Executive Summary

Q3 2025 was a transition quarter marked by the reverse acquisition closing, $749.6M PIPE financing, rapid Bitcoin accumulation to 5,886 BTC by quarter-end, and a very large GAAP loss driven by one-time items (goodwill/intangible impairment $140.8M and derivative/unrealized losses) rather than operations .
Combined Q3 revenues were ~$1.53M (predecessor $1.29M + successor $0.26M), up vs Q3’24, while the full-quarter net loss was ~$(206.7)M (predecessor $(14.4)M + successor $(192.3)M), with 93.2% of successor-period net loss tied to non-recurring and/or non-cash items per management .
Management initiated preliminary 2026 guidance for the asset management operating business: single-digit million operating loss to single-digit million operating income, or approximately $(0.01) to $0.01 per diluted share; the firm also launched a $500M buyback authorization and a $450M ATM program to flexibly manage capital while scaling its Bitcoin treasury .
Post-quarter, ASST completed a variable-rate perpetual preferred stock (SATA) offering for ~$149.3M net (initial 12% cash dividend), and increased BTC holdings to 7,525 by Nov 7—key near-term stock catalysts alongside the proposed all-stock Semler Scientific acquisition (21.05 ASST Class A shares per Semler share, subject to approval) .
S&P Global consensus for Q3 2025 EPS and revenue was not available; comparisons to estimates are therefore not meaningful this quarter (see Estimates Context) [Functions GetEstimates—no Q3 consensus available].

What Went Well and What Went Wrong

What Went Well
- Closed reverse acquisition and raised $749.6M gross via PIPE; executed 351 Exchange; and rapidly scaled Bitcoin holdings to 5,886 BTC at quarter-end (cost basis $683.0M; fair value $672.9M), underscoring balance-sheet firepower and mission alignment .
- Management set 2026 operating guardrails (asset management segment near breakeven) and added flexible capital tools—a $500M buyback and $450M ATM program—to optimize per-share Bitcoin exposure and fund growth .
- CEO tone confident on strategy: “Strive…became the first publicly traded Bitcoin treasury asset management firm…[and]…issued a publicly traded perpetual preferred equity security” (SATA) to amplify Bitcoin exposure via equity rather than debt .
What Went Wrong
- GAAP results were dominated by one-time/non-cash items: goodwill/intangible impairment ($140.8M), other derivative loss tied to the 351 Exchange ($14.7M), and a $10.1M unrealized loss on digital assets in the brief successor period, resulting in a successor-period net loss of $(192.3)M .
- Successor-period non-GAAP adjusted net loss was $(13.0)M, indicating underlying operating losses persist pending scale benefits in asset management; share-based comp was $16.3M in the period .
- Liquidity is strong, but future dividend commitments on SATA (variable-rate cash dividends) and continued Bitcoin purchases require disciplined capital allocation and successful warrant/ATM execution to avoid undue dilution .

Financial Results

Note: Q3 2025 spans two reporting bases due to the reverse acquisition—Predecessor (Jul 1–Sep 11) and Successor (Sep 12–Sep 30). We present both for transparency.

Metric (USD, except per-share)	Q3 2024	Q2 2025	Q3 2025 (Predecessor, 7/1–9/11)	Q3 2025 (Successor, 9/12–9/30)
Total Revenues ($000)	$984	$173,259	$1,288	$255
Net Loss ($000)	$(6,802)	$(2,664,611)	$(14,366)	$(192,287)
Diluted EPS	$(3.06)	$(0.17)	$(6.18)	$(0.22)
Non-GAAP Adjusted Net Income (Loss) ($000)	$(6,755)	N/A	$(4,043)	$(12,981)

Segment breakdown (Q3 2025):

Segment (USD $000)	Successor (9/12–9/30) Revenue	Successor Net Loss	Predecessor (7/1–9/11) Revenue	Predecessor Net Loss
Asset Management	$246	$(3,256)	$1,283	$(1,765)
Corporate & Other (Bitcoin/holding co)	$9	$(189,031)	$5	$(12,601)
Total	$255	$(192,287)	$1,288	$(14,366)

Key KPIs and balance sheet capacity:

KPI	Sep 30, 2025	Nov 7, 2025
Bitcoin Held (units)	5,886	7,525
BTC Cost Basis / FV	$683.0M / $672.9M	N/A
Cash & Cash Equivalents	$109.1M	N/A
ATM Remaining Capacity	$390.8M (as of 9/30)	~$384.6M (as of 11/7)
PIPE Pre-Funded Warrants O/S	177.25M (as of 9/30)	64.17M (as of 11/7)

Drivers/notes:

The Q3 successor-period loss was dominated by: goodwill/intangible impairment ($140.8M), other derivative loss ($14.7M) from the 351 exchange, and $10.1M unrealized BTC loss .
Non-GAAP adjusted net loss removes those non-cash/non-recurring items; successor non-GAAP adjusted net loss was $(13.0)M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Asset Mgmt operating result (approx EPS)	FY 2026	None	Single-digit million operating loss to single-digit million operating income; ≈ $(0.01) to $0.01 per diluted share	Initiated
SATA Preferred Dividend Policy	From Dec 2025	None	Variable cash dividend, initial 12% per annum; Company may adjust per constraints; compounded penalties on arrears	Initiated
Capital Return (Buyback)	Ongoing	None	$500M Class A common stock repurchase authorization	Initiated
Equity Program (ATM)	Ongoing	None	$450M ATM program; $390.8M remaining at 9/30; ~$384.6M at 11/7	Initiated; updated usage
Bitcoin Treasury Disclosure	Ongoing	N/A	Live treasury dashboard for BTC purchases, holdings, and metrics	Implemented

Earnings Call Themes & Trends

Note: A Q3 2025 earnings call transcript was not available in our document set; themes below derive from the 8‑K/press release and 10‑Q [ListDocuments showed no earnings-call-transcript for ASST].

