Executive Summary
BlackBerry Limited reported QQ3 2025 revenue of $143.0 million with a gross profit of $112.0 million, generating a gross margin of 78.3%. EBITDA stood at $33.0 million and operating income was $19.0 million, while net income remained negative at $(11.0) million, translating to a basic EPS of $(0.0186). The quarter showcased meaningful margin resilience and positive operating leverage, but profitability was still constrained by ongoing investment in R&D and go-to-market activities. Cash flow remained modest but positive, with operating cash flow of $3.0 million and free cash flow of $1.0 million, supporting a cash balance of approximately $200 million at period end. Net debt was a modest $35 million on a capital structure featuring total assets of about $1.31 billion and stockholders’ equity of $725 million. The results underscore BlackBerry’s ongoing transition toward a software-centric security platform, leveraging AI-enabled cybersecurity, with potential upside from QNX/IVY and enterprise/government cybersecurity opportunities.
Key Performance Indicators
Key Insights
Revenue: USD 143.00m; YoY change: -5.92%; QoQ change: -1.38%. Gross Profit: USD 112.00m; YoY: -5.88%; QoQ: +19.15%; Gross Margin: 78.32%. Operating Income: USD 19.00m; YoY: +5.56%; QoQ: +190.48%. EBITDA: USD 33.00m; EBITDARatio: 0.2308. Net Income: USD -11.00m; YoY: +47.62% (from a larger prior loss); QoQ: +42.11%. EPS: USD -0.0186; Diluted EPS: -0.0185; YoY EPS change: +48.19%; QoQ: +42.24%. Free Cash Flow: USD 1.00m; CFO: USD 3.00m; Capex: USD -2.00m. Cash at end of period: USD 200.00m; Cash a...
Financial Highlights
Revenue: USD 143.00m; YoY change: -5.92%; QoQ change: -1.38%. Gross Profit: USD 112.00m; YoY: -5.88%; QoQ: +19.15%; Gross Margin: 78.32%. Operating Income: USD 19.00m; YoY: +5.56%; QoQ: +190.48%. EBITDA: USD 33.00m; EBITDARatio: 0.2308. Net Income: USD -11.00m; YoY: +47.62% (from a larger prior loss); QoQ: +42.11%. EPS: USD -0.0186; Diluted EPS: -0.0185; YoY EPS change: +48.19%; QoQ: +42.24%. Free Cash Flow: USD 1.00m; CFO: USD 3.00m; Capex: USD -2.00m. Cash at end of period: USD 200.00m; Cash and cash equivalents: USD 189.00m; Total assets: USD 1.309b; Total liabilities: USD 584.00m; Total stockholders’ equity: USD 725.00m; Net Debt: USD 35.00m. Current ratio: 1.37; Quick ratio: 1.37; Cash ratio: 0.57. D&A: USD 13.00m; Working capital dynamics show accounts receivable modestly negative, with non-cash items contributing to overall cash flow trajectory.
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
-316.43
Management Commentary
No earnings call transcript data provided in the input. As such, there are no management quotes to summarize by theme. If a transcript becomes available, I will synthesize strategy, operations, and market-condition insights with direct quotes.
Forward Guidance
Management did not publish explicit forward-looking targets in the provided data. Based on the QQ3 2025 results, the near-term trajectory hinges on stabilizing profitability while sustaining top-line growth in core software offerings. Key factors to monitor include ARR growth and renewal rates for BlackBerry’s Cyber Security solutions, the progression of AI-enabled offerings (e.g., BlackBerry Guard, Optics, and related platforms), and the monetization of automotive/IoT initiatives (QNX/IVY). Given the current cash position and modest free cash flow, the company appears capable of funding ongoing R&D and go-to-market investments, but investors should watch for improvements in operating leverage, potential margin expansion, and any changes to working capital that could impact cash generation. A disciplined approach to cost management paired with selective revenue expansion would be crucial to achieving a more sustainable profitability profile over the medium term.