Strategy Inc stock research
FY2025 Q1
Strategy (MSTR) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit both declined, while cost of revenue was relatively stable, leading to a lower gross margin. Compared to the prior quarter and the same quarter last year, gross margin weakened as revenue fell more than the change in cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit both declined, while cost of revenue was relatively stable, leading to a lower gross margin. Compared to the prior quarter and the same quarter last year, gross margin weakened as revenue fell more than the change in cost of revenue.
- The primary margin driver was the decline in revenue relative to the relatively stable cost of revenue, which compressed gross margin.
- Current quarter revenue and gross profit were lower than both the immediately preceding quarter and the same quarter one year earlier. Gross margin also decreased compared to both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.4%
Gross profit
$77.1M
Revenue
$111.1M
Cost of revenue
$34.0M
Quarter-over-quarter change
-2.3 pts
Year-over-year change
-4.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $111.4M | $80.5M | $30.9M | 72.2% |
| Sep 30, 2024 | $116.1M | $81.7M | $34.3M | 70.4% |
| Dec 31, 2024 | $120.7M | $86.5M | $34.2M | 71.7% |
| Mar 31, 2025 | $111.1M | $77.1M | $34.0M | 69.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-2.3 pts
Year-over-year change
Mar 31, 2024
-4.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary margin driver was the decline in revenue relative to the relatively stable cost of revenue, which compressed gross margin.
Current quarter revenue and gross profit were lower than both the immediately preceding quarter and the same quarter one year earlier. Gross margin also decreased compared to both periods.
Monitor the trend in cost of revenue relative to revenue, as the current quarter showed a narrower spread between them.