# MicroStrategy (MSTR.US)

Canonical: https://gigainvestors.com/s/MSTR

Analysis as of: 2026-10-16T07:30:26.028Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $151.29 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 8 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 8

- Years with a net loss: 5

- Operating margin variation: 1.68×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.15×

- FY2018: 0.01×

- FY2019: -0.00×

- FY2020: -0.03×

- FY2021: -1.54×

- FY2022: -2.56×

- FY2023: -0.23×

- FY2024: -4.00×

- FY2025: -0.09×

- LTM to Jun 2026: -16.77×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 11.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: -1.5%

- ROIC, second-lowest year: -19.7%

- Typical minus recent gross margin: 11.0 pp

- Typical gross margin (annual median): 79.7%

- Recent gross margin (lower of latest and 3-year median): 68.7%

- Years with nonpositive capital: 3

- Capital spending / revenue: 146.5%

- ROIC including acquisitions, ten-year median: -86.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 15.5%

- FY2017: 7.9%

- FY2018: 0.8%

- FY2019: -1.9%

- FY2020: -1.1%

- FY2021: -19.7%

- FY2022: -49.9%

- FY2023: -2.1%

- FY2024: -5.8%

- FY2025: -0.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$56B

- Net income, five-year total: -$6.6B

- Return on incremental invested capital: -0.3%

- Working capital / revenue, annual change: 1.6 pp

- Working capital / revenue, change between three-year averages: 10.3 pp

- Working capital / revenue, final three-year average: 31.6%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$3.1B

- FY2022: -$1.7B

- FY2023: -$1.4B

- FY2024: -$23B

- FY2025: -$26B

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.9% vs -2.1%

- Per-share earnings: 0.80 to -6.06 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 9.2%

- Ordinary dilution, 5-year annual growth: 23.5%

- Market cap gain: $40B

- Cumulative retained earnings: $5.8B

- Diluted shares, 10-year annual growth: 9.2%

- Diluted shares, 5-year annual growth: 23.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$6.86

- Per-share value, starting three-year median: $0.80

- Per-share value, ending three-year median: -$6.06

- Buybacks concentrated in cheaper years (correlation): -0.04

- Average buyback yield: 2.3%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: $60B

- Cumulative net income, 10 years: -$6.4B

- ROIC, first three-year median: 7.9%

- ROIC, last three-year median: -2.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.80

- FY2017: $0.16

- FY2018: $0.20

- FY2019: $0.33

- FY2020: -$0.08

- FY2021: -$5.34

- FY2022: -$12.98

- FY2023: $2.59

- FY2024: -$6.06

- FY2025: -$13.86

### accounting: pass

- Sloan accruals: -6.1%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 1

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.15×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.4%

- FY2017: -6.4%

- FY2018: 1.4%

- FY2019: -2.9%

- FY2020: -4.2%

- FY2021: -17.7%

- FY2022: -61.1%

- FY2023: 8.7%

- FY2024: -4.3%

- FY2025: -6.1%

## Holders

- [Bill Miller](https://gigainvestors.com/LMM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 63% since Jun 2025 · "MicroStrategy Loss Widens as Revenue Falls; Crypto Holdings Struggle" (finance.yahoo.com, May 2025) · sales +3%

Story as of 2026-10-16T09:59:12.936Z; price observation 2026-10-15.

- 2025-12-01: Strategy Establishes $1.44B Cash Reserve, Slashes 2025 Profit, BTC Yield Targets ([finance.yahoo.com](https://finance.yahoo.com/news/strategy-establishes-1-44b-cash-133718473.html))

- 2026-02-05: Strategy posts surprise loss on fair-value Bitcoin write-down ([finance.yahoo.com](https://finance.yahoo.com/news/strategy-posts-surprise-loss-fair-215240698.html))

- 2026-04-23: Strategy (MSTR) Is Up 15.8% After Record US$2.54B Bitcoin Buy Funded By Equity Machine ([finance.yahoo.com](https://finance.yahoo.com/markets/crypto/articles/strategy-mstr-15-8-record-230650524.html))

- 2026-05-05: Strategy Q1 Loss Widens On Higher Unrealized Bitcoin Losses ([nasdaq.com](https://www.nasdaq.com/articles/strategy-q1-loss-widens-higher-unrealized-bitcoin-losses))

- 2026-07-31: Strategy reports wider-than-expected Q2 loss amid Bitcoin volatility ([finance.yahoo.com](https://finance.yahoo.com/markets/crypto/articles/strategy-reports-wider-expected-q2-152700303.html))

- 2026-09-22: Strategy's Stock Has Soared 40% in the Past Month as It's Buying Bitcoins Again ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/strategys-stock-soared-40-past-125116893.html))

### Sales · FY2024–2025

sales +3%; source https://www.sec.gov/Archives/edgar/data/1050446/000105044626000020/mstr-20251231.htm; observed 2026-02-19.

