Strategy (MSTR) · Software
Strategy Q2 2026 earnings: summary, key numbers & outlook
Results filed 30 Jul 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Strategy reported a second quarter 2026 net loss of $8.22 billion, or $24.45 per diluted share, on total revenues of $122.4 million, and holds 843,775 bitcoin.
Strategy's bitcoin holdings grew in the second quarter of 2026, but the price of bitcoin fell. That produced an unrealized loss on digital assets of $8.32 billion and a net loss of $8.22 billion, or $24.45 per diluted share. Software revenue was $122.4 million, up 6.9% from a year ago, with a 66.6% gross margin. Strategy raised $8.41 billion through its at-the-market programs, mostly from STRC preferred stock. It also repurchased $1.50 billion of convertible notes at about an 8% discount to par.
Management gave no revenue or earnings guidance. It is focused on bringing STRC back toward its $100 stated amount, raising the dividend rate to 12.00% and repurchasing STRC below par. The $3.75 billion USD Reserve covers more than 2.1 years of preferred dividends and interest. The main tension is that Strategy has to keep paying these dividends and interest while bitcoin prices stay weak. The 10.8% BTC Hurdle ARR is the yield bitcoin must beat for common shareholders to benefit.
Key numbers
- Total revenues · GAAP
- $122.4 million
- Net loss · GAAP
- $8.22 billion
- Diluted net loss per common share · GAAP
- $24.45
- Gross margin · GAAP
- 66.6%
- Operating loss · GAAP
- $8.33 billion
a 6.9% increase year-over-year
compared with net income of $10.02 billion a year ago
compared with net income of $32.60 per diluted share a year ago
compared with 68.8% a year ago
compared with $14.03 billion operating income a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Bitcoin holdings | 843,775 bitcoin | 25% growth year to date 2026 |
| BTC Yield (year to date) | 4.5% | |
| STRC capital raised (year to date) | $7.53 billion | 254% growth |
| USD Reserve | $3.75 billion | over 2.1 years of coverage |
| BTC Hurdle ARR | 10.8% | |
| Subscription services revenue | $62.9M | up from 40,824 a year ago |
Where each number comes from
- Total revenues: “Total revenues for the second quarter of 2026 were $122.4 million, compared to total revenues of $114.5 million for the second quarter of 2025, a 6.9% increase year-over-year.”
- Net loss: “the Company reported a net loss of $8.22 billion, or a net loss of $24.45 per common share on a diluted basis, as compared to a net income of $10.02 billion”
- Diluted net loss per common share: “the Company reported a net loss of $8.22 billion, or a net loss of $24.45 per common share on a diluted basis, as compared to a net income of $10.02 billion”
- Gross margin: “Gross profit for the second quarter of 2026 was $81.6 million, representing a 66.6% gross margin, compared to $78.7 million, representing a gross margin of 68.8%, for the second quarter of 2025.”
- Operating loss: “Operating loss for the second quarter of 2026 was $8.33 billion, compared to $14.03 billion operating income for the second quarter of 2025.”
- Bitcoin holdings: “Digital Capital Highlights (as of July 26, 2026) ▪843,775 bitcoin holdings, 25% growth year to date 2026”
- BTC Yield (year to date): “BTC Yield: Achieved BTC Yield of 4.5% in 2026 YTD.”
- STRC capital raised (year to date): “STRC issuances raised $7.53 billion year to date 2026, representing a 254% growth”
- USD Reserve: “Grew the USD Reserve to $3.75 billion, over 2.1 years of coverage, reserved for dividends and interest”
- BTC Hurdle ARR: “Our BTC Hurdle ARR of 10.8% represents our current effective cost of credit.”
