About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Company Performance - Strategy reported a quarterly loss of $42.93 per share, which was better than the Zacks Consensus Estimate of $46.02, compared to a loss of $3.2 per share a year ago, indicating an earnings surprise of -193.29% [1] - The company posted revenues of $122.99 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.83%, and showing an increase from year-ago revenues of $120.7 million [2] - Over the last four quarters, Strategy has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Strategy shares have lost about 15% since the beginning of the year, while the S&P 500 has gained 0.5% [3] - The current Zacks Rank for Strategy is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $5.81 on revenues of $119.9 million, and for the current fiscal year, it is $51.60 on revenues of $496.05 million [7] - The estimate revisions trend for Strategy was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Financial - Miscellaneous Services industry, to which Strategy belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Strategy's performance [5]

Financial Data and Key Metrics Changes - The company reported an operating loss of $17.4 billion and a net loss of $12.6 billion for Q4 2025, driven by a decline in Bitcoin's fair value under mark-to-market accounting [8] - For the full year 2025, the company reported an operating loss of $5.4 billion and a net loss of $4.2 billion, with results within target guidance based on Bitcoin price [8] - The digital assets increased from $23.9 billion at the end of 2024 to $58.9 billion at the end of 2025, reflecting a $17.9 billion increase in fair value [11] Business Line Data and Key Metrics Changes - The company successfully raised over $25 billion in total capital during 2025, funding growth across its treasury strategy and expanding its product ecosystem [4] - The company established a cash reserve of $2.25 billion in Q4, providing over 2.5 years of dividend coverage [6][18] - The company achieved a BTC Yield of 22.8% for the year, translating into a total BTC gain of 101,873 Bitcoin and a BTC dollar gain of $8.9 billion [9] Market Data and Key Metrics Changes - The market value of the company's Bitcoin holdings increased by approximately $17 billion, from $41.8 billion at the end of 2024 to $58.9 billion at the end of 2025 [16] - The company added approximately 225,000 Bitcoin during the year, increasing total holdings from 447,000 to 672,500 Bitcoin [17] Company Strategy and Development Direction - The company adopted fair value accounting at the beginning of the year, enhancing transparency of Bitcoin holdings [5] - The company aims to systematically increase Bitcoin per share over time, regardless of near-term market cycles, and to deliver durable BTC value for long-term investors [10] - The company is focused on digital credit issuance through its Stretch product, which is expected to amplify common equity and increase Bitcoin per share [46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market conditions but emphasized the importance of holding onto Bitcoin and the fundamentals that support its value [21] - The company believes that the political landscape is increasingly supportive of Bitcoin, with significant recognition from key government officials [48][49] - Management expressed confidence in the company's ability to service its debt and dividends, even in a volatile Bitcoin market [33] Other Important Information - The company received its first-ever credit rating for a Bitcoin treasury company, marking a significant step in institutional recognition [6] - MSCI confirmed that digital asset treasury companies will remain eligible for inclusion in its global market indices, which is seen as a positive outcome [7] - The company has been actively engaging with regulators and policymakers to support its efforts on index inclusion [19] Q&A Session Summary Question: How does the company plan to manage its debt in a volatile Bitcoin market? - Management stated that they are not worried about servicing their convertible debt, as their Bitcoin reserve provides long-term durability [33] Question: What is the company's strategy for increasing Bitcoin per share? - The company plans to issue digital credit through Stretch, which is expected to amplify common equity and increase Bitcoin per share over time [46] Question: How does the company view the current political support for Bitcoin? - Management highlighted the significant shift in political attitudes towards Bitcoin, with key government officials now recognizing its importance [48][49]

