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BlackBerry (TSE:BB)
TSX:BB
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BlackBerry (BB) AI Stock Analysis

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TSE:BB

BlackBerry

(TSX:BB)

Rating:52Neutral
Price Target:
C$5.00
▼(-3.66% Downside)
BlackBerry's overall stock score reflects significant financial challenges, with a focus on improving operational efficiency and cash flow. The positive earnings call highlights exceeded expectations and strategic initiatives like a share buyback program, but valuation remains a concern due to negative earnings.
Positive Factors
Growth in Automotive and General Embedded Markets
QNX is seeing significant growth across both automotive and General Embedded markets, described as a 'rocketship' by management.
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.
Strong Financial Performance
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.
Negative Factors
Challenges in UEM Segment
Challenges in the UEM segment affected the decline in ARR to $208M.
Macro Headwinds
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.
Uncertainty Related to Auto Tariffs
Despite the improvements, there is still uncertainty related to auto tariffs, and management raised FY guidance by less than the in-quarter beat, reflecting ongoing prudence as the company navigates a dynamic macroeconomic environment.

BlackBerry (BB) vs. iShares MSCI Canada ETF (EWC)

BlackBerry Business Overview & Revenue Model

Company DescriptionBlackBerry Limited is a global cybersecurity and software company that focuses on providing secure communications and productivity solutions for businesses and governments. Originally known for its mobile devices, BlackBerry has transitioned into the enterprise software sector, offering a range of services including endpoint security, secure communications, and IoT solutions. The company operates primarily in the cybersecurity and software sectors, with core products such as BlackBerry Enterprise Mobility Suite, BlackBerry QNX for embedded systems, and BlackBerry Spark for secure collaboration.
How the Company Makes MoneyBlackBerry generates revenue primarily through its software and services segment, which includes cybersecurity solutions, secure communications, and enterprise software. The company offers subscription-based services that provide a steady stream of recurring revenue. Key revenue streams include licensing fees for its software products, sales of cybersecurity solutions, and contracts with governmental and enterprise clients for managed services. Additionally, BlackBerry has established partnerships with various technology and telecommunications companies to integrate its software into their offerings, further enhancing its market reach and driving sales. The company also benefits from a growing demand for security solutions in an increasingly digital world, particularly in sectors such as automotive, healthcare, and finance, where secure communication and data protection are critical.

BlackBerry Earnings Call Summary

Earnings Call Date:Jun 24, 2025
(Q1-2026)
|
% Change Since: -12.48%|
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Positive
BlackBerry delivered a strong quarter, exceeding revenue and profitability expectations, with significant growth in the QNX and secure communications divisions. The company initiated a share buyback program, demonstrating confidence in its financial plan. However, uncertainties remain in the automotive market, and licensing revenue was slightly below expectations.
Q1-2026 Updates
Positive Updates
Revenue and Profitability Exceed Expectations
Total company revenue for the quarter was $121.7 million, beating the top end of guidance. Adjusted EBITDA grew over 55% year over year, reaching $16.4 million.
QNX Revenue Growth
QNX revenue for Q1 was $57.5 million, representing 8% year over year growth despite uncertainties in the auto market.
Share Buyback Program Initiation
BlackBerry announced a $100 million share buyback program, repurchasing $10 million worth of shares in the quarter.
Secure Communications Division Performance
Secure communications division revenue was $59.5 million, driven by strong performance from SecuSmart, with annual recurring revenue stable at $209 million.
Positive GAAP Net Income
BlackBerry achieved positive quarterly GAAP net income for the first time in over three years at $1.9 million.
Growth in SDP8.0 Pipeline
GEM currently represents 43% of the total SDP8.0 pipeline, with the overall pipeline growing by 55% in the quarter.
FedRAMP High Authorization for AtHoc
AtHoc earned FedRAMP High authorization, strengthening its position within the US federal government market.
Negative Updates
Challenges in the Automotive Market
Uncertainty in the automotive market due to macroeconomic factors and possible impacts from tariff changes.
Licensing Division Revenue Below Expectations
Licensing division revenue was $4.7 million, slightly below expectations due to lower revenue from existing licensing arrangements.
Impact of FX on Costs
OpEx headwinds from a weakening US dollar, affecting costs denominated in other currencies.
Cash Usage in Q1
Cash used by operations was $18 million, primarily due to seasonal factors and restructuring costs.
Company Guidance
In the recent BlackBerry First Quarter Fiscal Year 2026 earnings call, the company reported notable financial achievements, surpassing the top end of guidance across various metrics. Total revenue for the quarter reached $121.7 million, while adjusted EBITDA grew over 55% year-over-year to $16.4 million, both figures exceeding expectations. Non-GAAP earnings per share came in at a positive 2¢, and despite seasonal cash flow challenges, operating cash usage was better than anticipated at $18 million. The call highlighted a $100 million share buyback program initiated in May, with $10 million worth of shares already repurchased. Additionally, QNX revenue was $57.5 million, showing 8% growth, while the secure communications division achieved $59.5 million in revenue. Looking forward, BlackBerry raised its full-year revenue guidance for the secure communications division by $4 million and expects total company revenue for fiscal year 2026 to range between $508 and $538 million, with adjusted EBITDA projected between $72 and $87 million.

