Strategy Q4 Earnings Miss Estimates, Revenues Increase Y/Y

Strategy MSTR reported a fourth-quarter 2025 loss of $42.93 per share, significantly wider than the year-ago loss of $3.03. The loss was primarily caused by fair-value accounting adjustments on bitcoin rather than operating deterioration. The reported figure fell short of the Zacks Consensus Estimate, which had projected earnings of $46.02 per share.

Revenues of $123 million beat the Zacks Consensus Estimate by 2.83%. The figure increased 1.9% year over year.

MSTR’s Q4 in Detail

In the fourth quarter of 2025, product licenses and subscription services revenues increased 26.3% year over year to $59.6 million and accounted for 48.5% of revenues. Subscription services soared 62.1% year over year to $51.8 million. Product licenses decreased 48.5% to $7.9 million. Product Support and Other Services revenues fell 16.9% and 1.8%, respectively.

Gross profit fell 6% year over year to $81.3 million. Gross margin declined 560 basis points on a year-over-year basis to 66.1%.

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 9% and 11.4%, on a year-over-year basis, respectively. General and administrative expenses grew 1.2% on a year-over-year basis.

Strategy reported an operating loss of $17.4 billion, against the year-ago quarter’s operating loss of $1.0 billion. The latest quarter’s operating loss primarily reflects a $17.4 billion unrealized loss on the company’s digital asset holdings.

MSTR’s Bitcoin Details

Strategy is the world’s largest bitcoin treasury company, holding 713,502 bitcoins, for a total cost of $54 billion, implying $76K per bitcoin.

Bitcoin yield reached 23.1% year to date and was 22.8% at the end of the fourth quarter of 2025. For the full year 2025, the company generated a BTC gain of 101,873, generating approximately $8.9 billion in value.

Strategy’s Balance Sheet Details

As of Dec. 31, 2025, cash and cash equivalents were $2.3 billion, compared with $54.3 million as of Sept. 30, 2025.

As of Feb. 1, 2026, Strategy’s digital assets were comprised of approximately 713,502 bitcoins, with an original cost basis and market value of $54.26 billion and $59.75 billion, respectively. This reflects an average cost per bitcoin of approximately $76,052 and a market price per bitcoin of $83,740 as of Jan. 30, 2026.

In the reported quarter, MSTR received gross proceeds of approximately $5.6 billion, followed by an additional $3.9 billion in aggregate gross proceeds between Jan. 1, 2026, and Feb. 1, 2026.

The company, through its common stock ATM program, raised $4.4 billion, $33.8 million through the STRK ATM program, $99.5 million through the STRF ATM program, $136.6 million through the STRD ATM program and $157.6 million through the STRC ATM program.

In November 2025, Strategy received gross proceeds of approximately EUR 620.0 million through the issuance and sale of 7,750,000 shares of its 10% Series A Perpetual Stream Preferred Stock (STRE Stock), priced at EUR 80 per share in a public offering.

MSTR’s Zacks Rank & Stocks to Consider

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

Credicorp BAP, Equinix EQIX and Getty Realty GTY 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.

Credicorp shares have surged 87.4% over the past year. BAP is set to report its fourth-quarter 2025 results on Feb. 12, 2026.

Equinix shares have declined 13.5% over the past year. EQIX is set to report its fourth-quarter 2025 results on Feb. 11, 2026.

Getty Realty shares have returned 0.3% over the past year. GTY is set to report its fourth-quarter 2025 results on Feb. 12, 2026.

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

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