MSTR earnings analysis
What we found in MSTR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-24.45
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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