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. 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.

FalconStor Software, Inc. (FALC) Financials

FALC

Trailing 12 months to March 31, 2023

Revenue $10.3M -15.5% YoY

Net Income -$1.1M +27.1% YoY

EPS (Diluted) -$0.38 +2.6% YoY

Free Cash Flow -$1.5M -65.8% YoY

Market Cap $13.2M as of Sep 9, 2026

Price / Sales 1.3x on $10.3M revenue, trailing 12 months to March 31, 2023

Price / Earnings n/m net loss, so no earnings multiple, trailing 12 months to March 31, 2023

Price / Book n/m negative shareholder equity, so no book multiple, Q1 FY2023

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 Sep 9, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period Q1 FY2023, ended Mar 31, 2023 Reported May 10, 2023 Currency USD FYE December

Newest figures come from the 10-Q 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, Inc. (FALC) reported $10.3M in revenue over the twelve months to Mar 31, 2023, down 15.5% 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 (10-K and 10-Q reports).

Rhea AI FALC FY2022 2026-08-30

FalconStor’s dominant mechanic is a high-gross-margin software model whose limited scale leaves operating results highly sensitive to revenue contraction.

FY2020’s profitability was a temporary operating reset, not a durable earnings base: revenue of $14.8M supported a 12.3% operating margin after operating expenses were reduced. As revenue fell to $10.1M by FY2022, the operating margin swung to -12.5%, indicating that the cost structure cannot absorb weaker volume without quickly reversing profit.

The balance sheet is structurally undercapitalized: FY2022 liabilities of $26.6M exceeded total assets of $10.2M, leaving negative equity rather than a shareholder-funded cushion. The 0.9x current ratio also indicates that short-term assets were slightly below short-term obligations.

Cash conversion tracked operating performance rather than reinvestment needs: FY2022 operating cash flow and free cash flow were both -$1.2M, despite no reported capital spending, so the cash shortfall came from operations. The reported liquidity measure equaled 20.1 months of that year’s operating outflow comparison, a balance-sheet snapshot rather than a forward projection.

Financial Health Signals

Financial health score not available

FalconStor Software, Inc. does not currently provide enough eligible data for a peer-relative financial health score, so none is published. The signals and metrics below are current.

Altman Z-Score Distress

-16.44

FalconStor Software, Inc. scores -16.44, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($13.2M) relative to total liabilities ($26.6M). 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.

Piotroski F-Score Partial

1/8

FalconStor Software, Inc. 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.

Earnings Quality No Cash Backing

N/A

FalconStor Software, Inc. 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

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Earnings & Revenue

Revenue

$2.3M

YoY+10.7%

QoQ-11.0%

5Y CAGR-14.6%

10Y CAGR-17.4%

FalconStor Software, Inc. 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%.

EBITDA

-$396K

YoY+63.3%

QoQ-1966.1%

FalconStor Software, Inc.'s EBITDA was -$396K in Q1 2023, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 63.3% from the same quarter a year earlier. Against the prior quarter it is down 1966.1%.

Net Income

-$448K

YoY+59.6%

QoQ-2305.2%

FalconStor Software, Inc. reported -$448K in net income in Q1 2023. This represents an increase of 59.6% from the same quarter a year earlier. Against the prior quarter it is down 2305.2%.

EPS (Diluted)

-$0.11

YoY+45.0%

QoQ-83.3%

FalconStor Software, Inc. earned -$0.11 per diluted share (EPS) in Q1 2023. This represents an increase of 45.0% from the same quarter a year earlier. Against the prior quarter it is down 83.3%.

Cash & Balance Sheet

Free Cash Flow

-$91K

YoY-142.6%

QoQ-141.7%

FalconStor Software, Inc. 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%.

Cash & Debt

$1.8M

YoY-45.6%

QoQ-8.5%

5Y CAGR-16.6%

10Y CAGR-20.2%

FalconStor Software, Inc. held $1.8M in cash as of Q1 2023; long-term debt is not reported for that period.

