FalconStor Software, Inc. Financials

FALC

Source SEC Filings (10-K/10-Q) Updated Mar 31, 2023 Currency USD FYE December

Financial Health Signals

Financial Profile 4/100

Based on FY2022 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

FalconStor Software, Inc. has an operating margin of -12.5%, meaning the company retains $-13 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is down from 2.8% the prior year.

Growth

FalconStor Software, Inc.'s revenue declined 27.9% year-over-year, from $13.9M to $10.1M. This contraction results in a growth score of 0/100.

Liquidity

FalconStor Software, Inc.'s current ratio of 0.94 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 18/100, which could limit financial flexibility.

Cash Flow

While FalconStor Software, Inc. generated -$1.2M in operating cash flow, capex of $0 consumed most of it, leaving -$1.2M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.

Piotroski F-Score Weak

1/9

FalconStor Software, Inc. passes 1 of 9 financial strength tests. 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.

Earnings Quality Low Quality

0.67x

For every $1 of reported earnings, FalconStor Software, Inc. generates $0.67 in operating cash flow (-$1.2M OCF vs -$1.8M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

This page shows FalconStor Software, Inc. (FALC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

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Key Financial Metrics

Revenue

$10.1M

YoY-27.9%

5Y CAGR-16.8%

10Y CAGR-18.3%

FalconStor Software, Inc. generated $10.1M in revenue in fiscal year 2022. This represents a decrease of 27.9% from the prior year.

EBITDA

-$1.1M

YoY-293.6%

FalconStor Software, Inc.'s EBITDA was -$1.1M in fiscal year 2022, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 293.6% from the prior year.

Free Cash Flow

-$1.2M

YoY-16.9%

FalconStor Software, Inc. generated -$1.2M in free cash flow in fiscal year 2022, representing cash available after capex. This represents a decrease of 16.9% from the prior year.

Net Income

-$1.8M

YoY-4157.6%

FalconStor Software, Inc. reported -$1.8M in net income in fiscal year 2022. This represents a decrease of 4157.6% from the prior year.

EPS (Diluted)

$-0.47

YoY-104.3%

FalconStor Software, Inc. earned $-0.47 per diluted share (EPS) in fiscal year 2022. This represents a decrease of 104.3% from the prior year.

Cash & Debt

$2.0M

YoY-36.8%

5Y CAGR+14.7%

10Y CAGR-20.0%

FalconStor Software, Inc. held $2.0M in cash against $0 in long-term debt as of fiscal year 2022.

Dividends Per Share

N/A

Shares Outstanding

YoY+0.5%

FalconStor Software, Inc. had 7M shares outstanding in fiscal year 2022. This represents an increase of 0.5% from the prior year.

Gross Margin

84.4%

YoY-1.6pp

5Y CAGR+6.5pp

10Y CAGR+11.8pp

FalconStor Software, Inc.'s gross margin was 84.4% in fiscal year 2022, indicating the percentage of revenue retained after direct costs. This is down 1.6 percentage points from the prior year.

Operating Margin

-12.5%

YoY-15.3pp

5Y CAGR-16.6pp

10Y CAGR+5.6pp

FalconStor Software, Inc.'s operating margin was -12.5% in fiscal year 2022, reflecting core business profitability. This is down 15.3 percentage points from the prior year.

Net Margin

-17.9%

YoY-17.6pp

5Y CAGR-22.1pp

10Y CAGR+2.0pp

FalconStor Software, Inc.'s net profit margin was -17.9% in fiscal year 2022, showing the share of revenue converted to profit. This is down 17.6 percentage points from the prior year.

Return on Equity

N/A

R&D Spending

$2.6M

YoY-9.6%

5Y CAGR-17.0%

10Y CAGR-18.1%

FalconStor Software, Inc. invested $2.6M in research and development in fiscal year 2022. This represents a decrease of 9.6% from the prior year.

Share Buybacks

N/A

Capital Expenditures

YoY-100.0%

FalconStor Software, Inc. invested $0 in capex in fiscal year 2022, funding long-term assets and infrastructure. This represents a decrease of 100.0% from the prior year.

