Executive Summary
Summary of QQ4 2025 performance:
- Revenue of $143.9 million, down 16.8% year over year and up 0.6% quarter over quarter. Gross profit was $105.9 million with a gross margin of 73.6%. Operating income declined to a loss of $6.2 million, while EBITDA stood at $9.2 million, implying an EBITDA margin near 6.4%. Net income was a loss of $7.0 million, or -$0.0118 per share on a diluted basis.
- The company generated solid cash flow characteristics: operating cash flow of $41.5 million and free cash flow of $40.4 million for the quarter, contributing to a net cash position (net debt) of approximately -$27.7 million and a cash balance around the mid-to-upper $260s million range, supported by $71.1 million in short-term investments and total cash and investments near $337.8 million.
- Balance sheet signals liquidity and stability: total assets of about $1.30 billion, total liabilities of $575.7 million, and total stockholders’ equity of $719.9 million. The company maintains a modest level of leverage (long-term debt ~$224M) and a robust cash cushion to support strategic investments in Cybersecurity, IoT, and licensing. The quarter reflects ongoing investment in growth initiatives alongside a positive cash generation cadence, which is key for the investment thesis despite a near-term bottom-line gap.
Key Performance Indicators
QoQ: -5.45% | YoY:-17.91%
QoQ: -132.63% | YoY:88.93%
Key Insights
Revenue: $143.9M (YoY -16.82%, QoQ +0.63%); Gross Profit: $105.9M (Gross Margin: 73.6%);
Operating Income: -$6.2M (Operating Margin: -4.31%); EBITDA: $9.2M (EBITDA Margin: 6.39%);
Net Income: -$7.0M (Net Margin: -4.86%); EPS: -$0.0118 (Diluted: -$0.0118); Weighted Avg Shares: 591.24M.
Cash Flow: Operating Cash Flow $41.5M; Capex $1.1M; Free Cash Flow $40.4M; Net Change in Cash $80.3M; Cash at End: $280.3M; Net Debt: -$27.7M.
Balance Sheet: Cash & Equivalents $266.7M; Short-Term Investments $...
Financial Highlights
Revenue: $143.9M (YoY -16.82%, QoQ +0.63%); Gross Profit: $105.9M (Gross Margin: 73.6%);
Operating Income: -$6.2M (Operating Margin: -4.31%); EBITDA: $9.2M (EBITDA Margin: 6.39%);
Net Income: -$7.0M (Net Margin: -4.86%); EPS: -$0.0118 (Diluted: -$0.0118); Weighted Avg Shares: 591.24M.
Cash Flow: Operating Cash Flow $41.5M; Capex $1.1M; Free Cash Flow $40.4M; Net Change in Cash $80.3M; Cash at End: $280.3M; Net Debt: -$27.7M.
Balance Sheet: Cash & Equivalents $266.7M; Short-Term Investments $71.1M; Total Current Assets $591.5M; Total Assets $1.2956B; Long-Term Debt $224.0M; Total Liabilities $575.7M; Total Equity $719.9M.
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
-99.46
Management Commentary
No earnings call transcript was provided in the dataset. As a result, no management quotes or thematic highlights from an earnings call are available to supplement the financial figures.
Transcript not provided in dataset.
— N/A
Transcript not provided in dataset.
— N/A
Forward Guidance
No explicit forward guidance was provided in the dataset for QQ4 2025. Given the visible revenue mix and profitability trajectory, investors should monitor: (1) trajectory of cybersecurity and IoT product revenue, including Cylance AI, BlackBerry Optics, and Guard; (2) contribution from licensing and government/enterprise contracts; (3) cadence of operating expenses relative to revenue; (4) working capital dynamics and capital allocation, including potential investments in R&D and strategic partnerships. If management communicates a multi-quarter revenue stabilization or growth trajectory in cybersecurity and IoT, that would be a key signal for the longer-term risk/reward profile.