Shares Outstanding

YoY+0.6%

QoQ0.0%

5Y CAGR-40.8%

FalconStor Software, Inc. had 7M shares outstanding in Q1 2023. This represents an increase of 0.6% from the same quarter a year earlier. It is unchanged from the prior quarter.

Dividends Per Share

Not reported for Q1 2023.

Margins & Returns

Gross Margin

83.5%

YoY+3.7pp

QoQ-2.0pp

5Y CAGR-1.4pp

10Y CAGR+11.6pp

FalconStor Software, Inc.'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.

Operating Margin

-18.5%

YoY+35.8pp

QoQ-17.8pp

5Y CAGR-29.7pp

FalconStor Software, Inc.'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.

Net Margin

-19.7%

YoY+34.4pp

QoQ-20.5pp

5Y CAGR-29.9pp

10Y CAGR+8.9pp

FalconStor Software, Inc.'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.

Return on Equity

Not reported for Q1 2023.

Capital Allocation

R&D Spending

$619K

YoY-12.4%

QoQ0.0%

5Y CAGR-9.2%

FalconStor Software, Inc. 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.

Capital Expenditures

$3K

5Y CAGR+9.9%

10Y CAGR-41.1%

FalconStor Software, Inc. invested $3K in capex in Q1 2023, funding long-term assets and infrastructure.

Share Buybacks

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.

FALC quarterly income statement

Metric	TTM	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K	FY1010-K	FY0910-K
Revenue	$10.3M	$10.1M-27.9%	$13.9M-5.6%	$14.8M-10.7%	$16.5M-7.3%	$17.8M-29.1%	$25.2M-16.9%	$30.3M-37.7%	$48.6M+5.0%	$46.3M-21.1%	$58.6M-22.2%	$75.4M-9.0%	$82.9M0.0%	$82.8M-7.4%	$89.5M
Cost of Revenue	$1.5M	$1.6M-19.8%	$2.0M+6.8%	$1.8M-37.3%	$2.9M-2.2%	$3.0M-46.3%	$5.5M-33.1%	$8.3M-14.4%	$9.7M-8.9%	$10.6M-29.9%	$15.2M-26.6%	$20.7M-4.0%	$21.5M+0.4%	$21.4M+25.6%	$17.1M
Gross Profit	$8.7M	$8.5M-29.2%	$12.0M-7.4%	$12.9M-5.1%	$13.6M-8.3%	$14.9M-24.3%	$19.6M-10.7%	$22.0M-43.5%	$38.9M+9.1%	$35.6M-18.0%	$43.5M-20.6%	$54.7M-10.8%	$61.4M-0.1%	$61.4M-15.2%	$72.4M
R&D Expenses	$2.5M	$2.6M-9.6%	$2.8M+14.8%	$2.5M-23.1%	$3.2M-18.0%	$3.9M-40.0%	$6.5M-44.3%	$11.7M-8.5%	$12.8M+2.7%	$12.5M-20.2%	$15.6M-17.6%	$19.0M-11.9%	$21.5M-20.1%	$26.9M+1.1%	$26.6M
SG&A Expenses	$3.2M	$3.2M+10.1%	$2.9M-4.4%	$3.0M-46.4%	$5.6M+6.8%	$5.3M-13.7%	$6.1M-5.4%	$6.5M-29.5%	$9.2M+0.8%	$9.1M-25.8%	$12.3M-8.0%	$13.3M+14.0%	$11.7M+21.5%	$9.6M-2.5%	$9.9M
Operating Income	-$566K	-$1.3M-423.9%	$388K-78.6%	$1.8M+377.4%	-$655K-1282.5%	-$47K-104.6%	$1.0M+109.9%	-$10.3M-701.5%	-$1.3M+78.8%	-$6.1M+55.4%	-$13.6M+0.5%	-$13.7M+38.5%	-$22.2M-26.3%	-$17.6M-177.1%	-$6.3M
EBITDA	N/A	-$1.1M-293.6%	$588K-71.2%	$2.0M+900.0%	-$255K-142.8%	$596K-70.9%	$2.1M+122.9%	-$9.0M-1371.5%	$705K+119.8%	-$3.6M+67.5%	-$10.9M-5.6%	-$10.4M+42.8%	-$18.1M-51.6%	-$11.9M-2504.4%	-$459K
Income Tax	$279K	$210K-60.0%	$527K+3778.8%	-$14K-102.9%	$492K+111.0%	$233K+2967.2%	$8K-98.7%	$587K+56.4%	$376K-26.4%	$510K+132.4%	-$1.6M-300.1%	$786K-34.9%	$1.2M-93.1%	$17.6M+619.5%	-$3.4M
Net Income	-$1.1M	-$1.8M-4157.6%	-$42K-103.9%	$1.1M+161.8%	-$1.8M-93.2%	-$907K-186.2%	$1.1M+109.6%	-$11.0M-470.1%	-$1.9M+73.2%	-$7.2M+34.0%	-$10.9M+27.0%	-$15.0M+35.9%	-$23.4M+33.9%	-$35.4M-1043.8%	-$3.1M
EPS (Basic)	N/A	-$0.47-104.3%	-$0.23-155.6%	-$0.09+83.9%	-$0.56+88.3%	-$4.79	$0.00+100.0%	-$0.30-275.0%	-$0.08+55.6%	-$0.18+25.0%	-$0.24+25.0%	-$0.32+36.0%	-$0.50+35.9%	-$0.78-1014.3%	-$0.07
EPS (Diluted)	-$0.38	-$0.47	-$0.23-155.6%	-$0.09+83.9%	-$0.56	-$4.79	$0.00+100.0%	-$0.30	-$0.08	-$0.18+25.0%	-$0.24+25.0%	-$0.32+36.0%	-$0.50+35.9%	-$0.78-1014.3%	-$0.07
Diluted Shares (Avg)	N/A	7M	7M+10.0%	6M+0.3%	6M	933,301	47M+9.1%	43M	41M	46M-3.6%	48M+1.2%	47M+1.6%	47M+2.4%	46M+1.7%	45M

