Core Insights - BlackBerry Limited reported a non-GAAP EPS of 3 cents for Q4 fiscal 2025, surpassing the company's estimate of a loss of 1 cent and the Zacks Consensus Estimate of 2 cents per share [1][2] - Total revenues for Q4 were $141.7 million, down from $152.9 million in the prior quarter, but exceeded management's guidance of $126-$135 million [2][5] - The company anticipates revenue volatility in the automotive sector and macroeconomic uncertainties to impact its fiscal 2026 guidance [3][4] Revenue Breakdown - QNX business revenues totaled $65.8 million, slightly down from $65.9 million year-over-year, but exceeded guidance of $60-$65 million [6] - Secure Communications revenues were $67.3 million, down from $71.6 million year-over-year, yet surpassed expectations of $62-$66 million [7] - Licensing revenues reached $8.6 million, exceeding guidance of $4 million, driven by strong sales from existing arrangements [8] Margin and Cash Flow Performance - Adjusted gross margin was 73.5%, down from 79.9% in the previous year [11] - Adjusted EBITDA was $21.1 million, a decrease from $38.2 million year-over-year, with expectations of $10-$20 million [11] - The company generated $42 million in net cash from operating activities, an improvement of $57 million from the prior year, and had $410 million in cash and investments as of Feb. 28, 2025 [12] Future Guidance - For fiscal 2026, total revenues are projected to be between $504 million and $534 million, with Secure Communications expected to generate between $250 million and $270 million [4] - Fiscal Q1 2026 revenues are estimated to be in the range of $107-$115 million, with Secure Communications revenues expected between $50-$54 million [13]

Financial Transactions - The Company completed the sale of its Cylance endpoint security assets for $160.0 million in cash and 5.5 million common shares of Arctic Wolf, with adjustments of approximately $39.1 million[21]. - The Company expects to receive approximately $40 million in cash from Arctic Wolf one year following the closing of the sale of its Cylance endpoint security assets[156]. - The financial results of Cylance are now reported as discontinued operations, affecting the presentation of results from continuing operations[217]. - The Cybersecurity segment has been restructured, with UEM, SecuSuite, and AtHoc reported separately from Cylance as the Secure Communications segment[217]. Technology and Innovation - QNX technology is embedded in over 255 million vehicles, representing a year-over-year increase of 20 million and an increase of 80 million since 2020[59]. - The QNX division's strategic roadmap focuses on innovation at the edge, safety and security, and reduction of developer friction, supported by a cloud-first embedded development strategy[60]. - QNX announced a multi-year collaboration to develop a foundational vehicle software platform, certified to the highest functional safety (ISO 26262 ASIL D) and security (ISO 21434) standards, aimed at reducing software integration costs for automakers[61]. - The introduction of QNX® Cabin provides a pre-integrated digital cockpit software reference implementation, built on ISO 26262 ASIL D-certified software, to accelerate time-to-market for OEMs[62]. - QNX Everywhere initiative launched to provide easy access to QNX software for non-commercial use, supporting the global developer ecosystem and advancing embedded automotive software innovation[63]. Market Presence and Strategy - The Company is collaborating with 16 of the top 20 global OEMs for cockpit solutions and 15 of the top 20 global OEMs for Advanced Driver Assistance Systems (ADAS), covering over 80% of global light passenger vehicle volumes[59]. - The Company’s revenue generation is primarily from licensing enterprise software and associated services, focusing on strategic industries such as automotive, government, and healthcare[51]. - The Company has a strong presence in the secure communications market, driven by increasing cyber threats and the need for secure communication solutions[30]. - The Company focuses on software and services to grow revenue and achieve sustainable profitability, requiring continual growth in its customer base[98]. Research and Development - The Company invests significantly in R&D for QNX and Secure Communications solutions, focusing on security capabilities for enterprise IT departments and end users[69]. - The Company owns approximately 6,300 worldwide patents and applications as of February 28, 2025, which provide a competitive advantage in core product areas[50]. - As of February 28, 2025, the Company owned approximately 6,300 worldwide patents and applications, enhancing its competitive advantage in core product areas[76]. Employee and Workplace - The Company employs 1,820 regular employees across 16 countries, with approximately 58% in Canada and 15% in the U.S.[89]. - The Company offers a range of financial and benefit programs to support employee wellness, including retirement savings plans and family-friendly leave policies[90]. - The Company is committed to maintaining a diverse and inclusive workplace, ensuring a respectful environment free from discrimination and harassment[91]. Risks and Challenges - The company faces intense competition, with competitors potentially implementing new technologies and products faster[101][102]. - The company must obtain and maintain product approvals and certifications to remain competitive, particularly in government markets[106]. - The company’s sales cycles can be long and unpredictable, especially with government and large enterprise customers[111]. - The company is exposed to cyber threats, and any breach could significantly harm its business and reputation[113][115]. - Adverse macroeconomic conditions, including geopolitical events and changes in trade policies, have negatively impacted the company's business[123]. - The company’s products and services are complex and may contain vulnerabilities that could impair their effectiveness and market acceptance[121][122]. - The imposition of new tariffs by the U.S. administration since February 2025 may adversely affect the Company's operations and customer demand[124]. - The Company faces potential litigation claims that could lead to adverse outcomes, impacting financial results and market volatility[125]. - The Company is exposed to product liability risks as it commercializes software innovations for autonomous and connected vehicles[126]. - Network disruptions or business interruptions could materially affect the Company's operations and reputation[128]. - The Company may struggle to foster an ecosystem of third-party application developers, which is crucial for product desirability and revenue[130]. - The Company's success is partly dependent on maintaining relationships with resellers and channel partners, which could impact market reach[131]. - The Company relies on interoperability with rapidly changing third-party systems, and failure to support timely integrations could harm its business[135]. - The introduction of generative AI technologies may expose the Company to operational challenges and regulatory scrutiny[136]. - The Company faces risks related to open source software that could impose unanticipated conditions on its ability to commercialize products[143]. - The Company has incurred $200 million in aggregate principal amount of 3.00% Senior Convertible Notes maturing on February 15, 2029, which may adversely affect its operating flexibility and financial condition[152]. Financial Performance - The Company experiences seasonal revenue patterns, with higher orders from QNX customers in the second half of the fiscal year[55]. - The Company's revenues can fluctuate significantly from quarter to quarter due to unexpected developments, including lower-than-anticipated demand for products and services[177]. - The Company is subject to various taxes in Canada, the United States, and other jurisdictions, and changes in tax provisions could materially impact its financial condition[159]. - The Company’s long-lived assets are subject to impairment reviews, and failure to generate sufficient cash flows could result in impairment charges[157]. - The Company’s goodwill is tested for impairment annually, and adverse changes in business conditions could lead to impairment charges[158]. - The Company's gross margins on products and services can vary significantly due to product transitions, pricing changes, and cost fluctuations[178]. - The market price of the Company's common shares has been volatile, influenced by factors such as new product announcements and quarterly operating results[179]. - The cumulative total shareholder return for the Company's common shares was $91.10 as of February 28, 2025, compared to $100.00 at the base period[202]. - The Company did not repurchase any shares during fiscal 2025 and currently has no share repurchase program[198]. Cybersecurity Measures - The Company has implemented a cybersecurity risk management program to safeguard its information assets, including monitoring and responding to threats[182]. - The Company's incident response team is responsible for addressing security threats and incidents, with processes for crisis management and post-incident recovery[185]. - The Board oversees the Company's enterprise risk management program, including cybersecurity risks, with quarterly updates provided by the Chief Information Security Officer[190]. - The Company has not identified any security threats that materially affected its business strategy or financial condition during the reporting period[188].

