Quantum Corporation (NASDAQ:QMCO) stock fell 10.9% after the company announced it would delay filing its annual report for the fiscal year ended March 31, 2025.

In a regulatory filing, Quantum stated it is unable to file its Annual Report on Form 10-K by the original June 30, 2025 deadline "without unreasonable effort or expense." The company cited an ongoing review of "its accounting related to certain revenue contracts as well as the application of standalone selling price under applicable accounting standards."

The data storage and management solutions provider indicated that the results of this accounting review will need to be reflected in its financial statements for fiscal 2025. However, Quantum noted that it does not expect the current review to affect financial statements for any fiscal periods prior to fiscal 2025.

As a result of these accounting matters, Quantum has been unable to complete its consolidated audited financial statement close process for the fiscal year, preventing the company from compiling the required financial information for its annual report within the prescribed time period.

The stock’s sharp decline reflects investor concern over the delayed financial reporting, which comes at a time when companies typically provide full visibility into their annual performance and outlook.