FALC Income Statement

Metric	FY22	FY21	FY20	FY19	FY18	FY17
Revenue	$10.1M-27.9%	$13.9M-5.6%	$14.8M-10.7%	$16.5M-7.3%	$17.8M-29.1%	$25.2M
Cost of Revenue	$1.6M-19.8%	$2.0M+6.8%	$1.8M-37.3%	$2.9M-2.2%	$3.0M-46.3%	$5.5M
Gross Profit	$8.5M-29.2%	$12.0M-7.4%	$12.9M-5.1%	$13.6M-8.3%	$14.9M-24.3%	$19.6M
R&D Expenses	$2.6M-9.6%	$2.8M+14.8%	$2.5M-23.1%	$3.2M-18.0%	$3.9M-40.0%	$6.5M
SG&A Expenses	$3.2M+10.1%	$2.9M-4.4%	$3.0M-46.4%	$5.6M+6.8%	$5.3M-13.7%	$6.1M
Operating Income	-$1.3M-423.9%	$388K-78.6%	$1.8M+377.4%	-$655K-1282.5%	-$47K-104.6%	$1.0M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	$210K-60.0%	$527K+3778.8%	-$14K-102.9%	$492K+111.0%	$233K+2967.2%	$8K
Net Income	-$1.8M-4157.6%	-$42K-103.9%	$1.1M+161.8%	-$1.8M-93.2%	-$907K-186.2%	$1.1M
EPS (Diluted)	$-0.47-104.3%	$-0.23-155.6%	$-0.09+83.9%	$-0.56+88.3%	$-4.79	$0.00

Metric	Q1'23	Q1'22	Q3'22	Q2'22	Q4'21	Q3'21	Q2'21	Q1'21
Revenue	$2.3M-11.0%	$2.5M-16.7%	$3.1M+27.8%	$2.4M-32.8%	$3.6M+8.6%	$3.3M+0.8%	$3.3M-14.9%	$3.8M
Cost of Revenue	$375K+1.1%	$371K-2.4%	$380K-4.6%	$398K-5.2%	$420K-5.0%	$442K+0.4%	$441K-32.1%	$649K
Gross Profit	$1.9M-13.1%	$2.2M-18.7%	$2.7M+34.2%	$2.0M-36.5%	$3.1M+10.7%	$2.8M+0.8%	$2.8M-11.4%	$3.2M
R&D Expenses	$619K0.0%	$618K+6.3%	$582K-11.2%	$656K-18.2%	$801K+12.7%	$711K+7.6%	$661K+0.2%	$660K
SG&A Expenses	$893K+14.7%	$778K-5.9%	$827K+14.2%	$724K-4.5%	$758K+19.6%	$634K-3.7%	$658K-21.5%	$838K
Operating Income	-$421K-2078.6%	-$19K-105.0%	$383K+175.3%	-$508K-465.0%	$139K-69.0%	$449K+345.9%	-$183K-947.6%	-$17K
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	-$53K-187.8%	$60K+20.7%	$50K-77.5%	$222K-52.1%	$463K+2700.9%	$17K+521.6%	$3K-94.0%	$45K
Net Income	-$448K-2305.2%	$20K-90.8%	$221K+123.8%	-$931K-113.1%	-$437K-225.3%	$349K+196.2%	-$362K-188.7%	$408K
EPS (Diluted)	$-0.11-83.3%	$-0.06-100.0%	$-0.03+83.3%	$-0.18-63.6%	$-0.11-1200.0%	$0.01+108.3%	$-0.12-1100.0%	$-0.01

