Strategy | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 122.37 M

Revenue: As of FY2026 Q2, the actual value is USD 122.37 M, missing the estimate of USD 124.48 M.

EPS: As of FY2026 Q2, the actual value is USD -24.45, missing the estimate of USD 3.0743.

EBIT: As of FY2026 Q2, the actual value is USD -8.33 B.

Operational Metrics

Strategy Inc reported an operating loss of - $8.33 billion for the second quarter of 2026, a significant change from an operating income of $14.03 billion in the second quarter of 2025, which included an - $8.32 billion unrealized loss on digital assets for Q2 2026, contrasting with a $14.05 billion unrealized gain in Q2 2025. The company’s net loss for Q2 2026 was - $8.22 billion, or - $24.45 per diluted common share, compared to a net income of $10.02 billion, or $32.60 per diluted common share, for Q2 2025. Net loss attributable to common stockholders was - $8.62 billion for Q2 2026, including - $400.7 million in preferred stock dividends, compared to a net income of $9.97 billion for Q2 2025, which included - $49.1 million in preferred stock dividends. Gross profit for Q2 2026 was $81.6 million, representing a 66.6% gross margin, compared to $78.7 million (68.8% gross margin) for Q2 2025. Total operating expenses for Q2 2026 were $8,412,500 thousand, compared to - $13,953,252 thousand for Q2 2025.

Segment Revenue

Total revenues for Q2 2026 increased 6.9% year-over-year to $122.4 million, up from $114.5 million in Q2 2025. Product licenses revenue was $3,667 thousand in Q2 2026, down from $7,177 thousand in Q2 2025. Subscription services revenue increased to $62,858 thousand in Q2 2026 from $40,824 thousand in Q2 2025. Product support revenue decreased to $40,245 thousand in Q2 2026 from $52,081 thousand in Q2 2025. Other services revenue was $15,598 thousand in Q2 2026, up from $14,406 thousand in Q2 2025.

Cash and Investments

As of June 30, 2026, cash and cash equivalents stood at $1.71 billion, a decrease from $2.21 billion as of March 31, 2026. Strategy Inc held $736.1 million in short-term investments as of June 30, 2026, with no short-term investments reported as of March 31, 2026.

Unique Metrics and Operational Highlights

As of July 26, 2026, Strategy Inc held 843,775 bitcoins, representing a 25% growth year to date in 2026, with total digital assets on the balance sheet as of June 30, 2026, amounting to $49,672,080 thousand and an average cost per bitcoin of $75,578. The company achieved a BTC Yield of 4.5% year to date in 2026, and $218.4 million of bitcoin sales year to date in 2026 were used to fund a portion of preferred stock dividends. Strategy Inc raised $17.06 billion of capital year to date through ATM programs as of July 26, 2026, including $8.41 billion in aggregate gross proceeds during Q2 2026 and an additional $1.28 billion between July 1 and July 26, 2026. STRC issuances raised $7.53 billion year to date in 2026, marking a 254% growth, and cumulative dividends paid on all preferred stock to date totaled $1.06 billion. The USD Reserve grew to $3.75 billion, providing over 2.1 years of coverage for dividends and interest. In May 2026, Strategy Inc repurchased $1.50 billion aggregate principal amount of its 0% Convertible Senior Notes due 2029 for approximately $1.38 billion in cash, reducing outstanding convertible notes from $8.21 billion to $6.71 billion. Between July 20 and July 26, 2026, the company repurchased 288,930 shares of STRC ($28.89 million notional) for approximately $25.00 million at an average price of $86.53 per share, with approximately $975.00 million remaining available for this program. A $1.0 billion MSTR repurchase program was established, with no repurchases to date.

Outlook / Guidance

Strategy Inc aims for its STRC shares to trade at $99 to $100 and intends to repurchase STRC shares regularly if they trade below $100, scaling repurchases based on market price and liquidity. The company expects distributions on its preferred equity instruments to be treated as non-taxable return of capital for the foreseeable future, as it does not anticipate having accumulated earnings & profits for U.S. federal income tax purposes. Strategy Inc plans to continue evolving its business model and establishing Digital Credit as a new asset class, with the goal of returning STRC to stable demand, high liquidity, and low volatility trading near par.