Core software revenue growth remains tepid at 11.9% in 2026Q1, while persistent R&D and SG&A expenses continue to limit operating leverage, resulting in a -12.0% operating margin for the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Sales/Revenue | 490.47M | 477.23M | 463.46M | 496.26M | 499.26M | 510.76M | 480.74M | 486.33M | 497.64M | 503.84M | 513.59M | 529.87M | 579.83M | 575.89M | 565.72M | 537.17M | 454.58M | 377.79M | 360.39M | 350.67M | 313.82M | 268.66M | 231.21M | 175.58M | 147.83M | 180.42M | 215.26M | 151.26M | 95.49M | 52.55M |
| Revenue Growth % | 6.79% | 2.97% | -6.61% | -0.6% | -2.25% | 6.25% | -1.15% | -2.27% | -1.23% | -1.9% | -3.07% | -8.62% | 0.68% | 1.8% | 5.32% | 18.17% | 20.33% | 4.83% | 2.77% | 11.74% | 16.81% | 16.2% | 31.68% | 18.77% | -18.06% | -16.19% | 42.31% | 58.4% | 81.71% | - |
| Cost of Goods Sold | 156.39M | 149.42M | 129.47M | 109.94M | 102.99M | 91.91M | 91.06M | 99.97M | 99.5M | 96.65M | 93.15M | 101.11M | 135.21M | 138.57M | 141.08M | 130.7M | 106.09M | 66.6M | 63.41M | 60.49M | 44.39M | 36.45M | 32.87M | 27.98M | 27.9M | 45.64M | 77.56M | 37.03M | 16.34M | 9.87M |
| COGS % of Revenue | - | 31.31% | 27.94% | 22.15% | 20.63% | 17.99% | 18.94% | 20.56% | 19.99% | 19.18% | 18.14% | 19.08% | 23.32% | 24.06% | 24.94% | 24.33% | 23.34% | 17.63% | 17.59% | 17.25% | 14.14% | 13.57% | 14.22% | 15.94% | 18.87% | 25.3% | 36.03% | 24.48% | 17.12% | 18.79% |
| Gross Profit | 334.07M | 327.82M | 333.99M | 386.32M | 396.27M | 418.85M | 389.68M | 386.35M | 398.14M | 407.19M | 420.44M | 428.76M | 444.62M | 437.32M | 424.65M | 406.47M | 348.49M | 311.19M | 296.99M | 290.18M | 269.44M | 232.21M | 198.34M | 147.59M | 119.93M | 134.77M | 137.7M | 114.22M | 79.14M | 42.68M |
| Gross Margin % | 68.11% | 68.69% | 72.06% | 77.85% | 79.37% | 82.01% | 81.06% | 79.44% | 80.01% | 80.82% | 81.86% | 80.92% | 76.68% | 75.94% | 75.06% | 75.67% | 76.66% | 82.37% | 82.41% | 82.75% | 85.86% | 86.43% | 85.78% | 84.06% | 81.13% | 74.7% | 63.97% | 75.52% | 82.88% | 81.21% |
| Gross Profit Growth % | - | -1.85% | -13.55% | -2.51% | -5.39% | 7.49% | 0.86% | -2.96% | -2.22% | -3.15% | -1.94% | -3.57% | 1.67% | 2.98% | 4.47% | 16.64% | 11.99% | 4.78% | 2.35% | 7.7% | 16.03% | 17.08% | 34.38% | 23.07% | -11.02% | -2.13% | 20.55% | 44.33% | 85.44% | - |
| Operating Expenses | -128.01M | 5.77B | 2.19B | 501.36M | 1.67B | 1.2B | 403.31M | 387.36M | 394.16M | 333.97M | 310.93M | 294.74M | 439.52M | 417.88M | 391.55M | 385.6M | 297.9M | 224.88M | 229.19M | 201.96M | 169.65M | 138.34M | 129.89M | 119.62M | 109.5M | 201.49M | 255.54M | 139.52M | 81.69M | 43.31M |
| OpEx % of Revenue | - | 1209.51% | 471.88% | 101.03% | 334.9% | 235.6% | 83.89% | 79.65% | 79.21% | 66.28% | 60.54% | 55.62% | 75.8% | 72.56% | 69.21% | 71.78% | 65.53% | 59.53% | 63.59% | 57.59% | 54.06% | 51.49% | 56.18% | 68.13% | 74.08% | 111.68% | 118.71% | 92.24% | 85.55% | 82.42% |
| Selling, General & Admin | 280.42M | 274.87M | 278.62M | 264.98M | 258.3M | 255.64M | 229.05M | 277.93M | 291.66M | 255.21M | 237.74M | 229.25M | 321.43M | 319.82M | 303.36M | 317.74M | 247.33M | 183.09M | 198.62M | 165.22M | 135.44M | 106.8M | 104.9M | 90.06M | 75.81M | 111.96M | 184.62M | 112.08M | 66.15M | 37.02M |