Metric	Q1'2310-Q	Q4'2210-Q	Q3'2210-Q	Q2'2210-Q	Q1'2210-Q	Q4'2110-K	Q3'2110-Q	Q2'2110-Q
Revenue	$2.3M+10.7%	$2.5M-28.5%	$3.1M-6.8%	$2.4M-26.5%	$2.0M-46.5%	$3.6M-2.4%	$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-30.7%	$2.7M-5.7%	$2.0M-29.2%	$1.6M-48.6%	$3.1M-1.3%	$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	$893K+5.0%	$778K+2.6%	$827K+30.4%	$724K+10.0%	$850K+1.4%	$758K+4.6%	$634K+76.7%	$658K-22.2%
Operating Income	-$421K+62.2%	-$19K-113.9%	$383K-14.8%	-$508K-178.1%	-$1.1M-6279.6%	$139K+398.2%	$449K-73.8%	-$183K-133.2%
EBITDA	-$396K+63.3%	-$19K-115.0%	$422K-22.9%	-$463K-261.4%	-$1.1M-2789.9%	$128K+120.8%	$548K-73.7%	-$128K-113.6%
Income Tax	-$53K+56.5%	$60K-87.0%	$50K+201.3%	$222K+8242.5%	-$121K-371.8%	$463K+884.3%	$17K+46.6%	$3K+107.3%
Net Income	-$448K+59.6%	$20K+104.6%	$221K-36.5%	-$931K-157.0%	-$1.1M-371.7%	-$437K-190.9%	$349K-77.5%	-$362K-189.1%
EPS (Basic)	-$0.11+45.0%	-$0.06+25.0%	-$0.03-400.0%	-$0.18-50.0%	-$0.20-1900.0%	-$0.08+11.1%	$0.01-94.7%	-$0.12
EPS (Diluted)	-$0.11+45.0%	-$0.06+25.0%	-$0.03-400.0%	-$0.18	-$0.20-1900.0%	-$0.08	$0.01	-$0.12
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