FALC Balance Sheet

Metric	FY22	FY21	FY20	FY19	FY18	FY17
Total Assets	$10.2M-19.7%	$12.7M-5.5%	$13.4M-15.0%	$15.8M-1.2%	$16.0M+20.9%	$13.2M
Current Assets	$5.4M-26.7%	$7.3M+6.8%	$6.9M-13.3%	$7.9M-14.2%	$9.2M+43.6%	$6.4M
Cash & Equivalents	$2.0M-36.8%	$3.2M+65.6%	$1.9M+30.2%	$1.5M-51.8%	$3.1M+202.5%	$1.0M
Inventory	$0-100.0%	$8K-49.3%	$15K-49.1%	$30K+101.6%	$15K	$0
Accounts Receivable	$2.3M-20.2%	$2.9M+0.7%	$2.8M-16.7%	$3.4M-5.5%	$3.6M-13.5%	$4.2M
Goodwill	$4.2M0.0%	$4.2M0.0%	$4.2M0.0%	$4.2M0.0%	$4.2M0.0%	$4.2M
Total Liabilities	$26.6M+3.7%	$25.6M-11.4%	$28.9M-2.9%	$29.8M+11.5%	$26.7M-22.4%	$34.4M
Current Liabilities	$5.7M-6.2%	$6.1M-46.3%	$11.3M-3.2%	$11.7M+13.8%	$10.3M-41.5%	$17.6M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	-$16.4M-26.5%	-$13.0M+16.6%	-$15.5M-10.8%	-$14.0M-30.3%	-$10.8M+49.3%	-$21.2M
Retained Earnings	-$125.5M-1.5%	-$123.7M0.0%	-$123.7M+0.2%	-$123.9M-1.4%	-$122.1M+6.7%	-$130.9M

Metric	Q1'23	Q1'22	Q3'22	Q2'22	Q4'21	Q3'21	Q2'21	Q1'21
Total Assets	$9.5M-6.4%	$10.2M+1.0%	$10.1M+2.2%	$9.8M-22.3%	$12.7M0.0%	$12.7M-3.0%	$13.1M-2.9%	$13.4M
Current Assets	$4.9M-8.5%	$5.4M+5.0%	$5.1M+5.7%	$4.8M-34.0%	$7.3M-2.1%	$7.5M-3.9%	$7.8M+4.8%	$7.4M
Cash & Equivalents	$1.8M-8.5%	$2.0M+20.7%	$1.7M-7.9%	$1.8M-43.2%	$3.2M-8.4%	$3.5M-7.1%	$3.7M+85.1%	$2.0M
Inventory	N/A	$0	$0	$0-100.0%	$8K-49.8%	$15K+0.3%	$15K+2.1%	$15K
Accounts Receivable	$1.8M-21.4%	$2.3M-0.4%	$2.3M+47.4%	$1.6M-45.6%	$2.9M+24.9%	$2.3M+5.7%	$2.2M-26.8%	$3.0M
Goodwill	$4.2M0.0%	$4.2M0.0%	$4.2M0.0%	$4.2M0.0%	$4.2M0.0%	$4.2M0.0%	$4.2M0.0%	$4.2M
Total Liabilities	$26.7M+0.4%	$26.6M+3.1%	$25.8M+1.6%	$25.4M-1.0%	$25.6M+6.1%	$24.2M-5.6%	$25.6M-8.6%	$28.0M
Current Liabilities	$5.4M-6.1%	$5.7M+6.5%	$5.4M+2.6%	$5.2M-14.3%	$6.1M+18.3%	$5.2M-21.7%	$6.6M-40.6%	$11.1M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	-$17.2M-4.6%	-$16.4M-4.5%	-$15.7M-1.1%	-$15.5M-19.7%	-$13.0M-12.8%	-$11.5M+8.3%	-$12.5M+13.9%	-$14.6M
Retained Earnings	-$126.0M-0.4%	-$125.5M-0.2%	-$125.3M+0.2%	-$125.5M-1.5%	-$123.7M-1.2%	-$122.3M+0.3%	-$122.7M-0.3%	-$122.3M

