MSTR Q2 Earnings Beat Estimates, Revenues Jump Y/Y, Shares Up

Barchart·08/06/2025 09:34:38

MicroStrategy MSTR, doing business as “Strategy,” shares have dropped 6.6% in the past three trading sessions post the company’s second-quarter 2025 results reported on July 31. The company’s shares have returned 29.6% year to date, outperforming the broader Zacks Computer & Technology sector’s appreciation of 11.8%.

Strategy reported second-quarter 2025 non-GAAP earnings of $32.52 per share against the year-ago quarter loss of 76 cents per share. On a GAAP basis, earnings of $32.60 per share beat the Zacks Consensus Estimate of a loss of 12 cents per share. 

Revenues of $114.5 million beat the Zacks Consensus Estimate by 2.09%. The figure climbed 2.7% year over year.

Bitcoin per share, which represents the ratio between MSTR’s bitcoin holdings and assumed Diluted Shares Outstanding, expressed in terms of Sats (“Sat” or a “Satoshi” is one one-hundred-millionth of one bitcoin, the smallest indivisible unit of a bitcoin), hit 39,716 as of July 31.

 

 

MSTR Q2 in Detail

In the second quarter of 2025, product licenses and subscription services revenues jumped 44% year over year to $48 million and accounted for 41.9% of revenues, which was 100% software. Subscription services soared 69.5% year over year to $40.8 million, while product licenses fell 23% to $7.2 million. Product Support and Other Services revenues fell 15.6% and 11.8%, respectively.

Gross margin contracted 350 basis points on a year-over-year basis. 

Sales and marketing, research and development, and general and administrative expenses declined 130 bps, 620 bps and 50 bps on a year-over-year basis, respectively.

Strategy reported operating income of $14.03 billion against the year-ago quarter’s operating loss of $200.3 million. Operating income included an unrealized gain on MSTR’s digital assets worth $14 billion.

MSTR’s Bitcoin Details

Strategy is the world’s largest bitcoin treasury company, holding 628,791 bitcoins, for a total cost of $46.08 billion, implying $73,277 per bitcoin. 

Bitcoin yield hit 25% year to date and was 19.7% at the end of the second quarter of 2025. The company now targets a bitcoin yield of 30% for 2025.

In dollar terms, bitcoin gain was $9.5 billion at the end of second-quarter and $13.2 billion year to date. The company now targets gain of $20 billion for 2025.

Strategy’s Balance Sheet Details

As of June 30, 2025, Strategy’s digital assets were comprised of approximately 597,325 bitcoins, with an original cost basis and market value of $42.4 billion and $64.4 billion, respectively. This reflects an average cost per bitcoin of approximately $70,982 and a market price per bitcoin of $107,752, respectively. 

In the reported quarter, MSTR received net proceeds of approximately $6.8 billion and approximately $3.7 billion between July 1, 2025, and July 29, 2025.

The company, through its common stock ATM program, raised $5.2 billion, $446.9 million through the STRK ATM program and $163.1 million through the STRF ATM program.

In May 2025, Strategy received net proceeds of roughly $979.7 million through the issuance and sale of 11,764,700 shares of 10.00% Series A Perpetual Stride Preferred Stock (“STRD Stock”) at a public offering price of $85.00 per share.

MSTR Offers Positive 2025 Guidance

For 2025, Strategy expects operating income of $34 billion, net income of $24 billion, and earnings of $80 per share, based on a bitcoin price outlook of $150,000 at the end of the year.

Zacks Rank & Stocks to Consider

Currently, Strategy has a Zacks Rank #3 (Hold). 

MKS Inc. MKSI, DoorDash DASH and Lumentum LITE are some better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

MKS shares have declined 11.8% year to date. MKS is set to report its second-quarter 2025 results on Aug. 6.

DoorDash shares have appreciated 52.3% year to date. DASH is set to report its second-quarter 2025 results on Aug. 6.

Lumentum shares are up 28.8% year to date. Lumentum is set to report its fourth-quarter fiscal 2025 results on Aug. 12.

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MKS Inc. (MKSI): Free Stock Analysis Report
 
MicroStrategy Incorporated (MSTR): Free Stock Analysis Report
 
Lumentum Holdings Inc. (LITE): Free Stock Analysis Report
 
DoorDash, Inc. (DASH): Free Stock Analysis Report

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