- FY2016: $514M 

- FY2017: $504M 

- FY2018: $498M 

- FY2019: $486M 

- FY2020: $481M 

- FY2021: $511M 

- FY2022: $499M 

- FY2023: $496M 

- FY2024: $463M 

- FY2025: $477M 

### Gross margin · FY2025

gross margin 68.7%; source https://www.sec.gov/Archives/edgar/data/1050446/000105044626000020/mstr-20251231.htm; observed 2026-02-19.

- FY2016: 81.9% 

- FY2017: 80.8% 

- FY2018: 80.0% 

- FY2019: 79.4% 

- FY2020: 81.1% 

- FY2021: 82.0% 

- FY2022: 79.4% 

- FY2023: 77.8% 

- FY2024: 72.1% 

- FY2025: 68.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 477.2 million.

- Source: https://www.sec.gov/Archives/edgar/data/1050446/000105044626000020/mstr-20251231.htm (filed 2026-02-19); FY2025: revenue 477233000; grossProfit 327816000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MSTR.US: Strategy Inc, together with its subsidiaries, operates as a bitcoin treasury company in the United States, Europe, the Middle East, Africa, and internationally. It offers investors varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed income instruments. The company also provides AI-powered enterprise analytics software, including Strategy One, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making. In addition, the company provides Strategy Mosaic, a universal intelligence layer that offers enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. The company was formerly known as MicroStrategy Incorporated and changed its name to Strategy Inc in August 2025. The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.

### Why customers stay

Margins ranged from 68.7% to 77.8% during 2023–25; it lost 1.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 77.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 72.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1050446/000105044626000020/mstr-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 68.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2016,0.1548918064810796],[2017,0.07857397569197955],[2018,0.007515135040237404],[2019,-0.019415596770181953],[2020,-0.011244908384880658],[2021,-0.1969193651443225],[2022,-0.49907630126329416],[2023,-0.02078705348106658],[2024,-0.057518023440875754],[2025,-0.0005667650975883823]]; median -0.015330252577531307. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 5 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2016: growth capex 0; upkeep 2337000; owner earnings 109846000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2017: growth capex 0; upkeep 3982000; owner earnings 29745000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2018: growth capex 0; upkeep 6846000; owner earnings 19356000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 0; upkeep 10182000; owner earnings 32767000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,686457000],[2021,1512410000],[2022,2081999],[2023,4114001],[2024,0],[2025,381367000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MSTR.US SharesStats.PercentInsiders = 0.201 percentage points; cache date 2026-10-16.

### What could break it

"We may be unable to service our indebtedness" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1050446/000105044626000020/mstr-20251231.htm (filed 2026-02-19); We may be unable to service our indebtedness

### What the price says

The price is 88 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Closing price 151.29 USD; reporting-to-trading FX 1; FY2025 annual sales per share 1.7187675574443564; price multiple 88.0223735575704. FY2025 cash earnings/share -94.83705984144463. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $19.48 per share

