Companies /Technology

Strategy Inc.

NASDAQ: MSTR Software - Application
$123.19
▼ $1.69 (−1.35%) today
Markets closed · 6:10pm ET

Q3 2025 Earnings

Reported Oct 30, 2025, 4:34pm ET · SEC source
$8.42
Miss −12.95%
EPS · est. $9.67
$128.7M
Beat +10.04%
Revenue · est. $116.9M
−29.0%
Trailing market
MSTR vs S&P since report
4 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−3%0+3%Oct 30Oct 31report 4:34pm ETearnings−0.1%+1.7%
−3%0+3%Oct 30Oct 31earnings−0.1%+1.7%
MSTR +1.7%S&P 500 −0.1%
−3%0+3%Oct 30Oct 31report 4:34pm ETearnings−0.1%+1.7%
−3%0+3%Oct 30Oct 31earnings−0.1%+1.7%
MSTR +1.7%NASDAQ −0.1%
−12%−6%0+6%Oct 29Nov 7report 4:34pm ETearnings−1.8%−7.8%
−12%−6%0+6%Oct 29Nov 7earnings−1.8%−7.8%
MSTR −7.8%S&P 500 −1.8%
−12%−6%0+6%Oct 29Nov 7report 4:34pm ETearnings−3.4%−7.8%
−12%−6%0+6%Oct 29Nov 7earnings−3.4%−7.8%
MSTR −7.8%NASDAQ −3.4%
−7.55%
Day of report
+5.87%
Next session
−6.82%
One week
−28.77%
30 days

S&P 500 over the same 30 days: +0.25%.

Did MSTR Beat Earnings? Q3 2025 Results

Strategy posted a sharp swing to profitability in Q3 2025, delivering earnings of $8.42 per diluted share against a consensus estimate of $0.00, as a $3.89 billion unrealized gain on its bitcoin holdings under the newly adopted ASU 2023-08 fair value accounting standard transformed what was a $340.17 million net loss a year ago into net income of $2.79 billion. Revenue grew 10.9% year over year to $128.69 million, anchored by a 65.4% jump in subscription services to $45.97 million as the company's cloud migration continued, though product support revenue slipped 16.2% to $51.12 million. The bitcoin accumulation engine ran at full speed during the quarter, with Strategy purchasing 42,706 bitcoin at an average of roughly $115,959 each, funded by approximately $5.10 billion in capital markets proceeds; total holdings stood at 640,808 bitcoin as of late October, with a market value near $70.90 billion. Looking ahead, management reaffirmed full-year guidance of approximately $80 in diluted EPS and $24.00 billion in net income, both contingent on bitcoin reaching $150,000 by year-end.

Key Takeaways
  • Unrealized gain on digital assets of $3.9 billion in Q3 2025 driven by bitcoin price appreciation under fair value accounting (ASU 2023-08)
  • Subscription services revenue grew 65.4% year-over-year as customers shift from product licenses to cloud subscriptions
  • Aggressive capital markets activity raising approximately $5.1 billion in Q3 net proceeds to fund bitcoin acquisitions
  • Total revenues increased 10.9% year-over-year to $128.7 million

“In the third quarter and into October, Strategy continued to strengthen its position as the world's leading Bitcoin Treasury Company. We increased our bitcoin holdings to 640,808 bitcoin and have raised $20 billion year-to-date through our robust capital markets platform. We remain fully aligned with our STRC guidance framework and have announced a 25 bps increase in the STRC dividend rate to 10.50% for November. We are also actively laying the groundwork for credit securities in international jurisdictions, positioning Strategy to become a dominant credit issuer globally. With this momentum, we are reaffirming our full year targets of $20 billion BTC $ Gain and 30% BTC Yield.”

MicroStrategy CEO, on the earnings call

Forward Guidance & Outlook

Strategy reaffirmed its FY2025 earnings guidance assuming a year-end bitcoin price of $150,000: approximately $34 billion in operating income, approximately $24 billion in net income, and approximately $80 diluted EPS. The company also reaffirmed FY2025 BTC Yield target of 30% and BTC $ Gain target of $20 billion, to be achieved through preferred stock offerings, disciplined common stock issuance guided by mNAV thresholds, and resulting expansion of bitcoin holdings. The company announced a 25 bps increase in STRC dividend rate to 10.50% for November and is laying groundwork for credit securities in international jurisdictions. Approximately $15.9 billion remains available under the Common Stock ATM Program, $20.4 billion under the STRK ATM Program, $1.7 billion under the STRF ATM Program, and $4.1 billion under the STRD ATM Program.

MSTR YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$2.0B$4.0B$116.1M$128.7MRevenue$81.7M$90.7MGross Profit$353.9M$3.9BOperating Income$273.4M$2.8BNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

MSTR Revenue by Segment

Subscription Services$46.0M+65.4%
Product Support$51.1M−16.2%
Product Licenses$17.4M
Other Services
Other Services (Consulting & Education)$14.2M−12.0%

Figures from SEC filings and company reports. Not investment advice.