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  Title	BLACKBERRY LIMITED BlackBerry : Q4 Financial Results (Q4 FY25 Earnings Press Release FINAL)
  ID	8124206
  External ID	7674321707
  Author	Unknown
  Published Date	April 2, 2025, 7:20 a.m.
  Summary	BlackBerry Reports Fourth Quarter and Full Fiscal Year 2025 Results  Beats expectations for revenue for all three divisions: QNX, Secure Communications and Licensing; Surpasses the top-end of Q4 and
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  URL	https://www.marketscreener.com/quote/stock/blackberry-limited-1411475/news/blackberry-q4-financial-results-q4-fy25-earnings-press-release-final-49508868/
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  Content ID	5429452
  Key	f5b4c724-9802-444f-bc3d-b6ee4e3ec10c
  Content	BlackBerry Reports Fourth Quarter and Full Fiscal Year 2025 Results  Beats expectations for revenue for all three divisions: QNX, Secure Communications and Licensing; Surpasses the top-end of Q4 and full year guidance range for total Company revenue  Beats expectations for profitability, with both adjusted EBITDA and adjusted EPS exceeding the high end of guidance range; GAAP basic EPS improves both sequentially and year-over-year  Beats expectations for operating cash flow with significant sequential and year-over-year improvements Waterloo, Ontario BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months and fiscal year ended February 28, 2025 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated). "BlackBerry closed out this transformational fiscal year with another quarter of strong financial performance from all three divisions: QNX, Secure Communications and Licensing. We also took a big step forward by completing the sale of the Cylance business to Arctic Wolf, a win-win for all parties, and significantly strengthening our balance sheet in the process." said John J. Giamatteo, CEO, BlackBerry. "We started the year with a goal to deliver profitability and positive cash flow, and we're pleased we delivered across the board. BlackBerry goes into the new fiscal year in a strong financial position, with a solid balance sheet that provides optionality for driving shareholder value." Fourth Quarter Fiscal 2025 Financial Highlights • Total company revenue was $141.7 million. • Total company adjusted gross margin was 74% and GAAP gross margin was 73%. • Total company adjusted EBITDA exceeded previously-provided guidance at $21.1 million. • QNX revenue grew 6% sequentially and was flat year over year, exceeding the guidance range at $65.8 million; QNX gross margin decreased by 3 percentage points sequentially and 2 percentage points year-over-year to 83%. • QNX adjusted EBITDA beat expectations at $19.2 million, or a 29% margin. • QNX royalty backlog increased from approximately $815 million in the prior year to approximately $865 million. • Secure Communications revenue exceeded previously-provided guidance at $67.3 million; Secure Communications gross margin decreased sequentially due to product mix to 64%. • Secure Communications ARR decreased by 3% sequentially, and increased 3% year-over-year to $208 million; Secure Communications DBNRR decreased by 2 percentage points sequentially, and increased by 2 percentage points year-over-year to 93%. • Secure Communications adjusted EBITDA exceeded previously-provided guidance at $12.6 million, or a margin of 19%. • Licensing revenue exceeded guidance at $8.6 million, and Licensing adjusted EBITDA was $1.4 million. • Adjusted Corporate costs were $12.1 million, sequentially higher due primarily to an upward revaluation of deferred stock units following strength in BlackBerry's share price. • Adjusted net income was $17.7 million and GAAP net loss was $7.4 million. • Adjusted basic income per share beat guidance at $0.03. GAAP basic loss per share was $0.01. • Operating cash flow beat expectations and improved by $57 million year-over-year to $42.0 million. • Total cash and investments increased by $144 million sequentially to $410 million, in part due to the improved operating cash flow, and in part due to approximately $80 million received from first tranche of cash from the sale of Cylance to Arctic Wolf. Full Year Fiscal 2025 Financial Highlights • Total company revenue for the full fiscal year was $534.9 million. • Total company adjusted gross margin and GAAP gross margin were 74%. • Total company adjusted EBITDA for the full fiscal year exceeded previously-provided guidance at $84.2 million. • QNX revenue for the full fiscal year grew 10% year-over-year and hit the top-end of previously-provided guidance at $236.0 million; QNX gross margin was 84%; and QNX Adjusted EBITDA increased by 76% year-over-year to $59.1 million, or a 25% margin. • Secure Communications revenue for the full fiscal year exceeded previously-provided guidance at $272.6 million; Secure Communications gross margin was 66%; and Secure Communications EBITDA was $52.3 million, or a 19% margin. • Licensing revenue was $26.3 million, and Licensing adjusted EBITDA was $15.8 million. • Adjusted Corporate costs were $43.0 million for the full fiscal year. • Adjusted net income for the full fiscal year was $12.5 million and GAAP net loss was $79.0 million. • Adjusted basic earnings per share for the full fiscal year was $0.02 and GAAP basic loss per share was $0.13. Business Highlights & Strategic Announcements • BlackBerry announced the successful closing of the sale of its Cylance® endpoint security assets to Arctic Wolf • Microsoft and BlackBerry partnered to make QNX® Software Development Platform (SDP) 8.0 available in the Microsoft Azure cloud environment • QNX extended its collaboration with silicon chip manufacturer AMD to support a wider range of adaptive computing devices used in robotic systems and other embedded devices • QNX, Vector and TTTech Auto announced a multi-year collaboration to develop and market a vehicle software platform that pre-integrates the QNX OS with other leading middleware components • QNX launched its General Embedded Development Platform (GEDP), designed to accelerate the development of high-performance, scalable and secured embedded systems • Together with Intel and NecCOBOT, QNX