FalconStor Software (FALC) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Nov 4, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the filing for Q1 FY2023, filed May 10, 2023. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the FALC SEC filings page.
FalconStor Software (FALC) reported $10.3M in revenue over the twelve months to Mar 31, 2023, down 17.2% from the prior twelve months. This page shows its 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.
FalconStor's high gross margins cannot offset shrinking sales because its fixed operating burden remains too large.
Revenue contracted27.9% in FY2022, while SG&A still consumed71.5% of sales, showing why a smaller revenue base quickly exposed the cost structure. Operating margin moved from2.8% in FY2021 to-12.5% in FY2022, a deterioration that gross margins alone do not explain.
Cash generation moved with earnings rather than merely lagging them: operating cash flow and free cash flow were both positive at
The balance sheet is structurally strained: liabilities equaled
Financial Health Signals
We do not publish a peer-relative financial health score for FalconStor Software, because the score only covers companies whose filings and listing give us what it needs to compare them with their peers. The signals and metrics below are current.
FalconStor Software scores -16.52, below the 1.81 distress threshold. The score is pulled down most by an accumulated deficit of $125.5M against total assets of $10.2M. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
FalconStor Software passes 1 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.
FalconStor Software reported a net loss of $1.8M while operations used $1.2M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Key Financial Metrics
Earnings & Revenue
FalconStor Software generated $2.3M in revenue in Q1 2023. This represents an increase of 10.7% from the same quarter a year earlier. Against the prior quarter it is down 11.0%.
FalconStor Software's EBITDA was -$396K in Q1 2023, measuring earnings before interest, taxes, depreciation, and amortization. The change from the same quarter a year earlier is not meaningful, because that figure was zero or negative. Against the prior quarter it is down 6492.5%.
FalconStor Software reported a net loss of $448K in Q1 2023. The change from the same quarter a year earlier is not meaningful, because that figure was zero or negative. Against the prior quarter it is down 2305.2%.
FalconStor Software earned -$0.11 per diluted share (EPS) in Q1 2023. The change from the same quarter a year earlier is not meaningful, because that figure was zero or negative. The change from the prior quarter is not meaningful, because that quarter’s figure was zero or negative.
Cash & Balance Sheet
FalconStor Software recorded an outflow of $91K in free cash flow in Q1 2023, representing a cash shortfall after capex. This represents a decrease of 142.6% from the same quarter a year earlier. Against the prior quarter it is down 141.7%.
FalconStor Software held $1.8M in cash as of Q1 2023; no long-term debt figure is on record for that period.
Not reported for Q1 2023.
Margins & Returns
FalconStor Software's gross margin was 83.5% in Q1 2023, indicating the percentage of revenue retained after direct costs. This is up 3.7 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.0 percentage points.
FalconStor Software's operating margin was -18.5% in Q1 2023, reflecting core business profitability. This is up 35.8 percentage points from the same quarter a year earlier. Against the prior quarter it is down 17.8 percentage points.
FalconStor Software's net profit margin was -19.7% in Q1 2023, showing the share of revenue converted to profit. This is up 34.4 percentage points from the same quarter a year earlier. Against the prior quarter it is down 20.5 percentage points.
Not reported for Q1 2023.
Capital Allocation
FalconStor Software invested $619K in research and development in Q1 2023. This represents a decrease of 12.4% from the same quarter a year earlier. It is unchanged from the prior quarter.
FalconStor Software invested $3K in capex in Q1 2023, funding long-term assets and infrastructure. The change from the same quarter a year earlier is not meaningful, because that figure was zero or negative. The change from the prior quarter is not meaningful, because that quarter’s figure was zero or negative.
Not reported for Q1 2023.
