Strategy (MSTR) Q3 2026 earnings summary

Executive summary

• Q3 operating income was $20.91B, including a $20.91B digital-asset fair-value gain; net income was $19.53B and diluted EPS was $44.75.

• Bitcoin holdings reached 847,666 at Sept. 30 and 848,517 by Oct. 25; the treasury was valued at $68.9B in Bitcoin and $5.1B in USD assets.

• Capital markets and digital-credit products support the strategy of expanding Bitcoin holdings and Bitcoin per share.

Financial highlights

• Q3 net income attributable to common stockholders was $19.12B after $419.6M of preferred dividends; diluted EPS was $44.75 versus $8.42 a year earlier.

• The $20.91B digital-asset gain primarily reflected Bitcoin price appreciation; Bitcoin market value rose from $49.7B at June 30 to $70.82B at Sept. 30.

• Total equity increased $23.2B, or 51%, to $68.5B; common equity was $55.4B and preferred equity carrying value was $13.1B at quarter-end.

• Revenue was $125.4M, down 3% YoY; subscription-services revenue rose 49% to $68.6M, while gross profit was $89.6M versus $90.7M.

• Cash and cash equivalents were $2.50B and short-term investments were $3.40B at Sept. 30, 2026.

Outlook and guidance

• Long-term objective: double Bitcoin per share in sats within seven years; management targets annual digital-credit sales equal to 10–20% of Bitcoin reserves.

• Management sees potential to issue $10B–$30B of digital credit using the current capital structure, without additional equity or Bitcoin appreciation.

• Digital credit is expected to become a primary Bitcoin-acquisition route; proceeds may also build USD reserves, and equity issuance could resume if mNAV expands.

• Management expects U.S. tokenization standards and frameworks to evolve over the next 12 months; no specific U.S. tokenized-offering timeline was committed.

• Preferred distributions may qualify as return of capital for 10+ years, subject to earnings, profits, tax rules and individual circumstances.