Strategy IncMSTR
Strategy Inc Segments Disclosure
Segment Information
The Company has one reportable operating segment, the “Software Business,” which is engaged in the design, development, marketing, and sales of the Company’s enterprise analytics software platform through cloud subscriptions and licensing arrangements and related services (i.e., product support, consulting, and education). The “Corporate & Other” category presented in the following tables is not considered an operating segment. It consists primarily of costs and expenses related to executing the Company’s bitcoin strategy and includes the unrealized losses, impairment charges and other third-party costs associated with the Company’s bitcoin holdings, net interest expense primarily related to long-term debt obligations (the net proceeds of which were primarily used to purchase bitcoin), and income tax effects generated from the Company’s bitcoin holdings and related debt issuances. Beginning in 2025, the Company has dedicated certain corporate resources to its bitcoin strategy. These costs, including related Share-based compensation expense are included within the “Corporate resources” and the “Share-based compensation expense” segment expense line items to better align with their activities and utilization.
The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer, who manages the entity on a consolidated basis. The CODM uses “net income (loss)” to assess the profitability of the software business by comparing actual to budgeted results on a monthly basis. In doing so, he focuses on “controllable costs” across main functions of the Software Business and will allocate personnel and budget accordingly to maximize potential profitability.
The CODM also uses “net income (loss)” to understand the impact from income taxes and debt-related items for general tax and liquidity planning purposes.
The following tables present (for each of the Software Business segment and Corporate & Other category, and on a consolidated basis) the Company’s revenues and significant expenses regularly provided to the CODM, reconciled to net income (loss) (in thousands) for each of the periods presented.
| Year-Ended December 31, 2025 | |||||||||||||||||
| Software Business | Corporate & Other (6) | Total Consolidated | |||||||||||||||
| Total revenues | $ | 477,233 | — | $ | 477,233 | ||||||||||||
| Significant expenses (1) | |||||||||||||||||
| Controllable | |||||||||||||||||
| Sales and marketing | (100,665) | — | (100,665) | ||||||||||||||
| Maintenance | (27,264) | — | (27,264) | ||||||||||||||
| Consulting | (47,513) | — | (47,513) | ||||||||||||||
| Cloud | (72,973) | — | (72,973) | ||||||||||||||
| Technology | (88,361) | — | (88,361) | ||||||||||||||
| Corporate resources | (72,648) | (26,702) | (99,350) | ||||||||||||||
| Non-Controllable | |||||||||||||||||
| Unrealized loss on digital assets | — | (5,403,476) | (5,403,476) | ||||||||||||||
| Digital asset custody fees | — | (17,375) | (17,375) | ||||||||||||||
| Share-based compensation expense | (40,176) | (13,193) | (53,369) | ||||||||||||||
| Payroll taxes on equity award exercises and vestings | (5,838) | (983) | (6,821) | ||||||||||||||
| Other segment items (2) | (17,568) | (3,484) | (21,052) | ||||||||||||||
| Interest expense, net (3) | 332 | (65,300) | (64,968) | ||||||||||||||
| Income tax benefit (4) | 86,097 | 1,591,705 | 1,677,802 | ||||||||||||||
| Net income (loss) | $ | 90,656 | $ | (3,938,808) | $ | (3,848,152) | |||||||||||
| Total assets, as of December 31, 2025 (5) | $ | 537,054 | $ | 61,104,028 | $ | 61,641,082 | |||||||||||
| Year-Ended December 31, 2024 | |||||||||||||||||
| Software Business | Corporate & Other | Total Consolidated | |||||||||||||||
| Total revenues | $ | 463,456 | — | $ | 463,456 | ||||||||||||
| Significant expenses (1) | |||||||||||||||||
| Controllable | |||||||||||||||||
| Sales and marketing | (105,782) | — | (105,782) | ||||||||||||||
| Maintenance | (28,739) | — | (28,739) | ||||||||||||||
| Consulting | (56,472) | — | (56,472) | ||||||||||||||
| Cloud | (42,731) | — | (42,731) | ||||||||||||||
| Technology | (105,140) | — | (105,140) | ||||||||||||||
| Corporate resources | (85,479) | — | (85,479) | ||||||||||||||
| Non-Controllable | |||||||||||||||||
| Digital asset impairment losses | — | (1,789,862) | (1,789,862) | ||||||||||||||
| Digital asset custody fees | — | (5,956) | (5,956) | ||||||||||||||
| Share-based compensation expense | (77,124) | — | (77,124) | ||||||||||||||
| Payroll taxes on equity award exercises and vestings | (13,723) | — | (13,723) | ||||||||||||||
| Other segment items (2) | (167) | (1,753) | (1,920) | ||||||||||||||
| Interest expense, net (3) | — | (61,941) | (61,941) | ||||||||||||||
| Loss on debt extinguishment | — | (22,933) | (22,933) | ||||||||||||||
| Income tax benefit (4) | 226,961 | 540,724 | 767,685 | ||||||||||||||
| Net income (loss) | $ | 175,060 | $ | (1,341,721) | $ | (1,166,661) | |||||||||||
| Total assets, as of December 31, 2024 | $ | 743,190 | $ | 25,100,495 | $ | 25,843,685 | |||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| Software Business | Corporate & Other | Total Consolidated | |||||||||||||||
| Total revenues | $ | 496,261 | — | $ | 496,261 | ||||||||||||
| Significant expenses (1) | |||||||||||||||||
| Controllable | |||||||||||||||||
| Sales and marketing | (112,408) | — | (112,408) | ||||||||||||||
| Maintenance | (20,058) | — | (20,058) | ||||||||||||||
| Consulting | (61,019) | — | (61,019) | ||||||||||||||
| Cloud | (31,466) | — | (31,466) | ||||||||||||||
| Technology | (106,901) | — | (106,901) | ||||||||||||||
| Corporate resources | (84,947) | — | (84,947) | ||||||||||||||
| Non-Controllable | |||||||||||||||||
| Digital asset impairment losses | — | (115,851) | (115,851) | ||||||||||||||
