BlackBerry (BB) AI Stock Analysis

• Market Cap: C$3.03B
• Dividend Yield: N/A
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -8.84%
• EPS Growth: 70.97%
• Country: CA
• Employees: 1,820
• Sector: Technology
• Sector Strength: 98
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 594,530,900
• 10 Day Avg. Volume: 1,713,995
• 30 Day Avg. Volume: 2,196,782
• PEG Ratio: -1.27
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 454.44
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 5.38
• Enterprise Value/Ebitda: 52.91
• 1Y Price Target: C$6.75
• Price Target Upside: 32.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 53 Neutral
• Price Target: C$5.50 ▲(7.84%Upside)

BlackBerry's overall stock score is primarily influenced by its positive earnings call, which highlighted significant growth and strategic initiatives. However, financial performance and valuation concerns, along with bearish technical indicators, weigh down the score. The company's ability to sustain profitability and manage macroeconomic challenges will be crucial for future performance.

Positive Factors

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.

Market Confidence

Growing investor confidence in the company's strategic direction and execution ability following a strong Q3, which saw double-digit sequential growth in both divisions, along with a return to positive operating performance.

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

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.

Visibility Challenges

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 enterprise software and the Internet of Things (IoT). Originally known for its smartphones, BlackBerry has transitioned to focus on cybersecurity and IoT solutions. Its core offerings include cybersecurity software, endpoint management solutions, and IoT applications across various sectors such as automotive, healthcare, and industrial systems.

How the Company Makes Money

BlackBerry makes money primarily through the sale of its software and services in the cybersecurity and IoT markets. Key revenue streams include licensing of its security software, which protects endpoints and networks from cyber threats, and its QNX software, which is widely used in automotive infotainment systems and other embedded applications. The company also generates income from its BlackBerry Radar IoT platform, designed to enhance asset tracking and logistics. Additionally, BlackBerry forms strategic partnerships with major technology firms and automotive manufacturers, providing integrated solutions that contribute to its revenue.

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

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

BlackBerry Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 5.1 is below the 20-day moving average (MA) of 5.48, below the 50-day MA of 5.64, and below the 200-day MA of 5.27, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 34.72 is Neutral, neither overbought nor oversold. The STOCH value of 6.00 is Positive, 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
TIXT	67 Neutral	$1.44B	35.99	-5.70%	―	2.87%	-271.63%
CVO	67 Neutral	C$892.61M	―	-9.00%	―	9.08%	37.74%
Sector *	62 Neutral	$35.05B	6.90	-11.57%	2.06%	6.28%	-15.90%
STC	60 Neutral	C$263.02M	―	-2.67%	―	-1.72%	76.81%
DND	55 Neutral	C$751.57M	―	-39.72%	0.67%	2.47%	19.37%
BB	53 Neutral	C$3.03B	―	-1.76%	―	-8.84%	70.97%
PLUR	47 Neutral	C$15.71M	―	-1525.80%	―	0.55%	69.82%

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.