Strategy Inc stock research
FY2026 Q1
Strategy (MSTR) Gross Margin — Quarter Ended Mar 31, 2026
In the current quarter, revenue and gross profit increased compared to the prior quarter, while cost of revenue decreased, leading to an improvement in gross margin. Relative to the same quarter last year, revenue and gross profit were higher, but cost of revenue was also higher, causing gross margin to decline.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
In the current quarter, revenue and gross profit increased compared to the prior quarter, while cost of revenue decreased, leading to an improvement in gross margin. Relative to the same quarter last year, revenue and gross profit were higher, but cost of revenue was also higher, causing gross margin to decline.
- The most notable driver is the reduction in cost of revenue from the previous quarter, which outpaced the change in revenue and directly supported gross margin expansion.
- Sequentially, gross margin improved. Year over year, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.1%
Gross profit
$83.4M
Revenue
$124.3M
Cost of revenue
$40.9M
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-2.4 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, 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% |
| Mar 31, 2026 | $124.3M | $83.4M | $40.9M | 67.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+1.0 pts
Year-over-year change
Mar 31, 2025
-2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable driver is the reduction in cost of revenue from the previous quarter, which outpaced the change in revenue and directly supported gross margin expansion.
Sequentially, gross margin improved. Year over year, gross margin weakened.
Monitor cost of revenue trends, as fluctuations have a direct effect on gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Strategy Inc (MSTR) | 67.1% |