Strategy Inc stock research
FY2025 Q2
Strategy (MSTR) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. However, gross profit declined year over year, and gross margin weakened compared to both periods, reflecting cost of revenue growing faster than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. However, gross profit declined year over year, and gross margin weakened compared to both periods, reflecting cost of revenue growing faster than revenue.
- The strongest observable driver is the increase in cost of revenue, which outpaced revenue growth, leading to margin compression.
- Compared to the prior quarter, gross margin was slightly lower, while revenue and gross profit were higher. Compared to the same quarter last year, gross margin was notably lower, with higher revenue but lower gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.8%
Gross profit
$78.7M
Revenue
$114.5M
Cost of revenue
$35.8M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-3.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $114.5M | $78.7M | $35.8M | 68.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.6 pts
Year-over-year change
Jun 30, 2024
-3.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the increase in cost of revenue, which outpaced revenue growth, leading to margin compression.
Compared to the prior quarter, gross margin was slightly lower, while revenue and gross profit were higher. Compared to the same quarter last year, gross margin was notably lower, with higher revenue but lower gross profit.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth continues to pressure margins.