Strategy Inc (STRC) Q1 2026 Financial Results Summary

On May 5, 2026, Strategy Inc. announced its financial results for the first quarter ended Mar 31, 2026. The following is a summary of the key financial and operational metrics.

Key Highlights

• Bitcoin Holdings:
  • As of May 3, 2026, the company holds 818,334 BTC, reflecting a 22% growth year-to-date (YTD 2026).
  • Achieved a BTC Yield of 9.4% YTD 2026.
  • YTD gains from BTC amount to $4.97 billion.
• Digital Credit (STRC):
  • STRC raised $5.58 billion, showing a 189% growth YTD 2026.
• Dividends:
  • Cumulative dividends declared and paid on all preferred stock amounted to $692.5 million to date.
  • Continued payment on dividends, with dividends on STRC stock declared for January ($0.92), February ($0.94), March ($0.96), April ($0.96), and May ($0.96).

Financial Summary

• Operating Loss:
  • Q1 2026: $14.47 billion compared to $5.92 billion in Q1 2025.
  • This loss includes an unrealized loss on digital assets of $14.46 billion, a significant increase from $5.91 billion in Q1 2025.
• Net Loss:
  • Q1 2026: $12.54 billion (or $38.25 per diluted share) compared to $4.22 billion (or $16.49 per diluted share) in Q1 2025.
  • Net loss attributable to common stockholders in Q1 2026: $12.77 billion vs. $4.23 billion in Q1 2025.
• Cash and Cash Equivalents:
  • As of March 31, 2026, cash and cash equivalents were $2.21 billion, a slight decrease from $2.30 billion as of Dec 31, 2025.
• Revenues:
  • Total revenues for Q1 2026 were $124.3 million, marking an 11.9% increase from $111.1 million in Q1 2025.
• Gross Profit:
  • Gross profit for Q1 2026 was $83.4 million, resulting in a 67.1% gross margin, compared to $77.1 million (69.4% gross margin) a year earlier.

Bitcoin Summary (as of May 3, 2026)

• BTC Yield: Achieved 9.4% YTD 2026.
• BTC Gain: 63,410 BTC YTD 2026.
• BTC $ Gain: $4.97 billion.

Capital Markets

• ATM Offerings:
  • In Q1 2026, the company received approximately $7.37 billion from ATM offerings, with $5.30 billion from MSTR and $2.07 billion from STRC.

Dividend Guidance

• The company declared dividends on STRC stock as follows:
  • January: Annualized rate 11.00%, dividend $0.92.
  • February: Annualized rate 11.25%, dividend $0.94.
  • March to May: Annualized rate 11.50%, dividend $0.96.

Additional Information

The company maintains a digital asset dashboard providing updated information about the company's bitcoin holdings and financial performance metrics. Strategy believes future distributions will be treated as non-taxable return of capital (ROC) due to the expected absence of accumulated earnings & profits for U.S. federal income tax purposes.

Conclusion

In summary, while Strategy Inc has made significant strides in terms of bitcoin holdings and revenue growth in its digital credit offerings, it continues to face substantial operating losses attributed primarily to unrealized losses on its digital asset portfolio. The firm's executive team remains optimistic, highlighting growing adoption rates for bitcoin and extensive ongoing capital-raising efforts through various financial instruments.

Note: All amounts in the following tables are in thousands.

STRATEGY INC	CONSOLIDATED STATEMENTS OF OPERATIONS	(in thousands, except per share data)
Three Months Ended March 31, 2026	2025	(unaudited)
Product	$5,501	$7,270
Subscription services	$58,879	$37,103
Total product licenses and subscription services	$64,380	$44,373
Product support	$44,190	$52,529
Other services	$15,730	$14,164
Total revenues	$124,300	$111,066
Cost of revenues: Product licenses	$1,196	$964
Subscription services	$22,471	$14,429
Total product licenses and subscription services	$23,667	$15,393
Product support	$6,187	$7,354
Other services	$11,092	$11,224
Total cost of revenues	$40,946	$33,971
Gross profit	$83,354	$77,095
Operating expenses: Sales and marketing	$36,272	$27,532
Research and development	$24,665	$24,423
General and administrative	$37,357	$40,547
Unrealized loss on digital assets	$14,455,479	$5,906,005
Total operating expenses	$14,553,773	$5,998,507
Loss from operations	-$14,470,419	-$5,921,412
Interest income (expense), net	$1,824	-$17,106
Other income (expense), net	$3,116	-$3,936
Loss before income taxes	-$14,465,479	-$5,942,454
Benefit from income taxes	-$1,922,809	-$1,725,084
Net loss	-$12,542,670	-$4,217,370
Dividends on preferred stock	-$229,527	-$10,648
Net loss attributable to common stockholders of Strategy	-$12,772,197	-$4,228,018
Basic loss per common share (1)	-$38.25	-$16.49
Weighted average common shares outstanding - Basic	333,913	256,473
Diluted loss per common share (1)	-$38.25	-$16.49
Weighted average common shares outstanding - Diluted	333,913	256,473

(1) Basic and fully diluted loss per common share for class A and class B common stock are the same.

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STRATEGY INC	CONSOLIDATED BALANCE SHEETS	(in thousands, except per share data)
March 31, 2026	December 31, 2025	-unaudited
Assets
Current assets: Cash and cash equivalents	$2,207,219