v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has two reportable operating segments: "Software" and "Bitcoin."
The Software segment is engaged in the design, development, marketing, and sales of the Company’s enterprise analytics software platform through cloud subscriptions and licensing arrangements and related services (i.e., product support, consulting and education).
The Bitcoin segment encompasses the Company’s bitcoin treasury operations, through which the Company executes its bitcoin, capital markets, and capital management strategies. The segment's principal activities consist of transacting in and holding bitcoin as the Company’s primary treasury reserve asset; issuing class A common stock and preferred securities; and maintaining a U.S. dollar reserve (the “USD Reserve”), established in December 2025, intended to support the payment of dividends on the Company's Preferred Stock and interest expense on its outstanding indebtedness and "USD Cash", a management designated U.S. dollar liquidity pool maintained for broader general Bitcoin Treasury Company purposes, which may include acquiring bitcoin, expanding the USD Reserve, broader capital management uses, and other similar purposes. As used in this Quarterly Report, "USD Assets" refers to the USD Reserve and USD Cash, collectively.
Effective in the second quarter of 2026, the Company defined its bitcoin treasury operations as a separate reportable operating segment. In prior periods, the Company reported a single reportable operating segment, the Software Business segment, and presented the bitcoin-related activities now comprising the Bitcoin segment as a non-operating "Corporate & Other" category. In connection with this change, the Company also renamed its software segment, previously referred to as the "Software Business," to "Software." Segment information for the prior comparative periods presented has been recast to conform to the current presentation.
The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The Company’s reportable operating segments are identified based on the discrete financial information regularly reviewed by the CODM and reflect differences in the nature of the Company’s products and business activities. The CODM uses “net income (loss)” to assess each reportable segment’s performance and to allocate resources, and also uses net income (loss) to understand the impact of income taxes and debt-related items for general tax and liquidity planning purposes.
For the Software segment, the CODM focuses on “controllable costs” across the segment’s principal functions and allocates personnel and budget accordingly to maximize profitability. For the Bitcoin segment, the CODM reviews non-controllable expense categories, together with bitcoin holdings, cash and cash equivalents, and short-term investments. The CODM uses this information to assess segment performance, allocate resources, and oversee the Company's bitcoin treasury and capital markets strategy. As of September 30, 2026 and December 31, 2025, approximately 99% of the Company's total assets related to the Bitcoin segment.
The following tables present (for each of the Company's reportable operating segments and on a consolidated basis) the Company’s revenues and significant expenses regularly provided to the CODM, reconciled to net income (loss) for each of the periods presented.
Three Months Ended September 30, 2026
(in thousands)SoftwareBitcoinTotal Consolidated
Total revenues$125,427 $— $125,427 
Significant expenses (1)
Controllable
Sales and marketing(27,426)(133)(27,559)
Maintenance(4,993)— (4,993)
Consulting(10,982)— (10,982)
Cloud(19,478)— (19,478)
Technology(23,085)— (23,085)
General and administrative(14,467)(8,439)(22,906)
Non-Controllable
Gain on digital assets— 20,912,392 20,912,392 
Digital asset custody fees— (4,620)(4,620)
Share-based compensation expense(9,031)(4,148)(13,179)
Payroll taxes on equity award exercises and vestings(70)(2)(72)
Other segment items (2)(765)433 (332)
Interest income (3)652 46,398 47,050 
Interest expense (4)(9)(15,371)(15,380)
Income tax benefit (expense) (5)503,535 (1,912,846)(1,409,311)
Net income$519,308 $19,013,664 $19,532,972 
Three Months Ended September 30, 2025
(in thousands)SoftwareBitcoinTotal Consolidated
Total revenues$128,691 $— $128,691 
Significant expenses (1)
Controllable
Sales and marketing(24,656)(93)(24,749)
Maintenance(6,971)— (6,971)
Consulting(11,115)— (11,115)
Cloud(19,172)— (19,172)
Technology(20,945)— (20,945)
General and administrative
(18,194)(4,233)(22,427)
Non-Controllable
Gain on digital assets— 3,890,847 3,890,847 
Digital asset custody fees— (5,342)(5,342)
Share-based compensation expense(10,832)(4,651)(15,483)
Payroll taxes on equity award exercises and vestings(765)(739)(1,504)
Other segment items (2)(1,704)— (1,704)
Interest income (3)121 — 121 
Interest expense (4)(12)(18,999)(19,011)
Income tax benefit (expense) (5)19,728 (1,105,940)(1,086,212)
Net income
$34,174 $2,750,850 $2,785,024 
Nine Months Ended September 30, 2026
(in thousands)SoftwareBitcoinTotal Consolidated
Total revenues$372,095 $— $372,095 
Significant expenses (1)
Controllable
Sales and marketing(87,989)(1,095)(89,084)
Maintenance(16,563)— (16,563)
Consulting(34,140)— (34,140)
Cloud(65,100)— (65,100)
Technology(67,390)— (67,390)
General and administrative
(44,465)(28,948)(73,413)
Non-Controllable
Loss on digital assets— (1,858,452)(1,858,452)
Digital asset custody fees— (12,769)(12,769)
Share-based compensation expense(27,913)(12,707)(40,620)
Payroll taxes on equity award exercises and vestings(1,626)(502)(2,128)
Other segment items (2)(1,277)1,415 138 
Interest income (3)813 78,714 79,527 
Interest expense (4)— (47,283)(47,283)
Gain on debt extinguishment
— 113,916 113,916 
Income tax benefit (5)7,146 504,794 511,940 
