FalconStor Software Q1 revenue, profit jump on service provider demand

FalconStor Software

06/05/2026 21:53

Overview

Data protection software firm's fiscal Q1 revenue rose 73% yr/yr

Net income for fiscal Q1 increased to $1.1 mln from $0.1 mln yr/yr

Hybrid Cloud ARR run-rate rose 89% yr/yr, driven by MSP adoption

Outlook

Company did not provide specific guidance for future quarters or the full year

Result Drivers

MSP ADOPTION - Increased adoption by managed service providers, especially IBM-centric MSPs standardizing on StorSafe-MSP, drove revenue growth

RECURRING REVENUE SHIFT - Shift toward recurring revenue models, with hybrid cloud ARR run-rate up 89% and ARR representing 87% of billings, strengthened business predictability

ENTERPRISE EXPANSION - Expanded reach among enterprise customers through StorSafe-Enterprise and Habanero offerings contributed to growth

Company press release: ID:nBw9GJX6ta

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$4.30 mln
Q1 Net Income
$1.10 mln
Q1 Operating Expenses
$2.60 mln


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)