Executive Summary
BlackBerry Limited delivered QQ2 2025 revenue of USD 145.0 million, up 9.85% year over year and 0.72% quarter over quarter, driven by ongoing demand for its cybersecurity and software offerings. However, the quarter culminated in a net loss of USD 19.0 million and an operating loss of USD 21.0 million, reflecting continued investment in growth initiatives (R&D and go-to-market activities) that suppress near-term profitability despite a solid gross margin of 64.8%.
The company ended the quarter with a robust liquidity position. Cash and cash equivalents plus short-term investments totaled USD 211.0 million, and net debt stood at USD 79.0 million. Operating cash flow was negative at USD 13.0 million, largely due to working capital movements and the timing of collections, while capex was modest at USD 5.0 million, resulting in negative free cash flow of USD 18.0 million. Management commentary remains focused on leveraging BlackBerry’s three-pronged platform — Cybersecurity, IoT, and Licensing & Other — to drive higher-margin recurring revenue over time, supported by new product initiatives (including Cylance AI-based protections and ZTNA/UEBA capabilities) and potential licensing of IP assets.
Overall, the QQ2 2025 result underscores a growth trajectory in revenue and product adoption but highlights the persistent profitability hurdle tied to early-stage or investment-heavy go-to-market strategies. The balance sheet remains supportive for continued investment, while the market valuation implies confidence in BlackBerry’s long-term monetization of its software platform and IP portfolio.
Key Performance Indicators
Key Insights
Revenue: USD 145.0m (+9.85% YoY; +0.72% QoQ). Gross profit: USD 94.0m; gross margin 64.83% (USD 94.0m / USD 145.0m).
EBITDA: USD -8.0m; EBIT: USD -21.0m; operating margin: -14.48%.
Net income: USD -19.0m; net margin: -13.10%; EPS: -0.0322.
R&D: USD 37.0m; SG&A: USD 67.0m; total operating expenses: USD 115.0m.
Depreciation & amortization: USD 13.0m.
Weighted average shares outstanding: 590.55m.
Cash flow: Operating cash flow (OCF) USD -13.0m; capex USD -5.0m; free cash flow USD -18.0m...
Financial Highlights
Revenue: USD 145.0m (+9.85% YoY; +0.72% QoQ). Gross profit: USD 94.0m; gross margin 64.83% (USD 94.0m / USD 145.0m).
EBITDA: USD -8.0m; EBIT: USD -21.0m; operating margin: -14.48%.
Net income: USD -19.0m; net margin: -13.10%; EPS: -0.0322.
R&D: USD 37.0m; SG&A: USD 67.0m; total operating expenses: USD 115.0m.
Depreciation & amortization: USD 13.0m.
Weighted average shares outstanding: 590.55m.
Cash flow: Operating cash flow (OCF) USD -13.0m; capex USD -5.0m; free cash flow USD -18.0m.
Cash and investments: USD 211.0m (cash at end USD 188.0m; beginning USD 160.0m); net cash provided by financing activities: not disclosed; net change in cash USD 28.0m.
Balance sheet highlights: Total assets USD 1.299b; cash and cash equivalents USD 171.0m; total current assets USD 438.0m; goodwill USD 563.0m; total liabilities USD 567.0m; total stockholders’ equity USD 732.0m; total debt USD 250.0m; net debt USD 79.0m.
Liquidity ratios: current ratio 1.44; gross margin 64.8%; operating margin -14.5%; net margin -13.1%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
145.00M |
9.85% |
0.72% |
| Gross Profit |
94.00M |
10.59% |
11.94% |
| Operating Income |
-21.00M |
55.32% |
24.98% |
| Net Income |
-19.00M |
54.76% |
54.75% |
| EPS |
-0.03 |
55.28% |
54.78% |
Key Financial Ratios
operatingProfitMargin
-14.5%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.03
priceEarningsRatio
-190.02
Management Commentary
transcriptHighlights: No QQ2 2025 earnings call transcript data is provided in the source dataset. Consequently, specific management quotes or call-on-the-record insights could not be extracted from a transcript. If you can supply the transcript or a link to the call, I can extract them and categorize by themes (strategy, operations, market conditions).
Forward Guidance
No explicit forward guidance was published in the QQ2 2025 materials provided. Given the industry backdrop of persistent cybersecurity demand and BlackBerry’s multi-segment strategy (Cybersecurity, IoT, Licensing), the plausible directional outlook is cautiously constructive but hinge on translating revenue growth into improved profitability. Key qualitative cues and industry trends to monitor:
- Revenue trajectory: Expect ongoing demand for BlackBerry’s cybersecurity stack (AI-powered Cylance solutions, EDR/OT security, and ZTNA/UEBA components) to support higher recurring revenue, albeit with a lag before operating leverage fully materializes.
- Margin expansion opportunities: Structural leverage from software licensing and subscriptions may gradually improve gross margin if mix shifts toward higher-margin offerings and if R&D/G&A investments contribute to longer-term monetization.
- Operating discipline: The near-term profitability path will depend on controlling OPEX growth (R&D, SG&A, and go-to-market spend) while expanding ARR and cross-sell across Cybersecurity, IoT, and Licensing channels.
- Cash flow and capital allocation: With USD 211m of liquidity and a net debt position near USD 79m, the company has the balance sheet flexibility to fund product development, potential strategic partnerships, or selective licensing deals without immediate liquidity concerns.
- Industry and competitive environment: The cybersecurity software market remains crowded with high-growth peers, requiring BlackBerry to demonstrate tangible progress in product adoption, customer wins, and a path to profitability to justify valuation levels relative to revenue.