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.