Strategy Q2 FY2026: $8.22 billion net loss on bitcoin write-down
Strategy's second quarter of fiscal 2026 was a bitcoin story, not a software story: revenue rose 6.9% to $122.4 million, but an $8.32 billion unrealized loss on digital assets turned $81.6 million of gross profit into an $8.22 billion net loss. Strip out that write-down and the software business still ran at a small shortfall, because R&D of $23.1 million plus SG&A of $74.0 million were larger than gross profit. Verdict: Neutral.
1 · Expected vs. Actual
Free preview belowThe GAAP result was a loss of $24.45 per diluted share against a consensus estimate of -$7.67, on a net loss of $8.22 billion. Nearly all of it is non-cash: the quarter included an $8.32 billion unrealized loss on digital assets, partly offset by a $113.9 million gain on debt extinguishment. A year ago the same accounting produced $32.60 of diluted EPS, which is the clearest sign that this reported number tracks bitcoin, not software sales.
Revenue of $122.4 million was up 6.9% from $114.5 million a year earlier, but gross margin slipped to 66.6% from 68.8%. Subscription services carried the growth: product licenses and subscription services combined were $66.5 million, versus $40.2 million from product support and $15.6 million from other services. So the operating business is expanding, just slowly and with softer margins.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-24
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