Core Viewpoint - BlackBerry's stock has experienced a significant decline following the release of its quarterly results, which, despite beating estimates, provided a disappointing revenue outlook for the upcoming fiscal year [1][2]. Financial Performance - BlackBerry projected fiscal 2026 revenue between $504 million and $534 million, which is notably below analysts' expectations of $567.3 million [2]. - The current-quarter revenue estimate ranges from $107 million to $115 million, also missing projections and contributing to the stock sell-off [2]. - The company reported a 7% year-over-year revenue decline to $141.7 million for the fourth quarter, with earnings per share at $0.03 [4]. Business Segment Insights - A major concern for investors is the forecast for BlackBerry's Secure Communications unit, expected to generate $230 million to $240 million in fiscal 2026, down from $272.6 million in the previous year and significantly lower than the $277 million projected by Wall Street [3]. Strategic Transition - BlackBerry is in the process of transitioning from a smartphone manufacturer to a cybersecurity and Internet of Things (IoT) software provider, a challenging shift that has been ongoing since the introduction of the iPhone [4].

Core Viewpoint - BlackBerry Limited has experienced a significant decline in its stock value, losing nearly two-thirds of its worth over the past decade, indicating challenges in its business performance [1]. Company Summary - BlackBerry Limited is a Canadian technology company that has struggled in the market, with its shares dropping substantially [1]. Investment Considerations - Investors are encouraged to conduct thorough due diligence before making any investment decisions related to BlackBerry or similar companies [3].

