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Strategy Q1 Loss Wider Than Expected, Revenues Rise Y/Y
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Key Takeaways
MSTR's Q1 revenues rose 11.9% Y/Y to $124.3M, led by 58.7% growth in subscription services.
Strategy held 818,334 bitcoins as of May 3, 2026, with a market value of $64.14 billion.
MSTR raised $7.37B through at-the-market programs in Q1 to support bitcoin accumulation.
Strategy Inc (MSTR - Free Report) reported a first-quarter 2026 loss of $38.25 per share, widening from a loss of $16.49 on a year-over-year basis. The reported figure came wider than the Zacks Consensus Estimate of a loss of $3.41 per share.
Revenues rose 11.9% year over year to $124.3 million, missing the consensus mark by 0.24%.
In the first quarter of 2026, product licenses and subscription services revenues increased 45.1% year over year to $64.4 million and accounted for 51.8% of revenues. Subscription services surged 58.7% year over year to $58.9 million. Product licenses declined 24.3% to $5.5 million. Product support revenues decreased 15.9% to $44.2 million, while other services revenues rose 11.1% to $15.7 million.
MSTR’s Q1 in Detail
Operating results in the software business showed steady top-line growth, but profitability metrics softened modestly. In the first quarter of 2026, gross profit increased 8.2% year over year to $83.4 million, while gross margin declined 230 basis points year over year to 67.1%. The compression suggests a less favorable revenue mix or higher delivery costs, even as total revenues increased year over year.
Sales and marketing expenses increased 31.7% year over year to $36.3 million, while research and development expenses were essentially flat, rising 1.0% to $24.7 million. General and administrative expenses declined 7.9% year over year to $37.4 million.
MSTR recorded an operating loss of $14.47 billion in the first quarter, compared with an operating loss of $5.92 billion in the year-ago quarter. The bulk of the deterioration was tied to an unrealized loss on digital assets of $14.46 billion versus $5.91 billion in the prior-year period.
Net loss for the quarter totaled $12.54 billion, compared with $4.22 billion in the first quarter of 2025. Net loss attributable to common stockholders widened to $12.77 billion from $4.23 billion, underscoring how bitcoin price moves flowed through the income statement under fair-value accounting.
MSTR’s Bitcoin Details
Strategy is the world’s largest bitcoin treasury company, holding 818,334 bitcoins as of May 3, 2026, representing 22% growth year to date in 2026. Those holdings carried an original cost basis of $61.81 billion, implying an average cost of about $75,537 per bitcoin.
Bitcoin yield (BTC yield) reached 9.4% year to date in 2026. Over the same period, the company generated a BTC gain of 63,410, translating into a BTC gain of approximately $4.97 billion year to date.
Strategy Scales Digital Credit With STRC Momentum
The company highlighted Digital Credit as a key strategic lever alongside bitcoin accumulation. Strategy said it has met payment obligations on time and in full across 23 consecutive distributions, totaling more than $693 million since the launch of its preferred equity products in early 2025.
The company also pointed to continued traction in STRC. STRC has scaled to $8.5 billion in about nine months while achieving a 2.53 Sharpe ratio. Strategy added that roughly $150 million of STRC is held in corporate treasuries, and more than $270 million is held across DeFi protocols, reflecting expanding distribution beyond traditional equity investors.
Strategy Bolsters Capital Access Through ATM Activity
In the reported quarter, Strategy reflected robust capital markets activity that management links to funding bitcoin accumulation and supporting the preferred equity platform. The company reported aggregate gross proceeds of about $7.37 billion during the three months ended March 31, 2026, through its at-the-market programs.
The mix skewed toward common equity and STRC, with $5.30 billion of gross proceeds from MSTR and $2.07 billion from STRC. Smaller issuances included $3.4 million from STRK, while the company reported no gross proceeds from STRF, STRD or STRE in the period. After quarter end, Strategy reported an additional $4.32 billion of aggregate gross proceeds between April 1 and May 3.
Strategy’s Balance Sheet Details
As of March 31, 2026, Strategy’s cash and cash equivalents were $2.21 billion, compared with $2.30 billion as of Dec. 31, 2025.
As of May 3, 2026, Strategy’s digital assets were comprised of approximately 818,334 bitcoins, with a market value of $64.14 billion. This reflects an average cost per bitcoin of approximately $75,537 and a market price per bitcoin of approximately $78,374 as of May 1, 2026.
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Strategy Q1 Loss Wider Than Expected, Revenues Rise Y/Y
Key Takeaways
Strategy Inc (MSTR - Free Report) reported a first-quarter 2026 loss of $38.25 per share, widening from a loss of $16.49 on a year-over-year basis. The reported figure came wider than the Zacks Consensus Estimate of a loss of $3.41 per share.
