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FalconStor SoftwareFALC 53 Gross Margin % is 86.27% as of Dec. 2025, which is 3% above its 10-year median of 83.87. GuruFocus rates FALC with a GF Score™ of 53/100 and a GF Value™ of $1.47 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,676 Software companies, FalconStor Software ranks better than 91.22% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
FalconStor Software had a gross margin of 86.27% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
FalconStor Software Gross Margin % Related Terms
FalconStor Software Gross Margin % Historical Data
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The historical data trend for FalconStor Software's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, FalconStor Software's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
FalconStor Software Gross Margin % vs Software Industry
For the Software industry and Technology sector, FalconStor Software's Gross Margin % distribution charts can be found below:
* The bar in red indicates where FalconStor Software's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
FalconStor Software (FALC) has a Gross Margin % of 86.27% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on FalconStor Software and its competitors. This is near median its historical median of 83.87. Over the past decade, FalconStor Software's Gross Margin % has ranged from 72.63 to 87.62. According to the industry distribution chart, FalconStor Software ranks #235 out of 2676 companies in the Software industry, placing it in the top 8.8%.
Is FalconStor Software's Gross Margin % too high?
FalconStor Software's current Gross Margin % of 86.27% is near median its 10-year median of 83.87. Over the past 10 years, this metric has ranged from a low of 72.63 to a high of 87.62. The Software industry median Gross Margin % is 40.18. FalconStor Software's value of 86.27% is 114.7% above this industry median. Based on the distribution chart, FalconStor Software ranks #235 out of 2676 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, FalconStor Software has a GF Score™ of 53/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FalconStor Software's Gross Margin % compare to INUV and NVNI?
According to the Software industry distribution chart, FalconStor Software ranks #235 out of 2676 companies for Gross Margin %. This places FalconStor Software in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.18. FalconStor Software's value of 86.27% is 114.7% above this benchmark. Historically, FalconStor Software's own Gross Margin % has ranged from 72.63 to 87.62 over the past decade. While the company's 10-year median is 83.87 vs. the industry median of 40.18, FalconStor Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.18, based on 2,676 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FalconStor Software's current Gross Margin % of 86.27% is 114.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on FalconStor Software and its competitors. For the Software industry, the median Gross Margin % is 40.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FalconStor Software's current Gross Margin % is 86.27%, which is near median its own 10-year median of 83.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FalconStor Software stock overvalued right now?
Based on GuruFocus' analysis, FalconStor Software (FALC) is currently considered Modestly Overvalued. The stock's GF Value™ is $1.47, compared to a current price of $1.84 — trading 25.2% above its estimated fair value. The current Gross Margin % is 86.27%, which is near median its 10-year median of 83.87 and 114.7% above the Software industry median of 40.18. FalconStor Software's overall GF Score™ is 53/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For FalconStor Software (FALC), the current Gross Margin % is 86.27% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is FalconStor Software (FALC) Overvalued in 2026?
Based on GuruFocus' analysis, FalconStor Software stock appears to be overvalued.
The current stock price of $1.84 is trading 25.2% above its estimated GF Value™ of $1.47.
GuruFocus considers FalconStor Software to be Modestly Overvalued.
Key valuation signals for FALC:
Gross Margin %: 86.27% (near median its 10-year median of 83.87)
GF Value™: $1.47 vs. price of $1.84 (25.2% above fair value)
Industry Position: 114.7% above the Software median (#235 of 2676)
No single metric tells the full story. See the FALC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FalconStor Software Inc operates in the trusted data protection software industry, modernizing disaster recovery and backup operations for the hybrid cloud environment. The company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing storage costs and long-term retention needs. Its products are StorSafe, StorGuard, and StorSight, which deliver data protection, cloud migration, disaster recovery, ransomware recovery, and needs across multi-OS, multi-storage, and on-premises to cloud/hybrid cloud environments. The company's geographical markets include the Americas, which generate the highest revenue, Europe, the Middle East, Africa, and others.
53GF Score
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