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Strategy Announces Third Quarter 2025 Financial Results; Net Income of $2.8 Billion and Diluted EPS of $8.42

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Earnings Highlights



  • $3.9 billion of Operating Income in Q3
  • $2.8 billion of Net Income in Q3
  • $8.42 of Diluted Earnings per Share in Q3

Bitcoin Highlights (as of October 26, 2025)

  • 640,808 bitcoin holdings at a total cost of $47.44 billion, or $74,032 per bitcoin
  • 26.0% BTC Yield achieved in 2025 YTD
  • $12.9 billion BTC $ Gain achieved in 2025 YTD

FY2025 Earnings Guidance

  • Operating Income of $34 billion
  • Net Income of $24 billion
  • Diluted Earnings per Share of $80 per share

TYSONS CORNER, Va.--(BUSINESS WIRE)--Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR) (“Strategy” or the “Company”), the largest corporate holder of bitcoin and the world’s first Bitcoin Treasury Company, today announces financial results for the three-month period ended September 30, 2025 (the third quarter of its 2025 fiscal year).

“In the third quarter and into October, Strategy continued to strengthen its position as the world’s leading Bitcoin Treasury Company. We increased our bitcoin holdings to 640,808 bitcoin and have raised $20 billion year-to-date through our robust capital markets platform. We remain fully aligned with our STRC guidance framework and have announced a 25 bps increase in the STRC dividend rate to 10.50% for November. We are also actively laying the groundwork for credit securities in international jurisdictions, positioning Strategy to become a dominant credit issuer globally. With this momentum, we are reaffirming our full year targets of $20 billion BTC $ Gain and 30% BTC Yield,” said Phong Le, President and Chief Executive Officer.

“Strategy generated third quarter 2025 operating income of $3.9 billion, net income of $2.8 billion and diluted EPS of $8.42 per share, our second consecutive quarter of significant positive earnings, built on the strength of our Bitcoin balance sheet and the capitalization of the company on digital credit. We generated BTC Yield of 26% and BTC $ Gain of $13 billion, year-to-date, and we are reaffirming our full-year guidance for operating income of $34 billion, net income of $24 billion, and diluted EPS of $80 per share, based on a BTC price outlook of $150,000 at the end of the year,” said Andrew Kang, Chief Financial Officer.

“Strategy has built over $71 billion of transparent, scalable, and homogeneous collateral, enabling us to be the leading issuer of digital credit with a broad suite of securities across the yield and volatility spectrum. Our digital treasury business model allows us to create tax-efficient credit instruments with ‘ROC’ (return of capital) dividends, offering superior yield compared to traditional credit. S&P recently issued a ‘B-’ credit rating for Strategy*, which we believe will substantially expand the addressable market for our securities, and we continue to innovate with new credit instruments. Together, we believe these developments will drive greater BTC amplification to the benefit of our common stock investors,” said Michael Saylor, Executive Chairman.

* Ratings are opinions of creditworthiness, not statements of fact, guarantees of performance, or investment recommendations, and may be changed, suspended, or withdrawn at any time.

Q3 Financial Summary

  • Operating Income: Operating income for the third quarter of 2025 was $3.9 billion, compared to an operating loss of $432.6 million for the third quarter of 2024. Operating income for the third quarter of 2025 includes an unrealized gain on the Company’s digital assets of $3.9 billion. This is the third quarterly reporting period in which we have applied fair value accounting. Digital asset impairment losses for the third quarter of 2024, determined in accordance with the cost-less-impairment accounting model we were subject to prior to January 1, 2025, were $412.1 million.
  • Net Income and Net Income Attributable to Common Stock: Net income for the third quarter of 2025 was $2.8 billion, or $8.42 per common share on a diluted basis, as compared to a net loss of $340.2 million, or $1.72 per common share on a diluted basis, for the third quarter of 2024. Net income attributable to common stockholders for the third quarter of 2025 was $2.6 billion, compared to a net loss of $340.2 million for the third quarter of 2024.
  • Cash and Cash Equivalents: As of September 30, 2025, the Company had cash and cash equivalents of $54.3 million, as compared to $38.1 million as of December 31, 2024, an increase of $16.2 million.
  • Software Highlights
  • Revenues:
    • Total revenues were $128.7 million, a 10.9% increase year-over-year, compared to the third quarter of 2024.
    • Subscription Services Revenues were $46.0 million, a 65.4% increase year-over-year.
    • Product licenses and subscription services revenues were $63.3 million, a 62.9% increase year-over-year.
    • Product support revenues were $51.1 million, a 16.2% decrease year-over-year.
    • Other services revenues were $14.2 million, a 12.0% decrease year-over-year.
  • Gross Profit: Gross profit for the third quarter of 2025 was $90.7 million, representing a 70.5% gross margin, compared to $81.7 million, representing a gross margin of 70.4%, for the third quarter of 2024.