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Bitcoin treasury strategy	Planned pivot with 351 Exchange and $750M private placement described; treasury not yet active pre-merger	Executed PIPE ($749.6M), 351 Exchange (69 BTC), and large open-market BTC buys to 5,886 BTC at 9/30; subsequent to 11/7 reached 7,525 BTC	Accelerating
Capital structure/financing	ATM in place; expectation of significant financing post-merger	Introduced equity-only amplification via SATA perpetual preferred (IPO net ~$149.3M, 11/10) and ongoing ATM capacity	Expanding tools
AUM/asset management	Pre-merger small rev base (AE Discord services); asset management scale-up discussed	Strive manages >$2B AUM across 13 strategies; asset management guidance near breakeven in 2026	Scaling
M&A/strategic	Merger process with Strive Enterprises progressing	Signed all-stock Semler Scientific merger (21.05 ASST Class A per SMLR share), subject to Semler shareholder approval	Add-on platform
Non-GAAP emphasis	Not prominent	Reconciled successor non-GAAP adj. loss $(13.0)M; heavy one-time/non-cash GAAP items	Clarifying quality
Shareholder returns	Not applicable	$500M buyback authorization launched	Added lever
Disclosure/IR	N/A	Launched Bitcoin treasury dashboard for transparent updates	Improved disclosure

Management Commentary

Strategic positioning: “Strive…became the first publicly traded Bitcoin treasury asset management firm…[and]…issued a publicly traded perpetual preferred equity security,” highlighting the equity-only amplification approach for BTC exposure (SATA) .
Operating construct: “Our bitcoin strategy generally involves…(i) acquiring bitcoin using open market purchases…[and] (ii) acquiring bitcoin through alpha strategies…intended to deliver returns above and beyond what beta initiatives may deliver alone” .
Balance sheet and execution: Q3 highlights included closing the reverse acquisition, completing the $749.6M PIPE with attached warrants, executing the 351 Exchange (69 BTC), and acquiring 5,886 BTC during the period; subsequent additions and SATA proceeds extend capacity .

Q&A Highlights

Note: No Q3 2025 earnings call transcript was found; highlights below reflect clarifications from filings.

Impairment rationale: Management recorded $140.8M goodwill/intangible impairments due to the Asset Entities acquisition (suspension of certain legacy Discord subscriptions and stock price decline) .
351 Exchange economics: A $14.7M “other derivative loss” reflects the difference between ASST’s market price and the agreed exchange price at the time of BTC-for-equity exchange .
SATA mechanics: Initial 12% cash dividend, company-adjustable within constraints; compounded penalties on unpaid dividends; goal to target trading in a $95–$105 range over time, subject to discretion and market conditions .
Segment outlook: Asset Management to operate near breakeven in 2026 (single-digit million loss to income), while Corporate & Other includes BTC treasury operations and related mark-to-market volatility .

Estimates Context

Wall Street consensus (S&P Global) for ASST’s Q3 2025 EPS and revenue was unavailable due to the reverse acquisition, abbreviated successor period, and coverage transition. As such, estimate comparisons for Q3 are not meaningful this quarter [Functions GetEstimates—no Q3 2025 consensus returned].
Prior periods (Q1 and Q2 2025) reflect pre-merger Asset Entities financials and are not comparable to post-merger Strive results; actuals are shown in Financial Results tables sourced from SEC filings .

Key Takeaways for Investors

Underlying operations are far better than GAAP suggests: successor non-GAAP adjusted net loss was $(13.0)M vs GAAP $(192.3)M, with one-time/non-cash drivers (impairment, exchange economics, short successor window) dominating the print -.
Balance sheet capacity and optionality are high: $109.1M cash at 9/30, ~~$149.3M net from SATA in Nov, and remaining ATM capacity (~~$384.6M at 11/7) support continued BTC accumulation without relying on debt .
BTC torque is rising: holdings climbed to 7,525 BTC by Nov 7; equity-only amplification via SATA plus warrants creates embedded operating and financial leverage to BTC cycles—both upside opportunity and volatility risk .
Capital allocation levers are in place: $500M buyback authorization and warrant exercises provide dynamic tools to manage dilution and per-share BTC exposure amid active treasury operations .
Semler deal is a swing factor: if approved, it could add an operating platform with refreshed leadership for preventive healthcare while maintaining the core BTC strategy; execution and closing risk remain .
Near-term trading implications: stock likely trades on BTC path, SATA yield/adjustments, and warrant exercise pace; watch treasury dashboard updates and any SATA dividend changes as catalysts .
Medium-term thesis: achieve asset management near-breakeven in 2026, scale BTC per share with equity-only amplification, and demonstrate discipline in balancing ATM/warrant usage vs buybacks to protect per-share economics .

Appendix: Additional Q3 2025 Disclosures and Press Releases

Completion of merger and becoming Strive, Inc.; ~$750M financing raised with additional ~$750M via warrants potential .
Board/strategy update and capital tools (WKSI shelf, ATM, buyback) to support BTC per-share focus .
Preliminary 8‑K (Oct 2) indicated $108.6M cash and 5,886 BTC as of Sep 30 (consistent with 10‑Q), prior to final close of Q3 procedures .

Strive, Inc. (ASST)·Q3 2025 Earnings Summary