MicroStrategy

MSTR Q1 2025 Earnings

Reported May 1, 2025 at 4:02 PM ET · SEC Source

Q1 25 EPS

$-16.49

MISS 70,672.53%

Est. $-0.02

Q1 25 Revenue

$111.1M

MISS 4.57%

Est. $116.4M

vs S&P Since Q1 25

-80.4%

TRAILING MARKET

MSTR -53.2% vs S&P +27.2%

Market Reaction

Did MSTR Beat Earnings? Q1 2025 Results

Strategy (formerly MicroStrategy) delivered a bruising first quarter, posting an EPS loss of $16.49 against a consensus estimate of just $0.02, a miss of more than 70,000%, as the company absorbed a $5.91 billion unrealized fair value loss on its bit… Read more Strategy (formerly MicroStrategy) delivered a bruising first quarter, posting an EPS loss of $16.49 against a consensus estimate of just $0.02, a miss of more than 70,000%, as the company absorbed a $5.91 billion unrealized fair value loss on its bitcoin holdings, the direct consequence of adopting the new ASU 2023-08 fair value accounting standard and bitcoin's slide to $82,445 by quarter-end. The resulting GAAP net loss totaled $4.22 billion. Revenue offered little relief, falling 3.6% year-over-year to $111.07 million and missing the $116.39 million consensus by 4.57%, with the legacy software segment dragged down by a 16.2% drop in product support revenue even as cloud subscription sales surged 61.6%. Shares dipped modestly in after-hours trading following the report. Looking ahead, CFO Andrew Kang flagged roughly $8.00 billion in anticipated Q2 fair value gains at current bitcoin prices near $97,300, and management raised its full-year BTC Yield target to 25% while unveiling a fresh $21.00 billion ATM equity offering to fund continued bitcoin accumulation, setting the stage for what investors will be watching closely when results arrive next quarter.

Key Takeaways

  • Subscription services revenue grew 61.6% YoY as customers transition from product licenses to cloud subscriptions
  • Record capital markets execution raised approximately $7.7 billion in Q1 net proceeds
  • Acquired 80,715 bitcoins in Q1 2025 at an average purchase price of $94,922 per bitcoin
  • Adoption of ASU 2023-08 fair value accounting resulted in $12.7 billion cumulative uplift to retained earnings
  • BTC Yield of 11.0% in Q1, 13.7% YTD through April 28, 2025
24/7 Wall St

MSTR YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

MSTR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“We successfully executed our record $21 billion common stock ATM, adding 301,335 BTC to our balance sheet while simultaneously achieving a 50% increase in MSTR share price during the same period. In Q1, we also broadened our capital base with two of the most successful preferred stock IPOs in a decade. Our capital markets strategy continues to grow our Bitcoin holdings while delivering superior shareholder value. With over 70 public companies worldwide now adopting a Bitcoin treasury standard, we are proud to be at the forefront in pioneering this space.”

— Phong Le, Q1 2025 Earnings Press Release