Bitcoin Summary

  • BTC Yield: Achieved BTC Yield of 26.0% year-to-date (as of October 26, 2025), compared to the full year 2025 target of 30%.
  • BTC Gain: Achieved BTC Gain of 116,555 year-to-date (as of October 26, 2025).
  • BTC $ Gain: Achieved BTC $ Gain of $12.9 billion year-to-date (based on bitcoin price of approximately $110,600 as of October 24, 2025), compared to the full year 2025 target of $20 billion.
  • Digital Assets: As of October 26, 2025, the Company’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, which reflects an average cost per bitcoin of approximately $74,032 and a market price per bitcoin of approximately $110,600, respectively.

Additional information about the Company’s Bitcoin KPIs is included in Strategy’s “Q3 2025 Earnings Presentation,” which will be available under the “Events and Presentations” section of Strategy’s investor relations website at http://www.strategy.com/investor-relations.

Capital Markets Summary

  • The Company received aggregate net proceeds of approximately $5.1 billion during the three months ended September 30, 2025, and additional aggregate net proceeds of approximately $89.5 million between October 1, 2025 and October 26, 2025, from the following transactions:
    • Common Stock ATM Program: During the three months ended September 30, 2025, the Company received aggregate net proceeds of approximately $2.2 billion through the issuance and sale of 5,712,041 shares of its class A common stock. Between October 1, 2025 and October 26, 2025, the Company did not issue shares of its class A common stock under its Common Stock ATM Program. As of October 26, 2025, approximately $15.9 billion remained available under the program.
    • STRK ATM Program: During the three months ended September 30, 2025, the Company received aggregate net proceeds of approximately $152.8 million through the issuance and sale of 1,404,499 shares of its 8.00% Series A Perpetual Strike Preferred Stock (“STRK Stock”) under its at-the-market STRK Stock offering program (the “STRK ATM Program”). Between October 1, 2025 and October 26, 2025, the Company received aggregate net proceeds of approximately $23.8 million through the issuance and sale of an additional 263,278 shares of its STRK Stock under the STRK ATM Program. As of October 26, 2025, approximately $20.4 billion remained available for issuance under the STRK ATM Program.
    • STRF ATM Program: During the three months ended September 30, 2025, the Company received aggregate net proceeds of approximately $217.3 million through the issuance and sale of 1,881,542 shares of its 10.00% Series A Perpetual Strife Preferred Stock (“STRF Stock”) under its at-the-market STRF Stock offering program (the “STRF ATM Program”). Between October 1, 2025 and October 26, 2025, the Company received aggregate net proceeds of approximately $50.4 million through the issuance and sale of an additional 446,503 shares of its STRF Stock under the STRF ATM Program. As of October 26, 2025, approximately $1.7 billion remained available for issuance under the STRF ATM Program.
    • STRD Stock ATM Program: During the three months ended September 30, 2025, the Company received aggregate net proceeds of approximately $48.5 million through the issuance and sale of 557,441 shares of its 10.00% Series A Perpetual Stride Preferred Stock (“STRD Stock”) under its at-the-market STRD Stock offering program (the “STRD ATM Program”). Between October 1, 2025 and October 26, 2025, the Company received aggregate net proceeds of approximately $15.3 million through the issuance and sale of an additional 188,477 shares of STRD Stock under the STRD ATM Program. As of October 26, 2025, approximately $4.1 billion remained available for issuance under the STRD ATM Program.
    • IPO of STRC Stock: In July 2025, the Company received net proceeds of approximately $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.
  • STRC Stock Dividend: Since the IPO of the STRC Stock, the Company has declared and paid, or will pay, the following dividends:

