MSTR Q2 Earnings Beat Estimates, Revenues Jump Y/Y, Shares Up

Core Insights - MicroStrategy (MSTR) shares have decreased by 6.6% in the last three trading sessions following the release of its second-quarter 2025 results, although the shares have appreciated 29.6% year to date, outperforming the broader Zacks Computer & Technology sector's 11.8% increase [1] Financial Performance - For Q2 2025, MicroStrategy reported non-GAAP earnings of $32.52 per share, a significant improvement from a loss of $0.76 per share in the same quarter last year. On a GAAP basis, earnings were $32.60 per share, surpassing the Zacks Consensus Estimate of a loss of $0.12 per share [2] - Revenues reached $114.5 million, exceeding the Zacks Consensus Estimate by 2.09% and reflecting a year-over-year increase of 2.7% [2] Revenue Breakdown - Product licenses and subscription services revenues surged by 44% year over year to $48 million, constituting 41.9% of total revenues, with subscription services alone increasing by 69.5% to $40.8 million. However, product licenses declined by 23% to $7.2 million [4] - Revenues from Product Support and Other Services fell by 15.6% and 11.8%, respectively [4] Operating Income - The company reported an operating income of $14.03 billion, a turnaround from an operating loss of $200.3 million in the previous year, which included an unrealized gain on digital assets valued at $14 billion [5] Bitcoin Holdings - MicroStrategy holds 628,791 bitcoins, with a total cost of $46.08 billion, averaging $73,277 per bitcoin. The bitcoin yield for the year to date is 25%, with a target of 30% for 2025 [6][8] - The company reported a bitcoin gain of $9.5 billion at the end of Q2 and $13.2 billion year to date, with a target of $20 billion gain for 2025 [6][8] Guidance for 2025 - For the year 2025, MicroStrategy anticipates an operating income of $34 billion, net income of $24 billion, and earnings of $80 per share, based on a projected bitcoin price of $150,000 by year-end [11]