FALC quarterly balance sheet

Metric	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K	FY1010-K	FY0910-K
Total Assets	$10.2M-19.7%	$12.7M-5.5%	$13.4M-15.0%	$15.8M-1.2%	$16.0M+20.9%	$13.2M-23.5%	$17.3M-43.2%	$30.4M-28.1%	$42.3M-20.5%	$53.2M-10.9%	$59.7M-18.3%	$73.0M-4.6%	$76.5M	N/A
Current Assets	$5.4M-26.7%	$7.3M+6.8%	$6.9M-13.3%	$7.9M-14.2%	$9.2M+43.6%	$6.4M-33.4%	$9.6M-56.3%	$22.1M-32.9%	$32.9M-21.9%	$42.2M-12.1%	$48.0M-20.5%	$60.3M-4.3%	$63.0M	N/A
Cash & Equivalents	$2.0M-36.8%	$3.2M+65.6%	$1.9M+30.2%	$1.5M-51.8%	$3.1M+202.5%	$1.0M-70.2%	$3.4M-43.6%	$6.0M-44.7%	$10.9M-43.6%	$19.3M+3.4%	$18.7M+14.7%	$16.3M-8.9%	$17.8M+13.3%	$15.8M
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0-100.0%	$7.4M-31.9%	$10.9M+35.0%	$8.1M-23.3%	$10.5M-49.6%	$20.9M+10.5%	$18.9M	$0
Inventory	$0-100.0%	$8K-49.3%	$15K-49.1%	$30K+101.6%	$15K	$0-100.0%	$6K-91.2%	$71K-80.0%	$352K-61.7%	$919K+43.0%	$643K-63.7%	$1.8M+25.5%	$1.4M	N/A
Accounts Receivable	$2.3M-20.2%	$2.9M+0.7%	$2.8M-16.7%	$3.4M-5.5%	$3.6M-13.5%	$4.2M-16.7%	$5.0M-24.6%	$6.6M-25.4%	$8.9M-20.2%	$11.2M-21.1%	$14.1M-26.8%	$19.3M-17.1%	$23.3M	N/A
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0-100.0%	$611K+5.6%	$579K	$0
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%	$4.2M0.0%	$4.2M0.0%	$4.2M0.0%	$4.2M0.0%	$4.2M	N/A
Total Liabilities	$26.6M+3.7%	$25.6M-11.4%	$28.9M-2.9%	$29.8M+11.5%	$26.7M-22.4%	$34.4M-11.7%	$39.0M-7.5%	$42.1M-7.5%	$45.6M+13.2%	$40.3M-13.3%	$46.5M-7.5%	$50.2M+37.2%	$36.6M	N/A
Current Liabilities	$5.7M-6.2%	$6.1M-46.3%	$11.3M-3.2%	$11.7M+13.8%	$10.3M-41.5%	$17.6M-12.6%	$20.1M-17.6%	$24.4M-22.7%	$31.6M+13.5%	$27.8M-25.4%	$37.4M-6.5%	$39.9M+45.0%	$27.5M	N/A
Non-Current Liabilities	$20.9M+6.8%	$19.5M+11.0%	$17.6M-2.7%	$18.1M+10.0%	$16.4M-2.3%	$16.8M-10.7%	$18.9M+6.5%	$17.7M+26.9%	$14.0M+12.4%	$12.4M+36.4%	$9.1M-11.5%	$10.3M+13.5%	$9.1M	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+2.2%	-$21.7M-85.4%	-$11.7M-11.8%	-$10.5M-268.4%	$6.2M-53.1%	$13.3M-41.9%	$22.8M-42.9%	$39.9M	N/A
Retained Earnings	-$125.5M-1.5%	-$123.7M0.0%	-$123.7M+0.2%	-$123.9M-1.4%	-$122.1M+6.7%	-$130.9M+0.8%	-$132.0M-9.1%	-$121.0M-1.6%	-$119.1M-6.4%	-$111.8M-10.8%	-$100.9M-17.4%	-$85.9M-37.4%	-$62.6M	N/A