| SG&A % of Revenue | - | 57.6% | 60.12% | 53.4% | 51.74% | 50.05% | 47.64% | 57.15% | 58.61% | 50.65% | 46.29% | 43.27% | 55.44% | 55.54% | 53.62% | 59.15% | 54.41% | 48.46% | 55.11% | 47.12% | 43.16% | 39.75% | 45.37% | 51.29% | 51.29% | 62.06% | 85.76% | 74.1% | 69.28% | 70.45% |
| Research & Development | 94.1M | 93.86M | 118.49M | 120.53M | 127.43M | 117.12M | 103.56M | 109.42M | 102.5M | 78.77M | 73.14M | 65.21M | 103.36M | 98.06M | 88.19M | 67.86M | 50.57M | 41.8M | 30.57M | 36.66M | 34.13M | 31.47M | 24.91M | 27.68M | 26.3M | 32.82M | 43.89M | 24.23M | 12.11M | 5.05M |
| R&D % of Revenue | - | 19.67% | 25.57% | 24.29% | 25.52% | 22.93% | 21.54% | 22.5% | 20.6% | 15.63% | 14.24% | 12.31% | 17.83% | 17.03% | 15.59% | 12.63% | 11.12% | 11.06% | 8.48% | 10.45% | 10.88% | 11.71% | 10.78% | 15.77% | 17.79% | 18.19% | 20.39% | 16.02% | 12.68% | 9.61% |
| Other Operating Expenses | -1000K | 5.4B | 1.79B | 115.85M | 1.29B | 830.62M | 70.7M | 0 | 0 | 0 | 45K | 279K | 14.73M | 0 | 0 | 0 | 0 | 0 | 0 | 71K | 71K | 71K | 71K | 1.88M | 7.39M | 56.71M | 27.03M | 3.22M | 3.44M | 1.24M |
| Operating Income | 462.09M | -5.44B | -1.85B | -115.05M | -1.28B | -784.53M | -13.63M | -1M | 3.98M | 73.22M | 109.51M | 134.02M | 5.1M | 19.44M | 33.1M | 20.87M | 50.59M | 86.3M | 67.8M | 88.22M | 99.79M | 93.87M | 68.45M | 27.97M | 10.42M | -66.72M | -117.84M | -25.3M | -2.55M | -634K |
| Operating Margin % | 94.21% | -1140.82% | -399.82% | -23.18% | -255.52% | -153.6% | -2.83% | -0.21% | 0.8% | 14.53% | 21.32% | 25.29% | 0.88% | 3.38% | 5.85% | 3.88% | 11.13% | 22.84% | 18.81% | 25.16% | 31.8% | 34.94% | 29.61% | 15.93% | 7.05% | -36.98% | -54.74% | -16.72% | -2.67% | -1.21% |
| Operating Income Growth % | - | -193.82% | -1510.63% | 90.98% | -62.61% | -5658% | -1259.78% | -125.17% | -94.56% | -33.14% | -18.29% | 2525.82% | -73.74% | -41.27% | 58.63% | -58.75% | -41.38% | 27.29% | -23.15% | -11.59% | 6.31% | 37.13% | 144.71% | 168.37% | 115.62% | 43.38% | -365.83% | -892.43% | -302.05% | - |
| EBITDA | 479.6M | -5.42B | -1.84B | -100.52M | -1.26B | -773.17M | -293K | 7.59M | 7.68M | 88.75M | 129.46M | 155.24M | 30.4M | 45.84M | 55.55M | 38.14M | 63.39M | 96.94M | 74.2M | 95.82M | 107.42M | 102.36M | 76.77M | 36.81M | 23.53M | -37.16M | -88.22M | -18.46M | 887K | 609K |
| EBITDA Margin % | 97.78% | -1135.77% | -395.98% | -20.26% | -253.35% | -151.38% | -0.06% | 1.56% | 1.54% | 17.62% | 25.21% | 29.3% | 5.24% | 7.96% | 9.82% | 7.1% | 13.94% | 25.66% | 20.59% | 27.32% | 34.23% | 38.1% | 33.21% | 20.96% | 15.92% | -20.6% | -40.98% | -12.2% | 0.93% | 1.16% |
| EBITDA Growth % | 106.35% | -195.36% | -1725.68% | 92.05% | -63.6% | -263780.2% | -103.86% | -1.17% | -91.34% | -31.44% | -16.61% | 410.66% | -33.68% | -17.49% | 45.67% | -39.84% | -34.61% | 30.64% | -22.56% | -10.8% | 4.94% | 33.33% | 108.59% | 56.39% | 163.33% | 57.88% | -377.94% | -2180.95% | 45.65% | - |
