Strategy — the Delaware company that filed as MicroStrategy Incorporated until 11 August 2025 — joins the tracked set today. Its Rule of 40 card for the June 2026 quarter reads 2.1: revenue growth of +6.9% plus a free-cash-flow margin of -4.8%. Both halves are real, both come from the filings, and together they describe a business that held $490.5 million of the company's $52.56 billion of total assets at 30 June — nine tenths of one percent of it.
This is the third ticker we have shipped where the headline metric is not the story, after AbCellera and, this morning, BitMine. The difference here is that Strategy's score is not n/m. It computes cleanly, it has computed cleanly for years, and it is still the wrong number to look at. That is a more dangerous failure than a blank card, so it is worth being precise about what the 2.1 is made of.
The scoreable half
| Quarter | Revenue | YoY | FCF | FCF margin | R40 |
|---|---|---|---|---|---|
| 2024 Q3 | $116.1M | -10.3% | -$41.4M | -35.7% | -46.0 |
| 2024 Q4 | $120.7M | -3.0% | -$17.6M | -14.6% | -17.6 |
| 2025 Q1 | $111.1M | -3.6% | -$5.1M | -4.6% | -8.2 |
| 2025 Q2 | $114.5M | +2.7% | -$37.0M | -32.3% | -29.6 |
| 2025 Q3 | $128.7M | +10.9% | -$11.1M | -8.6% | +2.2 |
| 2025 Q4 | $123.0M | +1.9% | -$22.2M | -18.1% | -16.2 |
| 2026 Q1 | $124.3M | +11.9% | +$13.0M | +10.5% | +22.4 |
| 2026 Q2 | $122.4M | +6.9% | -$5.9M | -4.8% | +2.1 |
On a trailing four-quarter basis: $498.3 million of revenue growing 7.8%, against -$26.2 million of free cash flow, a -5.3% margin, for a score of 2.5. That is a fair summary of a mature business-intelligence vendor that stopped shrinking. Revenue bottomed in 2024 and has grown year over year in five of the last six quarters, driven entirely by one line: subscription services revenue rose 54% to $62.9 million in the June quarter while product licences fell from $7.2 million to $3.7 million and product support fell from $52.1 million to $40.2 million. Gross margin fell with the mix, from 68.8% to 66.6%, because cloud subscriptions cost more to deliver than a perpetual licence does.
From the June 2026 quarter the company reports this as a separate Software segment for the first time, with the bitcoin moved out of "Corporate & Other" into a Bitcoin segment. The segment note is the clearest thing Strategy has published about itself: Software earned $3.7 million of net income in the quarter. Bitcoin lost $8.22 billion.
The half the score cannot see
Strategy held approximately 843,775 bitcoin as of 26 July 2026, at an average cost of about $75,476. That is $63.69 billion of cost basis against a $54.77 billion market value at the $64,915 bitcoin price of 27 July — the stack is under water, and the company says so in its own release.
Since Strategy adopted ASU 2023-08 on 1 January 2025, that gap runs through the income statement. The June 2026 quarter booked an $8.32 billion unrealised loss on digital assets and a $8.22 billion net loss, or -$24.45 per diluted share. The same quarter a year earlier booked a $14.05 billion unrealised gain and +$32.60 per diluted share. Nothing in the software operation changed by $17 billion between those two quarters.
This is why there are only three points in the P/E series on this ticker. Trailing four-quarter GAAP EPS is positive in exactly three of the fourteen quarters we store — 2023 Q4, 2025 Q2 and 2025 Q3 — and a P/E is not a negative number, so the chart draws the gap and the card prints n/m. The trailing figure today is -$97.22.
What is actually being priced
Three things, none of them a Rule of 40 input.
The stack, and what stands in front of it. At 30 June 2026 the balance sheet carried $52.56 billion of assets against $7.24 billion of liabilities — of which $6.71 billion is convertible notes — and $14.44 billion of mezzanine preferred stock carrying a $15.46 billion liquidation preference across five listed series. What is left for the common is $30.89 billion of stockholders' equity on 371.6 million shares issued at that date, or about $83 a share of mark-to-market book value. The stock closed at $132.94 on 31 August. Treat the ratio as a bound, not a figure: bitcoin has moved since 30 June and the share count on the 10-Q cover was already 384,225,751 by 24 July.
The share count. Diluted shares went from 145.8 million in the first quarter of 2023 to 352.5 million in the second quarter of 2026, split-adjusted throughout for the 10-for-1 split distributed on 7 August 2024. The at-the-market programmes alone raised $8.41 billion of gross proceeds in the June quarter. A treasury company that issues stock to buy bitcoin creates value only if it buys more bitcoin per share than it issues shares — which is what the company's own BTC Yield metric, 4.5% year to date, is designed to measure. It is not a Rule of 40 input either, and it is a management-defined figure rather than a GAAP one, so we do not store it.
The direction of the capital structure. The June quarter was the first one that went the other way. Strategy spent about $1.38 billion of cash retiring convertible notes at roughly an 8% discount to par, cutting the principal outstanding from $8.21 billion to $6.71 billion and booking a $113.9 million gain on extinguishment. It established a BTC Monetization Program and has sold $218.4 million of bitcoin year to date. It authorised a $1.0 billion buyback of its own common stock, and has not used it. And it repurchased $28.9 million notional of its own STRC preferred for $25.0 million, a 13% discount. A company whose entire public identity was "never sell" is now selling bitcoin, retiring debt below par and buying back its own preferred.
What we store, and what we refuse to
Fourteen quarters, 2023 Q1 through 2026 Q2, all GAAP, all from Strategy's own 10-Q and 10-K filings through the SEC's XBRL company-facts API. Fourth-quarter revenue, gross profit, cash flow and capital expenditure are derived as the fiscal year less the first three quarters, which is the only way those quarters exist. Every per-share and share-count figure before 7 August 2024 is multiplied by ten for the split, exactly as the company's own later filings restate them.
We have not built an adjusted metric for this ticker and we are not going to. There is a temptation, with a company like this, to invent a "software-only Rule of 40" or to net the bitcoin mark out of earnings and call the residue operating performance. Both would be our numbers, not the filings', and the site's contract is that the figures on a stock page are the ones the company filed. The score is 2.1 because revenue grew 6.9% and free cash flow was -$5.9 million on $122.4 million of revenue. That is arithmetic, and it is correct, and it describes 0.9% of the balance sheet.
If you want the number that moves this equity, it is the bitcoin price, the share count, and the multiple of book the market is willing to pay. Two of those three are on the ticker page. The third is not ours to forecast.
Figures are from Strategy Inc's Form 10-Q for the quarter ended 30 June 2026 (filed 3 August 2026), the Exhibit 99.1 press release to its Item 2.02 Form 8-K of 30 July 2026, its Form 10-K for the year ended 31 December 2025, its 2026 proxy statement filed 28 April 2026, the Form 8-K of 11 July 2024 announcing the 10-for-1 split, and the Form 8-K of 11 August 2025 effecting the name change from MicroStrategy Incorporated to Strategy Inc. Quarterly series are built from the SEC XBRL company-facts API. The closing price is 31 August 2026. Analyst consensus is the S&P Global poll via stockanalysis.com. No forecast or valuation of our own appears here.