Metric	Q1'2310-Q	Q4'2210-Q	Q3'2210-Q	Q2'2210-Q	Q1'2210-Q	Q4'2110-K	Q3'2110-Q	Q2'2110-Q
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	$0	$0	$0	$0	$0	$0	$0	$0
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	$0	$0	$0	$0	$0	$0	$0	$0
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	-$17.2M-19.6%	-$16.4M-26.5%	-$15.7M-36.5%	-$15.5M-23.8%	-$14.3M+1.5%	-$13.0M+16.6%	-$11.5M+17.9%	-$12.5M+17.0%
Retained Earnings	-$126.0M-1.1%	-$125.5M-1.5%	-$125.3M-2.5%	-$125.5M-2.3%	-$124.6M-1.9%	-$123.7M0.0%	-$122.3M+0.3%	-$122.7M+1.2%

Not reported in any period shown, so not listed: Long-Term Debt.

FALC Cash Flow Statement

FALC quarterly cash flow statement

Metric	TTM	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K	FY1010-K	FY0910-K
Operating Cash Flow	-$1.5M	-$1.2M-35.7%	-$884K-225.1%	$706K+137.2%	-$1.9M-25.7%	-$1.5M+41.3%	-$2.6M+72.7%	-$9.4M-49.0%	-$6.3M-1387.2%	$491K+104.4%	-$11.1M-111.4%	-$5.3M-267.9%	$3.1M+281.6%	-$1.7M-119.6%	$8.8M
Depreciation & Amortization	N/A	$120K-39.7%	$199K-11.3%	$225K-43.8%	$400K-37.9%	$644K-37.5%	$1.0M-22.3%	$1.3M-33.3%	$2.0M-20.6%	$2.5M-5.9%	$2.7M-19.7%	$3.3M-19.3%	$4.1M-27.2%	$5.6M-4.2%	$5.9M
Stock-Based Compensation	N/A	$39K+83.1%	$21K+34.4%	$16K-51.2%	$32K-50.1%	$65K-77.0%	$282K-62.5%	$751K-44.4%	$1.4M-7.8%	$1.5M-12.2%	$1.7M-63.6%	$4.6M-16.5%	$5.5M-30.2%	$7.9M-8.0%	$8.6M
Capital Expenditures	$3K	$0-100.0%	$142K	$0-100.0%	$172K+79.1%	$96K+1.1%	$95K-67.8%	$294K-63.1%	$797K+5.0%	$759K-50.6%	$1.5M-38.2%	$2.5M+12.0%	$2.2M-17.8%	$2.7M-37.3%	$4.3M
Free Cash Flow	-$1.5M	-$1.2M-16.9%	-$1.0M-245.3%	$706K+134.1%	-$2.1M-28.9%	-$1.6M+39.8%	-$2.7M+72.5%	-$9.7M-36.5%	-$7.1M-2560.1%	-$268K+97.9%	-$12.7M-63.4%	-$7.8M-944.5%	$918K+120.7%	-$4.4M-198.4%	$4.5M
Investing Cash Flow	-$41K	-$38K+79.1%	-$182K-527.1%	-$29K+79.6%	-$143K+1.5%	-$145K+21.0%	-$184K-102.6%	$7.1M+194.3%	$2.4M+176.3%	-$3.2M-223.5%	$2.6M-64.5%	$7.2M+234.0%	-$5.4M-248.6%	$3.6M	N/A
Financing Cash Flow	$101K	$177K-92.4%	$2.3M+1048.0%	-$246K-154.0%	$455K-87.9%	$3.8M+1053.7%	$326K	$0+100.0%	-$456K+91.6%	-$5.4M-157.7%	$9.4M+1177.3%	$738K-19.8%	$920K+124.5%	$410K	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	$0-100.0%	$138K-97.1%	$4.7M	$0	$0	$0	$0-100.0%	$4.0M

