Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 236

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 236
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 evaluate our business performance and use the non-GAAP financial measures only supplementally. Non-GAAP loss from operations Non-GAAP loss from operations excludes share-based compensation expense, which is a significant non-cash expense that we believe is not reflective of our general business performance, and for which the accounting requires management judgment. Consequently, our accounting for share-based compensation expense could vary significantly in comparison to other companies. The following is a reconciliation of our non-GAAP loss from operations to loss from operations, its most directly comparable GAAP measure, (in thousands) for the periods indicated:

|                                                  |     | Three Months Ended 
      September 30, |     |           |     | Nine Months Ended 
     September 30, |     |           |
|                                                  |     |               2024 |     |      2023 |     |              2024 |     |      2023 |
| Reconciliation of non-GAAP loss from operations: |     |                    |     |           |     |                   |     |           |
| Loss from operations                             |     |         $(432,582) |     | $(25,247) |     |        $(836,558) |     | $(72,262) |
| Share-based compensation expense                 |     |             19,377 |     |    16,806 |     |            57,789 |     |    49,855 |
| Non-GAAP loss from operations                    |     |         $(413,205) |     |  $(8,441) |     |        $(778,769) |     | $(22,407) |

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TABLE OF CONTENTS

Non-GAAP net (loss) income and non-GAAP diluted (loss) earnings per share Non-GAAP net (loss) income and non-GAAP diluted (loss) earnings per share each exclude the impact of (i) share-based compensation expense, (ii) interest expense arising from the amortization of debt issuance costs on our long-term debt, (iii) gains and losses on extinguishment of debt, and (iv) related income taxes. We believe non-GAAP net (loss) income and non-GAAP diluted (loss) earnings per share offer management and investors insight as they exclude significant non-cash expenses, gains and losses on debt extinguishment, and their related income tax effects. The following are reconciliations of our non-GAAP net (loss) income and non-GAAP diluted (loss) earnings per share to net