The investor's view
-0.1%
growth in revenue a year, FY2020 to FY2025
- Five fundamentals, each ranked against the Technology companies covered
- A peer map of growth against margin
- Where the profit is made
Bitcoin's quarter-end price, not software, made the profit
Q3 FY2026, the quarter to Sep 30, 2026 · 10-Q filed Nov 2, 2026
Largest source of revenue: Subscription services, 54.7% of the total.
The gain is unrealized, so a $19.53B net income came with just $3.96M of free cash flow.
Revenue was $125.4M, all of it from the Software segment; the Bitcoin segment booked none. The $20.9B gain on digital assets, booked under fair value accounting as bitcoin's price rose during the quarter, is how income from operations reached $20.9B and net income $19.53B, against $2.79B a year earlier. The filing states that "unrealized gains on digital assets do not generate cash". Operating cash flow was $4.42M.1
The same accounting cut the other way earlier in the year: net losses of $12.54B in the first quarter and $8.22B in the second. Tax took 6.7% of pretax income this quarter, a $1.41B provision on $20.94B. The filing explains that bitcoin's value moved back above the company's average cost, which reversed a deferred tax asset and the valuation allowance set up earlier in the year, so the low rate reflects a one-time reversal.1
AnalysisAnalysis: reported earnings here follow one price on one day. A lower bitcoin price at the next quarter end would be booked as a loss, and a close below the average cost of $75,437 per coin would bring the deferred tax question back.
Preferred dividends reached $419.6M, against $139.9M a year earlier, so the model's fixed cost now rests on capital markets.
Preferred dividends were $419.6M in the quarter, against $139.9M a year earlier. Software gross profit of $89.6M covered 21.4% of them, and free cash flow of $3.96M covered 0.9%. Sales and marketing, research and development, and general and administrative costs together were larger than gross profit.1
The company does not expect its software business "to generate sufficient cash flow from operations to satisfy our financial obligations or liquidity needs over the next twelve months". It relies on equity and debt capital markets, its dollar reserve and, if it chooses, bitcoin sales under its BTC Monetization Program.1
AnalysisAnalysis: the useful question each quarter is which source carries the dividend: the reserve, new share sales or bitcoin. A growing role for bitcoin sales would mean the treasury had begun paying its obligations from its own principal.
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Where Strategy stands among its peers, ten years of growth and cash, where the profit is made, and the edge and the risks.
How Strategy's model works step by step, where every $100 of revenue goes against the industry, and how long it took to scale.
Revenue went from $377.8M in FY2009 to $477.2M in FY2025, the operating margin from 22.8% to -1,140.8%, over 16 years.
Member research, then your own questions on ChatGPT.
What Strategy's numbers depend on from here, read from the filing: the conditions behind this period's margins and growth, and where a change would show first.
The conditions under which share sales add bitcoin per share, and how far this quarter fell from meeting them.
How each funding source stacks up against the preferred bill, and what to look for in each quarter's filing.
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Business Lens describes Strategy from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing, the dates and the version are under the financial data above.