Core software revenue remains stagnant near $124.3 million per quarter, while GAAP net income exhibits extreme volatility, swinging from a $10 billion profit to a $12.5 billion loss due to digital asset impairment charges.
| Sales/Revenue | 490.47M | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - |
| Gross Profit | 334.07M | 327.82M | 333.99M | 386.32M | 396.27M | 418.85M |
| Gross Margin % | 68.11% | 68.69% | 72.06% | 77.85% | 79.37% | 82.01% |
| Gross Profit Growth % | - | -1.85% | -13.55% | -2.51% | -5.39% | - |
| Operating Expenses | 3.76B | 5.77B | 2.19B | 501.36M | 1.67B | 1.2B |
| OpEx % of Revenue | - | 1209.51% | 471.88% | 101.03% | 334.9% | 235.6% |
| Selling, General & Admin | 280.42M | 274.87M | 278.62M | 264.98M | 258.3M | 255.64M |
| SG&A % of Revenue | - | 57.6% | 60.12% | 53.4% | 51.74% | 50.05% |
| Research & Development | 0 | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - |
| Operating Income | -3.43B | -5.44B | -1.85B | -115.05M | -1.28B | -784.53M |
| Operating Margin % | -699.08% | -1140.82% | -399.82% | -23.18% | -255.52% | -153.6% |
| Operating Income Growth % | - | -193.82% | -1510.63% | 90.98% | -62.61% | - |
| EBITDA | -3.42B | -5.42B | -1.84B | -100.52M | -1.26B | -773.17M |
| EBITDA Margin % | -697.46% | -1135.27% | -395.98% | -20.26% | -253.35% | -151.38% |
| EBITDA Growth % | 54.69% | -195.22% | -1725.68% | 92.05% | -63.6% | - |
| D&A (Non-Cash Add-back) | 7.93M | 26.52M | 17.81M | 14.53M | 10.87M | 11.36M |
| EBIT | 523.11M | -5.44B | -1.87B | -75.56M | -1.27B | -782.24M |
| Net Interest Income | -116.04M | -64.97M | -61.94M | -48.96M | -53.14M | -29.15M |
| Interest Income | 1.82M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 117.87M | 64.97M | 61.94M | 48.96M | 53.14M | 29.15M |
| Other Income/Expense | 0 | - | - | - | - | - |
| Pretax Income | -14.05B | -5.53B | -1.93B | -124.53M | -1.32B | -811.39M |
| Pretax Margin % | -2864.4% | -1157.92% | -417.37% | -25.09% | -264.88% | -158.86% |
| Income Tax | -1.88B | -1.68B | -767.68M | -553.65M | 147.33M | -275.91M |
| Effective Tax Rate % | 13.35% | 30.36% | 39.69% | 444.61% | -11.14% | 34% |
| Net Income | -12.17B | -3.85B | -1.17B | 429.12M | -1.47B | -535.48M |
| Net Margin % | -2482.01% | -806.35% | -251.73% | 86.47% | -294.39% | -104.84% |
| Net Income Growth % | -128.36% | -229.84% | -371.87% | 129.2% | -174.48% | - |
| Net Income (Continuing) | -12.17B | -3.85B | -1.17B | 429.12M | -1.47B | -535.48M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -36.46 | -15.23 | -6.06 | 2.64 | -12.98 | -5.34 |
| EPS Growth % | -84.14% | -151.32% | -329.55% | 120.34% | -143.07% | - |
| EPS (Basic) | - | -15.23 | -6.06 | 3.14 | -12.98 | -5.34 |
| Diluted Shares Outstanding | 333.91M | 277.66M | 192.55M | 165.66M | 113.21M | 100.2M |
| Basic Shares Outstanding | 333.91M | 277.66M | 192.55M | 136.71M | 113.21M | 100.2M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Bitcoin price volatility exposure
As reported in recent financial filings, MicroStrategy's core software revenue remains largely stagnant, with quarterly figures hovering near $120 million, suggesting that the legacy business serves primarily as a stable, low-growth utility rather than a dynamic engine for top-line expansion in the current fiscal environment.
The marginal revenue growth observed over the last ten quarters indicates that the software segment is not scaling, which is consistent with a mature enterprise analytics provider. Investors should monitor whether this revenue base can continue to provide the necessary cash flow to service debt obligations without further reliance on capital market activities.
Based on the provided income statement data, the company maintains a consistent gross margin of approximately 68-70%, yet reported operating margins fluctuate wildly between -179% and 122% due to non-cash impairment charges related to digital asset holdings, obscuring the underlying profitability of the software operations.
The structural gross margin reflects the inherent efficiency of software support and subscription models, which remains the only reliable indicator of operational health. Analysts should treat the extreme volatility in operating margins as an accounting artifact rather than a reflection of management's ability to control core operating expenses.
According to the company's quarterly income statements, net income is heavily distorted by non-cash impairment charges, with recent periods showing swings from a $10 billion profit to a $12.5 billion loss, highlighting the extreme sensitivity of GAAP earnings to the market valuation of digital assets.
The reported net income figures appear to be poor proxies for the company's actual economic performance or cash-generating capability. Investors should focus on adjusted metrics that strip out these non-cash accounting impacts to better understand the sustainability of the firm's core business model.
As evidenced by the quarterly data, SG&A expenses have remained relatively contained between $68 million and $73 million, suggesting that management has maintained strict expense discipline despite the massive volatility introduced by the company's aggressive capital allocation strategy and digital asset treasury management.
The stability of SG&A costs relative to the erratic swings in operating income suggests that the core software business is being managed with a focus on cost containment. This discipline is essential for maintaining the firm's credit profile while it continues to pursue its high-conviction digital asset strategy.
Based on the provided financial data, the company's reliance on equity and debt markets to fund asset purchases creates a reflexive risk profile, where a sustained decline in Bitcoin prices could potentially impair the firm's ability to service debt or maintain its current operational structure.
Short-term observers may overlook the potential for a negative feedback loop if the premium to net asset value compresses, limiting the company's ability to issue accretive equity. This warrants further investigation into the maturity profile of the company's convertible debt and its sensitivity to broader liquidity conditions.
Quick answers to the most common questions about buying STRD stock.
MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock (STRD) reported a net loss of $3.85B for the fiscal year ending 2025.
MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock (STRD) reported an operating income of $-5444.4M, resulting in an operating profit margin of -1140.8%. This margin reflects the operational efficiency of the business before interest and taxes.
MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock (STRD) generated $327.8M in gross profit for the year, representing a gross profit margin of 68.7%. This demonstrates the company's core pricing power and production efficiency.