Executive Summary
BlackBerry Limited delivered a USD 143.0 million revenue result in QQ3 2025, marking a modest year-over-year decline of 5.9% and a slight QoQ decrease of 1.4%. Despite the top-line softness, the company posted a robust gross margin of 78.3% and an EBITDA margin of 23.1%, underscoring the high-margin nature of its software and cybersecurity offerings. Operating income stood at USD 19.0 million (≈13.3% operating margin), while net income registered a loss of USD 11.0 million and EPS of USD -0.0186, reflecting ongoing non-operational items and potential one-offs that offset operating profitability. Importantly, BlackBerry maintained a strong liquidity position with USD 189 million in cash and cash equivalents (and USD 220 million in cash and short-term investments) and a net debt position of USD 35 million, supported by sizable non-core assets and a diversified IP portfolio.
Strategically, the quarter reinforces BlackBerry’s margin resilience within a transition to higher-value software and security offerings, including Cylance AI-driven cybersecurity, IoT/enterprise software platforms, and QNX/IVY initiatives. The balance sheet remains solid, providing optionality to fund R&D and potential licensing and strategic initiatives. Analysts should monitor the trajectory of annuity-like licensing revenues, potential government and enterprise deals, and the integration/monetization of AI-enabled security capabilities as the company advances its portfolio.
Key Performance Indicators
Key Insights
Revenue: USD 143.0 million; YoY change: -5.92%; QoQ change: -1.38%
Gross Profit: USD 112.0 million; Gross margin: 78.32%; YoY gross profit change: -5.88%; QoQ: +19.15%
Operating Income: USD 19.0 million; Operating margin: 13.29%; YoY: +5.56%; QoQ: +190.48%
EBITDA: USD 33.0 million; EBITDA margin: 23.08%
Net Income: USD -11.0 million; Net margin: -7.69%; YoY: +47.62%; QoQ: +42.11%
EPS (USD): -0.0186; Diluted EPS: -0.0185; EPS YoY: +48.19%; QoQ: +42.24%
Cash from Operations: USD 3.0 million; Free ...
Financial Highlights
Revenue: USD 143.0 million; YoY change: -5.92%; QoQ change: -1.38%
Gross Profit: USD 112.0 million; Gross margin: 78.32%; YoY gross profit change: -5.88%; QoQ: +19.15%
Operating Income: USD 19.0 million; Operating margin: 13.29%; YoY: +5.56%; QoQ: +190.48%
EBITDA: USD 33.0 million; EBITDA margin: 23.08%
Net Income: USD -11.0 million; Net margin: -7.69%; YoY: +47.62%; QoQ: +42.11%
EPS (USD): -0.0186; Diluted EPS: -0.0185; EPS YoY: +48.19%; QoQ: +42.24%
Cash from Operations: USD 3.0 million; Free Cash Flow: USD 1.0 million
Cash and Equivalents: USD 189.0 million; Total Cash & ST Investments: USD 220.0 million; Net Debt: USD 35.0 million
Total Assets: USD 1.309 billion; Total Liabilities: USD 584.0 million; Total Equity: USD 725.0 million; Retained Earnings: USD -2.23 billion
Liquidity: Current ratio 1.37; Quick ratio 1.37; Cash Ratio 0.57
Valuation metrics (USD): P/B ~2.14; P/S ~10.86; EV/Sales ~48.1; P/E (negative trend); Dividend yield: 0%
Notes: Interest expense not reported this quarter; cash flow generation remains modest; equity base is affected by accumulated losses; management commentary not provided in transcripts furnished here.
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
-35.28
Management Commentary
Note: The transcript section for QQ3 2025 was not supplied in the data set. As a result, there are no management quotes or theme-based highlights available to anchor qualitative insights from the earnings call. If the transcript becomes available, the highlights can be grouped by themes (strategy, operations, market conditions) with contextual analysis and quotes.
Forward Guidance
No formal forward guidance was included in the QQ3 2025 data set. Given BlackBerry’s focus on high-margin software products (Cybersecurity with Cylance AI, QNX-driven platforms, and the IVY intelligent vehicle data platform) and ongoing licensing activities, the key drivers of future performance will likely include: (1) execution of AI-enabled security product workflows and ARR-like revenue from Cylance-based offerings, (2) monetization of BlackBerry IVY ecosystem and automotive/industrial data solutions, (3) growth in enterprise and government cyber contracts, and (4) retention/expansion of existing licensing streams. The company’s substantial cash position and modest leverage provide optionality to accelerate R&D investments or pursue licensing/partnership opportunities. Investors should monitor any updates to guidance around annualized recurring revenue, contract wins, and any milestone-based licensing arrangements. Critical factors to watch include the pace of Cylance-driven renewals, IVY adoption in target verticals, and government cybersecurity initiatives that could bolster demand for BlackBerry’s platform stack.