| D&A (Non-Cash Add-back) | 17.51M | 24.08M | 17.81M | 14.53M | 10.87M | 11.36M | 13.33M | 8.59M | 3.7M | 15.53M | 19.94M | 21.21M | 25.3M | 26.4M | 22.45M | 17.27M | 12.8M | 10.63M | 6.4M | 7.6M | 7.63M | 8.5M | 8.32M | 8.83M | 13.11M | 29.56M | 29.62M | 6.84M | 3.44M | 1.24M |
| EBIT | 449.42M | -5.46B | -1.87B | -75.56M | -1.27B | -782.24M | -13.63M | -1M | 3.98M | 73.22M | 109.56M | 134.3M | 19.84M | 19.44M | 33.1M | 20.87M | 50.59M | 86.3M | 67.8M | 88.22M | 99.79M | 93.87M | 68.45M | 29.67M | 14.62M | -27.26M | -108.47M | -22.5M | -2.55M | -634K |
| Net Interest Income | -49.69M | -64.97M | -61.94M | -48.96M | -53.14M | -29.15M | 710K | 10.91M | 11.86M | 5.21M | 2.2M | 284K | 162K | 497K | 143K | 199K | 389K | 955K | 2.27M | 3.65M | 2.82M | 2.88M | 1.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 2.52M | 10.91M | 11.86M | 5.21M | 2.2M | 284K | 162K | 497K | 143K | 199K | 389K | 955K | 2.27M | 3.65M | 2.82M | 2.97M | 1.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 49.69M | 64.97M | 61.94M | 48.96M | 53.14M | 29.15M | 1.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 94K | 53K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -14.51B | -81.57M | -81.37M | -9.48M | -46.72M | -26.86M | -6.33M | 39.27M | 16.5M | -1.75M | 5.42M | 3.84M | 5.95M | -2.69M | -892K | 4.33M | 4.37M | -504K | 2.97M | 2.96M | 1.57M | 4.3M | 870K | -35.23M | 28.88M | 21.13M | -95.88M | 2.04M | 12.85M | 634K |
| Pretax Income | -14.05B | -5.53B | -1.93B | -124.53M | -1.32B | -811.39M | -19.95M | 38.26M | 20.48M | 71.47M | 114.93M | 137.86M | 11.05M | 16.75M | 32.21M | 25.2M | 54.96M | 85.8M | 70.77M | 91.19M | 101.36M | 98.17M | 69.32M | -7.25M | 39.31M | -45.59M | -213.72M | -23.26M | 10.3M | 0 |
| Pretax Margin % | -2864.4% | -1157.91% | -417.37% | -25.09% | -264.88% | -158.86% | -4.15% | 7.87% | 4.12% | 14.19% | 22.38% | 26.02% | 1.91% | 2.91% | 5.69% | 4.69% | 12.09% | 22.71% | 19.64% | 26% | 32.3% | 36.54% | 29.98% | -4.13% | 26.59% | -25.27% | -99.28% | -15.38% | 10.79% | - |
| Income Tax | -1.88B | -1.68B | -767.68M | -553.65M | 147.33M | -275.91M | -12.43M | 3.91M | -2.02M | 53.28M | 22.69M | 31.93M | 6.02M | -9.8M | 9.73M | 3.39M | 11.17M | 25.29M | 29M | 32.72M | 30.48M | 33.43M | -98.99M | -2.59M | 1.19M | 2.46M | 1.4M | 1.25M | 3.4M | 0 |
| Effective Tax Rate % | 13.35% | 30.36% | 39.69% | 444.61% | -11.14% | 34% | 62.29% | 10.21% | -9.86% | 74.54% | 19.75% | 23.16% | 54.44% | -58.5% | 30.22% | 13.46% | 20.32% | 29.48% | 40.98% | 35.88% | 30.08% | 34.05% | -142.81% | 35.66% | 3.03% | -5.4% | -0.66% | -5.36% | 33.01% | - |
| Net Income | -12.36B | -4.03B | -1.17B | 429.12M | -1.47B | -535.48M | -7.52M | 34.35M | 22.5M | 18.2M | 92.24M | 105.93M | 5.04M | 83.33M | 20.55M | 17.94M | 43.79M | 74.84M | 41.83M | 58.47M | 70.88M | 64.74M | 168.31M | -3.9M | 38.12M | -80.87M | -168.93M | -33.74M | -2.25M | -885K |
| Net Margin % | -2519.39% | -844.76% | -251.73% | 86.47% | -294.39% | -104.84% | -1.57% | 7.06% | 4.52% | 3.61% | 17.96% | 19.99% | 0.87% | 14.47% | 3.63% | 3.34% | 9.63% | 19.81% | 11.61% | 16.67% | 22.58% | 24.1% | 72.8% | -2.22% | 25.78% | -44.82% | -78.48% | -22.31% | -2.36% | -1.68% |
