Strategy Inc
MSTR Technology Software Application
Strategy Inc’s revenue for fiscal 2025 (year ended December 2025) was $477.2 million, up 2.97% from fiscal 2024. In the quarter to June 2026, revenue grew 6.88%, EPS fell 167.5%, free cash flow grew 6.40% and total debt fell 17.8%, each against the same quarter a year earlier. Member of the Nasdaq 100; insiders bought in the last twelve months.
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Strategy Inc (MSTR) Altman Z-score
Strategy Inc's Altman Z-score for fiscal 2025 is 1.35, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.35 | (2.71) |
| FY2024 | 4.05 | 2.34 |
| FY2023 | 1.71 | 3.76 |
| FY2022 | −2.05 | (2.74) |
| FY2021 | 0.69 | (2.62) |
| FY2020 | 3.31 | (0.89) |
| FY2019 | 4.20 | (0.70) |
| FY2018 | 4.90 | (0.20) |
| FY2017 | 5.10 | (3.98) |
| FY2016 | 9.08 | (0.04) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.03 | — | 0.04 | |
| Retained earnings / total assets | 0.10 | — | 0.14 | |
| EBIT / total assets | (0.09) | — | −0.29 | |
| Market value of equity / total liabilities | 2.41 | — | 1.45 | |
| Sales / total assets | 0.01 | — | 0.01 | |
| Altman Z-score | Distress zone | 1.35 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 2.61 | ||
Z and Z″ put Strategy Inc in different zones: distress zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CDNS Cadence Design Systems, Inc. compare | 13.2× |
| DDOG Datadog, Inc. compare | 10.9× |
| ADBE Adobe Inc. compare | 8.5× |
| INTU Intuit Inc. compare | 4.9× |
| ADSK Autodesk, Inc. compare | 4.2× |
| WDAY Workday, Inc. compare | 3.5× |
| ADP Automatic Data Processing, Inc. compare | 2.2× |
| TEAM Atlassian Corporation PLC compare | 1.9× |
| MSTR Strategy Inc | 1.3× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets