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BlackBerry (TSE:BB)
TSX:BB
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BlackBerry
(TSX:BB)
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Rating:57Neutral
Price Target:
C$5.50
▼(-6.62% Downside)
BlackBerry's overall stock score is primarily influenced by its financial performance, which shows significant challenges in revenue and profitability despite some operational improvements. The earnings call provided a positive outlook with revenue and profitability exceeding expectations, contributing positively to the score. However, valuation remains a concern due to a negative P/E ratio and no dividend yield.
Positive Factors
Negative Factors
BlackBerry (BB) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$3.62B
Dividend YieldN/A
Average Volume (3M)1.80M
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth-8.84%
EPS Growth70.97%
CountryCA
Employees1,820
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.02
Shares Outstanding594,530,900
10 Day Avg. Volume2,734,054
30 Day Avg. Volume1,799,264
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 Cap0.88
Enterprise Value/Revenue5.73
Enterprise Value/Gross Profit7.88
Enterprise Value/Ebitda66.76
Forecast
1Y Price Target
$6.70Price Target Upside13.75% Upside
Rating ConsensusHold
Number of Analyst Covering4
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
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 18, 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 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
5.89
Price Trends
5.31
Positive
5.46
Positive
5.62
Positive
Market Momentum
0.18
Negative
67.58
Neutral
81.38
Negative
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 5.89 is above the 20-day moving average (MA) of 5.47, above the 50-day MA of 5.31, and above the 200-day MA of 5.62, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 67.58 is Neutral, neither overbought nor oversold. The STOCH value of 81.38 is Negative, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | 877.08M | -28.00 | -18.58% | ― | 10.09% | -8.79% | |
60 Neutral | 226.98M | -32.54 | ― | ― | -1.46% | 40.89% | |
57 Neutral | $3.62B | ― | -1.76% | ― | -8.84% | 70.97% | |
55 Neutral | 546.10M | -3.53 | ― | 0.92% | 2.47% | 19.37% | |
55 Neutral | 1.74B | -3.26 | -22.61% | ― | 5.06% | -638.59% | |
40 Neutral | 16.49M | -1.07 | 224.31% | ― | 5.61% | 72.77% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
TSE:BB
BlackBerry
5.93
2.48
71.88%
TSE:STC
Sangoma Technologies
6.81
-0.69
-9.20%
TSE:DND
Dye & Durham
8.13
-7.47
-47.88%
TSE:PLUR
Plurilock Security Inc
0.21
-0.45
-68.18%
TIXT
TELUS International (CDA)
4.50
0.89
24.65%
TSE:CVO
Coveo Solutions
9.15
3.05
50.00%
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.