Financial Data and Key Metrics Changes - The company reported an operating loss of $17.4 billion and a net loss of $12.6 billion for Q4 2025, driven by a decline in Bitcoin's fair value under mark-to-market accounting [8] - For the full year 2025, the operating loss was $5.4 billion and the net loss was $4.2 billion, with results within target guidance based on Bitcoin price [8] - Digital assets increased from $23.9 billion at the end of 2024 to $58.9 billion at the end of 2025, reflecting a $17.9 billion increase in fair value [11] - Total equity rose to $51.1 billion at the end of 2025, up from $22.8 billion a year ago, due to the addition of $6.9 billion in preferred equity [13] Business Line Data and Key Metrics Changes - The company added approximately 225,000 Bitcoin during 2025, increasing total holdings from 447,000 to 672,500 Bitcoin [17] - The Bitcoin yield for the year was 22.8%, translating into a total BTC gain of 101,873 Bitcoin and a BTC dollar gain of $8.9 billion [9] Market Data and Key Metrics Changes - The market value of Bitcoin holdings increased by approximately $17 billion from $41.8 billion at the end of 2024 to $58.9 billion at the end of 2025 [16] - The company established a $2.25 billion cash reserve in Q4, providing over 2.5 years of dividend coverage [6][18] Company Strategy and Development Direction - The company aims to systematically increase Bitcoin per share over time, regardless of market cycles, and to build durable shareholder value [10] - The adoption of fair value accounting and the receipt of the first-ever credit rating for a Bitcoin treasury company are seen as strategic milestones [5][6] - The company plans to focus on digital credit issuance to amplify common equity and increase Bitcoin per share [45] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of holding onto Bitcoin during market downturns, citing the fundamentals of Bitcoin as unchanged [21][22] - The company is optimistic about the future, with plans to continue raising capital and acquiring more Bitcoin [25] - Management expressed confidence in the company's ability to service debt and dividends despite Bitcoin price fluctuations [33] Other Important Information - MSCI confirmed that digital asset treasury companies will remain eligible for inclusion in its global market indices, which is viewed positively by the company [7][19] - The company has been actively engaging with regulators and policymakers to support its efforts on index inclusion [19] Q&A Session Summary Question: How does the company plan to manage its debt in a volatile Bitcoin market? - Management stated that they are not worried about servicing convertible debt, as the Bitcoin reserve significantly exceeds net debt, even in extreme downside scenarios [34][35] Question: What is the company's strategy for increasing Bitcoin per share? - The strategy involves issuing digital credit to amplify common equity, which is expected to increase Bitcoin per share over time [45][46]

Financial Data and Key Metrics Changes - The company reported an operating loss of $17.4 billion and a net loss of $12.6 billion for Q4 2025, driven by a decline in Bitcoin's fair value under mark-to-market accounting [6] - For the full year 2025, the company reported an operating loss of $5.4 billion and a net loss of $4.2 billion, with results within target guidance based on Bitcoin price [6][10] - The digital assets increased from $23.9 billion at the end of 2024 to $58.9 billion at the end of 2025, reflecting a $17.9 billion increase in fair value [10][14] Business Line Data and Key Metrics Changes - The company successfully raised over $25 billion in total capital during 2025, funding growth across its treasury strategy and expanding its product ecosystem [3] - The company established a cash reserve of $2.25 billion in Q4, providing over 2.5 years of dividend coverage [5][16] - The company achieved a BTC yield of 22.8% for the year, translating into a total BTC gain of 101,873 Bitcoin and a BTC dollar gain of $8.9 billion [7][8] Market Data and Key Metrics Changes - The market value of the company's Bitcoin holdings increased from $41.8 billion at the end of 2024 to $58.9 billion at the end of 2025, despite recognizing an unrealized fair value loss of about $5.4 billion throughout the year [14][15] - The company added approximately 225,000 Bitcoin during the year, increasing total holdings from 447,000 to 672,500 Bitcoin [15] Company Strategy and Development Direction - The company adopted fair value accounting at the beginning of the year, enhancing transparency regarding Bitcoin holdings [4] - The company aims to systematically increase Bitcoin per share over time, regardless of near-term market cycles, and to continue delivering durable BTC value for long-term investors [9] - The company is focused on digital credit issuance through its Stretch product, which is expected to amplify common equity and increase Bitcoin per share [43][45] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of maintaining a long-term focus despite short-term price volatility in Bitcoin [14] - The company believes that the fundamentals supporting Bitcoin as a digital asset remain unchanged, and it encourages shareholders to hold their investments through downturns [20][21] - Management expressed confidence in the company's ability to service its debt and pay dividends, even in a challenging market environment [32][34] Other Important Information - The company received its first-ever credit rating for a Bitcoin treasury company, marking a significant step in institutional recognition [5] - MSCI confirmed that digital asset treasury companies will remain eligible for inclusion in its global market indices, which the company views as a positive outcome [5][18] - The company has been actively engaging with regulators and policymakers to support its efforts for index inclusion and to address concerns regarding digital assets [18][19] Q&A Session Summary Question: How does the company plan to manage its debt in a volatile Bitcoin market? - Management stated that they are not worried about servicing their convertible debt and have plans to equitize it over time if necessary [34] Question: What is the company's strategy for increasing Bitcoin per share? - The company plans to sell digital credit through its Stretch product, which is designed to amplify common equity and increase Bitcoin per share [43][45] Question: How does the company view the current regulatory environment for Bitcoin? - Management highlighted the positive shift in government attitudes towards Bitcoin, noting increased support from key political figures [48][50]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting with competent advisors before making any financial decisions, particularly in relation to investments in cryptocurrencies and CFDs [1]. Group 1 - The website provides general news, personal analysis, and third-party materials intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as a recommendation or advice for investment actions [1]. - The accuracy and reliability of the information are not guaranteed, and users are cautioned against relying solely on the content provided [1]. Group 2 - The website discusses the complexities and high risks associated with cryptocurrencies and CFDs, highlighting the potential for significant financial loss [1]. - It encourages users to conduct their own research and fully understand the instruments and risks involved before making investment decisions [1].

