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BlackBerry (TSE:BB)
TSX:BB
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BlackBerry
(TSX:BB)
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Rating:58Neutral
Price Target:
C$6.00
▼(-7.41% Downside)
BlackBerry's overall stock score is driven by a positive earnings call that highlights strong revenue growth and strategic wins, despite ongoing profitability challenges. Technical indicators show bullish momentum, but valuation remains a concern due to negative earnings and lack of dividends. Financial performance reflects stability in cash flow and balance sheet, but significant revenue and profitability issues persist.
Positive Factors
Revenue Growth
The consistent revenue growth indicates BlackBerry's successful transition to a software-centric model, enhancing its market position in cybersecurity and IoT.
Strategic Partnerships
Strategic partnerships with industry leaders like BMW and Qualcomm enhance BlackBerry's competitive edge and expand its market reach, supporting long-term growth.
Profitability Improvement
Achieving consecutive profitable quarters reflects improved operational efficiency and financial health, crucial for sustainable business growth.
Negative Factors
Revenue Decline
A significant revenue decline poses challenges to BlackBerry's growth trajectory, potentially impacting its ability to invest in new technologies and market expansion.
Profitability Challenges
Ongoing profitability issues may limit BlackBerry's capacity to reinvest in its business, hindering long-term competitive positioning and innovation.
Automotive Market Uncertainties
Uncertainties in the automotive sector could delay revenue realization from key projects, affecting BlackBerry's growth in this strategic area.
BlackBerry (BB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$3.94B
Dividend YieldN/A
Average Volume (3M)2.71M
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth-13.61%
EPS Growth89.73%
CountryCA
Employees1,820
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.06
Shares Outstanding590,361,100
10 Day Avg. Volume4,007,245
30 Day Avg. Volume2,705,004
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue5.55
Enterprise Value/Gross Profit7.63
Enterprise Value/Ebitda64.64
Forecast
1Y Price Target
$7.15Price Target Upside10.34% Upside
Rating ConsensusHold
Number of Analyst Covering5
BlackBerry Business Overview & Revenue Model
Company DescriptionBlackBerry 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 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:Sep 25, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 18, 2025
Earnings Call Sentiment Positive
The earnings call presented a primarily positive outlook for BlackBerry with strong revenue growth, profitability, and strategic wins, particularly in the QNX and Secure Communications divisions. While there are some challenges related to tax payments and market uncertainties, the overall performance and future guidance indicate solid business momentum.Q2-2026 Updates
Positive Updates
Stronger Than Expected Revenue Growth
BlackBerry's revenue for Q2 FY2026 grew by 3% year over year to $129.6 million, exceeding expectations.
Positive Profitability Metrics
The company achieved positive GAAP net income for the second consecutive quarter at $13.3 million and non-GAAP EPS beat guidance at positive $0.04.
Remarkable QNX Division Performance
QNX reported 15% year-over-year revenue growth to $63.1 million and a 32% adjusted EBITDA margin, marking the most profitable quarter in the division's history.
Secure Communications Growth
Secure Communications revenue was $59.9 million, with an ARR increase of $4 million to $213 million, and a DVNRR improvement to 93%.
Strategic Wins and Partnerships
Notable design wins included a mid-eight-figure win in China and partnerships with BMW and Qualcomm for the Snapdragon RidePilot platform.
Increased Pipeline and Market Opportunities
BlackBerry secured new deals with the U.S. State Department, U.S. Coast Guard, and German government, expanding its potential market and pipeline.
Negative Updates
Impact of Tax Payments
Despite positive cash flow, significant tax payments of $19 million affected the quarter.
Back-End Loaded Growth
QNX division's growth remains back-end loaded due to the timing of design work and royalty ramp-ups.
Ongoing Automotive Market Uncertainties
Despite improvements, there are still uncertainties in the automotive market affecting program timelines and market conditions.
Company Guidance
In the BlackBerry second quarter fiscal year 2026 results conference call, the company reported a 3% year-over-year revenue growth to $129.6 million, with a positive GAAP net income of $13.3 million, marking the second consecutive profitable quarter. The adjusted EBITDA reached 20% of revenue, and non-GAAP EPS exceeded guidance at $0.04. The QNX division achieved a "rule of 40" quarter with 15% revenue growth and a 32% adjusted EBITDA margin, contributing $63.1 million in revenue. Secure Communications also performed well with $59.9 million in quarterly revenue, driven by reduced customer churn and significant deals, including a five-year agreement with the German government. The company raised its full-year guidance for revenue to between $519 and $541 million and adjusted EBITDA to between $82 and $101 million, anticipating positive cash flow for the remainder of the fiscal year.BlackBerry Financial Statement Overview
Summary
BlackBerry faces revenue and profitability challenges, with a significant revenue decline and negative net income. However, there are improvements in operational efficiency and cash flow, and a stable balance sheet with manageable 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.45
Neutral
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.60
Neutral
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.50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 553.60M | 534.90M | 759.10M | 526.30M | 718.00M | 893.00M |
| Gross Profit | 402.20M | 394.90M | 490.70M | 366.60M | 467.00M | 643.00M |
| EBITDA | 47.50M | 59.20M | 93.90M | -90.70M | -38.00M | 100.00M |
| Net Income | -35.10M | -79.00M | -130.20M | -734.40M | 12.00M | -1.10B |
Balance Sheet | ||||||
| Total Assets | 976.30M | 1.30B | 1.40B | 1.68B | 2.57B | 2.82B |
| Cash, Cash Equivalents and Short-Term Investments | 292.50M | 337.80M | 237.00M | 426.00M | 712.00M | 739.00M |
| Total Debt | 26.30M | 239.00M | 252.00M | 419.00M | 601.00M | 810.00M |
| Total Liabilities | 485.30M | 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 | 5.40M | 6.40M | -23.86M | -304.00M | -67.00M | 38.00M |
| Operating Cash Flow | 13.50M | 16.50M | -3.00M | -263.00M | -28.00M | 82.00M |
| Investing Cash Flow | 126.08M | 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
Positive
6.48
Price Trends
5.53
Positive
5.60
Positive
5.73
Positive
Market Momentum
0.34
Negative
59.81
Neutral
52.77
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 6.48 is above the 20-day moving average (MA) of 6.09, above the 50-day MA of 5.53, and above the 200-day MA of 5.73, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 59.81 is Neutral, neither overbought nor oversold. The STOCH value of 52.77 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | C$239.97M | ― | -1.99% | ― | -1.46% | 40.89% | |
58 Neutral | $3.94B | ― | 2.66% | ― | -13.61% | 89.73% | |
55 Neutral | C$479.60M | ― | -39.72% | 1.05% | 2.47% | 19.37% | |
55 Neutral | $1.74B | 35.99 | -20.44% | ― | 5.06% | -638.59% | |
55 Neutral | C$836.82M | ― | -17.77% | ― | 10.09% | -8.79% | |
40 Underperform | C$15.71M | ― | -1525.80% | ― | 5.61% | 72.77% |
* Technology Sector Average
TSE:BB
BlackBerry
6.48
3.17
95.77%
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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.