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Strategy Inc 9% Perp Stretch PFD Registered Shs Series A
(NASDAQ:STRC)
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Rating:60Neutral
Price Target:
$104.00
▲(6.39% Upside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by weak financial performance—severe TTM losses and negative operating cash flow with volatile free cash flow—despite a currently improved balance sheet. Technicals are supportive (price above key moving averages and positive MACD), and the earnings call tone was strong with records in originations and NII plus improved liquidity, but guidance points to moderating prepayment-driven income and ongoing competitive/expense pressures. Valuation is mixed, with a loss-making P/E offset by a very high dividend yield.
Positive Factors
Bitcoin Treasury Scale
The exceptionally large bitcoin treasury gives Strategy substantial exposure to a distinctive digital-asset strategy and reinforces its market identity. Its scale may support continued capital-markets access and strategic flexibility, although reported results remain sensitive to bitcoin movements.
Negative Factors
Severe Profitability Pressure
Large and widening losses weaken the sustainability of the enterprise and can absorb capital that might otherwise support product investment or obligations to security holders. The reversal from a brief profitable period to sustained losses also signals unstable earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Bitcoin Treasury Scale
The exceptionally large bitcoin treasury gives Strategy substantial exposure to a distinctive digital-asset strategy and reinforces its market identity. Its scale may support continued capital-markets access and strategic flexibility, although reported results remain sensitive to bitcoin movements.
Read all positive factors
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A (STRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$61.63B
Dividend Yield10.66%
Average Volume (3M)1.62M
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,539
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)-95.95
Shares Outstanding89,853,584
10 Day Avg. Volume1,735,937
30 Day Avg. Volume1,616,540
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.88
Price to Sales (P/S)93.61
P/FCF Ratio-1.98
Enterprise Value/Market Cap660.06K
Enterprise Value/Revenue81.62M
Enterprise Value/Gross Profit120.74M
Enterprise Value/Ebitda-1.87M
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A Business Overview & Revenue Model
Company Description
Strategy Inc, together with its subsidiaries, operates as a bitcoin treasury company in the United States, Europe, the Middle East, Africa, and internationally. It offers investors varying degrees of economic exposure to Bitcoin by offering a rang...
How the Company Makes Money
Strategy Inc. generates revenue primarily from its enterprise software and services business and, separately, manages a large bitcoin treasury position. In its software segment, the company generally makes money by selling software licenses and/or...
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operating and financial quarter highlighted by record originations, record investment income and NII, AUM growth, improved liquidity and reduced leverage, and ongoing adviser contributions. Credit metrics remain largely stable with very low non-accruals, though management noted a mixed-quality pipeline and increased competition; prepayment-driven revenue is expected to normalize in Q3 which may moderate near-term income. Expense growth tied to variable compensation and a modest shift toward mid-rated credits are items being actively managed.Positive Updates
Record Originations and Fundings
First half 2026 record originations of $2.74B (up 35.6% YoY) and record fundings of $1.35B (up 8.5% YoY). Q2 commitments >$927M and Q2 fundings >$647M.
Negative Updates
Increased Competitive Pressure
Several banks and non-bank lenders have become very aggressive on new deal structures and competition for opportunities, which the company is monitoring and intends not to chase.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Originations and Fundings
First half 2026 record originations of $2.74B (up 35.6% YoY) and record fundings of $1.35B (up 8.5% YoY). Q2 commitments >$927M and Q2 fundings >$647M.
Read all positive updates
Company Guidance
Hercules guided that for Q3 2026 it expects core yield to be 11.8%–12.0%, prepayments to normalize to $200M–$300M (vs. $572.1M in Q2), interest expense to be broadly stable or up slightly versus Q2, gross SG&A of $25M–$26M with an RIA expense allocation of ~$4.7M and an anticipated RIA dividend of ~$2.0M–$2.5M, noted that ~98% of its debt portfolio is floating‑rate with floors and ~75% of prime‑based loans are at contractual floors, and reiterated that originations are typically seasonally lower and more back‑end weighted in Q3.Strategy Inc 9% Perp Stretch PFD Registered Shs Series A Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 498.35M | 477.23M | 463.46M | 496.26M | 499.26M | 510.76M |
| Gross Profit | 336.89M | 327.82M | 333.99M | 386.32M | 396.27M | 418.85M |
| EBITDA | -21.76B | -5.44B | -1.85B | -61.04M | -1.26B | -770.88M |
| Net Income | -30.41B | -3.85B | -1.17B | 429.12M | -1.47B | -535.48M |
Balance Sheet | ||||||
| Total Assets | 52.56B | 61.64B | 25.84B | 4.76B | 2.41B | 3.56B |
| Cash, Cash Equivalents and Short-Term Investments | 2.45B | 2.30B | 38.12M | 46.82M | 43.84M | 63.36M |
| Total Debt | 6.77B | 8.28B | 7.26B | 2.25B | 2.45B | 2.23B |
| Total Liabilities | 7.24B | 10.60B | 7.61B | 2.60B | 2.79B | 2.58B |
| Stockholders Equity | 45.33B | 51.04B | 18.23B | 2.16B | -383.12M | 978.96M |
Cash Flow | ||||||
| Free Cash Flow | -21.75B | -22.58B | -22.14B | -1.89B | -287.20M | -2.54B |
| Operating Cash Flow | -20.09M | -67.24M | -53.03M | 12.71M | 3.21M | 93.83M |
| Investing Cash Flow | -22.42B | -22.51B | -22.09B | -1.91B | -278.59M | -2.63B |
| Financing Cash Flow | 24.11B | 24.84B | 22.13B | 1.89B | 265.19M | 2.54B |
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A Technical Analysis
Positive
97.75
Price Trends
97.05
Positive
91.64
Positive
92.02
Positive
Market Momentum
0.61
Positive
60.03
Neutral
63.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRC, the sentiment is Positive. The current price of 97.75 is below the 20-day moving average (MA) of 98.91, above the 50-day MA of 97.05, and above the 200-day MA of 92.02, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 60.03 is Neutral, neither overbought nor oversold. The STOCH value of 63.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRC.
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A Risk Analysis
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A disclosed 72 risk factors in its most recent earnings report. Strategy Inc 9% Perp Stretch PFD Registered Shs Series A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.86B | 28.34 | 35.31% | ― | 16.18% | ― | |
76 Outperform | $18.51B | 126.00 | 5.72% | 4.32% | 17.94% | -69.28% | |
74 Outperform | $19.47B | 23.24 | 12.60% | 1.34% | 8.75% | 2.60% | |
73 Outperform | $50.61B | 42.42 | 16.78% | ― | 13.83% | 126.19% | |
69 Neutral | $57.32B | -1,083.86 | -4.39% | ― | 26.02% | 81.08% | |
60 Neutral | $61.63B | -1.52 | -60.79% | 10.66% | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
STRC
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A
99.36
11.84
13.53%
SSNC
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82.96
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-1.51%
WDAY
Workday
209.99
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TEAM
Atlassian
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38.57%
ESTC
Elastic
102.43
13.75
15.51%
DT
Dynatrace
64.05
13.54
26.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.