Short answer
MicroStrategy (MSTR) filed its fiscal 2025 10-K annual report with the SEC on Feb 19, 2026. It reported revenue of $477M (+3.0% year over year) and net income of −$3.8B.
- Top risk flagged: Regulatory risk from adoption of ASC 2023-08 requiring unrealized bitcoin fair value changes recognized in income, causing $5.4B unrealized loss in 2025
FY2025 key financial metrics · XBRL
- Revenue
- $477M
- +3.0% YoY
- Net income
- −$3.8B
- −229.8% YoY
- Operating margin
- -1140.8%
- −741.0 pp YoY
- Gross margin
- 68.7%
- −3.4 pp YoY
- EPS (diluted)
- −$15.23
- −151.3% YoY
- ROE
- -8.7%
- −2.3 pp YoY
- Operating cash flow
- −$67M
- −26.8% YoY
Source: XBRL data from the MicroStrategy (MSTR) FY2025 10-K on SEC EDGAR. USD.
MicroStrategy FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: dual focus on bitcoin treasury operations and AI-powered enterprise analytics software
- Introduced five novel Preferred Stock classes ("digital credit") in 2025 providing varied economic exposure to bitcoin and equity
- Strategic shift: rebranded from MicroStrategy Inc. to Strategy Inc. (Aug 2025) to emphasize identity as first and largest Bitcoin Treasury Company
- Bitcoin holdings 717,131 BTC acquired at $54.5B cost, market value $68,734 per bitcoin as of Feb 13, 2026; largest corporate holder globally
- Established $2.25B US dollar reserve in Dec 2025 to support dividend and interest payments on preferred stock and debt obligations
Management Discussion & Analysis
- Revenue driven primarily by bitcoin capital market activities and enterprise analytics software; net proceeds from equity offerings $23.17B in 2025 vs $16.33B in 2024
- Bitcoin unrealized loss $5.40B in 2025 with deferred tax benefit $1.55B; carrying value of bitcoin $58.85B vs $23.91B at end of 2024
- Best performing segment: Bitcoin holdings fair market value $58.85B with 672,500 bitcoins; Enterprise Analytics segment details excluded from financials
- Capital allocation: $22.47B spent on bitcoin purchases in 2025, funded by convertible notes and stock sales; USD Reserve cash $2.25B as of Feb 2026
- Forward outlook: Flexible bitcoin strategy emphasizing financial innovation and capital management; risks include bitcoin market volatility and regulatory landscape
Risk Factors
- Regulatory risk from adoption of ASC 2023-08 requiring unrealized bitcoin fair value changes recognized in income, causing $5.4B unrealized loss in 2025
- Macroeconomic risk due to bitcoin market volatility impacting liquidity, with holdings of ~717K bitcoins valued at $49.29B as of Feb 13, 2026
- Operational risk of increased cloud hosting costs by $32.5M and higher subcontractor expenses raising subscription services cost of revenues by 69% in 2025
- Competitive risk from customer migration from on-premises to cloud subscription services leading to 18.3% decline in product license revenues in 2025
- Financial risk from substantial convertible notes maturing 2028-2032 totaling $8.22B principal and $64.97M interest expense in 2025, with put options triggering potential large cash outflows
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