Strategy Inc.
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.07%.
Did MSTR Beat Earnings? Q4 2025 Results
Strategy posted a Q4 2025 loss of $42.93 per diluted share on revenue of $122.99 million, as a $17.44 billion unrealized loss on digital assets, reflecting the adoption of fair value accounting under ASU 2023-08 and declining bitcoin prices during the quarter, drove a net loss of $12.44 billion, dwarfing the year-ago net loss of $670.81 million. The software business offered little offset, with total revenues rising just 1.9% year-over-year despite subscription services climbing 62.1% to $51.76 million, while product license revenue fell to $7.85 million from $15.26 million and gross margin compressed to 66.1% from 71.7%. On the capital markets front, Strategy raised approximately $25.30 billion across FY2025 through ATM programs and preferred stock offerings, and held 713,502 bitcoins with a market value of roughly $59.75 billion as of February 1, 2026. Looking ahead, management intends to expand its STRC preferred stock program in 2026 and maintain a USD Reserve covering two to three years of preferred dividends and debt interest, with distributions expected to qualify as tax-deferred return of capital for at least a decade.
- Subscription services revenue grew 62.1% year-over-year as customers shift from product licenses to cloud subscriptions
- Unrealized loss on digital assets of $17.4 billion in Q4 2025 due to bitcoin price decline under fair value accounting
- Capital markets activity raised approximately $5.6 billion in Q4 2025 gross proceeds across common and preferred stock programs
- BTC Yield of 22.8% achieved for full year 2025, within target range of 22.0%-26.0%
- Product support revenue declined 16.9% year-over-year reflecting cloud migration trend
“We raised $25.3 billion of capital in 2025 to advance our Bitcoin treasury strategy, making us the largest equity issuer among U.S. public companies for a second consecutive year. We increased our holdings to 713,502 bitcoins, including 41,002 bitcoins acquired in January 2026 alone. STRC (Stretch), our flagship Digital Credit instrument, has grown to $3.4 billion in size, supported by increasing liquidity and declining volatility. Our variable dividend rate mechanism for STRC, currently set at 11.25%, has helped maintain STRC price stability near the $100 stated amount despite a weaker bitcoin price environment. In 2026, we remain focused on expanding STRC to generate amplification and drive growth in Bitcoin Per Share (BPS) for MSTR common stock investors.”
MicroStrategy CEO, on the earnings call
Forward Guidance & Outlook
Strategy aims to expand STRC (Stretch preferred stock) in 2026 to generate amplification and drive growth in Bitcoin Per Share for MSTR common stock investors. The company intends to maintain a USD Reserve sufficient to fund two to three years of dividends on preferred stock and interest on outstanding indebtedness. Management expects distributions on preferred equity instruments to continue as tax-deferred return of capital for the foreseeable future (ten years or more). The STRC dividend rate adjustment framework will be evaluated monthly based on STRC's volume-weighted average price relative to its $100 stated amount, with increases when VWAP falls below $99 and potential decreases when above $101. Full year 2025 BTC Yield of 22.8% was achieved against a target range of 22.0% to 26.0%.
MSTR YoY Financials
MSTR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.