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FalconStor Software (FALC) AI Stock Analysis
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FalconStor Software
(Other OTC:FALC)
The score is held back mainly by weak cash-flow performance (negative TTM operating and free cash flow) and a debt-heavy balance sheet, despite improved profitability. Technicals are also bearish with the stock trading below major moving averages and negative MACD, while the low P/E offers some valuation support.
FalconStor Software (FALC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $11.59M
- Dividend Yield
- ―
- Average Volume (3M)
- 3,874
- Price to Earnings (P/E)
- 10.3
- Beta (1Y)
- 0.03
- Revenue Growth
- 23.55%
- EPS Growth
- ―
- Country
- US
- Employees
- 53
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
FalconStor Software Business Overview & Revenue Model
Company Description
FalconStor Software, Inc. operates as a hybrid cloud data protection company for finance, healthcare, technology, and others worldwide. The company offers FalconStor StorSafe, a data protection optimization and modernization solution that can run in...
How the Company Makes Money
FalconStor historically generates revenue primarily from (1) software licensing of its storage/data protection products (sold as perpetual licenses and/or subscription-based arrangements depending on the specific contract), (2) maintenance and suppor...
FalconStor Software Financial Statement Overview
Summary
Profitability and margins have improved substantially (TTM shows strong gross margin and positive operating/net margins), but the balance sheet remains relatively debt-heavy (debt-to-equity ~1.19) and the biggest drag is cash generation: TTM operating cash flow and free cash flow are negative, indicating uneven earnings quality and reduced internal funding capacity.
Income Statement
74PositiveBalance Sheet
58NeutralCash Flow
34Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.74M | 10.38M | 10.42M | 11.60M | 10.05M | 14.18M |
| Gross Profit | 10.91M | 8.70M | 8.75M | 9.95M | 8.49M | 12.23M |
| EBITDA | 1.88M | 198.44K | 907.35K | 1.44M | -1.06M | 1.58M |
| Net Income | 2.41M | 1.15M | 693.91K | 978.38K | -1.80M | 203.33K |
Balance Sheet | ||||||
| Total Assets | 12.80M | 11.64M | 12.04M | 12.62M | 10.17M | 12.67M |
| Cash, Cash Equivalents and Short-Term Investments | 1.89M | 2.45M | 2.49M | 3.41M | 2.01M | 3.18M |
| Total Debt | 2.26M | 2.28M | 2.21M | 2.37M | 2.37M | 2.27M |
| Total Liabilities | 10.89M | 10.03M | 11.07M | 12.04M | 10.65M | 11.25M |
| Stockholders Equity | 1.91M | 1.61M | 967.14K | 572.17K | -479.42K | 1.42M |
Cash Flow | ||||||
| Free Cash Flow | -254.90K | 136.81K | -503.38K | 1.50M | -1.24M | -1.07M |
| Operating Cash Flow | -214.83K | 236.47K | -476.01K | 1.51M | -1.20M | -883.53K |
| Investing Cash Flow | -39.16K | -86.57K | -27.37K | -8,140 | -38.08K | -182.35K |
| Financing Cash Flow | -738.99K | -248.70K | -91.56K | -86.27K | 177.15K | 2.33M |
FalconStor Software Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FALC, the sentiment is Negative. The current price of 1.52 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.69, and below the 200-day MA of 2.11, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 29.82 is Positive, neither overbought nor oversold. The STOCH value of 69.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
0 New RisksFalconStor Software Peers Comparison
Overall Rating
- FALC52Neutral
SMSI46Neutral
IDAI45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| FALC | 52Neutral | $10.91M | 10.27 | 152.28% | ― | 23.55% | ― |
| SMSI | 46Neutral | $12.69M | -0.64 | -84.56% | ― | -9.51% | 62.16% |
| IDAI | 45Neutral | $16.03M | -1.16 | -141.04% | ― | 2.13% | 95.54% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FALC | Falconstor Software | 1.52 | 0.05 | 3.74% | |
| SMSI | Smith Micro | 2.27 | -1.24 | -35.40% | |
| AMOD | Alpha Modus Holdings, Inc. | 1.12 | -41.28 | -97.36% | |
| IDAI | T Stamp, Inc. Class A | 2.82 | -1.37 | -32.70% |
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.
Date of analysis: Aug 17, 2026