| Net Income Growth % | -131.79% | -245.56% | -371.87% | 129.2% | -174.48% | -7016.96% | -121.9% | 52.68% | 23.67% | -80.27% | -12.93% | 2003.89% | -93.96% | 305.59% | 14.53% | -59.03% | -41.48% | 78.89% | -28.45% | -17.51% | 9.47% | -61.53% | 4412.4% | -110.24% | 147.13% | 52.13% | -400.63% | -1396.36% | -154.8% | - |
| Net Income (Continuing) | -12.17B | -3.85B | -1.17B | 429.12M | -1.47B | -535.48M | -7.52M | 34.35M | 22.5M | 18.2M | 92.24M | 105.93M | 5.04M | 26.55M | 22.47M | 21.81M | 43.79M | 60.51M | 41.77M | 58.47M | 70.88M | 64.74M | 168.31M | -4.67M | 38.12M | -48.05M | -215.12M | -24.51M | -2.25M | -885K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 56.78M | -1.93M | -3.87M | 0 | 14.33M | 65K | 0 | 0 | 0 | 0 | 765K | 0 | -32.81M | 46.19M | -9.24M | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -37.01 | -15.23 | -6.06 | 2.64 | -12.98 | -5.34 | -0.08 | 0.33 | 0.20 | 0.16 | 0.80 | 0.92 | 0.04 | 0.74 | 0.18 | 0.16 | 0.37 | 0.61 | 0.34 | 0.46 | 0.52 | 0.42 | 0.98 | -0.03 | 0.31 | -0.93 | -3.28 | -0.22 | -0.02 | -0.10 |
| EPS Growth % | -84.14% | -151.32% | -329.55% | 120.34% | -143.07% | -6772.59% | -123.55% | 65% | 25% | -80% | -13.04% | 1990.91% | -94.05% | 311.11% | 12.5% | -56.76% | -39.34% | 79.41% | -26.09% | -11.54% | 23.81% | -57.14% | 3812.12% | -108.52% | 133.33% | 71.65% | -1390.91% | -1366.67% | 85% | - |
| EPS (Basic) | - | -13.89 | -6.06 | 3.14 | -12.98 | -5.34 | -0.08 | 0.34 | 0.20 | 0.16 | 0.81 | 0.93 | 0.04 | 0.74 | 0.19 | 0.17 | 0.39 | 0.63 | 0.35 | 0.47 | 0.55 | 0.44 | 1.05 | -0.03 | 0.32 | -0.93 | -3.28 | -0.22 | -0.02 | -0.10 |
| Diluted Shares Outstanding | 333.91M | 294M | 192.55M | 165.66M | 113.21M | 100.2M | 96.84M | 103.28M | 114.12M | 115.47M | 115.16M | 115.39M | 113.56M | 113.01M | 111.74M | 110.66M | 117.79M | 122.84M | 123.03M | 128.53M | 136.33M | 154.36M | 171.19M | 148.04M | 119.86M | 86.59M | 79.78M | 154.06M | 133.97M | 117.98M |
| Basic Shares Outstanding | 333.91M | 294M | 192.55M | 136.71M | 113.21M | 100.2M | 96.84M | 102.56M | 113.75M | 114.44M | 114.25M | 113.55M | 113.01M | 113M | 109.95M | 107.19M | 113.78M | 119.06M | 118.86M | 123.25M | 129.87M | 147.68M | 160.55M | 148.04M | 116.76M | 86.59M | 79.78M | 154.06M | 133.97M | 117.98M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 0.08% | - | - | - | - | - | - | - | - | - | - | - | - |
Digital asset price volatility
As reported in recent financial filings, MicroStrategy's revenue growth remains tepid, with a 11.9% increase in 2026Q1 following several quarters of contraction, suggesting that the legacy analytics business is struggling to achieve meaningful scale amidst the company's pivot toward a digital asset-focused corporate identity.
The modest revenue fluctuations indicate that the core software business is likely in a mature, defensive phase rather than an expansionary one. Investors should monitor whether the transition to cloud-based subscription services can eventually offset the transactional volatility inherent in legacy product license sales.
