v3.26.1
Basic and Diluted Earnings (Loss) per Common Share
 6 Months Ended
Jun. 30, 2026
Earnings Per Share [Abstract]  
Basic and Diluted Earnings (Loss) per Common Share Basic and Diluted Earnings (Loss) per Common Share
Basic earnings (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average common stock outstanding during the respective period. Net income (loss) attributable to common stockholders is computed by deducting the dividends declared related to the current financial reporting period.
The Company has two classes of common stock: class A common stock and class B common stock. Holders of class A common stock generally have the same rights, including rights to dividends, as holders of class B common stock, except that holders of class A common stock have one vote per share while holders of class B common stock have ten votes per share. Each share of class B common stock is convertible at any time, at the option of the holder, into one share of class A common stock. As such, basic and fully diluted earnings (loss) per common share for class A common stock and for class B common stock are the same. The Company has never declared or paid any cash dividends on either class A or class B common stock.
As of June 30, 2026, the Company had five series of Preferred Stock outstanding: STRF Stock, STRC Stock, STRE Stock, STRK Stock, and STRD Stock. Only STRK Stock is convertible into the Company’s class A common stock and, therefore, is the only series of Preferred Stock that impacts diluted earnings (loss) per common share. Each share of the STRK Stock is convertible at any time, at the option of the holder, into 0.1 shares of class A common stock. Refer to Note 10, Redeemable Preferred Stock, to the Consolidated Financial Statements, for additional information on the dividend, voting, and other rights of the Company's outstanding Preferred Stock.
The impact from potential shares of common stock on the diluted earnings (loss) per common share calculation are included when dilutive. Potential shares of class A common stock issuable upon the exercise of outstanding stock options, the vesting of restricted stock units and performance stock units considered probable of achievement, and in connection with the 2021 ESPP are computed using the treasury stock method. Potential shares of class A common stock issuable upon conversion of the Convertible Notes and upon conversion of the STRK Stock are computed using the if-converted method. In computing diluted earnings (loss) per common share, the Company first calculates the earnings per incremental share (“EPIS”) for each class of potential shares of common stock and ranks the classes from the most dilutive (i.e., lowest EPIS) to the least dilutive (i.e., highest EPIS). Basic earnings per common share is then adjusted for the effect of each class of shares, in sequence and cumulatively, until a particular class no longer produces further dilution.
The following table sets forth the computation of basic and diluted earnings (loss) per common share for the periods indicated:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except per share data)2026202520262025
Numerator - Basic and Diluted:
Net (loss) income$(8,219,628)$10,020,846 $(20,762,298)$5,803,476 
    Dividends on preferred stock(400,661)(49,110)(630,188)(58,347)
Net (loss) income attributable to common stockholders of Strategy $(8,620,289)$9,971,736 $(21,392,486)$5,745,129 
Effect of dilutive shares on net earnings:
Interest expense on 2027 Convertible Notes, net of tax———286
Interest expense on 2028 Convertible Notes, net of tax—1,887—3,755
Interest expense on 2029 Convertible Notes, net of tax—1,308—2,603
Interest expense on 2030A Convertible Notes, net of tax—1,606—3,194
Interest expense on 2030B Convertible Notes, net of tax—898—1,264
Interest expense on 2031 Convertible Notes, net of tax—1,390—2,767
Interest expense on 2032 Convertible Notes, net of tax—3,718—7,400
Dividends on STRK Stock—16,756—23,550
Net (loss) income - Diluted$(8,620,289)$9,999,300 $(21,392,486)$5,789,949 
Denominator - Basic and Diluted:
 Weighted average common shares of class A common stock332,894 255,604 323,635 246,270 
 Weighted average common shares of class B common stock19,640 19,640 19,640 19,640 
Total weighted average shares of common stock outstanding 352,534275,244343,275265,910
Effect of dilutive shares on weighted average common shares outstanding:
Stock options— 3,615 — 3,847 
Restricted stock units— 5 — 495 
Performance stock units— 494 — 511 
Employee stock purchase plan— 3 — 2 
Convertible preferred stock— 963 — 702 
2027 Convertible Notes— — — 1,439 
2028 Convertible Notes— 5,513 — 5,513 
2029 Convertible Notes— 4,462 — 4,462 
2030A Convertible Notes— 5,342 — 5,342 
2030B Convertible Notes— 4,614 — 3,307 
2031 Convertible Notes— 2,594 — 2,594 
2032 Convertible Notes—3,915 —3,915 
Total weighted average shares of common stock outstanding - Diluted352,534306,764 343,275 298,039 
(Loss) earnings per common share:
Basic (loss) earnings per common share (1)$(24.45)$36.23 $(62.32)$21.61 
Diluted (loss) earnings per common share (1)$(24.45)$32.60 $(62.32)$19.43 
(1)Basic and fully diluted (loss) earnings per common share for class A and class B common stock are the same.
For the three and six months ended June 30, 2026 and 2025, the following weighted average shares of potential class A common stock were excluded from the diluted earnings (loss) per common share calculation because their impact would have been anti-dilutive.
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Stock options3,255 50 3,305 46 
Restricted stock units808 877 777 8 
Performance stock units429 — 457 — 
Employee stock purchase plan24— 20 — 
Convertible preferred stock1,402 — 1,402 — 
2028 Convertible Notes5,513 — 5,513 — 
2029 Convertible Notes3,432 — 3,947 — 
2030A Convertible Notes5,342 — 5,342 — 
2030B Convertible Notes4,614 — 4,614 — 
2031 Convertible Notes2,594 — 2,594 — 
2032 Convertible Notes3,915 — 3,915 — 
  Total31,328 927 31,886 54