FalconStor Software, Inc. (OTCMarkets.com: FALC), a trusted data protection leader modernizing data protection and intelligence for the hybrid cloud world, today announced financial results for its third quarter of 2025.
“Our strategic shift to subscription and consumption-based recurring revenue models continued in the third quarter, and we are now seeing meaningful ARR growth across all deployment models where IBM Power customers run their mission-critical workloads,” said Todd Brooks, CEO of FalconStor Software. “Total hybrid cloud ARR run-rate increased 54% year-over-year, on-premises ARR run-rate grew 62%, and cloud-native ARR run-rate increased 92%. This reinforces that modernization is not a single-direction journey. IBM Power customers are modernizing on-premises, moving to cloud where it makes sense, and increasingly operating in hybrid models. Our solutions are uniquely positioned to support this full spectrum.”
“Today, we have more than 900 active IBM Power customers across 27+ countries, protecting 3,700+ petabytes of vital data, and we continue to deepen alignment across the IBM ecosystem to expand that reach. While total revenue declined year-over-year due to timing and the expanding role of monthly consumption contracts, the underlying momentum in our recurring business continues to be encouraging, and we see increasingly clear visibility toward consistent total revenue growth as ARR becomes a larger portion of our revenue mix.”
Third Quarter 2025 Financial Results
- Hybrid Cloud ARR Run-Rate: 54% increase trailing twelve months
- Ending Cash: $1.9 million, compared to $2.8 million in the third quarter of fiscal year 2024
- Total Revenue: $2.5 million, compared to $2.9 million in the third quarter of fiscal year 2024
- Total Operating Expenses: $2.1 million, compared to $1.9 million in the third quarter of fiscal year 2024
- Non-GAAP EBITDA: $0.1 million, compared to $0.7 million in the third quarter of fiscal year 2024
- GAAP Net Income (Loss): $0.03 million, compared to $0.68 million in the third quarter of fiscal year 2024
“While year-over-year results reflect softer revenue performance, we continue to execute on our long-term strategy, investing in innovation and customer success,” said Vincent Sita, FalconStor CFO. “At the same time, we remain disciplined in managing expenses and improving operational efficiency to position the company for sustainable, profitable growth.”
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