Strategy Inc is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: 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.
Drawn from management commentary in the Q1 2026 10-Q:
MSTR's software business generated $124.3M in revenue for Q1 FY2026, up 11.9% YoY from $111.1M, with gross profit rising 8.1% to $83.4M. However, gross margin compressed slightly to 67.1% from 69.4%, reflecting a 20.5% increase in cost of revenue.
Operating loss ballooned to -$14.47B in Q1 FY2026 versus -$5.92B in the prior year period, a deterioration of 144.4% YoY. This is almost entirely attributable to unrealized losses on the company's Bitcoin holdings under fair value accounting rules, not operational deterioration.
Total assets surged to $54.27B (up 23.6% YoY), overwhelmingly reflecting the company's Bitcoin holdings. Cash and equivalents skyrocketed 3,560.5% YoY to $2.21B, while current assets jumped 1,074.4% to $2.39B, indicating significant capital raising activity.
Revenue
$124.3M
++11.92% YoY
EPS (Basic)
$-38.25
-131.96% YoY
Gross Margin
67.1%
-2.35% YoY
Operating Income
$-14.47B
-144.37% YoY
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