FALC Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'23Filing | Q4'22Filing | Q3'22Filing | Q2'22Filing | Q1'22Filing | Q4'21Filing | Q3'21Filing | Q2'21Filing |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.3M+10.7% | $2.5M-33.1% | $3.1M-6.8% | $2.4M-26.5% | $2.0M-46.5% | $3.8M+4.3% | $3.3M-26.0% | $3.3M-6.9% |
| Cost of Revenue | $375K-9.6% | $371K-11.7% | $380K-14.1% | $398K-9.6% | $415K-36.0% | $420K-10.2% | $442K+6.3% | $441K+11.2% |
| Gross Profit | $1.9M+15.9% | $2.2M-35.7% | $2.7M-5.7% | $2.0M-29.2% | $1.6M-48.6% | $3.4M+6.4% | $2.8M-29.3% | $2.8M-9.2% |
| R&D Expenses | $619K-12.4% | $618K-22.8% | $582K-18.2% | $656K-0.9% | $706K+7.0% | $801K+21.7% | $711K+18.5% | $661K+23.8% |
| SG&A Expenses | $1.7M-16.9% | $1.6M-27.0% | $1.7M-23.6% | $1.8M-3.6% | $2.0M-8.7% | $2.2M-5.9% | $2.2M+62.1% | $1.9M+2.8% |
| Operating Income | -$421Kn/m | -$19K-105.0% | $383K-14.8% | -$508Kn/m | -$1.1Mn/m | $385Kn/m | $449K-73.8% | -$183K-133.2% |
| EBITDA | -$396Kn/m | $6K-96.7% | $409K-17.4% | -$475Kn/m | -$1.1M-2789.9% | $187K+1091.0% | $495K-72.2% | -$134K-121.9% |
| Income Tax | -$53Kn/m | $60K-87.0% | $50K+201.3% | $222K+8242.5% | -$121K-371.8% | $463Kn/m | $17K+46.6% | $3Kn/m |
| Net Income | -$448Kn/m | $20Kn/m | $221K-36.5% | -$931Kn/m | -$1.1M-371.7% | -$437Kn/m | $349K-77.5% | -$362K-189.1% |
| EPS (Basic) | -$0.11n/m | -$0.06n/m | -$0.03-400.0% | -$0.18 | -$0.20n/m | -$0.08 | $0.01 | -$0.12n/m |
| EPS (Diluted) | -$0.11n/m | -$0.06n/m | -$0.03-400.0% | -$0.18 | -$0.20n/m | -$0.08 | $0.01 | -$0.12n/m |
| Diluted Shares (Avg) | 7M+0.5% | N/A | 7M+1.0% | 7M | 7M+19.0% | N/A | 7M | 6M+1.7% |
Not reported in any period shown, so not listed: Interest Expense.
FALC Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'23Filing | Q4'22Filing | Q3'22Filing | Q2'22Filing | Q1'22Filing | Q4'21Filing | Q3'21Filing | Q2'21Filing |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $9.5M-13.0% | $10.2M-19.7% | $10.1M-20.5% | $9.8M-24.6% | $10.9M-18.6% | $12.7M-5.5% | $12.7M-6.1% | $13.1M+1.7% |
| Current Assets | $4.9M-16.7% | $5.4M-26.7% | $5.1M-31.7% | $4.8M-37.9% | $5.9M-20.7% | $7.3M+6.8% | $7.5M+11.5% | $7.8M+36.6% |
| Cash & Equivalents | $1.8M-45.6% | $2.0M-36.8% | $1.7M-52.1% | $1.8M-51.7% | $3.4M+67.3% | $3.2M+65.6% | $3.5M+298.8% | $3.7M+147.1% |
| Short-Term Investments | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m |
| Inventory | N/A | $0-100.0% | $0-100.0% | $0-100.0% | $0-100.0% | $8K-49.3% | $15K+4.1% | $15K+5.6% |
| Accounts Receivable | $1.8M+116.8% | $2.3M-20.2% | $2.3M+0.1% | $1.6M-28.2% | $826K-72.1% | $2.9M+0.7% | $2.3M-34.3% | $2.2M+16.5% |
| Long-Term Investments | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m | $0n/m |
| Goodwill | $4.2M0.0% | $4.2M0.0% | $4.2M0.0% | $4.2M0.0% | $4.2M0.0% | $4.2M0.0% | $4.2M0.0% | $4.2M0.0% |
| Total Liabilities | $26.7M+5.5% | $26.6M+3.7% | $25.8M+6.6% | $25.4M-0.9% | $25.3M-9.7% | $25.6M-11.4% | $24.2M-12.1% | $25.6M-8.4% |
