New Segment Reporting Structure
Beginning Q2 2026, the company reports two segments—Software and Bitcoin—separating bitcoin treasury operations from AI enterprise analytics, providing greater visibility into each business.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Strategy's Q2 FY2026 was defined by an $8.3 billion unrealized loss on its bitcoin holdings, driving a sharp net loss and overshadowing modest software growth. The loss reflected a significant decline in bitcoin prices, partially mitigated by continued aggressive accumulation funded through preferred stock and common equity issuances. Management realigned segment reporting to separately present Software and Bitcoin operations, while introducing a new Digital Credit Capital Framework to manage liquidity and dividend obligations. While software revenue edged higher, the Bitcoin segment's performance highlights the deep dependency of overall results on cryptocurrency market conditions.
Revenue
$122.37M
+6.88% YoY
EPS (Diluted)
-$24.45
-175.00% YoY
Gross Margin
66.6%
-2.1 pts YoY
Operating Income
-$8.33B
-159.37% YoY
Source: SEC XBRL
Strategy (MSTR) reported Q2 FY2026 revenue of $122.37M, up 6.9% year over year. Operating margin was -6808.1%, against 12256.3% a year earlier. MSTR's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | -24.77 | -7.67 | Miss -223.0% |
| Mar 2026 | -38.25 | -4.39 | Miss -770.4% |
| Dec 2025 | -42.93 | 3.03 | Miss -1517.9% |
| Sep 2025 | 8.42 | 8.31 | Beat +1.3% |
Adjusted (non-GAAP) EPS of -$24.77 versus the -$7.67 analyst consensus — a -223.0% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$24.45.
2 reported segments · SEC XBRL
Segment revenue totals $122.37M, which is the $122.37M of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as net income, the measure MSTR itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Beginning Q2 2026, the company reports two segments—Software and Bitcoin—separating bitcoin treasury operations from AI enterprise analytics, providing greater visibility into each business.
Source: 10-Q Item 2 MD&A
BTC Yield for Q2 2026 was 5.0%, down from 8.7% a year ago, as a larger bitcoin base and lower common stock premium made high percentage accretion harder; equity sales partly funded non-bitcoin uses like the USD Reserve and dividends.
Source: 10-Q Item 2 MD&A
In June 2026, the board approved a formal USD Reserve policy, revised STRC dividend rate-setting, repurchase programs for preferred and common stock, and a discretionary BTC monetization program to support financial obligations.
Source: 10-Q Item 2 MD&A
The company acquired 85,296 bitcoins in Q2 2026, funded mainly by $5.46 billion from STRC Stock ATM sales and $0.96 billion from class A common stock ATMs; 1,395 bitcoins were sold to fund preferred stock dividends.
Source: 10-Q Item 2 MD&A
$1.50 billion aggregate principal of 0% Convertible Senior Notes due 2029 were repurchased at a discount, reducing Assumed Diluted Shares Outstanding by approximately 2.2 million shares.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 5 high, 0 medium, 0 low
Bitcoin is highly volatile; significant price declines have caused massive unrealized losses, such as the $8.3 billion loss in Q2 2026, and could further impair the company’s financial condition and the market price of its listed securities.
Source: 10-Q Item 1A Risk Factors
Under ASU 2023-08, the company must recognize fair value changes in bitcoin in earnings; sustained low prices could lead to prolonged losses, and tax benefits from capital losses may be limited without capital gains.
Source: 10-Q Item 1A Risk Factors
A material drop in bitcoin’s market price could impair the company’s ability to meet fixed obligations—including preferred stock dividends and debt service—through equity or debt financing or bitcoin sales, potentially forcing sales at unfavorable prices.
Source: 10-Q Item 1A Risk Factors
The bitcoin accumulation strategy depends on ongoing access to equity and debt markets; if such access is constrained, the company may be unable to fund further acquisitions or meet liquidity needs, threatening the strategy.
Source: 10-Q Item 1A Risk Factors
Substantially all bitcoin is held with a limited number of U.S.-based custodians; a failure, insolvency, or security breach at any major custodian could result in loss or prolonged inaccessibility of a material portion of the company’s assets.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 122.37 $M | 114.49 $M | +6.88% |
Cost of Revenue $M | 40.82 $M | 35.75 $M | +14.18% |
Gross Profit $M | 81.55 $M | 78.74 $M | +3.57% |
Operating Income $B | -8.33 $B | 14.03 $B | -159.37% |
Net Income $B | -8.22 $B | 10.02 $B | -182.03% |
EPS (Basic) $ | -24.45 $ | 36.23 $ | -167.49% |
EPS (Diluted) $ | -24.45 $ | 32.60 $ | -175.00% |
R&D Expense $M | 23.10 $M | 24.07 $M | -4.04% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
MicroStrategy (MSTR) reported a massive Q1 FY2026 net loss of $12.54B driven by a $14.47B operating loss, primarily reflecting unrealized losses on its Bitcoin holdings, while core software revenue grew a modest 11.9% YoY to $124.3M.
MicroStrategy (MSTR) reported a massive $3.85B net loss in FY2025, driven by a $5.44B operating loss largely attributable to unrealized losses on its Bitcoin holdings, even as core software revenue grew modestly by 3.0% to $477M.