Executive Summary
BlackBerry’s QQ2 2025 results show a revenue rise to USD 145.0 million, up 9.9% year over year and 17.5% quarter over quarter, with a robust gross margin of 64.8%. The improvement in top-line occurred alongside continued investments in R&D and go-to-market activities as the company advances its Cybersecurity, IoT, and Licensing franchises. However, the quarter remains unprofitable at the operating level, with operating income of -USD 21.0 million and net income of -USD 19.0 million, contributing to negative EBITDA (-USD 8.2 million) and a negative free cash flow of -USD 18.0 million. The blend of non-cash and working-capital items (e.g., depreciation of USD 12.8 million, stock-based compensation USD 7.0 million, and working-capital timing) underpins the cash-flow dynamics, which show operating cash flow of -USD 13.0 million and a net cash position that remains solid at USD 188.0 million at period end. The balance sheet displays a conservative debt load (total debt USD 250.0 million; net debt USD 79.0 million) alongside a substantial asset base, including goodwill of USD 563.0 million and intangible assets of USD 136.0 million, underscoring continued investment in IP and strategic capabilities. Looking ahead, management’s guidance is not explicitly quantified in the data provided; thus, the outlook rests on ongoing adoption of BlackBerry’s AI-enabled security solutions (Cylance/BlackBerry Cyber Suite), expansion of BlackBerry QNX-based platforms, and licensing revenue progression within a disciplined cost framework. While the near term profitability remains a concern, the company’s strong gross-margin foundation and cash position provide runway for strategic investments that could translate into medium-term earnings resilience if revenue growth accelerates further and cost controls take hold.
Key Performance Indicators
QoQ: -62.79% | YoY:55.32%
Key Insights
Revenue: USD 145.0m, up 9.9% YoY and 17.5% QoQ. Gross margin: 64.8% (USD 94.0m gross profit on USD 145.0m revenue). Operating income: -USD 21.0m; operating margin: -14.48%. Net income: -USD 19.0m; net margin: -13.10%. EBITDA: -USD 8.2m; EBITDA margin: -5.66%. EPS: -0.0322 (diluted). Depreciation & amortization: USD 12.8m. Net cash from operating activities: -USD 13.0m; free cash flow: -USD 18.0m. Cash and equivalents: USD 171.0m, total cash + short-term investments: USD 211.0m. Total debt: U...
Financial Highlights
Revenue: USD 145.0m, up 9.9% YoY and 17.5% QoQ. Gross margin: 64.8% (USD 94.0m gross profit on USD 145.0m revenue). Operating income: -USD 21.0m; operating margin: -14.48%. Net income: -USD 19.0m; net margin: -13.10%. EBITDA: -USD 8.2m; EBITDA margin: -5.66%. EPS: -0.0322 (diluted). Depreciation & amortization: USD 12.8m. Net cash from operating activities: -USD 13.0m; free cash flow: -USD 18.0m. Cash and equivalents: USD 171.0m, total cash + short-term investments: USD 211.0m. Total debt: USD 250.0m; net debt: USD 79.0m. Balance sheet snapshot – total assets USD 1.299B, total liabilities USD 0.567B, total equity USD 0.732B. Current ratio 1.44, quick ratio 1.44. Deferred revenue (current and non-current) indicates a sizable portion of non-cash deferrals. Revenue mix anchored by Cybersecurity, IoT, and Licensing; non-cash and working-capital effects are contributing to the negative cash flow despite a stable liquidity position.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
145.00M |
9.85% |
17.50% |
| Gross Profit |
94.00M |
10.59% |
4.44% |
| Operating Income |
-21.00M |
55.32% |
-62.79% |
| Net Income |
-19.00M |
54.76% |
54.11% |
| EPS |
-0.03 |
55.28% |
54.13% |
Key Financial Ratios
operatingProfitMargin
-14.5%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.03
priceEarningsRatio
-18.19
Management Commentary
No earnings-call transcript provided in the data. As a result, no verbatim management quotes could be extracted. Reported numbers imply management commentary would likely emphasize continued investment in cybersecurity and licensing IP, progress in AI-enabled security offerings, and a focus on cash flow management and balance-sheet strength. The section below notes the absence of direct transcript quotes and provides a framework for expected themes based on the disclosed results.
Forward Guidance
Explicit forward guidance for QQ2 2025 is not provided in the supplied data. In the absence of formal guidance, the outlook hinges on: (1) revenue trajectory from Cybersecurity (Cylance+BlackBerry Cyber Suite) and Licensing, with potential tailwinds from AI-enabled security offerings and government-focused solutions; (2) growth in QNX-based platforms and IoT/security applications; (3) discipline in operating expenses and working-capital management to improve operating and free cash flow. Management’s ability to convert revenue growth into profit will be the key driver. Risks include macro budget pressures in enterprise and government segments, competitive intensity in cybersecurity software, and potential delays in large licensing deals. A plausible baseline is gradual margin improvement if scale tightens fixed costs and if licensing revenue persists at or above current levels. Key monitorables: quarterly revenue growth, gross margin stability, operating expense control, D&A pace, and free cash flow trajectory.