Strategy Inc stock research
FY2025 Q4
Strategy (MSTR) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased from the prior quarter but increased compared to the same quarter a year earlier. Cost of revenue rose relative to both periods, causing gross profit and gross margin to weaken.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue decreased from the prior quarter but increased compared to the same quarter a year earlier. Cost of revenue rose relative to both periods, causing gross profit and gross margin to weaken.
- The most observable driver is the decline in gross margin for the current quarter, as cost of revenue increased while revenue decreased relative to the prior quarter. This relationship indicates a compression between revenue and cost compared to both the preceding quarter and the year-ago period.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased. Compared to the same quarter one year earlier, gross margin also weakened, with cost of revenue higher while revenue was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.1%
Gross profit
$81.3M
Revenue
$123.0M
Cost of revenue
$41.7M
Quarter-over-quarter change
-4.4 pts
Year-over-year change
-5.6 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $123.0M | $81.3M | $41.7M | 66.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-4.4 pts
Year-over-year change
Dec 31, 2024
-5.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the decline in gross margin for the current quarter, as cost of revenue increased while revenue decreased relative to the prior quarter. This relationship indicates a compression between revenue and cost compared to both the preceding quarter and the year-ago period.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased. Compared to the same quarter one year earlier, gross margin also weakened, with cost of revenue higher while revenue was slightly higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.