Metric	Q1'2310-Q	Q4'2210-Q	Q3'2210-Q	Q2'2210-Q	Q1'2210-Q	Q4'2110-K	Q3'2110-Q	Q2'2110-Q
Operating Cash Flow	-$88K-141.2%	$219K+224.5%	-$108K+70.1%	-$1.5M-215.6%	$214K+55.8%	-$176K-117.4%	-$363K-197.5%	-$483K-74.5%
Depreciation & Amortization	$25K-29.3%	$25K-46.6%	$40K-59.5%	$45K-18.0%	$36K-38.2%	$48K-23.4%	$98K-72.9%	$54K-86.2%
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	$3K	$0-100.0%	$0-100.0%	$0-100.0%	$0-100.0%	$43K	$38K	$19K
Free Cash Flow	-$91K-142.6%	$219K+199.9%	-$108K+73.0%	-$1.5M-203.4%	$214K+122.1%	-$219K-121.7%	-$401K-207.8%	-$502K-81.5%
Investing Cash Flow	-$3K	$0+100.0%	$0+100.0%	-$38K-105.4%	$0+100.0%	-$73K-316.4%	-$778K-2742.9%	$708K+1108.2%
Financing Cash Flow	-$77K	$177K+546.2%	$0-100.0%	$0-100.0%	$0	-$40K	$876K+187.6%	$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.

FALC quarterly financial ratios

Metric	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K	FY1010-K	FY0910-K
Gross Margin	84.4%-1.6pp	86.0%-1.6pp	87.6%+5.2pp	82.4%-0.9pp	83.3%+5.3pp	78.0%+5.4pp	72.6%-7.4pp	80.1%+3.0pp	77.0%+2.9pp	74.2%+1.6pp	72.6%-1.4pp	74.0%-0.1pp	74.1%-6.8pp	80.9%
Operating Margin	-12.5%-15.3pp	2.8%-9.5pp	12.3%+16.3pp	-4.0%-3.7pp	-0.3%-4.3pp	4.1%+38.1pp	-34.0%-31.4pp	-2.6%+10.4pp	-13.1%+10.1pp	-23.2%-5.1pp	-18.1%+8.7pp	-26.8%-5.6pp	-21.2%-14.1pp	-7.1%
Net Margin	-17.9%-17.6pp	-0.3%-7.6pp	7.3%+17.9pp	-10.6%-5.5pp	-5.1%-9.3pp	4.2%+40.5pp	-36.3%-32.4pp	-4.0%+11.6pp	-15.6%+3.0pp	-18.6%+1.2pp	-19.9%+8.3pp	-28.2%+14.5pp	-42.7%-39.2pp	-3.5%
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-175.8%-62.7pp	-113.1%-10.6pp	-102.4%-13.8pp	-88.6%	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%+71.6pp	-63.6%-57.3pp	-6.3%+10.7pp	-17.0%+3.5pp	-20.5%+4.6pp	-25.1%+6.9pp	-32.0%+14.2pp	-46.2%	N/A
Current Ratio	0.94-0.3x	1.20+0.6x	0.61-0.1x	0.68-0.2x	0.90+0.5x	0.36-0.1x	0.48-0.4x	0.90-0.1x	1.04-0.5x	1.51+0.2x	1.28-0.2x	1.51-0.8x	2.29	N/A
Debt-to-Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	6.47+3.0x	3.50+1.3x	2.20+1.3x	0.92	N/A
Asset Turnover	0.99-0.1x	1.100.0x	1.10+0.1x	1.05-0.1x	1.12-0.8x	1.90+0.2x	1.75+0.2x	1.60+0.5x	1.090.0x	1.10-0.2x	1.26+0.1x	1.13+0.1x	1.08	N/A
FCF Margin	-11.9%-4.6pp	-7.4%-12.1pp	4.8%+17.3pp	-12.5%-3.5pp	-9.0%+1.6pp	-10.6%+21.5pp	-32.1%-17.4pp	-14.7%-14.1pp	-0.6%+21.0pp	-21.6%-11.3pp	-10.3%-11.4pp	1.1%+6.5pp	-5.3%-10.4pp	5.0%

