BlackBerry (BB) AI Stock Analysis

• Market Cap: $3.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -13.61%
• EPS Growth: 89.73%
• Country: CA
• Employees: 1,820
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.06
• Shares Outstanding: 590,361,100
• 10 Day Avg. Volume: 1,146,460
• 30 Day Avg. Volume: 1,478,288
• 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: 0.86
• Enterprise Value/Revenue: 5.71
• Enterprise Value/Gross Profit: 7.59
• Enterprise Value/Ebitda: 41.66
• 1Y Price Target: $7.09
• Price Target Upside: 20.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$6.00 ▲(1.69% Upside)

BlackBerry's overall stock score reflects significant financial challenges, particularly in profitability and valuation. However, positive earnings call results and strategic wins in key divisions provide some optimism. Technical indicators are mixed, suggesting neutral market sentiment.

Positive Factors

Strategic Partnerships

These strategic partnerships enhance BlackBerry's market reach and reinforce its position in secure communications, driving long-term revenue growth.

Cybersecurity Capacity Building

This initiative strengthens BlackBerry's role in regional cybersecurity, potentially increasing demand for its solutions and enhancing its reputation in the industry.

QNX Division Performance

The strong performance of the QNX division underscores BlackBerry's competitive advantage in the automotive and embedded systems markets, supporting future growth.

Negative Factors

Revenue Decline

The substantial revenue decline highlights ongoing challenges in maintaining market share and competitive positioning, potentially impacting long-term growth.

Profitability Challenges

Persistent profitability issues could limit BlackBerry's ability to reinvest in growth initiatives and maintain competitive advantages over time.

Automotive Market Uncertainties

Uncertainties in the automotive sector could hinder BlackBerry's growth prospects in this key market, affecting future revenue and strategic positioning.

BlackBerry Business Overview & Revenue Model

Company Description

BlackBerry Limited is a Canadian multinational company specializing in cybersecurity software and services, as well as the Internet of Things (IoT). Originally known for its mobile devices, BlackBerry has shifted its focus towards providing enterprise-level security solutions, software development, and licensing. The company operates primarily in the sectors of cybersecurity, IoT, and enterprise software, with core products including BlackBerry Cybersecurity solutions, BlackBerry QNX (a real-time operating system for embedded systems), and various secure communication and productivity tools.

How the Company Makes Money

BlackBerry generates revenue through several key streams, primarily focused on software and services. The company earns money from its cybersecurity solutions, which include endpoint security, threat detection, and incident response services. Additionally, BlackBerry's QNX operating system is widely used in automotive and industrial applications, contributing to licensing revenue. The company also engages in subscription-based models for its software products, providing recurring revenue. Strategic partnerships with organizations in the automotive and IoT sectors enhance its market reach and revenue potential. Furthermore, BlackBerry has been involved in joint ventures and collaborations, particularly in secure communications, which also aid in boosting its earnings.

BlackBerry Financial Statement Overview

Summary

BlackBerry is facing significant revenue and profitability challenges, with a notable revenue decline and negative net income. However, there are improvements in operational efficiency and cash flow, and a stable balance sheet with reduced leverage.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	538.20M	534.90M	759.10M	526.30M	718.00M	893.00M
Gross Profit	404.80M	394.90M	490.70M	366.60M	467.00M	643.00M
EBITDA	73.70M	59.20M	93.90M	-90.70M	-38.00M	100.00M
Net Income	-2.80M	-79.00M	-130.20M	-734.40M	12.00M	-1.10B
Balance Sheet
Total Assets	1.09B	1.30B	1.40B	1.68B	2.57B	2.82B
Cash, Cash Equivalents and Short-Term Investments	304.70M	337.80M	237.00M	426.00M	712.00M	739.00M
Total Debt	25.00M	239.00M	252.00M	419.00M	601.00M	843.00M
Total Liabilities	0.00	572.96M	619.00M	822.00M	1.01B	1.31B
Stockholders Equity	0.00	716.47M	776.00M	857.00M	1.56B	1.50B
Cash Flow
Free Cash Flow	28.20M	6.40M	-23.86M	-304.00M	-67.00M	38.00M
Operating Cash Flow	30.40M	16.50M	-3.00M	-263.00M	-28.00M	82.00M
Investing Cash Flow	99.38M	60.70M	46.00M	176.00M	207.00M	-65.00M
Financing Cash Flow	-26.70M	3.10M	-165.00M	6.00M	10.00M	-227.00M

BlackBerry Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 5.9 is above the 20-day moving average (MA) of 5.87, below the 50-day MA of 6.24, and above the 200-day MA of 5.68, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 72.26 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
FTNT	71 Outperform	$60.68B	33.96	228.04%	―	14.78%	22.52%
CRWD	67 Neutral	$130.50B	―	-8.88%	―	22.05%	-341.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	61 Neutral	$3.20B	―	-8.95%	―	11.05%	45.23%
TIXT	55 Neutral	―	―	-20.44%	―	5.06%	-638.59%
BB	54 Neutral	$3.58B	―	2.66%	―	-13.61%	89.73%
VRNS	48 Neutral	$3.92B	―	-22.17%	―	11.37%	-34.44%

BlackBerry Corporate Events

BlackBerry Reports Strong Q2 Fiscal 2026 Results with Revenue Growth and Strategic Advancements

BlackBerry Limited reported strong financial results for the second quarter of fiscal year 2026, showcasing year-over-year revenue growth and expanded adjusted EBITDA margins. The company achieved GAAP profitability and positive operating cash flow, with both its QNX and Secure Communications divisions exceeding revenue and adjusted EBITDA guidance. The QNX division achieved significant growth and raised its full-year guidance, while the Secure Communications division also improved its key metrics. Additionally, BlackBerry returned $20 million to shareholders through a share buyback program, and made strategic advancements such as launching new safety-certified software and expanding cybersecurity training.