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    Microstrategy Inc (MSTR)

    Q2 2025 Earnings Summary

    Reported on Jan 1, 1970
    Pre-Earnings PriceN/ADate unavailable
    Post-Earnings PriceN/ADate unavailable
    Price ChangeN/A
    MetricYoY ChangeReason

    Cloud Subscription Revenue

    +61.6% YoY

    Revenue increased significantly due to robust demand for cloud services, reflecting successful customer acquisition and growth relative to the previous year, although higher hosting costs could temper margins in future periods.

    Subscription Billings

    +38% YoY to $24.5 million

    Subscription billings surged by 38% YoY, driven by market acceptance and adoption of the cloud platform, building on the momentum from previous periods.

    Digital Asset Fair Value Adjustments

    N/A (Q1 loss of $5.9 billion recorded)

    Q1 2025 recorded a $5.9 billion unrealized fair value loss on bitcoin holdings due to a decline in bitcoin prices from $93,400 to $82,400; this volatility, inherent to the new fair value accounting method, sets a challenging precedent for future periods if price declines continue.

    Operating Expenses (Digital Assets)

    Expected decrease in Q2 vs. Q1

    Operating expenses were markedly elevated in Q1 by the unrealized bitcoin loss, but with the new accounting model eliminating digital asset impairment losses, a notable reduction in operating expenses is expected in subsequent periods compared to the previous period.

    Bitcoin Purchases

    Q1: $7.7 billion (80,715 bitcoins) vs. Q2: $2.3 billion (25,370 bitcoins)

    The company made significant bitcoin acquisitions in Q1 and continued with additional purchases in Q2, indicating an active strategy to build digital asset exposure; these figures suggest a shift in investment volume that, when coupled with fair value adjustments, will impact earnings volatility based on market conditions building on previous transaction trends.