Strategy Q3 Earnings Beat Estimates, Revenues Increase Y/Y

Strategy MSTR reported third-quarter 2025 earnings of $8.42 per share against the year-ago quarter loss of $1.56 per share. The Zacks Consensus Estimate was pegged at a loss of 11 cents per share. 

Revenues of $128.7 million beat the Zacks Consensus Estimate by 9.9%. The figure climbed 11% year over year.

Bitcoin per share, which represents the ratio between MSTR’s bitcoin holdings and assumed Diluted Shares Outstanding, expressed in terms of Sats (“Sat” or a “Satoshi” is one one-hundred-millionth of one bitcoin, the smallest indivisible unit of a bitcoin), hit 41,370 as of Oct. 26.

MSTR Q3 in Detail

In the third quarter of 2025, product licenses and subscription services revenues jumped 63% year over year to $63.3 million and accounted for 49.2% of revenues. Subscription services soared 65.4% year over year to $46 million. Product licenses jumped 57% to $17.4 million. Product Support and Other Services revenues fell 16.2% and 12%, respectively.

Gross margin expanded 10 basis points on a year-over-year basis to 70.5%. 
 

Strategy Inc Price, Consensus and EPS Surprise

Strategy Inc price-consensus-eps-surprise-chart | Strategy Inc Quote

Sales and marketing, and research and development expenses declined 15.5% and 32.1%, on a year-over-year basis, respectively. General and administrative expenses surged 13.9%, on a year-over-year basis.

Strategy reported operating income of $3.9 billion against the year-ago quarter’s operating loss of $0.4 billion. Operating income included an unrealized gain on MSTR’s digital assets worth $3.89 billion.

MSTR’s Bitcoin Details

Strategy is the world’s largest bitcoin treasury company, holding 640,808 bitcoins, for a total cost of $47 billion, implying $74K per bitcoin. 

Bitcoin yield hit 26% year to date and was 25.9% at the end of the third quarter of 2025. The company now targets a bitcoin yield of 30% for 2025.

In dollar terms, bitcoin gain was $12.8 billion at the end of the third quarter and $12.9 billion year to date. The company now targets a gain of $20 billion for 2025.

Strategy’s Balance Sheet Details

As of Oct. 26, 2025, Strategy’s digital assets were comprised of approximately 640,808 bitcoins, with an original cost basis and market value of $47.4 billion and $70.9 billion, respectively. This reflects an average cost per bitcoin of approximately $74,032 and a market price per bitcoin of $110,600, respectively. 

In the reported quarter, MSTR received net proceeds of approximately $5.1 billion and approximately $89.5 million between Oct. 1, 2025, and Oct. 26, 2025.

The company, through its common stock ATM program, raised $2.2 billion, $152.8 million through the STRK ATM program, $217.3 million through the STRF ATM program, and $48.5 million through the STRD ATM program.

In July 2025, Strategy received net proceeds of roughly $2.5 billion through the issuance and sale of 28,011,111 shares of the Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock) at a public offering price of $90.00 per share.

MSTR Offers Positive 2025 Guidance

For 2025, Strategy expects operating income of $34 billion, net income of $24 billion, and earnings of $80 per share, based on a bitcoin price outlook of $150,000 at the end of the year.

Zacks Rank & Stocks to Consider

Currently, Strategy has a Zacks Rank #3 (Hold). 

Abacus Global Management ABL, American Healthcare REIT AHR and Accelerant Holdings ARX are some better-ranked stocks in the broader Zacks Finance sector. Each of the three stocks currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Abacus Global Management shares have declined 35% year to date. Abacus Global Management is set to report its third-quarter 2025 results on Nov. 6.

American Healthcare REIT shares have appreciated 59.4% year to date. American Healthcare REIT is set to report its third-quarter 2025 results on Nov. 6.

Accelerant Holdings shares are down 57.2% year to date. Accelerant Holdings is set to report its third-quarter 2025 results on Nov. 13.

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This article originally published on Zacks Investment Research (zacks.com).

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