BlackBerry(BB) - 2025 Q3 - Quarterly Results

Financial Performance - Total company revenue for Q3 FY2025 was $162 million, with a gross margin of 74%[4] - Revenue for the three months ended November 30, 2024, was $143 million, an increase from $125 million for the same period last year, representing a growth of 14.4%[19] - Total revenue for the three months ended November 30, 2024, was $143 million, a decrease of 5.9% compared to $152 million for the same period in 2023[28] - Cybersecurity revenue from continuing and discontinued operations for the three months ended November 30, 2024, was $93 million, down from $114 million in the same period last year[28] Profitability Metrics - Non-GAAP net income was $12 million, while GAAP net loss was $11 million; non-GAAP basic EPS improved to $0.02[5] - Operating income for the three months ended November 30, 2024, was $19 million, up from $18 million in the same period last year[19] - Net loss for the three months ended November 30, 2024, was $(11) million, an improvement from a net loss of $(19) million in the prior year[19] - Adjusted net income for the three months ended November 30, 2024, was $12 million, or $0.02 per share, compared to $3 million, or $0.01 per share, in the same period last year[29] Cash Flow and Investments - Total cash and investments rose by $1 million sequentially to $266 million, with operating cash flow improving by $34 million year-over-year to $3 million[6] - Cash and cash equivalents as of November 30, 2024, were $189 million, an increase from $175 million as of February 29, 2024[21] - The company experienced a net cash used in operating activities of $(25) million for the nine months ended November 30, 2024, compared to a net cash provided of $12 million in the prior year[23] - Free cash flow for the three months ended November 30, 2024, was $3 million, a significant improvement from $(33) million in the same period of 2023[34] Segment Performance - IoT revenue grew 13% sequentially to $62 million, with an adjusted EBITDA increase of 38% to $18 million[5] - Cybersecurity revenue increased 7% sequentially to $93 million, with a gross margin improvement of 12 percentage points to 67%[5] - Cybersecurity ARR increased by 1% sequentially to $281 million, with DBNRR rising to 90%[5] - Secure Communications revenue for the three months ended November 30, 2024, was $74 million, a decrease from $91 million in the same period in 2023[28] Guidance and Projections - Guidance for Q4 FY2025 projects total revenue between $126 million and $135 million, and full fiscal year revenue between $517 million and $526 million[8] - IoT segment EBITDA for Q4 FY2025 is expected to be between $8 million and $10 million, while total company adjusted EBITDA is projected to be between $10 million and $20 million[8] Research and Development - Research and development expenses for the three months ended November 30, 2024, were $27 million, compared to $29 million in the prior year[19] - Adjusted research and development expense for the three months ended November 30, 2024, was $26 million, down from $27 million in the same period of 2023[30] Operational Metrics - Operating expenses for the three months ended November 30, 2024, were $93 million, down from $101 million in the same period last year[29] - Segment EBITDA for the three months ended November 30, 2024, was $46 million, a decrease from $47 million in the same period in 2023[26] - Adjusted EBITDA from continuing and discontinued operations for the three months ended November 30, 2024, was $23 million, compared to $18 million in the prior year[31] Asset and Liability Overview - Total assets as of November 30, 2024, were $1,309 million, down from $1,395 million as of February 29, 2024[21] - Total liabilities as of November 30, 2024, were $584 million, a decrease from $619 million as of February 29, 2024[21]