STRD
STRD
MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred StockIncome Statement
| Period | Revenue | Operating Expense | Net Income | Net Profit Margin | Earnings Per Share | EBITDA |
|---|---|---|---|---|---|---|
| Q4-2025 | $122.99M ▼ | $17.53B ▲ | $-12.44B ▼ | -10.11K% ▼ | $-42.93 ▼ | $-17.44B ▼ |
| Q3-2025 | $128.69M ▲ | $90.68M ▲ | $2.79B ▼ | 2.16K% ▼ | $9.3 ▼ | $3.94B ▼ |
| Q2-2025 | $114.49M ▲ | $-13.95B ▼ | $10.02B ▲ | 8.75K% ▲ | $36.23 ▲ | $14.03B ▲ |
| Q1-2025 | $111.07M ▼ | $6B ▲ | $-4.22B ▼ | -3.8K% ▼ | $-16.49 ▼ | $-5.92B ▼ |
| Q4-2024 | $120.7M | $1.1B | $-670.81M | -555.78% | $-3.03 | $-1.01B |
What's going well?
Revenue is relatively stable and the core business has high gross margins. If the one-time charge is truly non-recurring, future quarters could look much better.
What's concerning?
A massive $17.4 billion expense wiped out profits, and costs are now much higher than sales. Margins are shrinking, and the company is burning through cash.
Balance Statement
| Period | Cash & Short-term | Total Assets | Total Liabilities | Total Equity |
|---|---|---|---|---|
| Q4-2025 | $2.3B ▲ | $61.64B ▼ | $10.6B ▼ | $51.04B ▼ |
| Q3-2025 | $54.28M ▲ | $73.62B ▲ | $15.5B ▲ | $58.12B ▲ |
| Q2-2025 | $50.09M ▼ | $64.77B ▲ | $14.4B ▲ | $50.37B ▲ |
| Q1-2025 | $60.3M ▲ | $43.92B ▲ | $10.39B ▲ | $33.53B ▲ |
| Q4-2024 | $38.12M | $25.84B | $7.61B | $18.23B |
What's financially strong about this company?
The company is sitting on $2.3 billion in cash, with almost no short-term debt and a current ratio of 5.6x. There is no goodwill or intangibles, so assets are high quality and tangible. Debt is low compared to assets and equity.
What are the financial risks or weaknesses?
Shareholder equity and total assets dropped sharply this quarter, mostly due to the removal of goodwill and intangibles. The reason for this write-off should be understood, as it could signal past overvaluation or a major business change.
Cash Flow Statement
| Period | Net Income | Cash From Operations | Cash From Investing | Cash From Financing | Net Change | Free Cash Flow |
|---|---|---|---|---|---|---|
| Q4-2025 | $-12.44B ▼ | $0 ▲ | $0 ▲ | $0 ▼ | $-56.2M ▼ | $0 ▼ |
| Q3-2025 | $-5.8B ▼ | $-8.31M ▲ | $-4.96B ▲ | $4.97B ▼ | $4.07M ▲ | $14.45B ▲ |
| Q2-2025 | $10.02B ▲ | $-34.91M ▼ | $-6.79B ▲ | $6.81B ▼ | $-10.13M ▼ | $-6.82B ▲ |
| Q1-2025 | $-4.22B ▼ | $-2.39M ▲ | $-7.67B ▲ | $7.69B ▼ | $22.36M ▲ | $-7.67B ▲ |
| Q4-2024 | $-670.81M | $-17.32M | $-18.08B | $18.09B | $-8.31M | $-18.09B |
What's strong about this company's cash flow?
There are no cash flow strengths this quarter – all activity stopped and the company is out of cash.
What are the cash flow concerns?
The company has no cash left, no operating or investing activity, and a huge accounting loss. It cannot continue without new funding.
5-Year Trend Analysis
A comprehensive look at MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock's financial evolution and strategic trajectory over the past five years.
Key positives include a strengthened balance sheet with much higher liquidity and equity, a high‑margin core software business with sticky enterprise customers, and a distinctive position as a large corporate holder of Bitcoin. The company has shown strong access to capital markets, issuing complex instruments such as STRD to fund its strategy. Ongoing innovation in AI‑driven analytics and embedded intelligence supports the durability of its software niche.
Major risks center on sustainability and volatility. The company has a track record of large net losses and negative free cash flow, relying heavily on external financing and asset appreciation rather than internally generated cash. Earnings are highly sensitive to Bitcoin price swings and to capital markets conditions. Competition in analytics is fierce, and any erosion in the software base would further weaken recurring revenue. For STRD specifically, dividends are non‑cumulative and discretionary, so any stress on cash or regulatory changes around Bitcoin could directly affect future distributions.
The forward picture is highly path‑dependent. If Bitcoin prices remain strong and capital markets stay open, MicroStrategy can maintain a robust balance sheet, continue investing in its platform, and support its layered capital structure, including preferred securities like STRD. If Bitcoin enters a prolonged downturn or financing conditions tighten, the combination of operating losses and investment risk could put more pressure on cash flow, leverage, and ultimately the reliability of preferred dividends. The company’s long‑term trajectory will hinge on its execution in enterprise analytics and the broader cycle of Bitcoin adoption and regulation.
About MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock
https://www.strategy.comMicroStrategy Incorporated, together with its subsidiaries, provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally.