Month

Annualized STRC Rate

Dividend (USD/Share)

Payment Date

July/August

9.00%

$0.80

August 31, 2025

September

10.00%

$0.83

September 30, 2025

October

10.25%

$0.85

October 31, 2025

November

10.50%

$0.88

November 30, 2025

FY2025 Earnings Guidance:

  • Strategy is reaffirming its forward guidance to provide increased transparency around the combined impact of our Bitcoin holdings and capital markets activity to our results assuming a year-end 2025 Bitcoin price of $150,000:
    • FY2025 Operating Income of approximately $34 billion
    • FY2025 Net Income of approximately $24 billion
    • FY2025 Diluted EPS of approximately $80 per share

This guidance incorporates anticipated proceeds from preferred stock offerings, and the resulting growth in Bitcoin holdings.

Strategy bases its assumptions with respect to the fair market value of bitcoin as of December 31, 2025 on, among other things, research analyst reports published by third-parties available to us as of the date of publication of our guidance. Strategy has adopted ASU 2023-08, which requires that Strategy measure its bitcoin holdings at fair value, with gains and losses from changes in the fair value of bitcoin recognized in net income (loss) at each reporting period. As a result, and due to Strategy’s significant bitcoin holdings, Strategy’s earnings results are extremely sensitive to changes in the market price of bitcoin. Strategy can provide no assurance or guarantee as to the price of bitcoin as of December 31, 2025, and as a result Strategy’s actual results may vary materially from its projected results if the market price of bitcoin as of December 31, 2025 varies materially from these assumptions. Strategy undertakes no obligation to update this guidance, other than as may be required by applicable law. Investors are cautioned not to place undue reliance on this guidance.

FY2025 Bitcoin KPI Targets:

  • Strategy is reaffirming its 2025 Bitcoin KPI targets in light of strong execution and capital markets activity year-to-date, assuming a year-end 2025 Bitcoin price of $150,000:
    • FY2025 BTC Yield Target: 30.0%
    • FY2025 BTC $ Gain Target: $20 billion

We expect to achieve these targets through preferred stock offerings, disciplined common stock issuance guided by mNAV thresholds, and the resulting expansion of our bitcoin holdings.

STRC Dividend Rate Guidance

  • STRC Dividend Adjustment Framework: Strategy is reaffirming its rules-based monthly dividend recommendation framework for STRC Stock. Strategy’s current intention, subject to change in its sole discretion, is to evaluate dividend rates each month using the five-day volume-weighted average price (VWAP) of STRC Stock for the five trading days prior to the last trading day of the month, as follows:
    • Below $95.00: Recommend a dividend rate increase of 50 basis points or more for the next period.
    • $95.00 - $98.99: Recommend a dividend rate increase of 25 basis points or more for the next period.
    • $99.00 - $100.99: No change in the dividend rate is anticipated. However, management may use its discretion to recommend a minor increase or decrease of 25 basis points depending on prevailing market and capital conditions.
    • $101.00 and above: Recommend a dividend rate decrease of 25 basis points, or a larger decrease if one-month term SOFR interest rates declined during that month (in each case, subject to the cap on rate reductions described in the Prospectus and Certificate of Designations for the STRC Stock), and/or a follow-on offering of STRC Stock.

All recommended dividend rate changes under this framework are subject to approval by the Company’s Board of Directors, and dividends will only be declared and paid when, as, and if the Board determines such changes are in the best interest of the Company and its stockholders. This structured approach is intended to maintain the trading price of STRC Stock near its $100 per share Stated Amount. There can be no assurance that the recommended dividend adjustments will achieve such intention. Strategy may change or suspend this framework at any time in its sole discretion, consistent with the terms of the STRC Stock.

