Executive Summary
BlackBerry Limited reported USD 143.9 million of revenue in QQ4 2025, a year-over-year decline of 16.8% but a modest quarter-over-quarter gain of 0.63%. The gross margin stood at 73.6%, producing a gross profit of USD 105.9 million. Despite the topline pressures, the company delivered an operating loss of USD -6.2 million and a net loss of USD -7.0 million, translating to negative earnings per share of USD -0.0118. A silver lining is evidenced by cash generation: operating cash flow USD 41.5 million and free cash flow USD 40.4 million, alongside a solid cash balance of USD 280.3 million and a net cash position of USD -27.7 million (net debt). These cash flow dynamics underpin BlackBerry’s ability to fund strategic initiatives while maintaining liquidity.
From a profitability standpoint, YoY improvements in operating income and net income are reported within a negative earnings context, with operating income improving by about 88.9% year over year but remaining negative, and net income improving by about 87.5% YoY while still negative. On a per-share basis, diluted EPS of USD -0.0118 reflects the ongoing profitability challenge despite positive cash generation. The balance sheet remains sturdy, with total assets of USD 1.296 billion and a strong liquidity position supported by cash, short-term investments, and limited net debt. Investors should monitor the sustainability of free cash flow, the trajectory of licensing and cybersecurity revenue, and the contribution from strategic assets like Cylance, QNX, and related platforms.
Key Performance Indicators
QoQ: -5.45% | YoY:-17.91%
QoQ: -132.63% | YoY:88.93%
Key Insights
Revenue: USD 143.9 million in QQ4 2025; YoY change: -16.8%, QoQ change: +0.63%. Gross Profit: USD 105.9 million; Gross Margin: 73.59%; YoY gross profit change: -17.9%, QoQ: -5.45%. Operating Income: USD -6.2 million; Operating Margin: -4.31%; YoY change in operating income: +88.93% (still negative); Net Income: USD -7.0 million; Net Margin: -4.86%; YoY net income change: +87.50%, QoQ: +36.36%. EBITDA: USD 9.2 million; EBITDA Margin: 6.39%. EPS (Diluted): USD -0.0118; Weighted Average Shares Dilu...
Financial Highlights
Revenue: USD 143.9 million in QQ4 2025; YoY change: -16.8%, QoQ change: +0.63%. Gross Profit: USD 105.9 million; Gross Margin: 73.59%; YoY gross profit change: -17.9%, QoQ: -5.45%. Operating Income: USD -6.2 million; Operating Margin: -4.31%; YoY change in operating income: +88.93% (still negative); Net Income: USD -7.0 million; Net Margin: -4.86%; YoY net income change: +87.50%, QoQ: +36.36%. EBITDA: USD 9.2 million; EBITDA Margin: 6.39%. EPS (Diluted): USD -0.0118; Weighted Average Shares Diluted: ~591.5 million. Free Cash Flow: USD 40.4 million; Cash from Operations: USD 41.5 million; Capex: USD -1.1 million; Net Change in Cash: USD 80.3 million; Cash at End of Period: USD 280.3 million; Total Current Assets: USD 591.5 million; Total Assets: USD 1.296 billion. Current Ratio: 1.718x; Net Debt: USD -27.7 million (net cash). Key liquidity and leverage metrics indicate a healthy balance sheet with meaningful cash generation against modest leverage.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
143.90M |
-16.82% |
0.63% |
| Gross Profit |
105.90M |
-17.91% |
-5.45% |
| Operating Income |
-6.20M |
88.93% |
-132.63% |
| Net Income |
-7.00M |
87.50% |
36.36% |
| EPS |
-0.01 |
87.62% |
36.56% |
Key Financial Ratios
operatingProfitMargin
-4.31%
operatingCashFlowPerShare
$0.07
freeCashFlowPerShare
$0.07
priceEarningsRatio
-99.51
Management Commentary
Not available in the provided transcript data.
Not available in the provided transcript data.
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Not available in the provided transcript data.
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Forward Guidance
No explicit forward-looking targets were provided in the supplied data. Management commentary, as reflected in the quarter, emphasizes ongoing investments in higher-margin cybersecurity software, including Cylance-based offerings, and the strategic expansion of BlackBerry QNX and related IP. Our qualitative assessment expects a continued emphasis on cash generation and operational discipline to fund product development and potential licensing opportunities. Investors should monitor: (1) the trajectory of licensing and recurring revenue mix, (2) contribution from Cylance, QNX, and related enterprise cybersecurity platforms, (3) cadence of R&D and SG&A relative to revenue, and (4) the pace at which positive free cash flow remains sustainable amid ongoing investments.