Strategy

Q2 FY2026 EarningsQ2 FY26 missed consensus on both top and bottom lines, with revenue of $122.4M slightly below the $124.5M expected and a massive GAAP net loss of $8.22B compared to a projected profit of $3.03B. The earnings miss was almost entirely driven by $8.32B in unrealized losses on digital assets under the newly adopted ASU 2023-08 fair value accounting, as Bitcoin prices declined 13% QoQ. While the Software segment saw 53.9% YoY growth in Cloud Subscription revenue, this was offset by a 22.7% decline in Product Support, highlighting the ongoing volatility of the Bitcoin-centric balance sheet despite steady software transition progress.