BlackBerry (BB) AI Stock Analysis

• Market Cap: $3.23B
• Dividend Yield: N/A
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): 222.8
• Beta (1Y): 0.89
• Revenue Growth: -9.05%
• EPS Growth: N/A
• Country: CA
• Employees: 1,820
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.07
• Shares Outstanding: 590,147,500
• 10 Day Avg. Volume: 3,467,856
• 30 Day Avg. Volume: 2,099,207
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $7.04
• Price Target Upside: 28.52% 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$5.50 ▲(0.36% Upside)

The overall stock score reflects a mixed outlook. The positive earnings call, with record revenues and increased guidance, is a significant strength. However, financial performance challenges, bearish technical indicators, and high valuation concerns weigh on the score. The company's ability to sustain profitability and improve market sentiment will be crucial for future performance.

Positive Factors

QNX Revenue Growth

The strong growth in QNX revenue underscores BlackBerry's solid position in the automotive and industrial sectors, indicating robust demand for its embedded systems. This growth trend is likely to continue as the market for connected devices expands.

Cash Flow Improvement

Positive operating cash flow reflects better cash management and operational efficiency, providing BlackBerry with more resources to invest in growth opportunities and strengthen its financial stability.

FedRAMP High Certification

Achieving FedRAMP high certification positions BlackBerry to expand its secure communications services within the U.S. government, enhancing its competitive edge and opening new revenue streams in a critical market segment.

Negative Factors

Revenue Decline

The substantial revenue decline highlights ongoing challenges in maintaining market share and competitiveness, which could hinder long-term growth if not addressed through strategic initiatives.

Profitability Challenges

Negative net income suggests that BlackBerry is struggling to convert revenue into profit, which could impact its ability to reinvest in business development and innovation, crucial for sustaining competitive advantage.

Asset Base Decrease

A shrinking asset base may limit BlackBerry's capacity to leverage its resources for expansion and innovation, potentially affecting its ability to capitalize on new market opportunities and sustain long-term growth.

BlackBerry Business Overview & Revenue Model

Company Description

BlackBerry 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 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 faces significant revenue and profitability challenges, with a notable decline in revenue and negative net income. However, operational efficiencies have slightly improved, and the balance sheet reflects a stable financial position with manageable leverage. Cash flow improvements are notable, but persistent profitability issues require attention.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	534.90M	759.10M	526.30M	718.00M	893.00M
Gross Profit	394.90M	490.70M	366.60M	467.00M	643.00M
EBITDA	59.20M	93.90M	-90.70M	-38.00M	100.00M
Net Income	-79.00M	-130.20M	-734.40M	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	601.00M	843.00M
Total Liabilities	572.96M	619.00M	822.00M	1.01B	1.31B
Stockholders Equity	716.47M	776.00M	857.00M	1.56B	1.50B
Cash Flow
Free Cash Flow	6.40M	-23.86M	-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: 5.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 5.48 is below the 20-day moving average (MA) of 5.81, below the 50-day MA of 6.13, and below the 200-day MA of 5.65, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 24.39 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STC	56 Neutral	C$227.00M	-30.03	-2.18%	―	-4.34%	31.52%
BB	54 Neutral	$3.23B	222.76	2.88%	―	-9.05%	―
CVO	54 Neutral	C$646.23M	-21.50	-18.09%	―	12.20%	-8.46%
PLUR	50 Neutral	C$16.53M	-1.67	―	―	17.18%	79.56%
NBVA	46 Neutral	C$13.33M	-11.59	-24.65%	―	-69.94%	-281.40%

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.