| Digital asset custody fees | — | (1,572) | (1,572) | ||||||||||||||
| Share-based compensation expense | (69,571) | — | (69,571) | ||||||||||||||
| Payroll taxes on equity award exercises and vestings | (820) | — | (820) | ||||||||||||||
| Other segment items (2) | (10,717) | (1,182) | (11,899) | ||||||||||||||
| Interest expense, net (3) | — | (48,960) | (48,960) | ||||||||||||||
| Gain on debt extinguishment | — | 44,686 | 44,686 | ||||||||||||||
| Income tax benefit (4) | 10,553 | 543,093 | 553,646 | ||||||||||||||
| Net income | $ | 8,907 | $ | 420,214 | $ | 429,121 | |||||||||||
| Total assets, as of December 31, 2023 | $ | 470,353 | $ | 4,292,175 | $ | 4,762,528 | |||||||||||
(1)Significant expenses regularly provided to the CODM include both: (i) costs that the CODM considers to be “controllable”, for which the Company can manage future expense via the budgeting process (e.g. salaries, commissions, travel and entertainment expenses, third party-service provider fees, etc.), and that support each specific function of the Software Business (i.e. sales and marketing, maintenance, consulting, cloud, technology, and corporate resources) and (ii) costs that the CODM considers to be “non-controllable”, for which future expenses are primarily outside the Company’s control, such as digital asset impairment and custody fees, share-based compensation expense, and employer payroll taxes related to the exercise or vesting of certain awards under the Stock Incentive Plans.
(2)Other segment items for the Software Business are primarily related to foreign currency transaction gains and losses, costs supporting the Company’s education function, one-time corporate initiatives, and certain expenses that are not easily allocable to specific functions. Other segment items for the Corporate & Other category are primarily related to third-party consulting and advisory fees.
(3)Interest income (expense), net is substantially related to interest expense on the Company’s long-term debt arrangements, the proceeds from which were primarily used to purchase bitcoin. All of the Company’s interest income and expense are presented in the Corporate & Other category for the years ended December 31, 2024 and 2023.
(4)Income tax effects allocated to the Corporate & Other category are related solely to transactions involving the Company’s bitcoin or debt, including unrealized gains or losses on digital assets, digital asset impairment losses, interest expense, gains and losses on debt extinguishments, share-based compensation expense, corporate resources (including personnel costs), and other third-party expenses. The income tax benefit in the Software Business category mainly relates to the tax benefit of the share-based compensation for employees.
(5)Due to the adoption of ASU 2023-08, segment assets allocated to the Corporate & Other category as of December 31, 2025 included only the Company’s digital assets. As of December 31, 2025, segment assets included the Company’s digital assets and deferred tax assets primarily related to unrealized losses on digital assets.
(6)Beginning in 2025, certain personnel costs for employees involved in the Company’s bitcoin strategy are allocated and reported within Corporate resources in the Corporate & Other category. Non‑Controllable costs include bitcoin fair value adjustments, bitcoin custody fees, and stock‑based compensation.
Depreciation and amortization are included in net income (loss), but are not regularly reported to the CODM. All remaining depreciation and amortization is related to the Software Business, and separately presented in the Company’s Consolidated Statements of Cash Flows. Significant non-cash items include unrealized gain or loss on digital assets post adoption of ASU 2023-08, digital asset impairment, share-based compensation, and gains and losses on debt extinguishments and are presented in the table above and in the Company’s Consolidated Statements of Operations and/or Statements of Cash Flows. The Company does not regularly report capital expenditures on long-lived assets to the CODM.
The following table presents total revenues and long-lived assets (in thousands) according to geographic region. Long-lived assets are comprised of right-of-use assets and property and equipment, net. The Corporate & Other category disclosed above is included within the U.S. region.
| Geographic regions: | U.S. | EMEA | Other Regions | Consolidated | |||||||||||||||||||
| Total revenues | |||||||||||||||||||||||
| Year ended December 31, 2025 | $ | 272,218 | $ | 162,661 | $ | 42,354 | $ | 477,233 | |||||||||||||||
| Year ended December 31, 2024 | $ | 259,582 | $ | 155,923 | $ | 47,951 | $ | 463,456 | |||||||||||||||
| Year ended December 31, 2023 | $ | 284,174 | $ | 155,914 | $ | 56,173 | $ | 496,261 | |||||||||||||||
| Long-lived assets | |||||||||||||||||||||||
| As of December 31, 2025 | $ | 66,022 | $ | 2,908 | $ | 6,903 | $ | 75,833 | |||||||||||||||
| As of December 31, 2024 | $ | 69,767 | $ | 3,556 | $ | 7,564 | $ | 80,887 | |||||||||||||||
The EMEA region includes operations in Europe, the Middle East, and Africa. The other regions include all other foreign countries, generally comprising Latin America, the Asia Pacific region, and Canada. For the year ended December 31, 2025, Germany accounted for 10% or more of total consolidated revenues. For the years ended December 31, 2024 and 2023, no individual foreign country accounted for 10% or more of total consolidated revenues.
For the years ended December 31, 2025, 2024, and 2023, no individual customer accounted for 10% or more of total consolidated revenues.
As of December 31, 2025 and 2024, no individual foreign country accounted for 10% or more of total consolidated assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 7, 2018 | |
| 2016 | Feb 10, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.