10-Q · May 6, 2026
MicroStrategy (MSTR) reported Q1 2026 results, with revenues of $124.3 million, slightly missing expectations of $124.97 million, while EPS of -$38.25 significantly fell short of the -$15.87 estimate. The company…
Earnings analysis · 10-Q
MSTR earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Revenue rose to $122.368 million from $114 million in the prior-year quarter, but profitability was overwhelmed by bitcoin-related fair-value volatility: the company reported an $8.22 billion net loss and diluted EPS of…
Read full summary
Revenue rose to $122.368 million from $114 million in the prior-year quarter, but profitability was overwhelmed by bitcoin-related fair-value volatility: the company reported an $8.22 billion net loss and diluted EPS of negative $24.45. Gross margin, operating margin, segment revenue, operating cash flow, capex, and free cash flow were not available in the supplied filing extract. Liquidity includes approximately $2.45 billion of short-term cash and Treasury holdings, but this sits against approximately $6.75 billion of debt and management's statement that software operations are not expected to fund obligations over the next 12 months.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-24.45
What stood out
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Revenue grew about 7% year over year
Quarterly revenue was $122.368 million, up from $114 million in Q2 2025 (approximately 7.3% year over year). A comparable immediately preceding-quarter revenue figure was not available in the supplied filing extract.
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Large cash reserve supports liquidity
Cash, cash equivalents and Treasury Bills/Notes maturing within one year totaled approximately $2.45 billion at June 30, 2026, including a $2.40 billion USD Reserve.
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Repurchase capacity established
The board authorized up to $1.0 billion of preferred-stock repurchases and up to $1.0 billion of class A common-stock repurchases on June 29, 2026. After quarter-end, the company repurchased 288,930 STRC shares.
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Controls remained effective
Management concluded disclosure controls and procedures were effective at the reasonable-assurance level as of June 30, 2026, and reported no material change in internal control during the quarter.
What to watch
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Bitcoin fair-value losses drive extreme EPS volatility
The company reported a net loss of $8.22 billion and diluted EPS of negative $24.45 for the quarter, reflecting unrealized digital-asset losses. Bitcoin traded below $60,000 and above $120,000 during the 12 months preceding June 30, 2026, underscoring earnings volatility under fair-value accounting.
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Debt burden exceeds software cash generation
Outstanding indebtedness was approximately $6.75 billion at June 30, 2026. Management states that software-business cash flow is not expected to cover financial obligations or liquidity needs over the next 12 months.
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Preferred dividend obligations add fixed charges
STRC's regular dividend rate increased to 12.00% effective for periods with record dates on or after July 1, 2026; a further 50-basis-point increase would raise annual accrual by approximately $52.4 million. The company may need reserve cash, bitcoin sales, ATM issuance, or new financing to fund fixed obligations.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management states that it does not expect the enterprise analytics software business to generate sufficient operating cash flow to satisfy financial obligations or liquidity needs over the next 12 months.
Earlier filings 4
10-K · February 19, 2026
Strategy Inc (formerly MicroStrategy) presents a dual business: an AI-powered enterprise analytics software platform and an active bitcoin treasury strategy. The company is the largest corporate bitcoin holder…
10-Q · November 3, 2025
Strategy Inc. (MSTR) reported Q3 revenue of $128,691 (in thousands), up from $116,071 in Q3 2024, with gross profit of $90,678 and a swing to operating income of $3,890,842 driven by an unrealized digital asset gain of…
10-Q · August 5, 2025
MicroStrategy reported quarter revenue of $114.488M, up from $111.442M a year ago, driven by a 69.5% increase in subscription services. A $14.047B unrealized gain on bitcoin (ASU 2023-08 fair‑value accounting) produced…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.