BlackBerry (BB) AI Stock Analysis

• Market Cap: C$2.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 43.0
• Beta (1Y): 1.00
• Revenue Growth: -9.05%
• EPS Growth: N/A
• Country: CA
• Employees: 1,820
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.07
• Shares Outstanding: 590,147,500
• 10 Day Avg. Volume: 1,424,210
• 30 Day Avg. Volume: 1,629,137
• PEG Ratio: 0.86
• Price to Book (P/B): 3.89
• Price to Sales (P/S): 5.21
• P/FCF Ratio: 435.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$6.89
• Price Target Upside: 52.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.24
• Revenue Forecast (FY): C$796.03M

• Rating: 65 Neutral
• Price Target: C$5.00 ▲(10.62% Upside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is driven primarily by improving financial performance (better TTM profitability/cash flow and a strong, low-debt balance sheet) and a constructive earnings call with raised guidance. These positives are tempered by weak technicals (below key moving averages with negative MACD) and a demanding valuation (very high P/E with no dividend yield provided).

Positive Factors

Conservative balance sheet

A very low debt load and strong equity base give BlackBerry persistent financial flexibility to fund R&D, support long embedded-software sales cycles, pursue selective M&A, and weather cyclical downturns without relying on external financing, improving long-term resilience.

Material cash-flow improvement

Significant year-over-year free-cash-flow growth and positive operating cash flow strengthen the company’s ability to self-fund product development, certification efforts, and customer implementations. Reliable cash generation supports durable investment in recurring-revenue businesses.

QNX momentum & gov't certification

Record QNX revenue and FedRAMP High certification signal durable demand in automotive and government markets. QNX licensing and royalties are sticky with long design cycles; government certification opens a large, recurring addressable market and reduces procurement barriers over time.

Negative Factors

Prior revenue weakness

Historical revenue decline highlights instability in top-line momentum, reflecting lumpy design-win cadence and variable government upgrade cycles. Persistent or recurring top-line softness would delay margin expansion, weaken predictability, and impede reinvestment planning over months.

Thin and inconsistent profitability

Although recent quarters show profitability, low net margins and a recent history of losses mean earnings durability is unproven. Profitability remains sensitive to contract timing and mix; sustained margin improvement must survive cyclical swings to be considered durable.

QNX gross-margin pressure

A drop in QNX gross margins, partly tied to loss of subsidy benefits, exposes the business to mix, cost, or subsidy volatility. Since embedded licensing drives high gross margins, margin erosion there could meaningfully reduce cash flow leverage and long-term earnings quality.

BlackBerry Business Overview & Revenue Model

Company Description

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers BlackBerry Cyber Suite, which provides Cylance AI and machine learning-based cybersecurity solutions, including BlackBerry Protect, an EPP and available MTD solution; BlackBerry Optics, an EDR solution that provides visibility into and prevention of malicious activity; BlackBerry Guard, a managed detection and response solution; BlackBerry Gateway, an AI-empowered ZTNA solution; and BlackBerry Persona, a UEBA solution that provides authentication by validating user identity in real time. It also provides BlackBerry Spark Unified Endpoint Management Suite, such as BlackBerry UEM, a central software component of its secure communications platform; BlackBerry Dynamics that provides a development platform and secure container for mobile applications; BlackBerry AtHoc and BlackBerry Alert secure and networked critical event management solutions; and SecuSUITE for Government, a multi-OS voice and text messaging solution, as well as BBM Enterprise, an enterprise-grade secure instant messaging solution. In addition, the company offers BlackBerry QNX, which provides Neutrino operating system and BlackBerry QNX CAR platform, and other products; BlackBerry QNX, an embedded system solution; BlackBerry Jarvis, a cloud-based binary static application security testing platform; BlackBerry Certicom cryptography and management products, and BlackBerry Radar asset monitoring solution; and BlackBerry IVY, an intelligent vehicle data platform, as well as enterprise and cybersecurity consulting services. Further, it is involved in the patent licensing and legacy service access fees business. As of February 28, 2022, it owned approximately 38,000 worldwide patents and applications. BlackBerry Limited was incorporated in 1984 and is headquartered in Waterloo, Canada.

How the Company Makes Money

BlackBerry makes money primarily by licensing software and selling subscription-based cybersecurity services. 1) Cybersecurity software and services (subscription and recurring revenue): A significant portion of BlackBerry’s revenue comes from its cybersecurity offerings sold to enterprise and government customers. These products are typically sold under term subscriptions and support/maintenance arrangements, generating recurring revenue tied to the number of users/endpoints, feature tiers, and contract duration. Revenue is recognized over the contract period as services are delivered, with renewals and upsells contributing to ongoing revenue. 2) Embedded software licensing (QNX and related embedded offerings): BlackBerry generates revenue by licensing its QNX software (including the QNX real-time operating system and related middleware/tools) to manufacturers and technology companies building embedded systems. In automotive and other embedded markets, licensing may involve development-seat licenses (for engineering use) and/or production/royalty-style arrangements tied to shipment volumes or deployments. Customers also often pay for support, maintenance, and professional services associated with integrating and certifying software for safety- or reliability-critical use cases. 3) Professional services and support: In addition to core product licensing and subscriptions, BlackBerry earns revenue from professional services such as implementation, integration, consulting, and technical support. These services may be bundled with software contracts or sold separately and can be project-based or tied to ongoing support entitlements. 4) Intellectual property and licensing/other arrangements: BlackBerry has historically monetized parts of its intellectual property through licensing arrangements and other IP-related deals. Specific counterparties/terms vary by agreement; if a given partnership or contract is not publicly detailed, it is null. Key factors influencing earnings include the mix of recurring subscription revenue versus one-time services, renewal rates in cybersecurity, design wins and production volumes in embedded/automotive markets, and the pace of customer adoption for security and embedded platform offerings.