Common Stock ATM Guidance

  • mNAV-Based Common Stock ATM Issuance Discipline: Strategy is reaffirming the “mNAV” thresholds (defined below) at which it will utilize its at-the-market offering program for its class A common stock (“Common Stock ATM Program”) to fund the purchase of bitcoin. Strategy will operate its Common Stock ATM Program in line with the following framework:
    • Below 2.5x mNAV: Strategy will tactically issue common equity below this threshold to (1) pay interest on debt obligations, (2) fund preferred equity dividends and (3) when otherwise deemed advantageous to the company.
    • 2.5x to 4.0x mNAV: Strategy will opportunistically issue common equity to acquire bitcoin.
    • Above 4.0x mNAV: Strategy will actively issue common equity to acquire bitcoin.

Management will review these mNAV thresholds periodically and may update the mNAV thresholds in its sole discretion. The current mNAV is published on strategy.com and in the Strategy app so that investors can track in real time the valuation metrics we use internally.

mNAV represents a multiple of Bitcoin NAV, calculated by dividing Enterprise Value (as defined below) by Bitcoin NAV (as defined below). Although Bitcoin NAV incorporates the label “NAV,” it is not equivalent to “net asset value” or “NAV” or any similar metric in the traditional financial context. Additionally, it is not a measure of the amount by which our enterprise value exceeds net asset value in the traditional financial sense of those terms. Investors should rely on the financial statements and other disclosures contained in our SEC filings. This metric is merely a supplement, not a substitute. It should be used only by sophisticated investors who understand its limited purpose and many limitations.

ROC Dividend Guidance

The current return of capital (“ROC”) treatment of dividends paid in respect of our preferred equity is due to Strategy’s negative tax earnings & profits (“E&P”). The Company believes it does not have any accumulated tax E&P, does not expect to generate current tax E&P, and therefore expects ROC dividends to continue for the foreseeable future, i.e., ten years or more.

Dividends on our preferred securities from a US federal income tax perspective currently receive tax-deferred ROC treatment. Such dividends are not taxed when received to the extent of an investor’s adjusted tax basis in our preferred equity (in general, originally equal to an investor’s “cost”), and taxation is deferred until the investor sells the security or the investor’s cost basis is reduced to zero ($0). At the time of sale, capital gains are taxed based on the selling price less the “reduced” cost basis, taking into account ROC dividends previously received. Dividends received after an investor’s cost basis is reduced to zero ($0) are generally taxed at capital gains rates.

Strategy Dashboard

Strategy maintains a dashboard on its website (www.strategy.com) as a disclosure channel for providing broad, non-exclusionary distribution of information regarding Strategy to the public, including information regarding market prices of its outstanding securities, bitcoin purchases and holdings, certain KPI metrics and other supplemental information, and as one means of disclosing non-public information in compliance with its disclosure obligations under Regulation FD. Investors and others are encouraged to regularly review the information that Strategy makes public via the website dashboard.

Conference Call

Strategy will be discussing its third quarter 2025 financial results on a live Video Webinar today beginning at approximately 5:00 p.m. ET. The live Video Webinar and accompanying presentation materials will be available under the “Events and Presentations” section of Strategy’s investor relations website at https://www.strategy.com/investor-relations. Log-in instructions will be available after registering for the event. An archived replay of the event will be available beginning approximately two hours after the call concludes.

About Strategy

Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR) is the world's first and largest Bitcoin Treasury Company. We are a publicly traded company that has adopted Bitcoin as our primary treasury reserve asset. By using proceeds from equity and debt financings, as well as cash flows from our operations, we strategically accumulate Bitcoin and advocate for its role as digital capital. Our treasury strategy is designed to provide investors varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed-income instruments. In addition, we provide industry-leading AI-powered enterprise analytics software, advancing our vision of Intelligence Everywhere. We leverage our development capabilities to explore innovation in Bitcoin applications, integrating analytics expertise with our commitment to digital asset growth. We believe our combination of operational excellence, strategic Bitcoin reserve, and focus on technological innovation positions us as a leader in both the digital asset and enterprise analytics sectors, offering a unique opportunity for long-term value creation.

Strategy, MicroStrategy, and Intelligence Everywhere are either trademarks or registered trademarks of Strategy Inc in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.

