Strategy Inc stock research
FY2025 Q3
Strategy (MSTR) Gross Margin — Quarter Ended Sep 30, 2025
Gross margin improved sequentially as revenue growth exceeded cost growth, while year-over-year gross margin remained stable with revenue and cost increasing at similar rates. Both revenue and gross profit were higher compared to the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Gross margin improved sequentially as revenue growth exceeded cost growth, while year-over-year gross margin remained stable with revenue and cost increasing at similar rates. Both revenue and gross profit were higher compared to the prior quarter and the same quarter last year.
- The sequential improvement in gross margin was primarily driven by revenue increasing more rapidly than cost of revenue, which outpaced the growth in the comparable prior period.
- Compared to the immediate prior quarter, gross margin was higher as revenue growth strengthened relative to cost growth. Year-over-year, the margin was essentially unchanged, reflecting a similar pace of expansion in both revenue and cost.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.5%
Gross profit
$90.7M
Revenue
$128.7M
Cost of revenue
$38.0M
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $128.7M | $90.7M | $38.0M | 70.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.7 pts
Year-over-year change
Sep 30, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was primarily driven by revenue increasing more rapidly than cost of revenue, which outpaced the growth in the comparable prior period.
Compared to the immediate prior quarter, gross margin was higher as revenue growth strengthened relative to cost growth. Year-over-year, the margin was essentially unchanged, reflecting a similar pace of expansion in both revenue and cost.
Monitor whether the pace of revenue growth continues to exceed cost growth in upcoming quarters, as this relationship has been key to margin changes.