Executive Summary
In Q1 2025, BlackBerry Limited reported total revenue of $144 million, a decline of 61.41% year-over-year and a decrease of 15.96% quarter-over-quarter. Both the IoT and cybersecurity divisions exceeded revenue expectations, reflecting ongoing efforts to streamline operations and enhance financial performance despite persistent challenges in the macroeconomic environment. Management emphasized improving adjusted EBITDA and cash usage, targeting a return to profitability by Q4 of FY2025. Overall, while facing some sector headwinds, BlackBerry is making concrete steps toward operational efficiency and sustainable growth.
Key Performance Indicators
QoQ: -15.96% | YoY:-61.41%
QoQ: -27.51% | YoY:-53.09%
QoQ: -1 042.39% | YoY:-449.89%
QoQ: 24.27% | YoY:-281.70%
QoQ: 24.58% | YoY:-276.72%
Key Insights
**Revenue Performance:** In Q1 2025, BlackBerry generated revenue of $144 million (down from $373 million in Q1 2024), with segment contribution detailed as: IoT $53 million (up from anticipated), Cybersecurity $85 million (exceeding guidance), and Licensing $6 million.
**Profitability:** Net income registered at -$41.99 million, translating to an EPS of -$0.0712, reflecting an EPS decline of 276.72% year-over-year. The gross profit margin stood at 67%, down from 85% previously.
**Cash Flow:...
Financial Highlights
Revenue Performance: In Q1 2025, BlackBerry generated revenue of $144 million (down from $373 million in Q1 2024), with segment contribution detailed as: IoT $53 million (up from anticipated), Cybersecurity $85 million (exceeding guidance), and Licensing $6 million.
Profitability: Net income registered at -$41.99 million, translating to an EPS of -$0.0712, reflecting an EPS decline of 276.72% year-over-year. The gross profit margin stood at 67%, down from 85% previously.
Cash Flow: The net cash used in operations was -$14.995 million, signifying improved cash management relative to prior periods. The company ended the quarter with $142.98 million in cash.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
143.96M |
-61.41% |
-15.96% |
| Gross Profit |
83.97M |
-53.09% |
-27.51% |
| Operating Income |
-27.99M |
-449.89% |
-1 042.39% |
| Net Income |
-41.99M |
-281.70% |
24.27% |
| EPS |
-0.07 |
-276.72% |
24.58% |
Key Financial Ratios
operatingProfitMargin
-19.4%
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.03
Management Commentary
IoT Revenue Gains: John Giamatteo noted, "Our IoT division delivered revenue of $53 million, exceeding our top-end guidance, driven by automotive applications yielding near-record royalties."
Cybersecurity Segment Achievements: Giamatteo highlighted an increasing Annual Recurring Revenue (ARR) of $285 million, with a retention rate of 87%, stating, "We are encouraged by the pipeline generated in cybersecurity due to managed services and ongoing product improvements."
"We believe our strategy is working. We delivered our third consecutive quarter of sequentially better free cash usage despite the impact of seasonality."
â John Giamatteo
"Given the strong book of business, we expect Q2 to be another solid quarter for SecuSmart."
â John Giamatteo
Forward Guidance
Management reiterated its full-year revenue expectations of $350 million to $365 million for the cybersecurity segment and $220 million to $235 million for the IoT business. For Q2 FY2025, anticipated revenue ranges are $82-$86 million in Cybersecurity and $50-$54 million in IoT. The company is focused on achieving positive cash flow and adjusted EBITDA in Q4, which management emphasized is critical to sustainability.