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FalconStor Software
(OTC:FALC)
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Rating:52Neutral
Price Target:
$1.50
▼(-42.31% Downside)
Action:Reiterated
Date:08/18/26
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.
Positive Factors
TTM Revenue Reacceleration
Recent top-line reacceleration indicates renewed demand for FalconStor’s data protection and storage management software. If sustained, growth can improve operating leverage, expand the installed customer base, and support recurring maintenance and service revenue.
Negative Factors
Negative Cash Generation
Negative recent operating and free cash flow weakens earnings quality and limits the company’s ability to fund development, sales investment, and debt obligations internally. Continued volatility could increase reliance on financing or constrain strategic execution.
Read all positive and negative factors
Positive Factors
Negative Factors
TTM Revenue Reacceleration
Recent top-line reacceleration indicates renewed demand for FalconStor’s data protection and storage management software. If sustained, growth can improve operating leverage, expand the installed customer base, and support recurring maintenance and service revenue.
Read all positive factors
FalconStor Software (FALC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.09M
Dividend YieldN/A
Average Volume (3M)1.25K
Price to Earnings (P/E)9.5
Beta (1Y)-0.27
Revenue Growth23.55%
EPS GrowthN/A
CountryUS
Employees53
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.16
Shares Outstanding7,153,472
10 Day Avg. Volume1,979
30 Day Avg. Volume1,252
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)5.11
Price to Sales (P/S)0.79
P/FCF Ratio60.09
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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. 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 ...
How the Company Makes Money
FalconStor generates revenue primarily from selling software and related services tied to its data protection and storage management products. Key revenue streams have historically included (1) software license revenue (including perpetual license...
FalconStor Software Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| 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 | -8.14K | -38.08K | -182.35K |
| Financing Cash Flow | -738.99K | -248.70K | -91.56K | -86.27K | 177.15K | 2.33M |
FalconStor Software Technical Analysis
Negative
2.60
Price Trends
2.26
Negative
2.44
Negative
2.05
Negative
Market Momentum
-0.25
Negative
32.10
Neutral
63.93
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 2.6 is above the 20-day moving average (MA) of 1.76, above the 50-day MA of 2.26, and above the 200-day MA of 2.05, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 32.10 is Neutral, neither overbought nor oversold. The STOCH value of 63.93 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $11.09M | 9.51 | ― | ― | 23.55% | ― | |
52 Neutral | $16.69M | -1.27 | -137.61% | ― | 2.13% | 95.54% | |
47 Neutral | $16.60M | -0.84 | -141.94% | ― | -9.51% | 62.16% | |
41 Neutral | $12.04M | -0.98 | 36.60% | ― | -1.85% | 55.50% |
* Technology Sector Average
FALC
FalconStor Software
1.49
-0.32
-17.57%
SMSI
Smith Micro Software
2.97
-0.66
-18.11%
AMOD
Alpha Modus Holdings
3.81
-39.79
-91.26%
NVNI
Nvni Group
1.02
-5.40
-84.11%
IDAI
T Stamp, Inc. Class A
3.09
0.19
6.55%
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.