Companies /Technology

Strategy Inc.

NASDAQ: MSTR Software - Application
$123.19
▼ $1.69 (−1.35%) today
Markets closed · 6:16pm ET

Q1 2026 Earnings

Reported May 5, 2026, 4:15pm ET · SEC source
$-38.25
Miss −101.50%
EPS · est. $-18.98
$124.3M
Miss −0.61%
Revenue · est. $125.1M
−32.6%
Trailing market
MSTR vs S&P since report
4 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−3%0+3%May 5May 6report 4:15pm ETearnings+1.2%+0.5%
−3%0+3%May 5May 6earnings+1.2%+0.5%
MSTR +0.5%S&P 500 +1.2%
−2%0+2%+4%May 5May 6report 4:15pm ETearnings+1.8%+0.5%
−2%0+2%+4%May 5May 6earnings+1.8%+0.5%
MSTR +0.5%NASDAQ +1.8%
−3%0+3%+6%May 4May 13report 4:15pm ETearnings+2.5%−3.4%
−3%0+3%+6%May 4May 13earnings+2.5%−3.4%
MSTR −3.4%S&P 500 +2.5%
−3%0+3%+6%May 4May 13report 4:15pm ETearnings+4.8%−3.4%
−3%0+3%+6%May 4May 13earnings+4.8%−3.4%
MSTR −3.4%NASDAQ +4.8%
−0.04%
Day of report
−3.74%
Next session
−4.71%
One week
−31.91%
30 days

S&P 500 over the same 30 days: +0.73%.

Did MSTR Beat Earnings? Q1 2026 Results

Strategy delivered a deeply disappointing Q1 2026, missing consensus estimates on both the top and bottom lines as a $14.46 billion unrealized loss on its bitcoin holdings overwhelmed every other metric. The company posted a loss of $38.25 per diluted share, more than double the $18.98 consensus estimate, representing a 101.50% miss, while revenue of $124.30 million came in just shy of the $125.07 million forecast despite growing 11.9% year over year. The staggering net loss of $12.54 billion reflected bitcoin price declines that hammered the company's 762,099-coin position, compounded by $229.53 million in preferred stock dividend obligations. Beneath the bitcoin volatility, the underlying software business showed meaningful momentum, with subscription services climbing to $58.88 million from $37.10 million a year ago, even as gross margin slipped to 67.1%. The company raised $7.37 billion in Q1 through at-the-market offerings and an additional $4.32 billion in early Q2, continuing its aggressive bitcoin accumulation strategy that has drawn sustained analyst interest and strong buy-side conviction heading into the back half of the year.

Key Takeaways
  • Subscription services revenue grew to $58.9 million from $37.1 million year-over-year
  • Total revenue increased 11.9% year-over-year to $124.3 million
  • Bitcoin holdings grew 22% year to date to 818,334 BTC as of May 3, 2026
  • BTC Yield of 9.4% achieved year to date
  • BTC $ Gain of approximately $4.97 billion year to date
  • STRC raised $5.58 billion year to date, a 189% growth
  • $14.46 billion unrealized loss on digital assets drove massive operating loss

“Adoption of Bitcoin continues to grow in 2026. Digital Credit, highlighted by STRC, has been a big success. STRC has shown strong demand, high liquidity, and low volatility. We raised $5.6 billion year-to-date of STRC gross proceeds, increased daily trading volume to $375 million, while bringing volatility down to 3%, all done during a bitcoin bear market. We also continue to see traditional finance and major banks including Morgan Stanley, Goldman Sachs, and Citi announcing bitcoin ETFs, trading, custody, and lending services.”

MicroStrategy CEO, on the earnings call

Forward Guidance & Outlook

Strategy expects distributions paid on its preferred equity instruments to be treated as non-taxable return of capital for the foreseeable future (ten years or more), based on its expectation that it will not have accumulated earnings & profits for U.S. federal income tax purposes. The company has proposed a shareholder vote to double STRC's dividend payment frequency to a semi-monthly schedule to enhance liquidity and improve price stability. The company continues to actively raise capital through its ATM offering programs, having raised an additional $4.32 billion in early Q2 2026, and continues its strategy of acquiring bitcoin in a manner it believes is accretive to shareholders.

MSTR YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$40.0M$80.0M$120.0M$111.1M$124.3MRevenue$77.1M$83.4MGross Profit
$0$40.0M$80.0M$120.0MRevenueGross Profit

MSTR Revenue by Segment

Subscription Services$58.9M+58.7%
Product Support$44.2M−15.9%
Product Licenses$5.5M−24.3%
Other Services$15.7M+11.1%
Other Services (Consulting & Education)

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