Strategy Inc's Business Segments

The company primarily operates a bitcoin strategy, holding significant bitcoin assets that impact its financial results and the market price of its securities. Its main activities involve managing bitcoin holdings, which are subject to high volatility, liquidity risks, and regulatory oversight. Revenue is generated from a single software platform and related services, including enterprise analytics products that incorporate artificial intelligence. The company faces risks including fluctuations in operating results, tax liabilities, cybersecurity threats, intellectual property claims, and potential disruptions from changes in third-party software or industry standards. Additional risks relate to government contracts, recruitment and retention of skilled personnel, and compliance with privacy laws. The company's financial condition and results of operations may be materially affected by these factors, as well as by its indebtedness and potential legal proceedings. Michael J. Saylor holds significant voting power and influences corporate matters. The company notes that forward-looking statements about its plans and expectations involve uncertainties and risks that could cause actual results to differ materially.

The Company operates a single reportable segment, the Software Business, which encompasses the design, development, marketing, and sales of its enterprise analytics software platform through cloud subscriptions, licensing arrangements, and related services such as product support, consulting, and education. The Corporate & Other category is not an operating segment and primarily includes costs and expenses related to the Company's bitcoin strategy. These include unrealized losses, impairment charges, third-party costs associated with bitcoin holdings, net interest expense on long-term debt used to purchase bitcoin, and income tax effects from bitcoin holdings and related debt issuances. Beginning in 2025, certain corporate resources dedicated to the bitcoin strategy are included within the Corporate resources and Share-based compensation expense segment expense line items. The Chief Executive Officer, serving as the chief operating decision maker, manages the Company on a consolidated basis and uses net income (loss) to assess profitability and allocate resources within the Software Business. The Company discloses detailed financial information for the Software Business and Corporate & Other categories, including revenues, controllable and non-controllable expenses, and net income (loss) for the years ended December 31, 2025 and 2024.