launched a functional safety (FuSa) platform built on advanced Intel® Core™ i7 processors for advanced robotic systems • QNX partnered with Pi Square Technologies to train software engineers across India as part of the QNX Everywhere ecosystem expansion strategy • BlackBerry expanded its relationship with the Malaysian government, increasing the number of government employees that can use BlackBerry's suite of Secure Communications products • Secusmart achieved certification and approval from German BSI for its new SecuSUITE® for iOS® solution, allowing it to provide leading encrypted voice and data on Apple devices to German government agencies Financial Outlook BlackBerry is providing the following guidance for the first fiscal quarter and the full fiscal year 2026 (ending February 28, 2026). Use of Non-GAAP Financial Measures The tables at the end of this press release include a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios used by the Company to comparable U.S. GAAP measures and an explanation of why the Company uses them. The Company does not provide a reconciliation of expected Adjusted EBITDA and expected Non-GAAP basic EPS for the first quarter and full fiscal year 2026 to the most directly comparable expected GAAP measures because it is unable to predict with reasonable certainty, among other things, restructuring charges and impairment charges and, accordingly, a reconciliation is not available without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For more information on the non-GAAP financial measures, please refer to the tables at the end of this press release. Conference Call and Webcast A conference call and live webcast will be held today beginning at 8:00 a.m. ET, which can be accessed using the following link ( here ) or through the Company's investor webpage (BlackBerry.com/Investors ) or by dialing toll free +1 (844) 763-8275 and entering Elite Entry Number 52166. A replay of the conference call will be available at approximately 11:00 a.m. ET today, using the same webcast link ( here ) or by dialing toll free +1 (877) 481-4010 and entering Replay Access Code 52166. About BlackBerry BlackBerry (NYSE: BB; TSX: BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management. For more information, visit BlackBerry.com and follow @BlackBerry. Investor Contact: BlackBerry Investor Relations +1 (519) 888-7465 investorrelations@blackberry.com Media Contact: BlackBerry Media Relations +1 (519) 597-7273 mediarelations@blackberry.com This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry's plans, strategies and objectives. The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, financial performance, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, and competition. Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; BlackBerry's ability to enhance, develop, introduce or monetize its products and services in a timely manner with competitive pricing, features and performance; significant changes in government customer demand or procurement requirements; BlackBerry's sales cycles and the time and expense of its sales efforts; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; risks arising from a failure or perceived failure of the security features of BlackBerry's solutions; adverse macroeconomic and geopolitical conditions, including trade policies; litigation against BlackBerry; network disruptions or other business interruptions; BlackBerry's ability to foster an ecosystem of third-party application developers; BlackBerry's dependence in part on its relationships with resellers and channel partners; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; BlackBerry's use of artificial intelligence solutions; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry's use of open source software and its ability to obtain rights to use third-party software ; BlackBerry potentially being found to have infringed on the intellectual property rights of others; BlackBerry's indebtedness, which could impact its operating flexibility and financial condition; the asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; potential impacts of acquisitions, divestitures and other business initiatives; risks associated with foreign operations, including fluctuations in foreign currencies; environmental events; the fluctuation of BlackBerry's quarterly revenue and operating results; and the volatility of the market price of BlackBerry's common shares. These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form 10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedarplus.ca or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and BlackBerry has no intention and undertakes no obligation to update or revise any of them, except as required by law. BlackBerry Limited Incorporated under the Laws of Ontario (United States dollars, in millions except share and per share amounts) Consolidated Statements of Operations Three Months Ended February 28, 2025 Revenue Cost of sales Gross margin Gross margin % Operating expenses Research and development Sales and marketing General and administrative Amortization Impairment of goodwill Impairment of long-lived assets Prior Debentures fair value adjustment Litigation settlements Operating income (loss) Investment income (loss), net Income (loss) before income taxes Provision for income taxes Income (loss) from continuing operations Gain from disposal of discontinued operation, net of tax Loss from discontinued operations, net of tax Net loss Earnings (loss) per share Basic earnings (loss) per share from continuing operations Total basic loss per share November 30, 2024 February 29, 2024 For the Ye a rs Ended February 28, 2025 February 29, 2024 Diluted earnings (loss) per share from continuing operations Total diluted loss per share Weighted-average number of common shares outstanding (000s) Basic Diluted Total common shares outstanding (000s) Consolidated Balance Sheets Assets Current Cash and cash equivalents Short-term investments Accounts receivable, net of allowance of $6.6 and $6.0, respectively Other receivables Income taxes receivable Other current assets Assets held for sale, current Restricted cash and cash equivalents Long-term