Strategy Inc Variable Rate Series A Perpetual Stretch Preferred Stock (STRC)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Strategy Inc and see a tale of two businesses: a modest software operation and a bitcoin treasury vehicle whose swings dominate the reported numbers. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $122.4M, yet net income was -$8.2B and diluted EPS was -$24.45. The prior quarter, fiscal Q1 2026, brought a -$12.5B loss and -$38.25 EPS. Full-year fiscal 2025 had revenue of $477.2M and a -$3.8B loss, versus a -$1.2B loss in fiscal 2024 and a $429.1M profit in fiscal 2023. That is not stable earning power; it is a rollercoaster. FairStock's Lynch category is TURNAROUND—Loss in the latest year after earlier profits—and I agree. The software segment may have some value, but revenue growth of 6.88% is hardly exciting. I see no durable competitive moat in these figures. Financial health is poor: trailing free cash flow is -$21.7B, a -61.8% FCF yield, ROE -63.56%, ROCE -38.73%, and profit growth -182.03%. Yes, debt-to-equity is only 0.15 and FairStock's Altman Z-Score is 2.57, but its Piotroski F-Score is 4/9. The 12.01% dividend yield is tempting, but it is not supported by internally generated cash in these numbers. At the 2026-10-13 close of $99.90, the reported P/B is 1.20, which may look reasonable on book value, but book value here is tied to volatile bitcoin-related marks. The 52-week range is $71.25 to $100.42, so the price is near its high, with a beta of 3.57. FairStock Score is 43/100. As Graham would say, I want a margin of safety in proven earnings. This preferred stock offers income but not the safety I look for.

In plain English: Strategy Inc is a company that holds bitcoin and also sells data software. The business looks weak right now: it lost billions in the latest quarters, even though quarterly revenue was about $122 million. At $99.90, the preferred stock pays a high 12.01% yearly payout, but the losses and heavy cash burn make the price look risky rather than clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer