FalconStor Software Inc. reported its financial results for the second quarter of 2025, ending June 30. The company experienced a decrease in total revenue, which stood at $2.1 million, down from $2.4 million in the same quarter of fiscal year 2024. The GAAP net loss was recorded at $0.5 million, compared to a net loss of $0.03 million in the second quarter of fiscal year 2024. Non-GAAP EBITDA also fell to $(0.5) million from $0.1 million in the previous year's second quarter. Despite the decline in revenue, FalconStor highlighted a 57% increase in the hybrid cloud ARR run-rate over the trailing twelve months. This growth reflects the company's ongoing strategic shift towards subscription and consumption-based recurring revenue models. The company's ending cash balance improved to $2.9 million, compared to $2.5 million in the same period last year. CEO Todd Brooks emphasized the importance of this shift, noting its foundational role in building a resilient business that meets the needs of enterprise customers with mission-critical workloads across on-premises and hybrid cloud environments. CFO Vincent Sita mentioned the company's focus on long-term growth and operational efficiency despite the negative year-over-year revenue growth.