Based on the provided income statement data, the company maintains a relatively stable gross margin profile, averaging approximately 68-70% over the last ten quarters, which highlights the inherent cost efficiency of its software-based revenue streams despite significant external pressures on the broader corporate income statement.
This structural gross margin suggests that the underlying software business retains pricing power and operational efficiency. However, the disconnect between these healthy margins and the extreme net income volatility implies that the core business is being overshadowed by non-operating factors related to digital asset accounting.
According to historical income statements, the company's net income is heavily distorted by non-cash impairment charges, as evidenced by the massive $12.6 billion loss in 2025Q4, which obscures the actual performance of the core software operations and complicates traditional valuation metrics like the price-to-earnings ratio.
The extreme swings in net income are largely a function of accounting rules for indefinite-lived intangible assets rather than operational failure. Analysts should focus on adjusted EBITDA or core software operating metrics to strip away the noise created by digital asset price fluctuations.
As indicated by the quarterly data, the company's cost structure is dominated by persistent R&D and SG&A expenses, which have remained elevated even as revenue growth has stalled, suggesting a lack of operating leverage in the current software-focused business model during the observed period.
The consistent expenditure on R&D and sales force maintenance appears necessary to defend the legacy install base, yet it prevents the company from achieving meaningful operating margin expansion. This high fixed-cost base warrants further investigation into whether management can optimize these expenses without compromising long-term competitiveness.
Based on an analysis of the company's capital structure, the reliance on convertible debt to fund digital asset accumulation creates a binary risk profile where the firm's solvency may become increasingly sensitive to both interest rate environments and the underlying volatility of its treasury holdings.
Short-sellers would likely focus on the potential for forced asset liquidation if debt covenants are triggered or if refinancing costs rise significantly. The market's current valuation appears to price in a premium for this leverage, which may prove unsustainable if the digital asset market experiences a prolonged downturn.
Quick answers to the most common questions about buying STRK stock.
For fiscal year 2025, MicroStrategy Incorporated (STRK) reported total revenue of $477.2M. This represents a 808.1% increase compared to $52.6M in 1997.
MicroStrategy Incorporated (STRK) reported a net loss of $4.03B for the fiscal year ending 2025.
MicroStrategy Incorporated (STRK) 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 (STRK) 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.