Latest quarter
Strategy reported Q2 FY2026 revenue of $122.4 million, below the consensus of $127.0 million but up from $114.5 million a year earlier. The company’s filing says all of that revenue came from its software business.
The filing attributes the year-over-year revenue increase primarily to subscription growth as customers migrated from on-premises products to cloud services. Subscription services revenue increased by $22.0 million, while product support revenue fell by $11.8 million, in part because customers converted to cloud subscriptions. Strategy’s gross margin was 66.6%, compared with 68.8% a year earlier.
Strategy reported a diluted loss per share of −$24.45, compared with diluted earnings per share of $32.60 a year earlier. Its filing attributes the move to a net loss primarily to unrealized losses on digital assets, compared with unrealized gains in the prior-year period. Free cash flow was −$6.4 billion, compared with −$6.8 billion a year earlier.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $122.4 million | $114.5 million | 6.88% |
| Diluted EPS | −$24.45 | $32.60 | −175.0% |
| Gross margin | 66.6% | 68.8% | −2.1 percentage points |
| Operating margin | −6,808.1% | 12,256.3% | −19064.4 percentage points |
| Free cash flow | −$6.4 billion | −$6.8 billion | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $122.4 million | $127.0 million | Missed by 3.61% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
The earnings call is unavailable, so management’s call commentary and analysts’ questions cannot be reported.
Guidance
Management’s guidance is unavailable. Strategy expects product license revenue and related product support revenue to continue to decline as it no longer actively markets new perpetual licenses or associated support offerings. The company also expects bitcoin fair-value changes to continue to materially affect its results.