Metric	Q1'2310-Q	Q4'2210-Q	Q3'2210-Q	Q2'2210-Q	Q1'2210-Q	Q4'2110-K	Q3'2110-Q	Q2'2110-Q
Gross Margin	83.5%+3.7pp	85.5%-2.8pp	87.6%+1.0pp	83.4%-3.1pp	79.7%-3.3pp	88.2%+1.0pp	86.5%-4.1pp	86.5%-2.2pp
Operating Margin	-18.5%+35.8pp	-0.8%-4.7pp	12.5%-1.2pp	-21.2%-15.6pp	-54.3%-53.8pp	3.9%+5.2pp	13.7%-25.0pp	-5.6%-21.3pp
Net Margin	-19.7%+34.4pp	0.8%+13.1pp	7.2%-3.4pp	-38.9%-27.8pp	-54.1%-64.8pp	-12.3%-8.2pp	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%-2.3pp	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	0.250.0x	0.300.0x	0.240.0x	0.19-0.1x	0.280.0x	0.26-0.1x	0.250.0x
FCF Margin	-4.0%-14.5pp	8.6%+14.7pp	-3.5%+8.7pp	-63.6%-48.2pp	10.5%+7.9pp	-6.2%-33.8pp	-12.2%-20.6pp	-15.4%-7.5pp

Not reported in any period shown, so not listed: Return on Equity, Debt-to-Equity.

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.

Similar Companies

Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.

Company	Fiscal year	Revenue	Net income	Net margin	Market cap	Health score
FalconStor Software, Inc. FALC	FY2022	$10.1M	-$1.8M	-17.9%	$13.2M	—
Webstar Technolo WBSR	FY2025	N/A	-$1.2M	N/A	$10.1M	—
Seachange Intl Inc SEAC	FY2023	$32.5M	-$11.4M	-35.1%	$15.0M	—

Where FalconStor Software, Inc. Ranks

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 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) recorded an outflow of $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) recorded an outflow of $1.2M in operating cash flow during fiscal year 2022, representing cash used by 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) reported no capital expenditure during fiscal year 2022.

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 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 P/E ratio?

FalconStor Software, Inc. (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 $13.2M as of Sep 9, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is FalconStor Software, Inc.'s price-to-sales ratio?

FalconStor Software, Inc. (FALC) trades at 1.3x sales, its market capitalization divided by revenue of $10.3M revenue, trailing 12 months to March 31, 2023. The market capitalization is $13.2M as of Sep 9, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

How does FalconStor Software, Inc.'s liquidity compare with its operating cash outflow?

At the end of fiscal year 2022, FalconStor Software, Inc. (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.

Why is FalconStor Software, Inc.'s debt-to-equity ratio negative or not reported?

FalconStor Software, Inc. (FALC) has negative shareholder equity of -$16.4M as of fiscal year 2022, so no debt-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.

What is FalconStor Software, Inc.'s Altman Z-Score?

FalconStor Software, Inc. (FALC) has an Altman Z-Score of -16.44, 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.

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

FalconStor Software, Inc. (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.

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

FalconStor Software, Inc. (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.