- Subscription services revenue: “Product licenses | $3,667 | $7,177 | $9,168 | $14,447 Subscription services | 62,858 | 40,824 | 121,737 | 77,927 Total product licenses and subscription services”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $122.4M | +6.9% | −1.6% |
| Operating income | -$8.3B | — | +42.4% |
| Net income | -$8.2B | — | +34.5% |
| Diluted EPS | -$24.45 | — | +36.1% |
| Free cash flow | -$5.9M | +84.0% | — |
| Gross margin | 66.6% | −2.2 pts | −0.5 pts |
| Operating margin | -6808.1% | −19064.4 pts | +4833.4 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| STRC annualized dividend rate | until STRC demonstrates sustained, healthy trading near $100 per share | 12.00% |
| Target trading range for STRC | over time | $99 to $100 |
Key takeaways
Bitcoin price drop drove an $8.22 billion net loss
Operating loss was $8.33 billion, including an unrealized loss on digital assets of $8.32 billion. Net loss was $24.45 per diluted common share, against net income of $32.60 a year ago.
Holdings grew even as bitcoin fell
Strategy held 843,775 bitcoin as of July 26, 2026, with a 4.5% BTC Yield year to date. Average cost per bitcoin was approximately $75,476 against a market price of approximately $64,915.
STRC preferred stock is now the main funding source
Of $8.41 billion in second quarter ATM proceeds, $5,465.0 million came from STRC. Preferred dividends were $400.7 million in the quarter.
Convertible debt reduced at a discount
Strategy repurchased $1.50 billion of 0% Convertible Senior Notes due 2029 for approximately $1.38 billion in cash. Convertible notes outstanding fell from $8.21 billion to $6.71 billion.
STRC repurchases and a 12.00% rate defend par
Strategy repurchased 288,930 shares of STRC at an average price of $86.53 per share and raised the dividend rate to 12.00%. Approximately $975.00 million remains under the $1.0 billion repurchase program.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $120.7M * |
| Q1 2025 | $111.1M |
| Q2 2025 | $114.5M |
| Q3 2025 | $128.7M |
| Q4 2025 | $123.0M * |
| Q1 2026 | $124.3M |
| Q2 2026 | $122.4M |
| Q3 2026 | $125.4M |
Data
| Q1 2025 | -$16.49 |
| Q2 2025 | $32.60 |
| Q3 2025 | $8.42 |
| Q1 2026 | -$38.25 |
| Q2 2026 | -$24.45 |
| Q3 2026 | $44.75 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | -842.1% |
| Q1 2025 | -5331.4% |
| Q2 2025 | 12256.3% |
| Q3 2025 | 3023.4% |
| Q4 2025 | -14185.0% |
| Q1 2026 | -11641.5% |
| Q2 2026 | -6808.1% |
| Q3 2026 | 16670.9% |
Data
| Q4 2024 | -$17.6M |
| Q1 2025 | -$5.1M |
| Q2 2025 | -$37.0M |
| Q3 2025 | -$11.1M |
| Q4 2025 | -$22.2M |
| Q1 2026 | $13.0M |
| Q2 2026 | -$5.9M |
| Q3 2026 | $4.0M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Strategy's headline results for Q2 2026?
Strategy reported a net loss of $8.22 billion, or $24.45 per diluted share, compared with net income of $10.02 billion a year ago. Total revenues were $122.4 million, up 6.9% year over year.
Why did Strategy report a large loss?
Operating loss of $8.33 billion included an unrealized loss on digital assets of $8.32 billion, because bitcoin's market price declined during the quarter. A year earlier it recorded a $14.05 billion unrealized gain.
How much bitcoin does Strategy hold, and what is it worth?
As of July 26, 2026 it held approximately 843,775 bitcoin, with an original cost basis of $63.69 billion and a market value of $54.77 billion. The average cost per bitcoin was approximately $75,476.
Can Strategy cover its preferred dividends and interest?
Management says its USD Reserve of $3.75 billion covers more than 2.1 years of preferred dividends and interest. It has paid dividends for 18 consecutive months and has sold approximately $218.4 million of bitcoin year to date to fund a portion of them.
Did Strategy give financial guidance for the next quarter?
It gave no revenue or earnings guidance. It said it will keep STRC's dividend rate at 12.00% until the stock trades near $100 per share, and it will repurchase STRC while it trades below $100.
Documents
SEC filing