Q4 2025 Financial Results February 5, 2026 Copyright © 2026 Strategy. All Rights Reserved. Strategy Q4 2025 Earnings Call Safe Harbor Statement FORWARD-LOOKING STATEMENTS Some of the information we provide in this presentation regarding our future expectations, plans, and prospects may constitute forward-looking statements. Actual results may differ materially from these forward- looking statements due to various important factors, including fluctuations in the price of Bitcoin and the risk factors discusse ...

Core Insights - The shares of the bitcoin-stockpiling company have experienced a significant decline since the peak of cryptocurrency prices in October [1] Company Summary - The company is involved in accumulating bitcoin, which has seen its stock value drop sharply following the all-time highs of crypto prices [1]

Core Viewpoint - The company reported a wider fourth-quarter loss due to a turbulent period for digital assets, leading to significant losses on its bitcoin holdings [1] Group 1 - The company is identified as the world's largest hoarder of bitcoin [1] - The losses recorded were attributed to the volatility in the digital asset market [1]

Bitcoin Holdings and Performance - The company holds 713,502 bitcoins with a total cost of $54.26 billion, averaging $76,052 per bitcoin, and achieved a BTC yield of 22.8% for FY2025[1][9]. - The average market price per bitcoin was approximately $83,740 as of January 30, 2026, reflecting a market value of $59.75 billion for the company's bitcoin holdings[1][10]. - The company utilizes key performance indicators (KPIs) such as Bitcoin Per Share (BPS), BTC Yield, BTC Gain, and BTC $ Gain to assess its bitcoin acquisition strategy[28]. - BPS represents the ratio of the company's bitcoin holdings to its Assumed Diluted Shares Outstanding, providing a baseline for assessing bitcoin acquisition performance[30]. - BTC Yield measures the percentage change in BPS over a period, helping investors understand the effectiveness of the company's bitcoin acquisition strategy[30]. - The company has adopted Accounting Standards Update No. 2023-08, requiring it to measure bitcoin at fair value, which may lead to unrealized gains or losses not reflected in its KPIs[32]. - The trading price of the company's class A common stock can deviate significantly from the market value of its bitcoin holdings, indicating that KPIs may not predict stock performance[31]. - The company has historically not paid dividends on its class A common stock, and presenting KPIs does not imply future dividend intentions[39]. Financial Performance - The company reported a net loss of $12.4 billion for Q4 2025, or $42.93 per diluted share, compared to a net loss of $670.8 million, or $3.03 per diluted share, for Q4 2024[1][11]. - Total revenues for Q4 2025 were $123.0 million, a 1.9% increase year-over-year, with subscription services revenues increasing by 62.1% to $51.8 million[1][11]. - The gross profit for Q4 2025 was $81.3 million, representing a gross margin of 66.1%, down from 71.7% in Q4 2024[1][11]. - Total revenues for the three months ended December 31, 2025, were $122.989 million, a slight increase from $120.697 million in the same period of 2024, while total revenues for the twelve months ended December 31, 2025, reached $477.233 million, compared to $463.456 million in 2024, reflecting a year-over-year growth of approximately 2%[44]. - Subscription services revenue for the three months ended December 31, 2025, was $51.758 million, up 62% from $31.931 million in the same period of 2024, and for the twelve months, it increased to $175.657 million from $106.776 million, representing a growth of 65%[44]. - The net loss for the three months ended December 31, 2025, was $12.437 million, compared to a net loss of $670,811 in the same period of 2024, while the net loss for the twelve months was $3.848 million, compared to $1.167 million in 2024[44]. - Basic loss per share