adjusted gross margin, adjusted income (loss) from operations, adjusted net income (loss), and adjusted earnings (loss) per share. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP financial measures exclude the net realizable value charge of $970,000 recorded in June 2026 on our slow-moving power supplies inventory due to the decreased demand from our customers in this segment. Management believes these measures provide useful information to investors by isolating the impact of this discrete item and allowing investors to better assess the Company's operating performance. These measures should not be considered an alternative to, or more meaningful than, the corresponding measures prepared in accordance with U.S. GAAP. The Adjusted EBITDA non-GAAP financial measure is discussed below.
Revenue for the quarter increased 47% to $2.10 million, compared with $1.43 million in the prior-year quarter, and for the first half of 2026 increased 14% to $3.53 million, compared with $3.09 million in the first half of 2025, primarily driven by higher sales of data-storage products, offset in part by lower sales of power-supply products.
Adjusted gross margin for the quarter was 36.4%, compared with 33.7% in the prior-year quarter, and for the first half of 2026 was 32.2%, compared with 35.3% for the first half of 2025. The increases in adjusted gross profit and adjusted gross margin percentage for the 2026 periods were due to increases in revenues and changes in our product mix.
Adjusted net income/loss for the three months ended June 30, 2026 and 2025 included (losses) gains on marketable securities of $(301,000) and $156,000, respectively. For the six months ended June 30, 2026 and 2025, adjusted net income/loss included (losses) gains on marketable securities of $(139,000) and $145,000, respectively.
Adjusted EBITDA for the second quarter of 2026 was $170,000, compared with $(7,000) in the second quarter of 2025, and for the first half of 2026 was $(32,000), compared with $55,000 for the first half of 2025.
The Company ended the quarter with $2.0 million in cash, cash equivalents, and marketable securities and no debt.
Qualstar makes available its annual financial statements, quarterly financial statements, and other significant reports and amendments to such reports, free of charge, on its website as soon as reasonably practicable after such reports are prepared. Please visit www.qualstar.com to view the Company’s financial results in more detail.
About Qualstar Corporation
Qualstar Corporation, founded in 1984, manufactures and markets data storage system products and compact, high-efficiency power solutions.
Our data storage systems are marketed under the Qualstar™ brand and include highly scalable automated magnetic tape libraries used to store, retrieve and manage electronic data primarily in the network computing environment. Our products, sold through resellers, system integrators and OEMs, range from entry-level to enterprise and are a cost-effective solution for organizations requiring backup, recovery and archival storage of critical electronic information.
The Company’s power solutions, marketed under the N2Power™ brand, include standard, semi-custom and custom versions and provide OEM designers with increased functionality while reducing thermal loads and cooling requirements and lowering operating costs. These products are sold to OEMs in a wide range of markets, including telecom/networking equipment, audio/visual, industrial, gaming and medical.
More information is available at www.qualstar.com and www.n2power.com or by phone at 805-583-7744.
Adjusted EBITDA Non-GAAP Financial Measure
Adjusted EBITDA is a non-GAAP financial measure. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We define Adjusted EBITDA for a particular period as net income (loss) before interest, taxes, depreciation and amortization, and as further adjusted for non-routine expenses that may not be indicative of our core business operating results such as severance compensation, provisions (recoveries) for inventory net realizable value, gains/losses on marketable securities, gains/losses on foreign currency transactions, and non-cash expenses such as stock-based compensation expense.
We use this non-GAAP financial measure for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business operating results. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. This non-GAAP financial measure also facilitates management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe this non-GAAP financial measure is useful to investors both because (1) is allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) it is used by our investors to help them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.
The following table reconciles Net Income (Loss) to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net income (loss) | $ | (1,102 | ) | $ | 204 | $ | (1,164 | ) | $ | 387 | ||||||
| Adjustments to arrive at earnings before interest, taxes, depreciation, and amortization (EBITDA): | ||||||||||||||||
| Interest income | (10 | ) | (35 | ) | (23 | ) | (75 | ) | ||||||||
| Depreciation and amortization expense | 1 | 2 | 2 | 4 | ||||||||||||
| EBITDA | (1,111 | ) | 171 | (1,185 | ) | 316 | ||||||||||
| Adjustments to arrive at Adjusted EBITDA: | ||||||||||||||||
| Employee Retention Credits | -- | (94 | ) | -- | (239 | ) | ||||||||||
| Provisions for inventory net realizable value, net | 980 | 33 | 998 | 57 | ||||||||||||
| (Gains) losses on marketable securities, net | 301 | (156 | ) | 139 | (145 | ) | ||||||||||
| (Gains) losses on foreign currency transactions, net | -- | (8 | ) | 1 | (27 | ) | ||||||||||
| Stock-based compensation expense | -- | 47 | 15 | 93 | ||||||||||||
| Adjusted EBITDA | $ | 170 | $ | (7 | ) | $ | (32 | ) | $ | 55 | ||||||
The following tables reconcile gross profit, gross margin, income (loss) from operations, net income (loss), and earnings (loss) per share as prepared in accordance with GAAP to adjusted gross profit, adjusted gross margin, adjusted income (loss) from operations, adjusted net income (loss), and adjusted earnings (loss) per share for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Gross profit | $ | (205 | ) | $ | 482 | $ | 165 | $ | 1,091 | |||||||
| Add-back: Net realizable value charge of $970 recorded in June 2026 on our slow-moving power supplies inventory | 970 | -- | 970 | -- | ||||||||||||
| Adjusted gross profit | $ | 765 | $ | 482 | $ | 1,135 | $ | 1,091 | ||||||||
| Gross margin percentage | (9.8 | )% | 33.7 | % | 5.3 | % | 35.3 | % | ||||||||
| Add-back: Net realizable value charge of $970 recorded in June 2026 on our slow-moving power supplies inventory | 46.2 | % | -- | % | 26.9 | % | -- | % | ||||||||
| Adjusted gross margin percentage | 36.4 | % | 33.7 | % | 32.2 | % | 35.3 | % | ||||||||
| (in thousands) | ||||||||||||||||
| Income (loss) from operations | $ | (811 | ) | $ | 5 | $ | (1,047 | ) | $ | 140 | ||||||
| Add-back: Net realizable value charge of $970 recorded in June 2026 on our slow-moving power supplies inventory | 970 | -- | 970 | -- | ||||||||||||
| Adjusted income (loss) from operations | $ | 159 | $ | 5 | $ | (77 | ) | $ | 140 | |||||||
| (in thousands) | ||||||||||||||||
| Net income (loss) | $ | (1,102 | ) | $ | 204 | $ | (1,164 | ) | $ | 387 | ||||||
| Add-back: Net realizable value charge of $970 recorded in June 2026 on our slow-moving power supplies inventory | 970 | -- | 970 | -- | ||||||||||||
| Adjusted net income (loss) | $ | (132 | ) | $ | 204 | $ | (194 | ) | $ | 387 | ||||||
| (in thousands) | ||||||||||||||||
| Net earnings (loss) per share | $ | (0.27 | ) | $ | 0.05 | $ | (0.28 | ) | $ | 0.09 | ||||||
| Add-back: Net realizable value charge of $970 recorded in June 2026 on our slow-moving power supplies inventory | 0.24 | -- | 0.23 | -- | ||||||||||||
| Adjusted net earnings (loss) per share | $ | (0.03 | ) | $ | 0.05 | $ | (0.05 | ) | $ | 0.09 | ||||||
Contact Information:
Steven N. Bronson
Chief Executive Officer
Qualstar Corporation
805-617-4419
IR@Qualstar.com