| Current Liabilities | $5.4M-3.6% | $5.7M-6.2% | $5.4M+4.1% | $5.2M-20.6% | $5.6M-49.8% | $6.1M-46.3% | $5.2M-56.6% | $6.6M-28.3% |
| Non-Current Liabilities | $21.3M+8.1% | $20.9M+6.8% | $20.4M+7.3% | $20.1M+6.0% | $19.7M+16.5% | $19.5M+11.0% | $19.0M+21.6% | $19.0M+1.4% |
| Total Equity | -$17.2Mn/m | -$16.4Mn/m | -$15.7Mn/m | -$15.5Mn/m | -$14.3Mn/m | -$13.0Mn/m | -$11.5Mn/m | -$12.5Mn/m |
| Retained Earnings | -$126.0Mn/m | -$125.5Mn/m | -$125.3Mn/m | -$125.5Mn/m | -$124.6Mn/m | -$123.7Mn/m | -$122.3Mn/m | -$122.7Mn/m |
Not reported in any period shown, so not listed: Long-Term Debt.
FALC Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'23Filing | Q4'22Filing | Q3'22Filing | Q2'22Filing | Q1'22Filing | Q4'21Filing | Q3'21Filing | Q2'21Filing |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$88K-141.2% | $219Kn/m | -$108Kn/m | -$1.5Mn/m | $214K+55.8% | -$176K-117.4% | -$363K-197.5% | -$483Kn/m |
| Depreciation & Amortization | $25K-29.3% | $25K-46.6% | $26K-42.4% | $33K-31.9% | $36K-38.2% | $48K-23.4% | $45K-30.1% | $48K-23.6% |
| Stock-Based Compensation | $5K-34.9% | N/A | $8K+62.4% | $19K+306.7% | $8K+83.0% | N/A | $5K+28.6% | $5K+53.5% |
| Capital Expenditures | $3Kn/m | $0-100.0% | $0-100.0% | $0-100.0% | $0-100.0% | $43Kn/m | $38Kn/m | $19Kn/m |
| Free Cash Flow | -$91K-142.6% | $219Kn/m | -$108Kn/m | -$1.5Mn/m | $214K+122.1% | -$219K-121.7% | -$401K-207.8% | -$502Kn/m |
| Investing Cash Flow | -$3Kn/m | $0n/m | $0n/m | -$38K-105.4% | $0n/m | -$73K-316.4% | -$778Kn/m | $708K+1108.2% |
| Financing Cash Flow | -$77Kn/m | $177Kn/m | $0-100.0% | $0-100.0% | $0n/m | -$40Kn/m | $876Kn/m | $1.5M+98.4% |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
FALC Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q1'23Filing | Q4'22Filing | Q3'22Filing | Q2'22Filing | Q1'22Filing | Q4'21Filing | Q3'21Filing | Q2'21Filing |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 83.5%+3.7pp | 85.5%-3.5pp | 87.6%+1.0pp | 83.4%-3.1pp | 79.7%-3.3pp | 89.0%+1.8pp | 86.5%-4.1pp | 86.5%-2.2pp |
| Operating Margin | -18.5%+35.8pp | -0.8%-10.9pp | 12.5%-1.2pp | -21.2%-15.6pp | -54.3%-53.8pp | 10.1%+11.4pp | 13.7%-25.0pp | -5.6%-21.3pp |
| Net Margin | -19.7%+34.4pp | 0.8%+12.3pp | 7.2%-3.4pp | -38.9%-27.8pp | -54.1%-64.8pp | -11.5%-8.9pp | 10.6%-24.2pp | -11.1%-22.7pp |
| Return on Assets | -4.7%+5.4pp | 0.2%+3.7pp | 2.2%-0.6pp | -9.5%-6.7pp | -10.1%-13.2pp | -3.5%-2.8pp | 2.8%-8.7pp | -2.8%-5.9pp |
| Current Ratio | 0.92-0.1x | 0.94-0.3x | 0.95-0.5x | 0.93-0.3x | 1.06+0.4x | 1.20+0.6x | 1.45+0.9x | 1.18+0.6x |
| Asset Turnover | 0.24+0.1x | 0.25-0.1x | 0.300.0x | 0.240.0x | 0.19-0.1x | 0.300.0x | 0.26-0.1x | 0.250.0x |
| FCF Margin | -4.0%-14.5pp | 8.6%+14.3pp | -3.5%+8.7pp | -63.6%-48.2pp | 10.5%+7.9pp | -5.8%-33.4pp | -12.2%-20.6pp | -15.4%-7.5pp |
Not reported in any period shown, so not listed: Return on Equity, Debt-to-Equity, Liabilities-to-Equity.
