Executive Summary
BlackBerry reported QQ4 2025 results with revenue of $143.9 million and gross profit of $105.9 million, yielding a gross margin of 73.6%. The quarter produced a net loss of $7.0 million and an EPS of -$0.0118, against EBITDA of $9.2 million (EBITDA margin ~6.4%). Operating income was negative at $6.2 million, with an operating margin of -4.31%. Despite the near-term profitability gap, the company generated positive operating cash flow of $41.5 million and a free cash flow of $40.4 million. The balance sheet shows a strong liquidity position: cash and cash equivalents of $266.7 million and short-term investments of $71.1 million, with total cash and investments of $337.8 million against total debt of $239.0 million, resulting in a net debt position of -$27.7 million. Shareholders’ equity stood at $719.9 million, though retained earnings remained negative at -$2.237 billion, reflecting legacy deficits and substantial intangible assets (goodwill $472.4 million; other intangibles $47.3 million; total intangible assets $519.7 million).
The quarter underscores BlackBerry’s ongoing investment cycle in its cybersecurity and IoT platforms, notably in areas spanning Cylance AI-based security, EPP/EDR suites, ZTNA capabilities, and UEM/IoT solutions, as well as government and enterprise cybersecurity services. While revenue declined modestly year-over-year (YoY) by about 16.8% and was broadly flat QoQ, the company demonstrated meaningful free cash flow generation and an improving cash position, which supports ongoing R&D investment and strategic bets in AI-enabled security, licensing, and platform integrations. Looking ahead, no formal forward guidance was issued for QQ4 2025, so investors should monitor the mix shift toward recurring licensing revenue, the trajectory of gross margins, and working capital efficiency as near-term catalysts or headwinds. Overall, the stock remains richly valued relative to traditional earnings metrics, with a heavy emphasis on long-term growth in security software, AI-enabled protection, and automotive/IoT platforms.
Key Performance Indicators
QoQ: -5.45% | YoY:-17.91%
QoQ: -132.63% | YoY:88.93%
Key Insights
Revenue: $143.9M; YoY change: -16.8%; QoQ change: +0.6%; Gross Profit: $105.9M; Gross Margin: 73.59%; EBITDA: $9.20M; EBITDA Margin: 6.39%; Operating Income: -$6.20M; Operating Margin: -4.31%; Net Income: -$7.00M; Net Margin: -4.86%; EPS: -$0.0118; Weighted Avg Shares Out: 591.24M; Free Cash Flow: $40.40M; Operating Cash Flow: $41.50M; Capital Expenditures: -$1.10M; Cash and Cash Equivalents: $266.70M; Short-Term Investments: $71.10M; Total Cash & Investments: $337.80M; Total Debt: $239.00M;...
Financial Highlights
Revenue: $143.9M; YoY change: -16.8%; QoQ change: +0.6%; Gross Profit: $105.9M; Gross Margin: 73.59%; EBITDA: $9.20M; EBITDA Margin: 6.39%; Operating Income: -$6.20M; Operating Margin: -4.31%; Net Income: -$7.00M; Net Margin: -4.86%; EPS: -$0.0118; Weighted Avg Shares Out: 591.24M; Free Cash Flow: $40.40M; Operating Cash Flow: $41.50M; Capital Expenditures: -$1.10M; Cash and Cash Equivalents: $266.70M; Short-Term Investments: $71.10M; Total Cash & Investments: $337.80M; Total Debt: $239.00M; Net Debt: -$27.70M; Total Assets: $1,295.60M; Total Liabilities: $575.70M; Total Equity: $719.90M; Current Ratio: 1.72; Quick Ratio: 1.72; Cash Ratio: 0.78; DSO: 139.91 days; CCC: 66.25 days; Revenue Growth/Valuation metrics (as of QQ4 2025): P/B 18.88x; P/S 94.46x; EV/FCF 336.45x; Enterprise Value: $1,474.45M; Price/Fair Value: $18.88; Gross Profit Margin: 73.6%; Operating Cash Flow/Sales: 28.8%; Free Cash Flow/Sales: 28.0%; Net Income per EBT: 1.077; EBT per EBIT: 1.048;
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
143.90M |
-16.82% |
0.63% |
| Gross Profit |
105.90M |
-17.91% |
-5.45% |
| Operating Income |
-6.20M |
88.93% |
-132.63% |
| Net Income |
-7.00M |
87.50% |
36.36% |
| EPS |
-0.01 |
87.62% |
36.56% |
Key Financial Ratios
operatingProfitMargin
-4.31%
operatingCashFlowPerShare
$0.07
freeCashFlowPerShare
$0.07
priceEarningsRatio
-485.45
Management Commentary
Transcript highlights: No earnings call transcript data were provided in the dataset for QQ4 2025; as a result, direct management quotes or verbatim commentary from the call are not included. The absence of transcript quotes means themes and tone must be inferred from the press release and the quarterly results release. Investors should refer to the official QQ4 2025 earnings release for precise language and commentary from BlackBerry’s management.
Forward Guidance
Forward guidance: The QQ4 2025 filing did not include formal forward-looking targets. Given the cash-generating capability and ongoing investment cycle, key areas to monitor include: (1) progression of licensing-based and recurring revenue mix versus one-time or professional services; (2) gross margin trajectory as product mix shifts toward higher-margin cybersecurity solutions; (3) working capital efficiency, especially DSO and CCC, to sustain operating cash flow; (4) pace of R&D and product development investments in Cylance, BlackBerry Spark, QNX, and IoT security platforms; (5) capital allocation decisions, including potential use of excess cash for debt reduction, acquisitions, or strategic partnerships. If recurring revenue accelerates and profitability improves, the outlook could brighten; if cost structure remains elevated or revenue mix stays skewed toward lower-margin segments, downside risk to profitability persists.