BlackBerry Financial Statement Overview

Summary

Turnaround profile supported by improved TTM profitability and materially better cash generation, plus a notably low-leverage balance sheet. The main constraint is earnings quality/consistency: margins are still thin and the prior annual periods were meaningfully loss-making, so durability remains to be proven.

Income Statement

TTM (Trailing-Twelve-Months) results show a clear profitability inflection: revenue grew ~10.2% and the company returned to positive net income with strong gross margins (~75%). However, profitability is still thin (net margin ~4.1%), and the prior two annual periods (FY2025 and FY2024) were meaningfully loss-making with mixed revenue momentum, highlighting that earnings durability is not yet fully proven.

Balance Sheet

The balance sheet looks conservatively positioned in TTM (Trailing-Twelve-Months): low debt (~$303M) versus equity (~$1.03B) and a very low debt-to-equity ratio (~0.03), providing financial flexibility. The main weakness is modest shareholder returns (ROE ~3.0% in TTM), which suggests the company is still early in rebuilding consistent profitability despite the stronger capital structure.

Cash Flow

Cash generation improved materially in TTM (Trailing-Twelve-Months), with positive operating cash flow (~$52.8M) and solid free cash flow (~$51.4M), alongside strong free-cash-flow growth (~82%). Offsetting this, cash conversion remains a watch item: operating cash flow is relatively small versus revenue, and free cash flow is slightly below net income (free cash flow to net income ~0.86), while recent annual history included periods of negative operating and free cash flow.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	536.79M	534.90M	759.10M	526.30M	718.00M	893.00M
Gross Profit	400.14M	394.90M	490.70M	366.60M	467.00M	643.00M
EBITDA	57.87M	59.20M	93.90M	-90.70M	-38.00M	100.00M
Net Income	21.88M	-79.00M	-130.20M	-734.40M	12.00M	-1.10B
Balance Sheet
Total Assets	1.22B	1.30B	1.40B	1.68B	2.57B	2.82B
Cash, Cash Equivalents and Short-Term Investments	303.53M	337.80M	237.00M	426.00M	712.00M	739.00M
Total Debt	216.92M	239.00M	252.00M	419.00M	601.00M	843.00M
Total Liabilities	476.25M	572.96M	619.00M	822.00M	1.01B	1.31B
Stockholders Equity	739.46M	716.47M	776.00M	857.00M	1.56B	1.50B
Cash Flow
Free Cash Flow	43.20M	6.40M	-23.86M	-304.00M	-67.00M	38.00M
Operating Cash Flow	45.70M	16.50M	-3.00M	-263.00M	-28.00M	82.00M
Investing Cash Flow	70.38M	60.70M	46.00M	176.00M	207.00M	-65.00M
Financing Cash Flow	-31.40M	3.10M	-165.00M	6.00M	10.00M	-227.00M

BlackBerry Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BB, the sentiment is Negative. The current price of 4.52 is below the 20-day moving average (MA) of 4.69, below the 50-day MA of 4.94, and below the 200-day MA of 5.59, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 39.83 is Neutral, neither overbought nor oversold. The STOCH value of 40.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BB.

BlackBerry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BB	65 Neutral	C$2.67B	43.05	3.01%	―	-9.05%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STC	59 Neutral	C$205.28M	-28.58	-2.82%	―	-4.34%	31.52%
CVO	54 Neutral	C$435.10M	-16.02	-28.39%	―	12.20%	-8.46%
NBVA	47 Neutral	C$11.93M	-29.38	-21.69%	―	-69.94%	-281.40%
PLUR	45 Neutral	C$11.02M	-3.84	286.87%	―	17.18%	79.56%
ICS	42 Neutral	C$60.15M	-3.40	148.75%	―	―	―

BlackBerry Corporate Events

BlackBerry Posts Record QNX Revenue and Extends Profit Streak in Q3 FY2026

BlackBerry reported stronger-than-expected results for the third quarter of fiscal 2026, with revenue of $141.8 million, improved GAAP profitability for the seventh straight quarter and a third consecutive quarter of positive net income. The QNX division delivered its highest quarterly revenue on record at $68.7 million, reflecting deeper penetration into automotive and adjacent markets, while Secure Communications outperformed guidance with $67.0 million in revenue, higher adjusted EBITDA and growing annual recurring revenue. Overall adjusted EBITDA reached $28.7 million, operating cash flow turned positive at $17.9 million, and the company boosted its cash and investments balance to $378 million while returning $5 million to shareholders via buybacks. Operationally, BlackBerry strengthened its QNX leadership by appointing John Wall as president, highlighted that its embedded technology now powers more than 275 million vehicles, expanded its SecuSUITE secure communications offering to Windows devices, and deepened its presence in Malaysia through cybersecurity partnerships and expanded deployment of its secure communications software. The company also issued guidance for the fourth quarter and full fiscal year 2026 that points to continued profitability and steady growth in its QNX and Secure Communications segments, underscoring its strategic shift toward high-margin software and security platforms.

The most recent analyst rating on (TSE:BB) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on BlackBerry stock, see the TSE:BB Stock Forecast page.