FALC Cash Flow Statement

Metric	FY22	FY21	FY20	FY19	FY18	FY17
Operating Cash Flow	-$1.2M-35.7%	-$884K-225.1%	$706K+137.2%	-$1.9M-25.7%	-$1.5M+41.3%	-$2.6M
Capital Expenditures	$0-100.0%	$142K	$0-100.0%	$172K+79.1%	$96K+1.1%	$95K
Free Cash Flow	-$1.2M-16.9%	-$1.0M-245.3%	$706K+134.1%	-$2.1M-28.9%	-$1.6M+39.8%	-$2.7M
Investing Cash Flow	-$38K+79.1%	-$182K-527.1%	-$29K+79.6%	-$143K+1.5%	-$145K+21.0%	-$184K
Financing Cash Flow	$177K-92.4%	$2.3M+1048.0%	-$246K-154.0%	$455K-87.9%	$3.8M+1053.7%	$326K
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q1'23	Q1'22	Q3'22	Q2'22	Q4'21	Q3'21	Q2'21	Q1'21
Operating Cash Flow	-$88K-140.4%	$219K+302.0%	-$108K+92.9%	-$1.5M-767.7%	-$176K+51.6%	-$363K+24.9%	-$483K-450.8%	$138K
Capital Expenditures	$3K	$0	$0	$0-100.0%	$43K+13.5%	$38K+98.0%	$19K-53.0%	$41K
Free Cash Flow	-$91K-141.7%	$219K+302.0%	-$108K+92.9%	-$1.5M-595.7%	-$219K+45.4%	-$401K+20.2%	-$502K-620.3%	$97K
Investing Cash Flow	-$3K	$0	$0+100.0%	-$38K+48.1%	-$73K+90.6%	-$778K-209.8%	$708K+1891.3%	-$40K
Financing Cash Flow	-$77K-143.2%	$177K	$0	$0+100.0%	-$40K-104.5%	$876K-41.5%	$1.5M	$0
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

FALC Financial Ratios

Metric	FY22	FY21	FY20	FY19	FY18	FY17
Gross Margin	84.4%-1.6pp	86.0%-1.6pp	87.6%+5.2pp	82.4%-0.9pp	83.3%+5.3pp	78.0%
Operating Margin	-12.5%-15.3pp	2.8%-9.5pp	12.3%+16.3pp	-4.0%-3.7pp	-0.3%-4.3pp	4.1%
Net Margin	-17.9%-17.6pp	-0.3%-7.6pp	7.3%+17.9pp	-10.6%-5.5pp	-5.1%-9.3pp	4.2%
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	-17.7%-17.4pp	-0.3%-8.4pp	8.1%+19.2pp	-11.1%-5.4pp	-5.7%-13.6pp	8.0%
Current Ratio	0.94-0.3	1.20+0.6	0.61-0.1	0.68-0.2	0.90+0.5	0.36
Debt-to-Equity	-1.62+0.4	-1.98-0.1	-1.86+0.3	-2.12+0.4	-2.48-0.9	-1.62
FCF Margin	-11.9%-4.6pp	-7.4%-12.1pp	4.8%+17.3pp	-12.5%-3.5pp	-9.0%+1.6pp	-10.6%

Metric	Q1'23	Q1'22	Q3'22	Q2'22	Q4'21	Q3'21	Q2'21	Q1'21
Gross Margin	83.5%-2.0pp	85.5%-2.1pp	87.6%+4.2pp	83.4%-4.8pp	88.2%+1.7pp	86.5%+0.0pp	86.5%+3.4pp	83.0%
Operating Margin	-18.5%-17.8pp	-0.8%-13.3pp	12.5%+33.7pp	-21.2%-25.1pp	3.9%-9.8pp	13.7%+19.3pp	-5.6%-5.1pp	-0.5%
Net Margin	-19.7%-20.5pp	0.8%-6.4pp	7.2%+46.1pp	-38.9%-26.6pp	-12.3%-22.9pp	10.6%+21.7pp	-11.1%-21.8pp	10.7%
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	-4.7%-4.9pp	0.2%-2.0pp	2.2%+11.7pp	-9.5%-6.0pp	-3.5%-6.2pp	2.8%+5.5pp	-2.8%-5.8pp	3.0%
Current Ratio	0.92-0.0	0.94-0.0	0.95+0.0	0.93-0.3	1.20-0.2	1.45+0.3	1.18+0.5	0.67
Debt-to-Equity	-1.55+0.1	-1.62+0.0	-1.640.0	-1.63+0.3	-1.98+0.1	-2.10-0.1	-2.04-0.1	-1.92
FCF Margin	-4.0%-12.6pp	8.6%+12.1pp	-3.5%+60.1pp	-63.6%-57.5pp	-6.2%+6.1pp	-12.2%+3.2pp	-15.4%-17.9pp	2.5%

Note: Shareholder equity is negative (-$16.4M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.