Income Statement
| Period | Revenue | Operating Expense | Net Income | Net Profit Margin | Earnings Per Share | EBITDA |
|---|---|---|---|---|---|---|
| Q4-2025 | $122.99M ▼ | $17.53B ▲ | $-12.44B ▼ | -10.11K% ▼ | $-42.93 ▼ | $-17.44B ▼ |
| Q3-2025 | $128.69M ▲ | $90.68M ▲ | $2.79B ▼ | 2.16K% ▼ | $9.3 ▼ | $3.94B ▼ |
| Q2-2025 | $114.49M ▲ | $-13.95B ▼ | $10.02B ▲ | 8.75K% ▲ | $36.23 ▲ | $14.03B ▲ |
| Q1-2025 | $111.07M ▼ | $6B ▲ | $-4.22B ▼ | -3.8K% ▼ | $-16.49 ▼ | $-5.92B ▼ |
| Q4-2024 | $120.7M | $1.1B | $-670.81M | -555.78% | $-3.03 | $-1.01B |
What's going well?
Revenue is relatively stable and the core business has high gross margins. If the one-time charge is truly non-recurring, future quarters could look much better.
What's concerning?
A massive $17.4 billion expense wiped out profits, and costs are now much higher than sales. Margins are shrinking, and the company is burning through cash.
Balance Statement
| Period | Cash & Short-term | Total Assets | Total Liabilities | Total Equity |
|---|---|---|---|---|
| Q4-2025 | $2.3B ▲ | $61.64B ▼ | $10.6B ▼ | $51.04B ▼ |
| Q3-2025 | $54.28M ▲ | $73.62B ▲ | $15.5B ▲ | $58.12B ▲ |
| Q2-2025 | $50.09M ▼ | $64.77B ▲ | $14.4B ▲ | $50.37B ▲ |
| Q1-2025 | $60.3M ▲ | $43.92B ▲ | $10.39B ▲ | $33.53B ▲ |
| Q4-2024 | $38.12M | $25.84B | $7.61B | $18.23B |
What's financially strong about this company?
The company is sitting on $2.3 billion in cash, with almost no short-term debt and a current ratio of 5.6x. There is no goodwill or intangibles, so assets are high quality and tangible. Debt is low compared to assets and equity.
What are the financial risks or weaknesses?
Shareholder equity and total assets dropped sharply this quarter, mostly due to the removal of goodwill and intangibles. The reason for this write-off should be understood, as it could signal past overvaluation or a major business change.
Cash Flow Statement
| Period | Net Income | Cash From Operations | Cash From Investing | Cash From Financing | Net Change | Free Cash Flow |
|---|---|---|---|---|---|---|
| Q4-2025 | $-12.44B ▼ | $0 ▲ | $0 ▲ | $0 ▼ | $-56.2M ▼ | $0 ▼ |
| Q3-2025 | $-5.8B ▼ | $-8.31M ▲ | $-4.96B ▲ | $4.97B ▼ | $4.07M ▲ | $14.45B ▲ |
| Q2-2025 | $10.02B ▲ | $-34.91M ▼ | $-6.79B ▲ | $6.81B ▼ | $-10.13M ▼ | $-6.82B ▲ |
| Q1-2025 | $-4.22B ▼ | $-2.39M ▲ | $-7.67B ▲ | $7.69B ▼ | $22.36M ▲ | $-7.67B ▲ |
| Q4-2024 | $-670.81M | $-17.32M | $-18.08B | $18.09B | $-8.31M | $-18.09B |
What's strong about this company's cash flow?
There are no cash flow strengths this quarter – all activity stopped and the company is out of cash.
What are the cash flow concerns?
The company has no cash left, no operating or investing activity, and a huge accounting loss. It cannot continue without new funding.
5-Year Trend Analysis
A comprehensive look at MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock's financial evolution and strategic trajectory over the past five years.
Key positives include a strengthened balance sheet with much higher liquidity and equity, a high‑margin core software business with sticky enterprise customers, and a distinctive position as a large corporate holder of Bitcoin. The company has shown strong access to capital markets, issuing complex instruments such as STRD to fund its strategy. Ongoing innovation in AI‑driven analytics and embedded intelligence supports the durability of its software niche.
Major risks center on sustainability and volatility. The company has a track record of large net losses and negative free cash flow, relying heavily on external financing and asset appreciation rather than internally generated cash. Earnings are highly sensitive to Bitcoin price swings and to capital markets conditions. Competition in analytics is fierce, and any erosion in the software base would further weaken recurring revenue. For STRD specifically, dividends are non‑cumulative and discretionary, so any stress on cash or regulatory changes around Bitcoin could directly affect future distributions.
The forward picture is highly path‑dependent. If Bitcoin prices remain strong and capital markets stay open, MicroStrategy can maintain a robust balance sheet, continue investing in its platform, and support its layered capital structure, including preferred securities like STRD. If Bitcoin enters a prolonged downturn or financing conditions tighten, the combination of operating losses and investment risk could put more pressure on cash flow, leverage, and ultimately the reliability of preferred dividends. The company’s long‑term trajectory will hinge on its execution in enterprise analytics and the broader cycle of Bitcoin adoption and regulation.
CEO
Phong Q. Le
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Ratings Snapshot
Rating : C