Executive Summary
In Q3 2025, BlackBerry Limited (NYSE: BB) reported significant strides towards profitability and operational efficiency, marking an inflection point for the company. Total revenue reached $162 million, surpassing the guidance ranges supported by robust contributions from both the IoT and Cybersecurity divisions. The company delivered its first positive operating cash flow in 12 quarters, a critical milestone reflecting improved operational control and strategic focus. CEO John Giamatteo noted that both divisions exceeded expectations, enabling the company to pivot back to profitability, thus reinforcing a positive outlook for the future as BlackBerry gears up for further growth post Cylance divestment.
Key Performance Indicators
QoQ: -1.38% | YoY:-18.29%
QoQ: 19.15% | YoY:-11.81%
QoQ: 190.48% | YoY:272.73%
Key Insights
1. **Revenue**: $162 million, exceeding expectations driven by IoT ($62 million) and Cybersecurity ($93 million).
2. **Gross Profit Margin**: Improved to 74%, showcasing better operational efficiencies.
3. **EBITDA**: Positive $23 million, indicating a significant increase from prior quarters and signaling a return to operational profitability.
4. **Net Income**: -$11 million, although an improvement compared to past losses, reflecting ongoing challenges despite the positive EBITDA.
5. **Cash Fl...
Financial Highlights
1. Revenue: $162 million, exceeding expectations driven by IoT ($62 million) and Cybersecurity ($93 million).
2. Gross Profit Margin: Improved to 74%, showcasing better operational efficiencies.
3. EBITDA: Positive $23 million, indicating a significant increase from prior quarters and signaling a return to operational profitability.
4. Net Income: -$11 million, although an improvement compared to past losses, reflecting ongoing challenges despite the positive EBITDA.
5. Cash Flow: Positive operating cash flow of $3 million, the first in 12 quarters, emphasizes operational turnaround.
6. Debt Metrics: Total debt remains high at $224 million, warranting careful monitoring amidst cash flow improvements.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
143.00M |
-18.29% |
-1.38% |
| Gross Profit |
112.00M |
-11.81% |
19.15% |
| Operating Income |
19.00M |
272.73% |
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
-34.53
Management Commentary
1. IoT Division Highlights: Giamatteo emphasized strong performance despite automotive industry challenges. Revenue grew by 13% YoY driven by design wins with leading automakers.
Quote: "Our IoT revenue was above the top end of our guidance range, reflecting strong traction in automotive sectors."
2. Cybersecurity Strength: The Cyber division reported $93 million in revenue, driven by recurring contracts and the renewal of significant government contracts.
Quote: "We secured substantial renewals in the government and financial sectors which have stabilized our ARR metrics."
3. Future Outlook: With the upcoming sale of Cylance and a strategic focus on the Secure Communications business, management is optimistic about maintaining positive momentum moving forward.
"This past quarter marked a significant inflection point for BlackBerry."
â John Giamatteo, CEO
"We believe that this will be helpful to investors, especially given the Cylance agreement was entered into after the end of the quarter."
â Martha Gonder, Director of Investor Relations
Forward Guidance
Management provided guidance for Q4 2025, anticipating revenue in the Secure Communications division in the range of $62 - $66 million, and EBITDA between $4 million and $6 million. This cautious optimism reflects ongoing investment in growth engines and a shift towards streamlining operations post-Cylance sale. The overall company expects continued improvement in EBITDA, suggesting a shift towards a more profitable structure.