FalconStor Software reports developments around enterprise data protection, disaster recovery, backup modernization, and data intelligence for hybrid cloud environments. Its news commonly covers financial results, recurring-revenue trends, hybrid cloud ARR, subscription and consumption-based customer agreements, and operating efficiency as the company shifts away from perpetual license revenue.
Company updates also focus on IBM Power environments, managed service provider adoption, global partner activity, and products such as Habanero, a software-as-a-service offering for secure offsite retention, disaster recovery copies, and long-term archives using IBM cloud technologies.
Power by Fortra launched Continuity Care, a managed IBM Power recovery service using technology from FalconStor (FALC).
The full offering combines FalconStor Habanero and Cloud Clean Room with quarterly recovery validation testing, reporting and ongoing operational support. Habanero moves IBM Power data to immutable storage on IBM Cloud Object Storage, while Cloud Clean Room provides an isolated recovery environment on IBM PowerVS. A streamlined entry option offers offsite backup protection with backup reporting and validation services. Customers can add Cloud Clean Room and the full quarterly recovery validation service at any time.
FalconStor Software (OTC: FALC) announced the general availability of FalconStor Clarity, an AI-powered unified selling platform for its global channel partners in the IBM ecosystem. Clarity is the company’s first commercially available AI-based offering and is provided at no cost to FalconStor partners via partners.falconstor.com.
The platform combines a generative AI engine with live pipeline visibility, AI-enriched deal intelligence, assisted infrastructure sizing, and integrated post-sale support. It includes FalconStor Thomas, an upgraded agentic AI assistant that generates deal briefs, battle cards, emails, and strategy guidance, and supports native-language engagement for partners worldwide. Clarity runs on IBM Cloud and integrates tools like the redesigned StorSafe Sizing Calculator and an Opportunity Workspace to centralize deal context and technical resources.
FalconStor Software (OTC: FALC) reported second quarter 2026 results for the period ended June 30, 2026. Total revenue rose 27% year-over-year to $2.6 million, marking a third consecutive quarter of double-digit growth. Hybrid Cloud ARR run-rate increased 91% over the trailing twelve months. GAAP net loss for Q2 narrowed to $0.3 million from $0.5 million, while non-GAAP EBITDA improved to $(0.2) million from $(0.5) million. For the first half of 2026, net income was $798,828, compared with a net loss of $466,135 a year earlier. Ending cash was $1.9 million, down from $2.9 million in Q2 2025, and total operating expenses increased to $2.4 million from $2.2 million. FalconStor also launched its Cloud Clean Room offering, built on patent-pending Zero Trust Secure Enclave technology, to extend its Habanero platform for IBM Power customers. The company highlighted continued preferred stock dividend payments and an ongoing focus on operating efficiency and disciplined balance sheet management.
FalconStor (OTC:FALC) launched the Cloud Clean Room, an on-demand cyber recovery infrastructure for IBM Power environments, built on patent-pending Zero Trust Secure Enclave technology.
The platform runs on IBM Cloud PowerVS, supports validated recovery testing from a known-clean state, and produces audit-ready documentation to help meet regulatory frameworks such as DORA, FFIEC, and PCI-DSS. It is initially available as an add-on to FalconStor Habanero immutable offsite vaulting and can be licensed by ISVs and service providers to build managed recovery services.
FalconStor Software (OTC: FALC) reported Q1 2026 results for period ended March 31, 2026. Total revenue was $4.3M, up 73% year-over-year; Hybrid Cloud ARR run-rate rose 89% YoY. GAAP net income was $1.1M and Non-GAAP EBITDA was $1.4M. Ending cash was $2.4M.
ARR represented 87% of total billings versus 67% a year earlier, reflecting a shift toward recurring revenue and growing MSP adoption of StorSafe-MSP and enterprise uptake of StorSafe-Enterprise and Habanero.
FalconStor (OTC: FALC) reported Q4 and full‑year 2025 results with a return to quarterly revenue growth driven by subscription and hybrid cloud expansion. Hybrid Cloud ARR run‑rate rose 61% YoY; Q4 total revenue was $3.3M (+17% YoY). Q4 non‑GAAP EBITDA doubled to $0.8M and GAAP net income was $1.6M. Full‑year revenue was $10.4M (flat vs. 2024) and ending cash remained $2.5M. Management emphasized a 75% recurring revenue mix and ongoing operating discipline entering 2026.
FalconStor (OTC Pink: FALC) on January 15, 2026 launched Habanero, a globally available SaaS for secure offsite data protection for IBM Power environments. Habanero provides fully managed offsite retention, disaster recovery copies, immutable protection, policy-driven retention, and support for sovereign storage without requiring customers to change existing backup processes or deploy new infrastructure. The service uses FalconStor technology with IBM Power Virtual Server and IBM Cloud Object Storage, is partner-enabled, and is listed in the IBM Cloud Catalog. FalconStor says Habanero targets predictable pricing aligned to object-storage economics and aims to expand recurring revenue via a consumption-based model.
FalconStor (OTC Pink:FALC) reported 2025 momentum driven by partner expansion, a new strategic agreement, and a product launch. Active worldwide partners grew 15% YoY, and the company now protects 900+ IBM Power customers across 27+ countries with long-term retention exceeding 3,700 petabytes. More than 75% of total revenue is recurring, reflecting a multi-year shift to subscription and consumption models. FalconStor introduced Habanero, a hybrid cloud object storage service now listed in the IBM Cloud Catalog, and expanded partner support with Thomas, a watsonx-powered technical reference resource for IBM partners.
FalconStor Software (OTCMarkets: FALC) reported third quarter 2025 results for the period ended September 30, 2025, highlighting strong ARR momentum and mixed GAAP results.
Key metrics: total hybrid cloud ARR run-rate +54% YoY; on-premises ARR run-rate +62% YoY; cloud-native ARR run-rate +92% YoY. Total revenue was $2.5 million versus $2.9 million a year earlier. Ending cash was $1.9 million versus $2.8 million a year earlier. Total operating expenses were $2.1 million. Non-GAAP EBITDA was $0.1 million and GAAP net income was $0.03 million.
Management emphasized the strategic shift to subscription and consumption ARR growth and continued investment in product and customer success while managing expenses.
FalconStor Software (OTC:FALC), a data protection leader, reported mixed Q2 2025 financial results. The company achieved significant growth in its hybrid cloud business, with a 57% year-over-year increase in hybrid cloud ARR run-rate and a 77% increase in cloud-native ARR run-rate.
However, total revenue declined to $2.1 million from $2.4 million in Q2 2024. Operating expenses increased to $2.2 million from $2.0 million year-over-year. The company reported a GAAP net loss of $(0.5) million compared to $(0.03) million in Q2 2024. Cash position improved by 13% year-over-year to $2.9 million.
The company's strategic shift to subscription and consumption-based recurring revenue models continues to progress, despite near-term revenue impacts from deal timing and monthly consumption contracts.