Net income (loss)$33,591 $(1,262,917)$(1,229,326)
Nine Months Ended September 30, 2025
(in thousands)SoftwareBitcoinTotal Consolidated
Total revenues$354,245 $— $354,245 
Significant expenses (1)
Controllable
Sales and marketing(74,540)(1,789)(76,329)
Maintenance(20,705)— (20,705)
Consulting(34,825)— (34,825)
Cloud(49,774)— (49,774)
Technology(67,244)— (67,244)
General and administrative
(53,265)(16,361)(69,626)
Non-Controllable
Gain on digital assets— 12,032,356 12,032,356 
Digital asset custody fees— (14,346)(14,346)
Share-based compensation expense(32,037)(11,007)(43,044)
Payroll taxes on equity award exercises and vestings(5,426)(833)(6,259)
Other segment items (2)(15,952)— (15,952)
Interest income (3)313 — 313 
Interest expense (4)(30)(54,176)(54,206)
Income tax benefit (expense) (5)81,980 (3,428,084)(3,346,104)
Net income
$82,740 $8,505,760 $8,588,500 
(1)Significant expenses regularly provided to the CODM include both: (i) costs that the CODM considers to be “controllable”, for which the Company can manage future expense via the budgeting process (e.g., salaries, commissions, travel and entertainment expenses, third party-service provider fees, etc.), and that support specific functions of each reportable segment and (ii) costs that the CODM considers to be “non-controllable”, for which future expenses are primarily outside the Company’s control, such as gain or loss on digital assets, custody fees, share-based compensation expense, and employer payroll taxes related to the exercise or vesting of certain awards under the Stock Incentive Plans.
(2)Other segment items for the Software segment are primarily related to foreign currency transaction gains and losses, costs supporting the Company’s education function, one-time corporate initiatives, and certain expenses that are not easily allocable to specific functions. Other segment items for the Bitcoin segment are primarily related to foreign currency transaction gains and losses, as well as gains and losses on the sale of investments.
(3)Interest income for the three and nine months ended September 30, 2026 consisted primarily of interest earned on cash equivalents and short-term investments held as part of the Company's USD Assets. There was no material interest income for the three and nine months ended September 30, 2025.
(4)Interest expense for the three and nine months ended September 30, 2026 and 2025 consisted primarily of contractual interest and amortization of issuance costs on the Company's convertible senior notes, the net proceeds of which were used primarily to acquire bitcoin, and was allocated to the Bitcoin segment. Interest expense allocated to the Software segment was not material.
(5)Income tax effects allocated to the Bitcoin segment related primarily to transactions involving the Company’s bitcoin or debt, including gains or losses on digital assets, interest income, interest expense, share-based compensation expense, general and administrative expense (including personnel costs), and other third-party expenses. These income tax effects also reflect the establishment and release of valuation allowances against deferred tax assets, primarily related to losses on digital assets, based on the Company’s assessment of the realizability of such deferred tax assets each reporting period. Income tax effects allocated to the Software segment primarily relate to the tax benefit of share-based compensation for employees and also reflect the impact of the establishment and release of valuation allowances against deferred tax assets.
Depreciation and amortization expenses are included in net income (loss), but are not regularly reported to the CODM. For the Software segment, depreciation and amortization expense consists primarily of the amortization of capitalized costs to
obtain customer contracts, which amounted to $9.7 million and $27.6 million for the three and nine months ended September 30, 2026, respectively, and $2.7 million and $15.5 million for the same periods in the prior year. These amounts are reported within sales and marketing expense, which is a significant expense category regularly provided to the CODM.
Significant non-cash items include gain or loss on digital assets, share-based compensation, gain on debt extinguishment and amortization of issuance costs on long-term debt, and are presented in the table above and in the Company’s Consolidated Statements of Operations and/or Statements of Cash Flows. The Company does not regularly report capital expenditures on long-lived assets to the CODM.
The following table presents total revenues and long-lived assets according to geographic region. Long-lived assets are comprised of right-of-use assets and property and equipment, net. The Bitcoin segment disclosed above is included within the U.S. region.
Geographic regions: (in thousands)U.S.EMEAOther RegionsConsolidated
Total revenues
Three Months Ended September 30, 2026$71,295 $42,959 $11,173 $125,427 
Three Months Ended September 30, 2025$74,571 $42,257 $11,863 $128,691 
Nine Months Ended September 30, 2026$208,979 $129,647 $33,469 $372,095 
Nine Months Ended September 30, 2025$203,346 $119,583 $31,316 $354,245 
Long-lived assets
As of September 30, 2026$73,673 $3,650 $10,584 $87,907 
As of December 31, 2025$66,022 $2,908 $6,903 $75,833 
The EMEA region includes operations in Europe, the Middle East, and Africa. The other regions include all other foreign countries, generally comprising Latin America, the Asia Pacific region, and Canada. For the three and nine months ended September 30, 2026 and 2025, Germany accounted for 10% or more of total consolidated revenues.
For the three and nine months ended September 30, 2026 and 2025, no individual customer accounted for 10% or more of total consolidated revenues.