- 2016-11: $19.40 per share

- 2016-12: $19.74 per share

- 2017-01: $20.13 per share

- 2017-02: $19.19 per share

- 2017-03: $18.78 per share

- 2017-04: $19.02 per share

- 2017-05: $18.24 per share

- 2017-06: $19.17 per share

- 2017-07: $13.45 per share

- 2017-08: $12.90 per share

- 2017-09: $12.77 per share

- 2017-10: $13.23 per share

- 2017-11: $13.68 per share

- 2017-12: $13.13 per share

- 2018-01: $13.77 per share

- 2018-02: $12.80 per share

- 2018-03: $12.90 per share

- 2018-04: $12.75 per share

- 2018-05: $12.96 per share

- 2018-06: $12.78 per share

- 2018-07: $13.02 per share

- 2018-08: $14.90 per share

- 2018-09: $14.06 per share

- 2018-10: $12.60 per share

- 2018-11: $12.96 per share

- 2018-12: $12.78 per share

- 2019-01: $12.69 per share

- 2019-02: $14.15 per share

- 2019-03: $14.43 per share

- 2019-04: $14.97 per share

- 2019-05: $13.29 per share

- 2019-06: $14.33 per share

- 2019-07: $13.67 per share

- 2019-08: $14.33 per share

- 2019-09: $14.84 per share

- 2019-10: $15.33 per share

- 2019-11: $15.03 per share

- 2019-12: $14.26 per share

- 2020-01: $15.20 per share

- 2020-02: $13.52 per share

- 2020-03: $11.81 per share

- 2020-04: $12.63 per share

- 2020-05: $12.45 per share

- 2020-06: $11.83 per share

- 2020-07: $12.39 per share

- 2020-08: $14.44 per share

- 2020-09: $15.06 per share

- 2020-10: $16.71 per share

- 2020-11: $34.28 per share

- 2020-12: $38.86 per share

- 2021-01: $61.73 per share

- 2021-02: $75.04 per share

- 2021-03: $67.88 per share

- 2021-04: $65.72 per share

- 2021-05: $47.00 per share

- 2021-06: $66.45 per share

- 2021-07: $62.60 per share

- 2021-08: $69.43 per share

- 2021-09: $57.84 per share

- 2021-10: $71.51 per share

- 2021-11: $72.14 per share

- 2021-12: $54.45 per share

- 2022-01: $36.80 per share

- 2022-02: $44.30 per share

- 2022-03: $48.63 per share

- 2022-04: $35.42 per share

- 2022-05: $26.47 per share

- 2022-06: $16.43 per share

- 2022-07: $28.61 per share

- 2022-08: $23.16 per share

- 2022-09: $21.23 per share

- 2022-10: $26.75 per share

- 2022-11: $19.81 per share

- 2022-12: $14.16 per share

- 2023-01: $25.17 per share

- 2023-02: $26.23 per share

- 2023-03: $29.23 per share

- 2023-04: $32.84 per share

- 2023-05: $30.16 per share

- 2023-06: $34.24 per share

- 2023-07: $43.79 per share

- 2023-08: $35.75 per share

- 2023-09: $32.83 per share

- 2023-10: $42.34 per share

- 2023-11: $49.83 per share

- 2023-12: $63.16 per share

- 2024-01: $50.12 per share

- 2024-02: $102.28 per share

- 2024-03: $170.46 per share

- 2024-04: $106.50 per share

- 2024-05: $152.45 per share

- 2024-06: $137.75 per share

- 2024-07: $161.44 per share

- 2024-08: $132.42 per share

- 2024-09: $168.60 per share

- 2024-10: $244.50 per share

- 2024-11: $387.47 per share

- 2024-12: $289.62 per share

- 2025-01: $334.79 per share

- 2025-02: $255.43 per share

- 2025-03: $288.27 per share

- 2025-04: $380.11 per share

- 2025-05: $369.06 per share

- 2025-06: $404.23 per share

- 2025-07: $401.86 per share

- 2025-08: $334.41 per share

- 2025-09: $322.21 per share

- 2025-10: $269.51 per share

- 2025-11: $177.18 per share

- 2025-12: $151.95 per share

- 2026-01: $149.71 per share

- 2026-02: $129.50 per share

- 2026-03: $124.80 per share

- 2026-04: $165.45 per share

- 2026-05: $159.09 per share

- 2026-06: $86.93 per share

- 2026-07: $93.28 per share

- 2026-08: $132.94 per share

- 2026-09: $153.09 per share

- 2026-10: $152.18 per share

## Annual estimated value (USD per share)

- FY2016: low $12.92 per share, central $14.01 per share, high $15.46 per share

- FY2017: low $13.48 per share, central $14.55 per share, high $15.96 per share

- FY2018: low $7.77 per share, central $8.16 per share, high $8.68 per share

- FY2019: low $8.85 per share, central $9.33 per share, high $9.97 per share

- FY2020: low $3.72 per share, central $4.16 per share, high $4.75 per share

- FY2021: low $2.70 per share, central $3.00 per share, high $3.40 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:36:09.986Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1050446/000105044626000020/mstr-20251231.htm); period 2025-12-31, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.