STRATEGY INC (NASDAQ:MSTR) Reports Q3 2025 Earnings Beat, Fueled by Bitcoin Holdings

Strategy Inc (NASDAQ:MSTR) reported financial results for the third quarter of 2025, delivering earnings that surpassed analyst expectations and marking a significant return to profitability driven primarily by its substantial bitcoin holdings. The company's performance and future outlook appear to have been received positively by investors, as reflected in after-market trading activity.

Earnings Performance Versus Estimates

The company's third-quarter results demonstrated strength in both revenue and profitability metrics when measured against analyst forecasts.

• Revenue: The company reported total revenues of $128.7 million, exceeding the analyst estimate of approximately $120.8 million.
• Earnings Per Share: Strategy reported diluted EPS of $8.42, coming in ahead of the consensus estimate of $8.31.

This earnings beat represents the company's second consecutive quarter of significant positive earnings, a stark contrast to the net loss reported in the same period last year. The core software business showed a mixed but generally positive performance, with subscription services revenue growing 65.4% year-over-year to $46.0 million, while product support and other services revenues saw declines.

Market Reaction and Price Action

Following the earnings release, the market responded favorably. The stock posted a gain of approximately 2.93% in after-market trading. This immediate positive price action suggests that investors were encouraged not only by the earnings and revenue beat but also by the company's reaffirmed guidance and the substantial unrealized gains on its digital assets.

Key Elements from the Earnings Release

The press release highlighted several critical developments beyond the headline financial figures that define Strategy's current trajectory.

• Bitcoin-Centric Results: The company's profitability was largely fueled by a $3.9 billion unrealized gain on its digital assets, following the adoption of fair value accounting for its bitcoin holdings. Strategy now holds approximately 640,808 bitcoins.
• Capital Markets Activity: Strategy raised approximately $5.1 billion in net proceeds during the quarter through various equity and preferred stock offerings, underscoring its aggressive strategy to accumulate bitcoin through capital markets.
• Reaffirmed Aggressive Guidance: Management reaffirmed its full-year 2025 guidance, which is predicated on a bitcoin price of $150,000 at year-end. This outlook includes operating income of $34 billion, net income of $24 billion, and diluted EPS of $80 per share.
• Dividend Strategy: The company announced a 25 basis point increase in the dividend rate for its STRC preferred stock to 10.50% for November, following a rules-based framework intended to maintain the stock's price near its $100 stated amount.

Outlook and Analyst Estimates

Strategy's internally provided full-year guidance is substantially higher than traditional analyst estimates for sales and revenue, which focus on the company's software operations. Analysts are currently estimating sales of $469.3 million for the full year 2025. It is important to note that the company's own $34 billion operating income guidance is derived from its bitcoin strategy and capital markets activity, not its software sales, explaining the vast discrepancy. For the upcoming fourth quarter, analysts are estimating revenue of approximately $122.4 million.

The company's performance and future results remain inextricably linked to the market price of bitcoin. The substantial guidance provided by Strategy offers a clear, if highly speculative, vision of its potential performance, but it is entirely conditional on the volatile cryptocurrency market.

For a detailed overview of past and estimated future earnings, you can review the earnings and estimates data for Strategy Inc (NASDAQ:MSTR).

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The performance of Strategy Inc is highly speculative and tied to the volatile price of bitcoin. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.