{"url":"https://newsforagent.com/news/2026-11-10/falconstor-software-q3-2026-revenue-growth","markdown_url":"https://newsforagent.com/news/2026-11-10/falconstor-software-q3-2026-revenue-growth.md","title":"FalconStor Software Posts 30% Revenue Growth in Q3 2026","headline":"FalconStor Software Revenue Rises 30% to $3.3 Million as Fortra Partnership Launches","description":"FalconStor Software grew Q3 2026 revenue 30% to $3.3 million and turned operating income positive at $439,000, alongside a new Fortra partnership launch.","section":"Earnings & Results","published_at":"2026-11-10T21:48:39+00:00","modified_at":"2026-11-10T21:48:39+00:00","author":"News Desk","key_takeaways":["FalconStor Software reported third-quarter 2026 total revenue of $3.3 million, up 30% from $2.5 million a year earlier.","Hybrid Cloud ARR run-rate rose 79% year-over-year to $2.0 million, and operating income reached $439,000.","Power by Fortra launched Continuity Care, built on FalconStor Habanero and Cloud Clean Room, delivered through more than 7,000 direct IBM Power relationships."],"companies":[{"name":"FalconStor Software","is_primary":true,"profile_url":"https://akta.pro/company-profiles/0005w4q/falconstor-software","website":"http://www.falconstor.com"},{"name":"Fortra","is_primary":false,"profile_url":"https://akta.pro/company-profiles/0000mp7/fortra","website":"https://www.helpsystems.com"}],"source":{"publisher":"Business Wire","title":"FalconStor Software Announces Third Quarter of 2026 Results","url":"https://www.businesswire.com/news/home/20261110378515/en/"},"other_sources":[],"tags":["Earnings & Results","FalconStor Software","Fortra"],"body_markdown":"[FalconStor Software](https://akta.pro/company-profiles/0005w4q/falconstor-software) reported third-quarter 2026 total revenue of $3.3 million, up 30% from $2.5 million a year earlier, with operating income turning positive at $439,000. The company announced the results on November 10, 2026, according to [Business Wire](https://www.businesswire.com/news/home/20261110378515/en/). FalconStor is a data protection software provider focused on backup and disaster recovery for hybrid cloud environments, particularly IBM Power and IBM i workloads.\n\n## FalconStor's Fourth Straight Quarter of Double-Digit Growth\n\nCEO Todd Brooks said the quarter marked the fourth consecutive period of double-digit revenue growth. \"Our Hybrid Cloud ARR run-rate grew 79% year-over-year and continues to outpace any decline in our legacy product line,\" Brooks said. Hybrid Cloud ARR run-rate reached $2.0 million, compared with $1.9 million in the third quarter of fiscal 2025.\n\nRevenue grew $744,000 year-over-year while operating expenses grew $206,000, moving operating income from breakeven to $439,000. Net income rose to $381,926 from $30,245. For the first nine months of 2026, net income was $1.18 million, compared with a net loss of $435,890 in the same period last year. Non-GAAP EBITDA was $0.5 million, compared with $0.1 million a year earlier.\n\nShortly after the quarter closed, Power by Fortra launched Continuity Care, built on FalconStor Habanero and Cloud Clean Room. The service provides immutable offsite copies, quarterly recovery tests in an isolated clean room on IBM PowerVS, and audit-ready documentation, managed by Fortra's team. It is delivered through Fortra's more than 7,000 direct IBM Power relationships. [Fortra](https://akta.pro/company-profiles/0000mp7/fortra) released patches for eight vulnerabilities in Core Privileged Access Manager (BoKS) in October 2026, according to SecurityWeek.\n\n## FalconStor's Subscription Pivot in Company Records\n\nFalconStor completed a multi-year pivot from perpetual licensing to subscription-based recurring revenue, reaching approximately 75% recurring revenue mix and 61% year-over-year growth in Hybrid Cloud ARR run-rate by the fourth quarter of 2025, according to [akta.pro company records](https://akta.pro/company-data). The same records show fourth-quarter 2025 total revenue of $3.3 million, up 17% from the fourth quarter of 2024. FalconStor is IBM's certified partner for PowerVS data protection and migration, with products listed in the IBM Cloud Catalog.\n\n## FalconStor's Product Launches Before the Quarter\n\nFalconStor launched Cloud Clean Room, an on-demand cyber recovery infrastructure platform for IBM Power environments built on its Zero Trust Secure Enclave technology, in July 2026, Stock Titan reported. In August 2026, the company announced general availability of FalconStor Clarity, an AI-powered selling platform for channel partners in the IBM ecosystem, also per Stock Titan. Power by Fortra launched Continuity Care, powered by FalconStor Habanero and Cloud Clean Room, in October 2026, Stock Titan reported.\n\n## What Comes Next for FalconStor\n\nFalconStor said it remains focused on converting its momentum into sustained, profitable growth for customers, partners and shareholders. CFO Vincent Sita said the company remains focused on maintaining financial discipline and supporting its long-term strategic objectives.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}