BlackBerry Financial Statement Overview

Summary
BlackBerry is experiencing significant revenue and profitability challenges. Despite improvements in operational efficiency and a stable financial structure with manageable leverage, the company's profitability remains a concern. Cash flow has shown improvement, but the overall financial health is hindered by ongoing revenue declines and negative net income.
Income Statement
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue534.90M853.00M656.00M718.00M893.00M
Gross Profit394.90M520.00M419.00M467.00M643.00M
EBITDA59.20M-13.00M-112.00M-38.00M102.00M
Net Income-79.00M-130.00M-734.00M12.00M-1.10B
Balance Sheet
Total Assets1.30B1.40B1.68B2.57B2.82B
Cash, Cash Equivalents and Short-Term Investments337.80M237.00M426.00M712.00M739.00M
Total Debt239.00M252.00M419.00M573.00M810.00M
Total Liabilities575.70M619.00M822.00M1.01B1.31B
Stockholders Equity719.90M776.00M857.00M1.56B1.50B
Cash Flow
Free Cash Flow6.40M-24.00M-304.00M-67.00M38.00M
Operating Cash Flow16.50M-3.00M-263.00M-28.00M82.00M
Investing Cash Flow60.70M46.00M176.00M207.00M-65.00M
Financing Cash Flow3.10M-165.00M6.00M10.00M-227.00M

BlackBerry Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.19
Price Trends
50DMA
5.51
Negative
100DMA
5.26
Negative
200DMA
5.40
Negative
Market Momentum
MACD
-0.10
Negative
RSI
48.92
Neutral
STOCH
60.83
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 5.19 is above the 20-day moving average (MA) of 5.11, below the 50-day MA of 5.51, and below the 200-day MA of 5.40, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 48.92 is Neutral, neither overbought nor oversold. The STOCH value of 60.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BB.

BlackBerry Risk Analysis

BlackBerry disclosed 30 risk factors in its most recent earnings report. BlackBerry reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

BlackBerry Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
C$848.05M-17.77%10.09%-8.79%
60
Neutral
C$266.37M-2.67%-1.72%76.81%
55
Neutral
C$679.10M-39.72%0.72%2.47%19.37%
52
Neutral
$3.01B-1.76%-8.84%70.97%
52
Neutral
$1.47B35.99-20.44%5.06%-638.59%
49
Neutral
C$3.31B1.44-6.09%8.93%9.21%-18.20%
40
Neutral
C$15.71M-1525.80%5.61%72.77%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BB
BlackBerry
5.19
2.01
63.21%
TSE:STC
Sangoma Technologies
7.88
0.48
6.49%
TSE:DND
Dye & Durham
10.42
-3.80
-26.72%
TSE:PLUR
Plurilock Security Inc
0.24
-0.53
-68.83%
TSE:TIXT
TELUS International (CDA)
5.43
0.25
4.83%
TSE:CVO
Coveo Solutions
8.95
2.65
42.06%

BlackBerry Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
BlackBerry Exceeds Q1 Fiscal 2026 Expectations, Achieves Profitability
Positive
Jun 24, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 24, 2025