BlackBerry(US:BB)2025-12-18 22:12Financial Performance - Total company revenue for Q3 FY26 was $141.8 million, exceeding guidance by $12.2 million, with a year-over-year decrease of $1.8 million[6] - Total company adjusted EBITDA was $28.7 million, representing 20% of revenue, with GAAP net income of $13.7 million[10] - Revenue for the three months ended November 30, 2025, was $141.8 million, an increase from $129.6 million for the previous quarter, representing a growth of 16.9%[21] - Net income for the nine months ended November 30, 2025, was $28.9 million, a recovery from a net loss of $71.6 million in the same period last year[25] - Revenue for the nine months ended November 30, 2025, was $393.1 million, nearly flat compared to $393.2 million in 2024[38] Segment Performance - QNX division achieved record revenue of $68.7 million, reflecting a 10% year-over-year growth, with adjusted EBITDA at $16.4 million, or 24% of revenue[6] - Secure Communications revenue was $67.0 million, surpassing guidance by $7.1 million, with an annual recurring revenue (ARR) of $216 million[6] - QNX segment revenue for the three months ended November 30, 2025, was $68.7 million, an increase of 10.3% from $62.3 million in the same period of 2024[27] - Secure Communications segment revenue decreased by 10.2% to $67.0 million for the three months ended November 30, 2025, compared to $74.6 million in 2024[27] Cash Flow and Investments - Total cash and investments increased by $14 million sequentially to $378 million[10] - Cash and cash equivalents as of November 30, 2025, were $270.3 million, slightly up from $266.7 million as of February 28, 2025[23] - The company generated net cash provided by operating activities of $4.2 million for the nine months ended November 30, 2025, compared to a net cash used of $25.1 million in the same period last year[25] - Free cash flow for the three months ended November 30, 2025, was $17.0 million, significantly higher than $5.0 million in the same period of 2024[41] - Free cash flow for the nine months ended November 30, 2025, was $1.6 million, a recovery from a usage of $(27.8) million in 2024[41] Expenses and Margins - Research and development expenses for the three months ended November 30, 2025, increased to $29.6 million from $25.6 million in the previous quarter, indicating a focus on innovation[21] - Sales and marketing expenses increased to $29.3 million for the three months ended November 30, 2025, compared to $23.4 million in the previous year[31] - General and administrative expenses remained relatively stable at $36.1 million for the three months ended November 30, 2025, compared to $36.4 million in 2024[31] - Adjusted EBITDA for the three months ended November 30, 2025, was $28.7 million, compared to $37.5 million in 2024, reflecting a decline of 23.5%[33] - Adjusted operating income margin percentage decreased to 18% for the three months ended November 30, 2025, from 23% in 2024[33] Strategic Initiatives - BlackBerry announced the expansion of BlackBerry SecuSUITE to Windows devices, enhancing its product offerings[10] - A strategic partnership was formed with Universiti Kebangsaan Malaysia to advance cybersecurity talent[10] Shareholder Actions - BlackBerry repurchased $5 million worth of shares, totaling approximately 1.2 million shares[10] Financial Health - Total liabilities decreased to $477.3 million as of November 30, 2025, from $575.7 million as of February 28, 2025, reflecting improved financial health[23] - Deferred revenue decreased to $121.3 million for the current quarter from $161.5 million in the previous quarter, indicating changes in customer contracts or service delivery[23]