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Falconstor Software (FALC)
:FALC
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FalconStor Software (FALC) AI Stock Analysis

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FALC

FalconStor Software

(OTC:FALC)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
$1.50
▼(-14.29% Downside)
FalconStor Software's overall score reflects its financial challenges, including high leverage and inconsistent cash flow, which are significant risks. The technical analysis indicates neutral momentum, while the valuation highlights unprofitability, contributing to a lower score.

FalconStor Software (FALC) vs. SPDR S&P 500 ETF (SPY)

FalconStor Software Business Overview & Revenue Model

Company DescriptionFalconStor Software, Inc., a storage software company, enables enterprise customers and managed service providers to secure, migrate, and protect their data worldwide. The company offers FalconStor Virtual Tape Library, a software that emulates and replaces cumbersome legacy physical tape libraries for archive related data preservation without being forced to replace their enterprise backup and archive software and associated processes; FalconStor StorSafe, a long-term archive data management software; FalconStor Continuous Data Protector delivers instant data availability, and reliable recovery; and FalconStor Network Storage Server for data storage virtualization and business continuity in heterogeneous environments. It also provides FalconStor StorSigh, a long-term archive and business continuity driven data replication from one centralized management point; FalconStor RecoverTrac Disaster Recovery Technology that streamlines the implementation, testing, and execution of disaster recovery operations; and FalconStor MicroScanTM Technology, which minimizes the amount of data transferred during replication by eliminating inefficiencies at the application and file system layer. The company sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. FalconStor Software, Inc. was incorporated in 1994 and is headquartered in Austin, Texas.
How the Company Makes MoneyFalconStor generates revenue primarily through the sale of its software licenses and subscription-based services. Key revenue streams include software licensing fees for its proprietary data protection and storage solutions, along with ongoing maintenance and support contracts. Additionally, the company earns income from subscription services related to its cloud offerings and software-as-a-service (SaaS) products. Partnerships with cloud providers, technology integrators, and resellers also play a significant role in driving sales and expanding market reach, contributing to overall earnings through collaborative sales efforts and joint marketing initiatives.

FalconStor Software Financial Statement Overview

Summary
FalconStor Software demonstrates a mixed financial position. Strong gross margins are offset by challenges in revenue growth and operational efficiency. High leverage and cash flow instability pose potential risks to financial health.
Income Statement
62
Positive
The income statement shows mixed performance with fluctuating revenue growth. Recent years have seen a decline in total revenue, and net profit margins have improved but remain modest. Gross profit margins are strong, indicating effective cost management, while both EBIT and EBITDA margins are relatively low, suggesting room for operational improvement.
Balance Sheet
55
Neutral
The balance sheet reveals significant debt levels with a high debt-to-equity ratio, indicating heavy reliance on leverage. Stockholders' equity is low but has shown improvement over the years. The equity ratio remains weak, reflecting potential financial vulnerability.
Cash Flow
48
Neutral
Cash flow analysis reveals volatility, with negative operating cash flow in the most recent year and fluctuating free cash flow. The company struggles to maintain consistent cash flow generation, posing potential liquidity risks. Despite some positive years, the overall cash flow trajectory suggests challenges in sustaining operational cash generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.61M10.42M11.60M10.05M14.18M14.77M
Gross Profit8.98M8.75M9.95M8.49M12.23M12.94M
EBITDA1.00M907.35K1.44M-1.06M1.58M3.35M
Net Income893.89K693.91K978.38K-1.80M203.33K1.08M
Balance Sheet
Total Assets11.17M12.04M12.62M10.17M12.67M13.41M
Cash, Cash Equivalents and Short-Term Investments3.32M2.49M3.41M2.01M3.18M1.92M
Total Debt2.19M2.21M2.37M2.37M2.27M4.74M
Total Liabilities10.14M11.07M12.04M10.65M11.25M15.07M
Stockholders Equity1.03M967.14K572.17K-479.42K1.42M-1.67M
Cash Flow
Free Cash Flow743.55K-503.38K1.50M-1.24M-1.07M625.25K
Operating Cash Flow833.23K-476.01K1.51M-1.20M-883.53K706.06K
Investing Cash Flow-89.69K-27.37K-8.14K-38.08K-182.35K-29.08K
Financing Cash Flow-52.32K-91.56K-86.27K177.15K2.33M-246.00K

FalconStor Software Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.75
Price Trends
50DMA
1.79
Negative
100DMA
1.80
Negative
200DMA
1.66
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
48.06
Neutral
STOCH
44.44
Neutral
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 1.75 is below the 20-day moving average (MA) of 1.76, below the 50-day MA of 1.79, and above the 200-day MA of 1.66, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 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.
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
50
Neutral
$18.81M-247.72%0.31%70.95%
49
Neutral
$12.49M95.56%-11.13%-3138.60%
47
Neutral
$24.41M-39.10%-56.72%49.76%
43
Neutral
$8.19M-575.54%-28.60%-294.74%
42
Neutral
$15.74M-94.92%-38.89%64.99%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FALC
FalconStor Software
1.75
0.39
28.68%
RTCJF
Baijiayun Group
1.30
-150.44
-99.14%
SMSI
Smith Micro Software
0.73
-0.17
-18.89%
ANY
Sphere 3D
0.86
-0.20
-18.87%
SOPA
Society Pass
3.08
1.98
180.00%
IDAI
T Stamp, Inc. Class A
3.22
-0.03
-0.92%
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.Date of analysis: Oct 17, 2025