FalconStor Software Inc (FALC)
OTHER OTC:FALC
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FalconStor Software
(OTC:FALC)
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Rating:65Neutral
Price Target:
$2.50
▲(83.82% Upside)
Action:ReiteratedDate:04/09/26
The score is held back mainly by middling financial quality—especially volatile cash flow and ongoing leverage risk—despite sustained profitability. Offsetting this, technicals are bullish with the price above major moving averages and positive MACD, and valuation is strong due to an extremely low P/E.
Positive Factors
Sustained profitability (2023-25)
FalconStor reported positive net income across 2023–2025 after 2022 losses. Sustained profitability increases long-term solvency, supports reinvestment and maintenance of product R&D/support, and reduces structural bankruptcy risk compared with continued losses.
Negative Factors
Volatile cash generation
Cash flow has been uneven: strong in 2023, negative in 2024, only modestly positive in 2025. That volatility undermines the durability of internal funding for capex, debt service and growth initiatives, raising refinancing and liquidity risk during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained profitability (2023-25)
FalconStor reported positive net income across 2023–2025 after 2022 losses. Sustained profitability increases long-term solvency, supports reinvestment and maintenance of product R&D/support, and reduces structural bankruptcy risk compared with continued losses.
Read all positive factors
FalconStor Software (FALC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.84M
Dividend YieldN/A
Average Volume (3M)1.25K
Price to Earnings (P/E)1.3
Beta (1Y)-0.34
Revenue Growth-11.90%
EPS Growth-520.12%
CountryUS
Employees53
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.19
Shares Outstanding7,134,504
10 Day Avg. Volume1,979
30 Day Avg. Volume1,252
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)5.11
Price to Sales (P/S)0.79
P/FCF Ratio60.09
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit2.03
Enterprise Value/Ebitda45.96
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FalconStor Software Business Overview & Revenue Model
Company Description
FalconStor Software, Inc. (FALC) is a global provider of data protection and storage management software solutions, catering primarily to enterprises and service providers. The company operates in the information technology sector, focusing on enh...
How the Company Makes Money
FalconStor primarily makes money by licensing its data protection and storage management software to enterprise and public-sector customers and by selling related support and maintenance services. Key revenue streams typically include: (1) Softwar...
FalconStor Software Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
52
Neutral
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.38M | 10.42M | 11.60M | 10.05M | 14.18M |
| Gross Profit | 8.70M | 8.75M | 9.95M | 8.49M | 12.23M |
| EBITDA | 198.44K | 907.35K | 1.44M | -1.06M | 1.58M |
| Net Income | 1.15M | 693.91K | 978.38K | -1.80M | 203.33K |
Balance Sheet | |||||
| Total Assets | 11.64M | 12.04M | 12.62M | 10.17M | 12.67M |
| Cash, Cash Equivalents and Short-Term Investments | 2.45M | 2.49M | 3.41M | 2.01M | 3.18M |
| Total Debt | 2.28M | 2.21M | 2.37M | 2.37M | 2.27M |
| Total Liabilities | 10.03M | 11.07M | 12.04M | 10.65M | 11.25M |
| Stockholders Equity | 1.61M | 967.14K | 572.17K | -479.42K | 1.42M |
Cash Flow | |||||
| Free Cash Flow | 136.81K | -503.38K | 1.50M | -1.24M | -1.07M |
| Operating Cash Flow | 236.47K | -476.01K | 1.51M | -1.20M | -883.53K |
| Investing Cash Flow | -86.57K | -27.37K | -8.14K | -38.08K | -182.35K |
| Financing Cash Flow | -248.70K | -91.56K | -86.27K | 177.15K | 2.33M |
FalconStor Software Technical Analysis
Positive
1.36
Price Trends
1.94
Positive
1.68
Positive
1.74
Positive
Market Momentum
0.13
Positive
68.81
Neutral
82.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FALC, the sentiment is Positive. The current price of 1.36 is below the 20-day moving average (MA) of 2.35, below the 50-day MA of 1.94, and below the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 68.81 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FALC.
FalconStor Software Risk Analysis
FalconStor Software disclosed 48 risk factors in its most recent earnings report. FalconStor Software reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FalconStor Software Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $17.84M | 1.29 | ― | ― | -11.90% | -520.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | $18.33M | -0.37 | -121.17% | ― | -24.08% | 70.11% | |
46 Neutral | $5.40M | -0.35 | -302.82% | ― | 4.65% | 55.05% | |
43 Neutral | $10.43M | -0.29 | 96.58% | ― | ― | ― | |
43 Neutral | $13.16M | -1.46 | -302.04% | ― | 72.57% | -261.66% |
* Technology Sector Average
FALC
FalconStor Software
2.50
1.11
79.86%
SMSI
Smith Micro Software
0.71
-0.08
-9.77%
AMOD
Alpha Modus Holdings
0.35
-0.76
-68.20%
SOPA
Society Pass
0.42
-0.33
-44.00%
NVNI
Nvni Group
1.04
-0.86
-45.26%
IDAI
T Stamp, Inc. Class A
2.49
0.85
51.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.