Financial Data and Key Metrics Changes - Total company revenue for Q4 was $141.7 million, exceeding guidance [11] - Adjusted EBITDA for Q4 was $21.1 million, beating guidance [12] - Adjusted EPS for Q4 was positive $0.03, surpassing expectations [42] - Total cash and investments increased by $144 million, driven by strong operating cash flow of $42 million [13][45] Business Line Data and Key Metrics Changes - QNX division revenue for Q4 was $65.8 million, beating guidance [11] - Secure Communications division revenue for Q4 was $67.3 million, also exceeding guidance [29] - Licensing revenue for Q4 was $8.6 million, above expectations [35] - Adjusted EBITDA for Secure Communications was $12.6 million for Q4, significantly beating guidance [38] Market Data and Key Metrics Changes - QNX's royalty backlog grew to approximately $865 million, indicating future revenue potential [20] - Annual recurring revenue (ARR) for Secure Communications decreased by $7 million sequentially but increased by $6 million year-over-year to $208 million [34] Company Strategy and Development Direction - The company is focusing on its core growth driver, QNX, and has reduced its cost run rate by over $150 million [60] - The company is expanding its market presence beyond automotive into adjacent verticals such as medical and industrial [82] - The QNX division will now be referred to as QNX to reflect its key role [25] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainty in the automotive sector due to recent tariff changes but emphasized resilience due to diversified revenue sources [48] - The company expects revenue for the full fiscal year 2026 to be in the range of $250 million to $270 million, indicating a 10% growth at the midpoint [49] - Management expressed confidence in maintaining strong relationships with government clients, which are expected to mitigate risks from potential changes in administration [106] Other Important Information - The company completed the sale of the Cylance business to Arctic Wolf, receiving approximately $80 million in cash and common shares [14][43] - The company retained its AI/ML endpoint security patents and tax losses, which are expected to benefit future profits [15] Q&A Session Summary Question: Impact of tariffs on auto OEMs - Management has not seen significant supply chain issues from OEMs related to tariffs, indicating a degree of insulation due to diversified revenue sources [64][65] Question: US federal business impact on Secure Communications - US federal contracts represent about 20-25% of Secure Communications, with no material impact observed so far [68][70] Question: Timeline for OEMs adjusting to tariff impacts - OEMs are still navigating the situation, with no significant downtick in supply chain volumes reported [74][75] Question: Business outside the US - The company is optimistic about growth opportunities outside the US, particularly in Europe, and is investing in adjacent markets [80][82] Question: Vehicle OS initiative and content opportunities - There is a consistent trend of OEMs seeking to expand their collaboration with the company, indicating potential for increased content per vehicle [96][100] Question: Risks related to government contracts - Long-term agreements with governments are expected to remain stable, with opportunities for consolidation and expansion of services [106]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

You should not place undue reliance on the company's forward-looking statements. Any forward-looking statements are made only as of the date of publication and the company has no intention and undertakes no obligation to update or revise any of them, except as required by law. This presentation includes certain non-GAAP measures. We believe that these non-GAAP measures, which may be defined differently by other companies, explain our results of operations in a manner that allows for a more complete understa ...

Core Viewpoint - BlackBerry Limited is set to report its fourth-quarter fiscal 2025 results on April 2, with earnings expectations and revenue projections indicating a challenging environment for the company [1][5]. Earnings Estimates - The Zacks Consensus Estimate for the upcoming quarter's earnings is 2 cents per share, unchanged over the past 60 days, compared to 3 cents per share in the same quarter last year [2][4]. - For fiscal 2025, the earnings estimate is 1 cent per share, down from 5 cents per share in the previous fiscal year, with revenues projected at $562 million, reflecting a 34.1% year-over-year decline [4][12]. Earnings Surprise History - BlackBerry has a strong earnings surprise history, having outperformed the Zacks Consensus Estimate in the last four quarters, with an average surprise of 131.25% [3][4]. Revenue Projections - The company expects fourth-quarter revenues to be between $126 million and $135 million, with the Secure Communications unit projected to generate $62 million to $66 million and the IoT business expected to bring in $60 million to $65 million [11][12]. - For fiscal 2025, revenues from continuing operations are anticipated to be between $517 million and $526 million, with the Secure Communications division expected to contribute $267 million to $271 million [12]. Operational Performance - Cost-cutting measures, including headcount reductions and facility closures, have positively impacted margin and bottom-line performance, with adjusted EBITDA reported at $23 million in the third quarter of fiscal 2025, up from $18 million year-over-year [13]. - The company anticipates adjusted EBITDA for the upcoming quarter to be between $10 million and $20 million, and for fiscal 2025, it is projected to be between $60 million and $70 million [14]. Market Position and Stock Performance - BlackBerry's stock has increased by 51.2% over the past six months, outperforming the Computer Software industry and broader market indices [16]. - The stock is currently trading at a discount, with a 12-month Price/book multiple of 3.26X compared to the industry average of 7.63X [19]. Strategic Focus - The company is focusing on high-margin areas such as IoT and Secure Communications, with expected benefits from the automotive segment and the relaunch of the QNX brand [7][10]. - The performance of the Secure Communications division is driven by strong demand for its endpoint management and critical events management solutions [9].

Release and Availability of the 2024 Universal Registration Document Clichy, France – March 27, 2025 – The 2024 Universal Registration Document (French version) was filed with the A.M.F (Autorité des Marchés Financiers: French Financial Markets Authority) on March 27, 2025. The document is available on BIC’s website in French and English in the Investors’ section under Universal Registration Document as well as on the website of the A.M.F (www.amf-france.org). It is available to the public under current reg ...

BlackBerry Limited (BB) stock’s newfound momentum is impressive. It has surged 47.8% in the past year, significantly outpacing the Computer Software industry’s, broader Zacks Computer & Technology sector and the S&P 500 composite’s growth of 0.5%, 12.6% and 13.8%, respectively. Blackberry has also outperformed peers within the cybersecurity space, such as Fortinet (FTNT) and CrowdStrike Holdings, Inc. (CRWD) , which have gained 41.8% and 5.1%, respectively, over the same time frame. BlackBerry gained 2.5% i ...