investments Other long-term assets Operating lease right-of-use assets, net Property, plant and equipment, net Intangible assets, net Goodwill Assets held for sale, non-current Liabilities Current Accounts payable Accrued liabilities Income taxes payable Deferred revenue, current Liabilities held for sale, current Deferred revenue, non-current Operating lease liabilities Other long-term liabilities Long-term notes Liabilities held for sale, non-current Shareholders' equity Capital stock and additional paid-in capital Deficit Accumulated other comprehensive loss As at February 28, 2025 February 29, 2024 Consolidated Statements of Cash Flows Cash flows from operating activities Net loss Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Amortization Stock-based compensation Gain on disposal of discontinued operation Impairment of goodwill Impairment of long-lived assets For the Ye a rs Ended February 28, 2025 February 29, 2024 Intellectual property disposed of by sale Prior Debentures fair value adjustment Operating leases Other Net changes in working capital items Accounts receivable, net of allowance Other receivables Income taxes receivable Other assets Accounts payable Accrued liabilities Income taxes payable Deferred revenue Net cash provided by (used in) operating activities Cash flows from investing activities Acquisition of long-term investments Acquisition of property, plant and equipment Acquisition of intangible assets Cash proceeds from disposal of discontinued operation Acquisition of short-term investments Proceeds on sale or maturity of short-term investments Net cash provided by investing activities Cash flows from financing activities Issuance of common shares Maturities of 2020 Debentures and Extension Debentures Proceed from Issuance of Extension Debentures and Notes Net cash provided by (used in) financing activities Effect of foreign exchange loss on cash, cash equivalents, restricted cash, and restricted cash equivalents Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the year Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year As at Cash and cash equivalents Restricted cash and cash equivalents Short-term investments Long-term investments February 28, 2025 February 29, 2024 Reconciliations of the Company's Segment Results and Segment Adjusted EBITDA to the Consolidated Results The following tables show information by operating segment for the three months and years ended February 28, 2025 and February 29, 2024. The Company reports segment information in accordance with U.S. GAAP ASC Section 280 based on the "management" approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker ("CODM") for making decisions and assessing performance of the Company's reportable operating segments. The measure of segment profit or loss disclosed by the Company in the Consolidated Financial Statements under the "management" approach in reviewing the results of the Company's operating segments is segment adjusted gross margin. Additionally below, management uses the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA a non-GAAP financial measure. Also note the change in presentation relating to expense reclassification as disclosed in Note 1 to the Consolidated Financial Statements. See Note 13 to the Consolidated Financial Statements for a description of the Company's operating segments. For the Three Months Ended (in millions) Secure Communic a tions QNX Feb 28 2025 Feb 29 2024 Change Feb 28 2025 Feb 29 2024 Segment revenue Segment cost of sales Segment adjusted gross margin Segment research and development Segment sales and marketing Segment general and administrative Less amortization included in the above Segment adjusted EBITDA Segment Totals Change The following tables reconcile the Company's segment gross margin for the three months ended February 28, 2025 to consolidated U.S. GAAP results: For the Three Months Ended February 28, 2025 (in millions) Secure Communications QNX Licensing Revenue Cost of sales Gross margin Operating expenses Investment income, net Loss before income taxes For the Three Months Ended February 29, 2024 (in millions) (unaudited) Secure Communications Reconciling QNX Licensing Segment Totals Items Consolidated U.S. GAAP Revenue Cost of sales Gross margin Operating expenses Investment income, net Loss before income taxes See "Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures" for a reconciliation of selected U.S. GAAP-based measures to adjusted measures for the three months ended February 28, 2025 and February 29, 2024. The following table reconciles total segment adjusted EBITDA for the three months ended February 28, 2025 and February 29, 2024 to the Company's consolidated totals: For the Three Months Ended (in millions) unaudited) February 28, 2025 February 29, 2024 Total Segment Adjusted EBITDA Adjustments Stock compensation expense Restructuring expenses Less Corporate general and administrative expense Amortization Impairment of long-lived assets Impairment of goodwill - 15.9 Prior Debentures fair value adjustment - 0.5 Litigation settlement Investment income Consolidated loss from continuing operations before income taxes The CODM reviews segment information on an adjusted EBITDA basis, which excludes certain amounts as described below: Stock compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company's management. Restructuring expenses - Restructuring costs relate to employee termination benefits, facilities, streamlining many of the Company's centralized corporate functions into Secure Communications (formerly "Cybersecurity") and QNX (formerly "IoT") specific teams, and other costs pursuant to programs to reduce the Company's annual expenses amongst R&D, infrastructure and other functions do not reflect expected future operating expenses, are not indicative of the Company's core operating performance, and may not be meaningful when comparing the Company's operating performance against that of prior periods. Attachments Original document Permalink Disclaimer BlackBerry Ltd. published this content on April 02, 2025 , and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 02, 2025 at 12:07 UTC
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