BlackBerry (BB) AI Stock Analysis

• Market Cap: $3.32B
• Dividend Yield: N/A
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -31.15%
• EPS Growth: 30.02%
• Country: CA
• Employees: 1,820
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Infrastructure
• EPS (TTM): 0.04
• Shares Outstanding: 597,088,260
• 10 Day Avg. Volume: 1,580,134
• 30 Day Avg. Volume: 1,655,360
• PEG Ratio: 0.08
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -176.54
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 13.40
• Enterprise Value/Ebitda: -92.98
• 1Y Price Target: $6.36
• Price Target Upside: 14.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: C$6.00 ▲(7.91%Upside)

BlackBerry's overall stock score of 56 reflects the company's ongoing profitability challenges despite operational improvements and positive earnings call sentiment. The technical analysis points to modest bullish momentum, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh on the score. The positive guidance and strategic moves highlighted in the earnings call are significant factors supporting the score.

Positive Factors

Earnings

BlackBerry reported Q4 results slightly ahead of expectations, highlighted by strong IoT/QNX results which continue to be the standout leader within the business.

Stock Performance

BB stock has demonstrated remarkable strength, reaching a 52-week high of $6.24 and up approximately 75% over the past six months.

Strategic 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.

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.

Visibility into Growth

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 is a Canadian multinational company specializing in cybersecurity and Internet of Things (IoT) software solutions. Originally known for its mobile devices, BlackBerry has pivoted to focus on providing end-to-end solutions in communication, security, and connectivity. The company's core products and services include enterprise software, endpoint security, and embedded systems for the automotive industry.

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 faces significant revenue and profitability challenges, with declining revenues and negative net income. Despite these issues, operational efficiency showed slight improvements, and the balance sheet remains stable with a conservative financial structure and improved cash flow.

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
1.49B	534.90M	853.00M	656.00M	718.00M	893.00M
	Gross Profit
655.00M	394.90M	520.00M	419.00M	467.00M	643.00M
	EBIT
-1.36B	800.00K	-125.00M	-725.00M	-2.00M	-1.11B
	EBITDA
-145.00M	59.20M	-13.00M	-112.00M	-38.00M	102.00M
	Net Income Common Stockholders
-1.40B	-79.00M	-130.00M	-734.00M	12.00M	-1.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
426.00M	337.80M	237.00M	426.00M	712.00M	739.00M
	Total Assets
1.68B	1.30B	1.40B	1.68B	2.57B	2.82B
	Total Debt
419.00M	239.00M	252.00M	419.00M	573.00M	810.00M
	Net Debt
124.00M	-27.70M	77.00M	124.00M	195.00M	596.00M
	Total Liabilities
822.00M	575.70M	619.00M	822.00M	1.01B	1.31B
	Stockholders Equity
857.00M	719.90M	776.00M	857.00M	1.56B	1.50B
Cash Flow		Free Cash Flow
-467.00M	6.40M	-24.00M	-304.00M	-67.00M	38.00M
	Operating Cash Flow
-391.00M	16.50M	-3.00M	-263.00M	-28.00M	82.00M
	Investing Cash Flow
706.00M	60.70M	46.00M	176.00M	207.00M	-65.00M
	Financing Cash Flow
-749.00M	3.10M	-165.00M	6.00M	10.00M	-227.00M

BlackBerry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.56
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 5.56 is above the 20-day moving average (MA) of 5.52, above the 50-day MA of 5.04, and above the 200-day MA of 4.87, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 54.05 is Neutral, neither overbought nor oversold. The STOCH value of 68.29 is Neutral, 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
TIXT	65 Neutral	$1.35B	35.99	-5.70%	―	2.87%	-271.63%
STC	63 Neutral	C$266.04M	―	-2.67%	―	-1.72%	76.81%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
CVO	61 Neutral	C$710.78M	―	-9.00%	―	8.86%	56.67%
BB	56 Neutral	$3.32B	―	-7.59%	―	-31.15%	30.02%
DND	52 Neutral	C$657.22M	―	-39.72%	0.77%	2.47%	19.37%
PLUR	43 Neutral	C$18.45M	―	-1525.80%	―	-7.43%	30.13%

BlackBerry Corporate Events

BlackBerry Exceeds Fiscal 2025 Expectations, Strengthens Financial Position

BlackBerry reported strong financial results for the fourth quarter and full fiscal year 2025, surpassing revenue and profitability expectations across its three divisions: QNX, Secure Communications, and Licensing. The company completed the sale of its Cylance business to Arctic Wolf, enhancing its balance sheet and positioning it for future growth. With increased operating cash flow and a solid financial standing, BlackBerry is well-positioned to drive shareholder value in the coming fiscal year.