FalconStor Software, Inc. reported its financial performance for the first quarter of 2025, concluding on March 31, 2025. The company highlighted several key metrics reflecting its growth trajectory.
Financial Overview
- Total revenue reached $2.5 million, up from $2.3 million during the same period in 2024, marking an 8% increase.
- Hybrid cloud Annual Recurring Revenue (ARR) run-rate soared by 65% year-over-year.
- Net income stood at $0.1 million, a turnaround from a loss of $0.1 million in Q1 2024.
- Ending cash balance was $3.3 million, compared to $2.9 million in the prior year.
- Total operating expenses increased to $2.1 million, up from $1.9 million in the first quarter of fiscal year 2024.
- Non-GAAP EBITDA remained stable at $0.1 million year-over-year.
Executive Insights
Todd Brooks, CEO of FalconStor, expressed satisfaction with the company’s performance, particularly noting the robust growth in hybrid cloud ARR driven by increased adoption of IBM-related services and products. He mentioned the successful rollout of FalconStor Thomas, a new virtual data protection assistant powered by IBM watsonx, which is currently utilized by numerous IBM partners globally.
CFO Vincent Sita emphasized the company’s commitment to growth and innovation while maintaining a disciplined approach to expense management to ensure long-term financial health. He stated that FalconStor is well-positioned for sustained growth in the years to come, supported by its expanding hybrid cloud footprint and ongoing innovation.
Non-GAAP Financial Measures
The financial figures presented in this report include non-GAAP measures, which are not aligned with generally accepted accounting principles. FalconStor’s management uses these metrics to provide a clearer view of the company’s operational performance and facilitate internal comparisons. The non-GAAP metrics exclude factors such as depreciation, amortization, restructuring costs, stock-based compensation, and other non-operating expenses. A detailed reconciliation of GAAP and non-GAAP results can be found in the official financial documents.
For additional details regarding FalconStor’s operations and financial standing, visit their official website.