5 Insightful Analyst Questions From Strategy’s Q4 Earnings Call
-
Strategy’s fourth quarter was marked by a positive market reaction, reflecting investor enthusiasm for the company’s execution on its core digital asset and credit strategies. Management highlighted its disciplined accumulation of Bitcoin, raising its holdings to over 713,000 coins, and the successful launch and scaling of five distinct digital credit products. CFO Andrew Kang cited the adoption of fair value accounting and the establishment of a sizable cash reserve as foundational for greater transparency and risk management. CEO Phong Le pointed to the 65% year-over-year growth in cloud software revenue as a sign of underlying operational momentum, while also emphasizing the durability of the company’s approach through volatile market conditions.
Strategy (MSTR) Q4 CY2025 Highlights:
Revenue: $123 million vs analyst estimates of $122.3 million (1.9% year-on-year growth, 0.6% beat)
EPS (GAAP): -$42.93 vs analyst estimates of -$20.99 (significant miss)
Adjusted Operating Income: -$8.71 billion vs analyst estimates of $5.75 billion (-7,078% margin, significant miss)
Operating Margin: -14,185%, down from -842% in the same quarter last year
Billings: $196.5 million at quarter end, up 13.6% year on year
Market Capitalization: $41.89 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.Our Top 5 Analyst Questions From Strategy’s Q4 Earnings Call
Lance Vitanza (TD): Asked about periods of negative Bitcoin yield and whether the goal should always be to increase Bitcoin per share. Executive Chairman Michael Saylor responded that such actions were taken to enhance creditworthiness, particularly building the USD reserve, and are not expected to recur unless essential for risk management.
Tom Lee (Fundstrat and Bitmine): Inquired about addressing quantum vulnerability in Bitcoin wallets and milestones for broader adoption. Saylor emphasized supporting the community to reach consensus on upgrades and cited regulatory and banking adoption as primary catalysts for growth.
Peter Christiansen (Citi): Questioned capital allocation amid potential Fed policy shifts and higher funding volatility. Saylor stated the company is reactive to market signals, pausing issuance during unfavorable conditions, and shifting to continuous ATM programs for flexibility.
Lynn Alden (Lynn Alden Investment Strategy): Sought clarity on appropriate reserve coverage for dividend payments and monitoring leverage built on top of Stretch. Saylor and Kang said the target is 2–3 years of coverage and that leverage adds liquidity, which will be monitored as the market matures.
Mark Palmer (Benchmark): Asked about the proliferation of digital asset treasury companies and potential consolidation opportunities. Saylor noted that successful companies will evolve and focus, but Strategy aims to maintain a singular focus on making Stretch the premier digital credit product rather than pursing M&A.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace of Stretch and related digital credit product adoption and liquidity, (2) the company’s ability to maintain high collateralization and stable dividend rates amid market volatility, and (3) further regulatory clarity and institutional acceptance of Bitcoin-backed credit instruments. Execution on software segment growth and risk management initiatives will also be key signposts for sustained performance.
Strategy currently trades at $126.03, up from $106.99 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).