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STRC

MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock

STRC

MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock • NASDAQ
$96.66 ▼ -0.52% (-0.51)
Market Cap $110.41 B
52w High $100.20
52w Low $90.52
Dividend Yield 10.50%
P/E 0
Volume 523.46K
Outstanding Shares 1.13B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $128.691M ▲ $90.683M ▲ $2.785B ▼ 2.164K% ▼ $9.3 ▼ $3.944B ▼
Q2-2025 $114.488M ▲ $-13.953B ▼ $10.021B ▲ 8.753K% ▲ $36.23 ▲ $14.033B ▲
Q1-2025 $111.066M ▼ $5.999B ▲ $-4.217B ▼ -3.797K% ▼ $-16.49 ▼ $-5.919B ▼
Q4-2024 $120.697M ▲ $1.103B ▲ $-670.81M ▼ -555.78% ▼ $-3.03 ▼ $-1.005B ▼
Q3-2024 $116.071M $514.304M $-340.174M -293.074% $-1.72 $-454.571M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $54.285M ▲ $73.619B ▲ $15.502B ▲ $58.117B ▲
Q2-2025 $50.095M ▼ $64.773B ▲ $14.402B ▲ $50.371B ▲
Q1-2025 $62.258M ▲ $43.92B ▲ $10.394B ▲ $33.526B ▲
Q4-2024 $38.117M ▼ $25.844B ▲ $7.614B ▲ $18.23B ▲
Q3-2024 $46.343M $8.344B $4.57B $3.774B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-5.803B ▼ $-8.31M ▲ $-4.96B ▲ $4.972B ▼ $4.068M ▲ $14.449B ▲
Q2-2025 $10.021B ▲ $-34.913M ▼ $-6.787B ▲ $6.81B ▼ $-10.126M ▼ $-6.822B ▲
Q1-2025 $-4.217B ▼ $-2.389M ▲ $-7.67B ▲ $7.694B ▼ $22.361M ▲ $-7.673B ▲
Q4-2024 $-670.81M ▼ $-17.324M ▲ $-18.075B ▼ $18.087B ▲ $-8.308M ▲ $-18.093B ▼
Q3-2024 $-340.174M $-40.966M $-1.575B $1.594B $-20.596M $-1.616B

Revenue by Products

Product Q2-2024Q3-2024Q4-2024Q1-2025
Product Development Contract Revenue
Product Development Contract Revenue
 $0 ▲$0 ▲$0 ▲$0 ▲
Product Revenue
Product Revenue
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement The company’s revenue base has been small and fairly flat over the past few years, suggesting a mature, niche software business rather than a rapidly scaling growth story. Gross profitability on that revenue looks healthy, but operating costs have been high, so the firm has reported operating losses in most years. The latest year shows a particularly large loss, following one rare year of solid profitability, which tells you earnings are quite volatile. That volatility likely reflects not only swings in the software business but also the impact of the Bitcoin strategy and related financing on reported results. Overall, the income statement shows a business that has not yet settled into consistent, durable profitability and remains exposed to big year‑to‑year swings.

Balance Sheet

Balance Sheet The balance sheet has expanded dramatically in the most recent year, with total assets rising much faster than in prior years. This aligns with the company’s strategy of accumulating large holdings of Bitcoin and other long‑term assets. Equity has moved from weak or even slightly negative levels a couple of years ago to a much stronger position recently, suggesting significant capital raising and/or asset value appreciation. At the same time, debt has climbed meaningfully, so leverage is now an important part of the story. Cash on hand remains relatively modest compared with the size of the balance sheet, implying that much of the asset base is tied up in non‑cash, more volatile holdings rather than readily available liquidity.

Cash Flow

Cash Flow Cash generated from day‑to‑day operations has hovered around break‑even, moving between slightly positive and slightly negative over the period. That indicates the core software business is not burning large amounts of cash but also is not throwing off strong, self‑funding cash flows yet. The real story sits in investment cash flows: the company has been spending heavily on long‑term assets, leading to very large negative free cash flow, especially in the most recent year. This pattern is consistent with aggressive Bitcoin accumulation and other long‑duration bets. As a result, the business appears reliant on outside funding—equity and debt issuances—to support its investment strategy rather than funding it from internal cash generation.

Competitive Edge

Competitive Edge In software, the company competes in enterprise analytics, where it has a long history and a loyal, embedded customer base. Its Enterprise Semantic Graph and tightly governed data model create switching costs for large organizations, because re‑creating this structure on another platform is complex and disruptive. That provides a modest, “narrow” moat. The firm also differentiates with features like HyperIntelligence, embedded analytics, and a unified analytics platform that spans traditional BI and AI‑driven tools. However, the analytics market is fiercely competitive, with heavyweights like Microsoft, Salesforce/Tableau, and others investing aggressively. On top of that, MicroStrategy’s balance‑sheet focus on Bitcoin adds a second, very different competitive angle: it is now perceived as both a software company and a leveraged proxy on Bitcoin. This dual identity draws attention but also means its perceived competitive standing is highly tied to crypto sentiment and volatility.

Innovation and R&D

Innovation and R&D The company is leaning hard into innovation in analytics and AI. Its MicroStrategy ONE platform integrates traditional business intelligence with generative AI and automation tools, aiming to make data analysis more natural‑language driven and accessible. Features that automatically generate code, build schema, summarize dashboards in plain language, and deliver “zero‑click” insights inside other apps show a strong push toward practical, workflow‑embedded AI. The roadmap points to more autonomous, agent‑like capabilities that could handle increasingly complex business tasks. This sustained focus on AI, metadata governance, and embedded analytics gives the firm a credible technological story and could help it maintain relevance even as the broader analytics market rapidly evolves.

Summary

Overall, MicroStrategy presents a complex mix of a stable but not fast‑growing software business and a very aggressive balance‑sheet strategy centered on Bitcoin. The income statement shows good gross profitability but inconsistent bottom‑line results, with a particularly weak latest year. The balance sheet has ballooned due to asset accumulation, supported by higher leverage and new equity, while cash flows from core operations remain modest and heavy investment spending drives large cash outflows. Competitively, the firm benefits from entrenched enterprise deployments and meaningful switching costs, but it operates in a crowded field against much larger players. Its ongoing investment in AI‑driven analytics and embedded intelligence is a clear strength, yet the Bitcoin strategy introduces substantial volatility and concentration risk. Anyone assessing STRC or the broader MicroStrategy capital structure needs to weigh the relatively steady, if unexciting, software franchise against the highly volatile, high‑conviction Bitcoin exposure that now dominates the company’s financial profile.