BlackBerry (BB) AI Stock Analysis

• Market Cap: $3.51B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: -8.84%
• EPS Growth: 70.97%
• Country: CA
• Employees: 1,820
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 594,530,900
• 10 Day Avg. Volume: 3,206,142
• 30 Day Avg. Volume: 2,181,153
• PEG Ratio: -1.31
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 465.51
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 5.59
• Enterprise Value/Ebitda: 54.95
• 1Y Price Target: $6.63
• Price Target Upside: 12.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: C$6.00 ▲(1.69%Upside)

BlackBerry's overall stock score is driven by its financial performance challenges, despite positive earnings call results. The company's profitability issues weigh heavily on its valuation, but improvements in operational efficiency and cash flow provide some optimism. Technical indicators suggest mixed momentum, further contributing to a moderate overall score.

Positive Factors

Earnings

BlackBerry reported Q1 results meaningfully ahead of expectations, highlighted by strong IoT/QNX results, with revenue growing 8.1% year-over-year to $57.5M at an 81% gross margin, generating $12.7M in adjusted EBITDA.

Partnerships

Partnerships with major companies like Microsoft and commitments from leading silicon partners such as Nvidia, Qualcomm, and NXP reinforce QNX's long-term growth potential.

Strategic Initiatives

The outlook for the business has improved with strategic initiatives being streamlined and meaningfully positive adjusted EBITDA creating new organic and inorganic investment opportunities.

Negative Factors

Macro Headwinds

The transaction doesn't immediately alleviate some of the macro headwinds the company is facing across both segments of its business.

Uncertainty in QNX Backlog

There still isn't great visibility into when the QNX backlog will create an inflection in IoT growth, and macro headwinds persist across both segments of the business.

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 through its software and services segment, which includes cybersecurity solutions, endpoint management, and licensing agreements. The company's revenue streams are driven by enterprise clients seeking secure communication and data management solutions. BlackBerry also generates income from its QNX software, used in automotive infotainment and advanced driver assistance systems (ADAS), as well as from licensing its extensive patent portfolio. Significant partnerships, such as those with automotive manufacturers and technology firms, further bolster its earnings by integrating BlackBerry's secure solutions into various products and services.

BlackBerry Financial Statement Overview

Summary

BlackBerry is experiencing significant revenue and profitability challenges, with a notable revenue decline and negative net income. However, there are improvements in operational efficiency and cash flow stability. The balance sheet remains stable with a conservative financial structure.

Income Statement

BlackBerry's income statement shows significant revenue decline from $853M to $534.9M over the past year. The company also reported negative net income, which indicates profitability challenges. However, there was a slight improvement in EBIT from negative $125M to $0.8M, suggesting some operational efficiency gains. Gross profit margin remains relatively strong at 73.84% for the latest year, but the net profit margin is deeply negative, highlighting ongoing profitability issues.

Balance Sheet

The balance sheet reflects a stable position with a decreasing debt-to-equity ratio, currently at 0.33. The equity ratio is strong at 55.56%, showing that BlackBerry is mainly financed by equity. Despite a decrease in stockholders' equity, total liabilities have decreased, indicating a reduction in leverage. This indicates a more conservative financial structure, but the overall asset base has decreased, pointing to potential constraints in growth capacity.

Cash Flow

Operating cash flow turned positive at $16.5M from negative $3M, indicating improved cash generation from operations. Free cash flow also improved to $6.4M, showing better cash management. However, the free cash flow to net income ratio remains challenging due to negative net income, suggesting that while cash flow is stabilizing, profitability needs enhancement. The overall cash position remains a point of strength.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	553.60M	534.90M	853.00M	656.00M	718.00M	893.00M
Gross Profit	402.20M	394.90M	520.00M	419.00M	467.00M	643.00M
EBITDA	47.70M	59.20M	-13.00M	-112.00M	-38.00M	102.00M
Net Income	-35.10M	-79.00M	-130.00M	-734.00M	12.00M	-1.10B
Balance Sheet
Total Assets	1.21B	1.30B	1.40B	1.68B	2.57B	2.82B
Cash, Cash Equivalents and Short-Term Investments	306.60M	337.80M	237.00M	426.00M	712.00M	739.00M
Total Debt	235.70M	239.00M	252.00M	419.00M	573.00M	810.00M
Total Liabilities	485.30M	575.70M	619.00M	822.00M	1.01B	1.31B
Stockholders Equity	725.10M	719.90M	776.00M	857.00M	1.56B	1.50B
Cash Flow
Free Cash Flow	3.30M	6.40M	-24.00M	-304.00M	-67.00M	38.00M
Operating Cash Flow	13.50M	16.50M	-3.00M	-263.00M	-28.00M	82.00M
Investing Cash Flow	125.20M	60.70M	46.00M	176.00M	207.00M	-65.00M
Financing Cash Flow	-6.70M	3.10M	-165.00M	6.00M	10.00M	-227.00M

BlackBerry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BB, the sentiment is Positive. The current price of 5.9 is below the 20-day moving average (MA) of 5.93, above the 50-day MA of 5.52, and above the 200-day MA of 5.08, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 13.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BB.

BlackBerry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVO	73 Outperform	C$758.57M	―	-9.00%	―	9.08%	37.74%
Sector *	68 Neutral	¥229.66B	14.23	7.50%	2.72%	9.14%	8.34%
STC	63 Neutral	C$292.84M	―	-2.67%	―	-1.72%	76.81%
BB	56 Neutral	$3.51B	―	-1.76%	―	-8.84%	70.97%
DND	54 Neutral	C$737.18M	―	-39.72%	0.75%	2.47%	19.37%
PLUR	44 Neutral	C$17.67M	―	-1525.80%	―	0.55%	69.82%
TIXT		$1.05B	30.46	-5.70%	―	―	―

BlackBerry Corporate Events

BlackBerry Exceeds Q1 Fiscal 2026 Expectations, Achieves Profitability

BlackBerry reported strong financial results for the first quarter of fiscal year 2026, surpassing guidance in revenue, adjusted EBITDA, and operating cash flow. The QNX and Secure Communications divisions both exceeded expectations, contributing to a net income of $1.9 million, marking the company’s first GAAP profitability since Q4 FY22. BlackBerry also returned $10 million to shareholders through a share buyback program. Strategic announcements included the launch of QNX Hypervisor 8.0 and partnerships with companies like WeRide and Leapmotor, enhancing BlackBerry’s position in the autonomous driving and digital cockpit markets.

The most recent analyst rating on (TSE:BB) stock is a Hold with a C$4.75 price target. To see the full list of analyst forecasts on BlackBerry stock, see the TSE:BB Stock Forecast page.