Important Information About KPIs

Bitcoin Per Share (BPS) is a key performance indicator (“KPI”) that represents the ratio between the Company’s bitcoin holdings and its Assumed Diluted Shares Outstanding, expressed in terms of Satoshis, where:

  • “Assumed Diluted Shares Outstanding” refers to the aggregate of our Basic Shares Outstanding as of the dates presented plus all additional shares that would result from the assumed conversion of all outstanding convertible notes and convertible preferred stock, exercise of all outstanding stock option awards, and settlement of all outstanding restricted stock units and performance stock units as of such dates. Assumed Diluted Shares Outstanding is not calculated using the treasury method and does not take into account any vesting conditions (in the case of equity awards), the exercise price of any stock option awards or any contractual conditions limiting convertibility of convertible debt instruments.
  • “Basic Shares Outstanding” reflects the actual class A common stock and class B common stock outstanding as of the dates presented. For purposes of this calculation, outstanding shares of such stock are deemed to include shares, if any, that were sold under at-the-market equity offering programs.
  • A “Satoshi” or a “Sat” is one one-hundred-millionth of one bitcoin, currently the smallest indivisible unit of a bitcoin.

BTC Yield is a KPI that represents the percentage change in BPS from the beginning of a period to the end of a period.

BTC Gain is a KPI that represents the number of bitcoins held by the Company at the beginning of a period multiplied by the BTC Yield for such period.

BTC $ Gain is a KPI that represents the dollar value of the BTC Gain calculated by multiplying the BTC Gain by the market price of bitcoin. For determining BTC $ Gain QTD and YTD, unless otherwise specified, the Company uses the current market price of bitcoin. For determining BTC $ Gain for a past fiscal year or other past period, the Company uses the market price of bitcoin as of 4:00pm ET as reported on the Coinbase exchange on the last day of the applicable period. The Company uses these market prices of bitcoin for this calculation solely for the purpose of facilitating this illustrative calculation.

The Company uses BPS, BTC Yield, BTC Gain and BTC $ Gain as KPIs to help assess the performance of its strategy of acquiring bitcoin in a manner the Company believes is accretive to shareholders. The Company believes these KPIs can supplement investors’ understanding of how the Company chooses to fund bitcoin purchases and the value created in a period by:

  • in the case of BPS, measuring the ratio of the Company’s bitcoin holdings to the Assumed Diluted Shares Outstanding, which provides investors a baseline with which to assess the Company’s achievement of its strategy of acquiring bitcoin in an accretive manner over a given period;
  • in the case of BTC Yield, measuring the percentage change in BPS from the beginning of a period to the end of a period, which helps investors assess how the Company’s achievement of its strategy of acquiring bitcoin in an accretive manner varies across periods;
  • in the case of BTC Gain, hypothetically expressing the percentage change reflected in the BTC Yield metric as if it reflected an increase in the amount of bitcoin held at the end of the applicable period as compared to the beginning of such period, which provides investors with visibility into the absolute change in the Company’s bitcoin holdings resulting from its BTC Yield; and
  • in the case of BTC $ Gain, further expressing that change as an illustrative dollar value by multiplying that bitcoin-denominated change by the market price of bitcoin at the end of the applicable period as described above; and

When the Company uses these KPIs, management takes into account the various limitations of these metrics, including that they

  • do not take into account that our assets, including our bitcoin, are subject to (i) all of our existing and future liabilities, including our debt, and (ii) the preferential rights of our preferred stockholders to dividends and our assets in a liquidation, and that all such claims rank to senior to those of our common equity; and
  • assume that all indebtedness will be refinanced or, in the case of the Company’s senior convertible debt instruments and convertible preferred stock, converted into shares of common stock in accordance with their respective terms.

BPS, BTC Yield, BTC Gain and BTC $ Gain are not, and should not be understood as, financial performance, valuation or liquidity measures. Specifically:

  • BPS does not represent (i) the ability of the Company to satisfy the Company’s financial obligations, or (ii) the Company’s book value per share. Ownership of a share of common stock of the Company does not represent an ownership interest in the bitcoin held by the Company.

Contacts

Strategy
Shirish Jajodia
Corporate Treasurer
ir@strategy.com


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