Note: The current ratio is below 1.0 (0.94), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

What is FalconStor Software, Inc.'s annual revenue?

FalconStor Software, Inc. (FALC) reported $10.1M in total revenue for fiscal year 2022. This represents a -27.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is FalconStor Software, Inc.'s revenue growing?

FalconStor Software, Inc. (FALC) revenue declined by 27.9% year-over-year, from $13.9M to $10.1M in fiscal year 2022.

Is FalconStor Software, Inc. profitable?

No, FalconStor Software, Inc. (FALC) reported a net income of -$1.8M in fiscal year 2022, with a net profit margin of -17.9%.

What is FalconStor Software, Inc.'s earnings per share (EPS)?

FalconStor Software, Inc. (FALC) reported diluted earnings per share of $-0.47 for fiscal year 2022. This represents a -104.3% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

What is FalconStor Software, Inc.'s EBITDA?

FalconStor Software, Inc. (FALC) had EBITDA of -$1.1M in fiscal year 2022, measuring earnings before interest, taxes, depreciation, and amortization.

What is FalconStor Software, Inc.'s gross margin?

FalconStor Software, Inc. (FALC) had a gross margin of 84.4% in fiscal year 2022, indicating the percentage of revenue retained after direct costs of goods sold.

What is FalconStor Software, Inc.'s operating margin?

FalconStor Software, Inc. (FALC) had an operating margin of -12.5% in fiscal year 2022, reflecting the profitability of core business operations before interest and taxes.

What is FalconStor Software, Inc.'s net profit margin?

FalconStor Software, Inc. (FALC) had a net profit margin of -17.9% in fiscal year 2022, representing the share of revenue converted into profit after all expenses.

What is FalconStor Software, Inc.'s free cash flow?

FalconStor Software, Inc. (FALC) generated -$1.2M in free cash flow during fiscal year 2022. This represents a -16.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is FalconStor Software, Inc.'s operating cash flow?

FalconStor Software, Inc. (FALC) generated -$1.2M in operating cash flow during fiscal year 2022, representing cash generated from core business activities.

What are FalconStor Software, Inc.'s total assets?

FalconStor Software, Inc. (FALC) had $10.2M in total assets as of fiscal year 2022, including both current and long-term assets.

What are FalconStor Software, Inc.'s capital expenditures?

FalconStor Software, Inc. (FALC) invested $0 in capital expenditures during fiscal year 2022, funding long-term assets and infrastructure.

How much does FalconStor Software, Inc. spend on research and development?

FalconStor Software, Inc. (FALC) invested $2.6M in research and development during fiscal year 2022.

How many shares does FalconStor Software, Inc. have outstanding?

FalconStor Software, Inc. (FALC) had 7M shares outstanding as of fiscal year 2022.

What is FalconStor Software, Inc.'s current ratio?

FalconStor Software, Inc. (FALC) had a current ratio of 0.94 as of fiscal year 2022, which is below 1.0, which may suggest potential liquidity concerns.

What is FalconStor Software, Inc.'s debt-to-equity ratio?

FalconStor Software, Inc. (FALC) had a debt-to-equity ratio of -1.62 as of fiscal year 2022, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is FalconStor Software, Inc.'s return on assets (ROA)?

FalconStor Software, Inc. (FALC) had a return on assets of -17.7% for fiscal year 2022, measuring how efficiently the company uses its assets to generate profit.

What is FalconStor Software, Inc.'s cash runway?

Based on fiscal year 2022 data, FalconStor Software, Inc. (FALC) had $2.0M in cash against an annual operating cash burn of $1.2M. This gives an estimated cash runway of approximately 20 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

Why is FalconStor Software, Inc.'s debt-to-equity ratio negative or unusual?

FalconStor Software, Inc. (FALC) has negative shareholder equity of -$16.4M as of fiscal year 2022, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.

What is FalconStor Software, Inc.'s Piotroski F-Score?

FalconStor Software, Inc. (FALC) has a Piotroski F-Score of 1 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are FalconStor Software, Inc.'s earnings high quality?

FalconStor Software, Inc. (FALC) has an earnings quality ratio of 0.67x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is FalconStor Software, Inc.?

FalconStor Software, Inc. (FALC) scores 4 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.