for the three months ended December 31, 2025, was $(42.93), significantly higher than $(3.03) in the same period of 2024, and for the twelve months, it was $(15.23) compared to $(6.06) in 2024[44]. Asset and Liability Management - Total current assets as of December 31, 2025, were $2.564 billion, a substantial increase from $252.324 million as of December 31, 2024, primarily driven by an increase in cash and cash equivalents[47]. - Digital assets held by the company increased to $58.854 billion as of December 31, 2025, compared to $23.909 billion as of December 31, 2024, indicating a significant growth in digital asset holdings[47]. - Total liabilities as of December 31, 2025, were $10.598 billion, up from $7.614 billion in 2024, reflecting an increase in long-term debt and other liabilities[47]. - The company reported total operating expenses of $17.527 billion for the three months ended December 31, 2025, compared to $1.103 billion in the same period of 2024, largely due to unrealized losses on digital assets[44]. - The company’s total stockholders' equity increased to $44.123 billion as of December 31, 2025, from $18.230 billion in 2024, reflecting strong capital growth despite net losses[47]. Digital Asset Transactions - The company purchased a total of $7.66 billion in digital assets in Q1 2025, resulting in a balance of $35.63 billion by March 31, 2025[49]. - By June 30, 2025, the balance of digital assets increased to approximately $42.40 billion, following additional purchases of $6.77 billion in Q2 2025[49]. - The company reported an unrealized gain on digital assets of $14.05 billion by June 30, 2025, indicating significant appreciation in asset value[49]. - Digital asset purchases in Q3 2025 amounted to $4.95 billion, leading to a balance of approximately $47.35 billion by September 30, 2025[49]. - The company experienced an unrealized gain of $3.89 billion on digital assets in Q3 2025, contributing to overall asset growth[49]. - By December 31, 2025, the total carrying value of digital assets reached approximately $50.44 billion, with a total unrealized gain of $58.85 billion[49]. - In Q4 2025, the company purchased $3.08 billion in digital assets, funded by various public offerings and stock sales[49]. - The company utilized $4.37 billion from its class A common stock offering to purchase bitcoin in Q1 2025, demonstrating strong capital mobilization[49]. - Cumulative effect upon adoption of ASU 2023-08 resulted in a significant adjustment to the carrying value of digital assets, increasing it to $41.79 billion[49]. Capital Raising and Financial Strategy - In FY2025, the company raised $25.3 billion, making it the largest equity issuer in the U.S., representing approximately 8% of total U.S. equity issuance[1][3]. - The company executed five preferred equity IPOs in FY2025, raising $5.5 billion in gross proceeds[1][4]. - The company established a $2.25 billion USD Reserve, providing approximately 2.5 years of coverage for dividends and interest obligations[2][15]. - The flagship Digital Credit instrument, STRC, has scaled to $3.4 billion with a current dividend rate of 11.25%[2][3]. - The company expects ROC distributions to continue for the foreseeable future, estimated at ten years or more[2][21]. Future Outlook and Risks - Future performance may be influenced by various factors, including fluctuations in bitcoin prices and the availability of favorable financing[40]. - The company may experience increases in Assumed Diluted Shares Outstanding without corresponding increases in bitcoin holdings due to dividend payments on preferred stock[36]. - Forward-looking statements include risks such as market price fluctuations of bitcoin and changes in accounting treatment, which could materially affect actual results[42]. - Strategy Inc is the world's first and largest Bitcoin Treasury Company, focusing on financial innovation strategies to generate value from bitcoin holdings[24].