Strategy Inc 10.00% Series A Perpetual Strife Preferred Stock (STRF)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

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

I look at this preferred issue the way Graham would: the coupon is attractive, but the safety of that coupon is the whole question. Strategy Inc is mostly a bitcoin treasury vehicle with a small software operation. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $122.4M but net income was -$8.2B, or -$24.45 per diluted share. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $124.3M and net income was -$12.5B, or -$38.25 per diluted share. For FY2025, ended 2025-12-31, revenue was $477.2M and net income was -$3.8B, or -$15.23 per diluted share. Those are not the numbers of a stable dividend payer; they reflect enormous bitcoin-related swings. FairStock's trailing free cash flow is -$21.7B, a -59.6% FCF yield, and its calculated ROE and ROCE are -63.56% and -38.73%. The 10.00% preferred dividend and 9.66% yield at the 2026-10-13 close of $103.45 may be enticing, but the company has been burning cash and posting multi-billion-dollar losses. The balance sheet measure D/E of 0.15 and P/B of 1.24 look modest, and Altman Z-Score of 2.67 is not distress-level, but Piotroski 4/9 and FairStock Score 43/100 suggest fragile quality. The Lynch category is TURNAROUND—loss in the latest year after earlier profits—and the path is tied to bitcoin. With the stock near the top of its $82.50-$111.99 52-week range and beta 3.57, I see a high yield but very little margin of safety in the preferred.

In plain English: Strategy Inc runs a bitcoin treasury business and sells software, and it has a preferred stock promising a 10% yearly dividend. The company’s latest reported quarters show very large losses on modest revenue, so the business looks weak and risky. At $103.45 on 2026-10-13, the preferred yields about 9.66% and trades near the top of its 52-week range, so the price does not look cheap given those losses.

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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