Note: Shareholder equity is negative (-$16.4M), which causes the debt-to-equity, liabilities-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.
Where FalconStor Software Ranks
Frequently Asked Questions
FalconStor Software (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.
FalconStor Software (FALC) revenue declined by 27.9% year-over-year, from $13.9M to $10.1M in fiscal year 2022.
No, FalconStor Software (FALC) reported a net loss of $1.1M over the trailing 12 months to March 31, 2023. In fiscal year 2022 it reported a net loss of $1.8M, with a net profit margin of -17.9%.
FalconStor Software (FALC) had EBITDA of -$1.1M in fiscal year 2022, measuring earnings before interest, taxes, depreciation, and amortization.
FalconStor Software (FALC) had a gross margin of 84.4% in fiscal year 2022, indicating the percentage of revenue retained after direct costs of goods sold.
FalconStor Software (FALC) had an operating margin of -12.5% in fiscal year 2022, reflecting the profitability of core business operations before interest and taxes.
FalconStor Software (FALC) had a net profit margin of -17.9% in fiscal year 2022, representing the share of revenue converted into profit after all expenses.
FalconStor Software (FALC) recorded an outflow of $1.2M in free cash flow during fiscal year 2022. The change from the previous fiscal year is not meaningful, because that year’s figure was zero or negative. 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.
FalconStor Software (FALC) recorded an outflow of $1.2M in operating cash flow during fiscal year 2022, representing cash used by core business activities.
FalconStor Software (FALC) had $10.2M in total assets as of fiscal year 2022, including both current and long-term assets.
FalconStor Software (FALC) reported no capital expenditure during fiscal year 2022.
FalconStor Software (FALC) invested $2.6M in research and development during fiscal year 2022.
FalconStor Software (FALC) had a current ratio of 0.94 as of fiscal year 2022, which is below 1.0, which may suggest potential liquidity concerns.
FalconStor Software (FALC) had a return on assets of -17.7% for fiscal year 2022, measuring how efficiently the company uses its assets to generate profit.
FalconStor Software (FALC) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to March 31, 2023). The market capitalization is $9.7M as of Nov 4, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
FalconStor Software (FALC) trades at 0.9x sales, its market capitalization divided by $10.3M revenue, trailing 12 months to March 31, 2023. The market capitalization is $9.7M as of Nov 4, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
At the end of fiscal year 2022, FalconStor Software (FALC) held $2.0M in cash, cash equivalents and investments, and reported an operating cash outflow of $1.2M over that year. Dividing the one by the other, the reported balance equals about 20 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.
FalconStor Software (FALC) has negative shareholder equity of -$16.4M as of fiscal year 2022, so no debt-to-equity or liabilities-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. 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.
FalconStor Software (FALC) has an Altman Z-Score of -16.52, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
FalconStor Software (FALC) has a Piotroski F-Score of 1 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
FalconStor Software (FALC) reported a net loss of $1.8M while operations used $1.2M of cash. With neither figure positive, the ratio between the two carries no quality signal. 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.