Strategy (MSTR) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results with $14B GAAP operating income, $10B net income, and $32.60 EPS, driven by bitcoin price appreciation, fair value accounting adoption, and capital markets activity.

• Bitcoin holdings reached 628,791 by July 31, 2025, representing 3% of all bitcoin, with a market value of $74B and market cap ranking 96th among U.S. public companies.

• Raised $18.3B YTD 2025, including the largest U.S. IPO of the year (STRC), and expanded preferred equity offerings (STRK, STRF, STRD, STRC).

• Adopted FASB/ASU 2023-08 fair value accounting for bitcoin, resulting in a $17.9B one-time adjustment and $12.75B increase to retained earnings.

• Capital structure shifts toward preferred equity, with plans to retire convertible bonds and focus on disciplined equity issuance above 2.5x NAV.

Financial highlights

• Q2 2025 GAAP operating income: $14B; net income: $10B; EPS: $32.60, all record highs.

• Q2 2025 total revenues: $114.5M, up 2.7% YoY; subscription services revenue up 69.5% YoY.

• H1 2025 net income: $5.8B; operating income: $8.1B; EPS: $19.43.

• Q2 gross profit: $78.7M; gross margin: 31.2%.

• BTC Yield YTD: 25%, BTC $ Gain YTD: $13.2B, meeting full-year targets in seven months.

Outlook and guidance

• FY2025 guidance: $34B operating income, $24B net income, $80 EPS, 30% BTC Yield, $20B BTC $ Gain, assuming $150,000 BTC price.

• Intends to continue accumulating bitcoin using proceeds from equity and debt financings.

• Equity issuance to be disciplined, only above 2.5x NAV; below that, credit may be used for buybacks.

• STRC dividend rate to be increased if price falls below $99; rate adjustments based on monthly VWAP.

• May become subject to 15% CAMT in 2026 and beyond due to unrealized gains.