STRDMEDIUM SIGNALFINANCIAL10-K

STRD completed a corporate restructuring from "MicroStrategy Incorporated d/b/a Strategy" to "Strategy Inc" while showing mixed financial performance with reduced R&D spending but deteriorating cash flow.

The formal corporate name change to Strategy Inc suggests management's commitment to pivoting beyond its traditional MicroStrategy business analytics roots. The substantial increase in total liabilities to $10.6B alongside negative operating cash flow indicates the company continues to invest heavily in growth initiatives, likely related to its Bitcoin treasury strategy, though at the cost of near-term profitability.

Comparing 2026-02-19 vs 2025-02-18View on EDGAR →
FINANCIAL ANALYSIS

The company's balance sheet shows meaningful expansion with total liabilities growing to $10.6B and debt increasing to $8.2B, while accounts receivable grew modestly to $205.7M indicating steady business activity. Operating cash flow remained negative and worsened to -$67.2M, though R&D expenses decreased to $93.9M suggesting some cost discipline. The overall picture reflects a company in active investment mode with increased leverage, consistent with an aggressive growth or acquisition strategy.

FINANCIAL STATEMENT CHANGES
Total Liabilities
Balance Sheet
+39.2%
$7.6B→$10.6B

Liabilities grew 39.2% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Liabilities
Balance Sheet
+28.5%
$355.4M→$456.5M

Current liabilities rose 28.5% — increased short-term obligations, watch current ratio.

Operating Cash Flow
Cash Flow
-26.8%
-$53.0M→-$67.2M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

R&D Expense
P&L
-20.8%
$118.5M→$93.9M

R&D spending cut 20.8% — could signal cost discipline or concerning reduction in innovation investment.

Total Debt
Balance Sheet
+13.9%
$7.2B→$8.2B

Debt rose 13.9% — additional borrowing for investment or operations; monitor coverage ratios.

Accounts Receivable
Balance Sheet
+13.5%
$181.2M→$205.7M

Receivables grew 13.5% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-18
ADDED
As of February 13, 2026, the registrant had 314,112,458 and 19,640,250 shares of class A common stock and class B common stock outstanding, respectively.
Management s Discussion and Analysis of Financial Condition and Results of Operations 60 Item 7A .
Form 10-K Summary 85 2 The trademarks and registered trademarks of Strategy Inc and its subsidiaries referred to herein include, but are not limited to, Strategy, MicroStrategy, Strategy One, Strategy Auto, Strategy Mosaic, Intelligence Everywhere, HyperIntelligence, Strategy Consulting, Strategy Education, Strategy Cloud, Enterprise Semantic Graph, Strategy Services, Strategy Professional Services, and Strategy Support.
3 CERTAIN DEFINITIONS All references in this Annual Report on Form 10-K ( Annual Report ) to Strategy Inc ( Strategy , or the Company ) we, us, and our refer to Strategy Inc and its consolidated subsidiaries (unless the context otherwise indicates).
and foreign federal, state, and local governments and government agencies; If we are unable to recruit or retain skilled personnel, or if we lose the services of Michael J.
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REMOVED
As of February 4, 2025 , the registrant had 237,711,607 and 19,640,250 shares of class A common stock and class B common stock outstanding, respectively.
Management s Discussion and Analysis of Financial Condition and Results of Operations 47 Item 7A.
Form 10-K Summary 69 2 The trademarks and registered trademarks of MicroStrategy Incorporated d/b/a Strategy and its subsidiaries referred to herein include, but are not limited to, Strategy, MicroStrategy, Strategy One, Strategy Auto, Intelligence Everywhere, HyperIntelligence, Strategy Consulting, Strategy Education, Strategy Cloud, Enterprise Semantic Graph, Strategy Services, Strategy Professional Services, Strategy Support, and Intelligent Enterprise.
3 CERTAIN DEFINITIONS All references in this Annual Report on Form 10-K ( Annual Report ) to Strategy , MicroStrategy, the Company, we, us, and our refer to MicroStrategy Incorporated d/b/a Strategy and its consolidated subsidiaries (unless the context otherwise indicates).
and foreign federal, state, and local governments and government agencies, including risks related to the procurement process, budget constraints and cycles, termination of contracts, and compliance with government contracting requirements; If we are unable to recruit or retain skilled personnel, or if we lose the services of Michael J.
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