BlackBerry (BB) AI Stock Analysis

• Market Cap: C$3.48B
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -31.15%
• EPS Growth: 30.02%
• Country: CA
• Employees: 1,820
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 597,088,260
• 10 Day Avg. Volume: 1,878,214
• 30 Day Avg. Volume: 1,738,302
• PEG Ratio: -0.77
• Price to Book (P/B): 3.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 394.86
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 6.12
• Enterprise Value/Ebitda: -42.48
• 1Y Price Target: C$6.41
• Price Target Upside: 8.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: C$6.00 ▲(1.18%Upside)

BlackBerry's overall stock score of 56 reflects the company's ongoing profitability challenges despite operational improvements and positive earnings call sentiment. The technical analysis points to modest bullish momentum, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh on the score. The positive guidance and strategic moves highlighted in the earnings call are significant factors supporting the score.

Positive Factors

Earnings

BlackBerry reported Q4 results slightly ahead of expectations, highlighted by strong IoT/QNX results which continue to be the standout leader within the business.

Partnerships

Partnerships with major companies like Microsoft and commitments from leading silicon partners such as Nvidia, Qualcomm, and NXP reinforce QNX's long-term growth potential.

Strategic Direction

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.

Negative Factors

IoT Visibility

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.

Macro Challenges

The transaction doesn't immediately alleviate some of the macro headwinds the company is facing across both segments of its business.

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 makes money primarily through its software and services segment, which includes cybersecurity solutions, endpoint management, and licensing agreements. The company's revenue streams are driven by enterprise clients seeking secure communication and data management solutions. BlackBerry also generates income from its QNX software, used in automotive infotainment and advanced driver assistance systems (ADAS), as well as from licensing its extensive patent portfolio. Significant partnerships, such as those with automotive manufacturers and technology firms, further bolster its earnings by integrating BlackBerry's secure solutions into various products and services.

BlackBerry Financial Statement Overview

Summary

BlackBerry faces significant revenue and profitability challenges, with declining revenues and negative net income. Despite these issues, operational efficiency showed slight improvements, and the balance sheet remains stable with a conservative financial structure and improved cash flow.

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
	EBIT
800.00K	-125.00M	-725.00M	-2.00M	-1.11B
	EBITDA
59.20M	-13.00M	-112.00M	-38.00M	102.00M
	Net Income Common Stockholders
-79.00M	-130.00M	-734.00M	12.00M	-1.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
337.80M	237.00M	426.00M	712.00M	739.00M
	Total Assets
1.30B	1.40B	1.68B	2.57B	2.82B
	Total Debt
239.00M	252.00M	419.00M	573.00M	810.00M
	Net Debt
-27.70M	77.00M	124.00M	195.00M	596.00M
	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: Positive
• Last Price: 5.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 5.93 is above the 20-day moving average (MA) of 5.69, above the 50-day MA of 5.23, and above the 200-day MA of 4.95, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 69.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BB.

BlackBerry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIXT	65 Neutral	$1.38B	35.99	-5.70%	―	2.87%	-271.63%
STC	61 Neutral	C$272.07M	―	-2.67%	―	-1.72%	76.81%
CVO	61 Neutral	C$707.55M	―	-9.00%	―	8.86%	56.67%
BB	56 Neutral	C$3.48B	―	-7.59%	―	-31.15%	30.02%
DND	52 Neutral	C$651.84M	―	-39.72%	1.07%	2.47%	19.37%
Sector *	50 Neutral	AU$1.43B	1.87	-28.24%	3.35%	15.64%	-7.01%
PLUR	43 Neutral	C$16.88M	―	-1525.80%	―	-7.43%	30.13%

BlackBerry Corporate Events

BlackBerry Exceeds Fiscal 2025 Expectations, Strengthens Financial Position

BlackBerry reported strong financial results for the fourth quarter and full fiscal year 2025, surpassing revenue and profitability expectations across its three divisions: QNX, Secure Communications, and Licensing. The company completed the sale of its Cylance business to Arctic Wolf, enhancing its balance sheet and positioning it for future growth. With increased operating cash flow and a solid financial standing, BlackBerry is well-positioned to drive shareholder value in the coming fiscal year.