FalconStor Software Reports Fourth Quarter and Full Year 2025 Results

AUSTIN, Texas – March 4, 2026 – FalconStor Software, Inc. (OTC: FALC), a data protection company specializing in disaster recovery and backup solutions for hybrid cloud environments, today announced its financial results for the fourth quarter and full year 2025, ending December 31, 2025.

Financial Highlights

The company reported total revenue growth and increased operating leverage driven by expansion in its Hybrid Cloud Annual Recurring Revenue (ARR). Key financial highlights include:

• A 61% increase in Hybrid Cloud ARR run-rate year-over-year.
• A 17% increase in total revenue in Q4 2025 compared to Q4 2024.
• Non-GAAP EBITDA doubled to $0.8 million in Q4 2025 compared to Q4 2024.

For the full year 2025, FalconStor reported net income of $1.1 million, or 5 cents per share, on revenue of $10.4 million. The company’s net income for the fourth quarter was $1.6 million, equating to 19 cents per share.

Executive Commentary

“Our fourth quarter results represent an important milestone in FalconStor’s multi-year transformation,” said Todd Brooks, CEO of FalconStor Software . “After several years of deliberately transitioning our business from perpetual license revenue to subscription and consumption-based recurring revenue, we are beginning to see the expected outcome, a return to total revenue growth while maintaining strong profitability.”

Brooks further noted that approximately 75% of FalconStor’s revenue is now recurring, providing greater visibility and stability for the business.

Company Information

FalconStor Software, Inc. Is based in Austin, Texas and focuses on data management software. Founded in 2000, the company has evolved to address the needs of the modern hybrid cloud landscape .

For inquiries, FalconStor can be contacted at:

• Worldwide Headquarters: FALCONSTOR SOFTWARE, INC. 111 Congress Ave Suite 500 Austin, TX 78701 USA
• Main: 631.777.5188
• Sales: 631.773.5859
• Support: 631.777.3332

Additional contact information for Americas, EMEA, and APAC regions can be found on the FalconStor website.