Revenues rose 11.9% year over year to $124.3 million, missing the consensus mark by 0.24%.
In the first quarter of 2026, product licenses and subscription services revenues increased 45.1% year over year to $64.4 million and accounted for 51.8% of revenues. Subscription services surged 58.7% year over year to $58.9 million. Product licenses declined 24.3% to $5.5 million. Product support revenues decreased 15.9% to $44.2 million, while other services revenues rose 11.1% to $15.7 million.
MSTR’s Q1 in Detail
Operating results in the software business showed steady top-line growth, but profitability metrics softened modestly. In the first quarter of 2026, gross profit increased 8.2% year over year to $83.4 million, while gross margin declined 230 basis points year over year to 67.1%. The compression suggests a less favorable revenue mix or higher delivery costs, even as total revenues increased year over year.
Strategy Inc Price, Consensus and EPS Surprise
Strategy Inc price-consensus-eps-surprise-chart | Strategy Inc Quote
Sales and marketing expenses increased 31.7% year over year to $36.3 million, while research and development expenses were essentially flat, rising 1.0% to $24.7 million. General and administrative expenses declined 7.9% year over year to $37.4 million.
MSTR recorded an operating loss of $14.47 billion in the first quarter, compared with an operating loss of $5.92 billion in the year-ago quarter. The bulk of the deterioration was tied to an unrealized loss on digital assets of $14.46 billion versus $5.91 billion in the prior-year period.
Net loss for the quarter totaled $12.54 billion, compared with $4.22 billion in the first quarter of 2025. Net loss attributable to common stockholders widened to $12.77 billion from $4.23 billion, underscoring how bitcoin price moves flowed through the income statement under fair-value accounting.
MSTR’s Bitcoin Details
Strategy is the world’s largest bitcoin treasury company, holding 818,334 bitcoins as of May 3, 2026, representing 22% growth year to date in 2026. Those holdings carried an original cost basis of $61.81 billion, implying an average cost of about $75,537 per bitcoin.
Bitcoin yield (BTC yield) reached 9.4% year to date in 2026. Over the same period, the company generated a BTC gain of 63,410, translating into a BTC gain of approximately $4.97 billion year to date.
Strategy Scales Digital Credit With STRC Momentum
The company highlighted Digital Credit as a key strategic lever alongside bitcoin accumulation. Strategy said it has met payment obligations on time and in full across 23 consecutive distributions, totaling more than $693 million since the launch of its preferred equity products in early 2025.
The company also pointed to continued traction in STRC. STRC has scaled to $8.5 billion in about nine months while achieving a 2.53 Sharpe ratio. Strategy added that roughly $150 million of STRC is held in corporate treasuries, and more than $270 million is held across DeFi protocols, reflecting expanding distribution beyond traditional equity investors.
Strategy Bolsters Capital Access Through ATM Activity
In the reported quarter, Strategy reflected robust capital markets activity that management links to funding bitcoin accumulation and supporting the preferred equity platform. The company reported aggregate gross proceeds of about $7.37 billion during the three months ended March 31, 2026, through its at-the-market programs.
The mix skewed toward common equity and STRC, with $5.30 billion of gross proceeds from MSTR and $2.07 billion from STRC. Smaller issuances included $3.4 million from STRK, while the company reported no gross proceeds from STRF, STRD or STRE in the period. After quarter end, Strategy reported an additional $4.32 billion of aggregate gross proceeds between April 1 and May 3.
Strategy’s Balance Sheet Details
As of March 31, 2026, Strategy’s cash and cash equivalents were $2.21 billion, compared with $2.30 billion as of Dec. 31, 2025.
As of May 3, 2026, Strategy’s digital assets were comprised of approximately 818,334 bitcoins, with a market value of $64.14 billion. This reflects an average cost per bitcoin of approximately $75,537 and a market price per bitcoin of approximately $78,374 as of May 1, 2026.
MSTR’s Zacks Rank & Stocks to Consider
Currently, Strategy has a Zacks Rank #3 (Hold).
BGC Group, Inc. (BGC - Free Report) , Gladstone Land (LAND - Free Report) and HA Sustainable Infrastructure Capital (HASI - Free Report) are some better-ranked stocks in the broader Zacks Finance sector. Each of the three stocks currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BGC Group shares have gained 24.1% in the year-to-date period. BGC is set to report its first-quarter 2026 results on May 7.
Gladstone Land shares have returned 5.3% in the year-to-date period. LAND is set to report its first-quarter 2026 results on May 12.
HA Sustainable Infrastructure Capital shares have rallied 35.2% in the year-to-date period. HASI is set to report first-quarter 2026 results on May 7.