Executive Summary
BlackBerry reported QQ3 2025 results with revenue of $143.0 million, down -5.92% year over year and -1.38% quarter over quarter. The company delivered a robust gross margin of 78.32% on a $112.0 million gross profit, and positive EBITDA of $33.0 million (EBITDAR 23.08%). However, net income remained negative at -$11.0 million, yielding a net profit margin of -7.69%, and earnings per share of -$0.0186. Operationally, the company generated $3.0 million of cash flow from operations and $1.0 million of free cash flow, while continuing to invest in product development and go-to-market initiatives. The balance sheet shows a strong cash position (cash and cash equivalents plus short-term investments of about $220 million) and moderate leverage (total debt $224 million; net debt $35 million), supporting ongoing R&D, strategic investments, and potential opportunistic licensing activity. Trading metrics reflect a richly valued equity (P/B ~89x; EV/Revenue not disclosed in the data, but price-to-sales ~10.63x) typical of niche software franchises with significant intangible assets, yet with a need to convert profitability into sustained free cash flow and cash-generative growth. The QQ3 2025 results underscore a path toward margin resilience and potential top-line expansion via BlackBerry’s AI cybersecurity offerings and automotive/IoT software platforms, though execution hinges on monetizing growth initiatives and improving net income progression.
Key Performance Indicators
Key Insights
Revenue: $143.0m (YoY -5.92%, QoQ -1.38%)
Gross Profit: $112.0m; Gross Margin: 78.32%
EBITDA: $33.0m; EBITDA Margin: 23.08%
Operating Income: $19.0m; Operating Margin: 13.29%
Net Income: -$11.0m; Net Margin: -7.69%
EPS (diluted): -$0.0185 to -$0.0186; Weighted Avg Shares ~591.2m
Cash Flow: Operating cash flow $3.0m; Capex -$2.0m; Free cash flow $1.0m
Balance Sheet: Cash & equivalents $189m; Short-term investments $31m; Total cash ~ $220m; Total debt $224m; Net debt $35m; Total assets $1.31b;...
Financial Highlights
Revenue: $143.0m (YoY -5.92%, QoQ -1.38%)
Gross Profit: $112.0m; Gross Margin: 78.32%
EBITDA: $33.0m; EBITDA Margin: 23.08%
Operating Income: $19.0m; Operating Margin: 13.29%
Net Income: -$11.0m; Net Margin: -7.69%
EPS (diluted): -$0.0185 to -$0.0186; Weighted Avg Shares ~591.2m
Cash Flow: Operating cash flow $3.0m; Capex -$2.0m; Free cash flow $1.0m
Balance Sheet: Cash & equivalents $189m; Short-term investments $31m; Total cash ~ $220m; Total debt $224m; Net debt $35m; Total assets $1.31b; Total liabilities $0.584b; Total stockholders’ equity $0.725b
Liquidity: Current ratio 1.37; Quick ratio 1.37; DSO 105.11 days; Cash conversion cycle ~78.98 days
Valuation Indicators: Price-to-book ~89.38x; Price-to-sales ~10.63x; EV multiple ~47.11x; Net debt level modest; Dividend: none
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
143.00M |
-5.92% |
-1.38% |
| Gross Profit |
112.00M |
-5.88% |
19.15% |
| Operating Income |
19.00M |
5.56% |
190.48% |
| Net Income |
-11.00M |
47.62% |
42.11% |
| EPS |
-0.02 |
48.19% |
42.24% |
Key Financial Ratios
operatingProfitMargin
13.3%
operatingCashFlowPerShare
$0.01
priceEarningsRatio
-34.53
Management Commentary
No QQ3 2025 earnings transcript data provided in the report package. Transcript highlights and management quotes are therefore not available for inclusion. If transcript materials are supplied, we will extract themes around strategy, operations, and market conditions with direct quotes.
Forward Guidance
BlackBerry does not disclose formal forward-looking targets in QQ3 2025 within the provided data. Given the mix of a high gross margin base, positive EBITDA, and ongoing R&D investments, the key drivers for potential improvement are:
- Monetization of Cylance AI-driven cybersecurity solutions and broader Cybersecurity revenue growth.
- Scaling of IoT and automotive software platforms (QNX, IVY, Radar) and licensing streams.
- Operational discipline to translate EBITDA and gross profit into sustained net income and cash flow growth.
- Capital allocation focused on strategic partnerships, licensing, and selective investments.
Assessment: With no explicit Guidance, investors should monitor quarterly progression in net income, free cash flow growth, DSO normalization, and product mix shifts toward higher-margin cybersecurity/licensing revenue. Key factors to watch include deal wins with enterprise/government clients, customer concentration risk, and any changes in government procurement cycles that could affect demand for BlackBerry’s security software and critical event management offerings.