BlackBerry(US:BB)2025-12-19 21:20Financial Performance - For the three months ended November 30, 2025, BlackBerry reported revenue of $141.8 million, a slight decrease of 1.3% compared to $143.6 million for the same period in 2024[25]. - Operating income for the three months ended November 30, 2025, was $11.9 million, down from $19.5 million in the same period last year[25]. - Net income for the three months ended November 30, 2025, was $13.7 million, compared to a net loss of $10.5 million for the same period in 2024[25]. - For the nine months ended November 30, 2025, net income was $28.9 million, a substantial improvement from a net loss of $71.6 million in the prior year[30]. - Comprehensive income for the three months ended November 30, 2025, was $12.6 million, compared to a comprehensive loss of $15.0 million for the same period in 2024[28]. - The Company reported a net income of $13.7 million for the three months ended November 30, 2025, compared to a loss of $10.5 million in the same period of the previous year[103]. - For the three months ended November 30, 2025, total segment revenue was $141.8 million, a decrease of 1.3% compared to $143.6 million for the same period in 2024[125]. - For the nine months ended November 30, 2025, total segment revenue was $393.1 million, consistent with $393.2 million for the same period in 2024[131]. Cash and Liquidity - Cash and cash equivalents as of November 30, 2025, totaled $270.3 million, up from $266.7 million as of February 28, 2025[17]. - The company’s cash, cash equivalents, and restricted cash at the end of the period totaled $284.3 million, up from $200.2 million a year earlier[30]. - The company reported a net cash increase of $4.0 million in cash, cash equivalents, and restricted cash during the period, compared to a decrease of $0.3 million in the prior year[30]. - Cash, cash equivalents, and investments amounted to $377.5 million as of November 30, 2025, including common shares of Arctic Wolf valued at $24.6 million[148]. - As of November 30, 2025, the Company had $377.5 million in cash, cash equivalents, and investments, down from $410.3 million as of February 28, 2025[184]. Expenses and Costs - Research and development expenses for the three months ended November 30, 2025, were $29.6 million, an increase of 6.1% from $27.9 million in the prior year[25]. - Operating expenses increased to $98.0 million in the third quarter of fiscal 2026, up 5.3% from $92.7 million in the same quarter of fiscal 2025[178]. - The Company incurred restructuring charges of $6.1 million in Q3 fiscal 2026, compared to $6.5 million in Q3 fiscal 2025[191]. - The company's operating expenses decreased to $271.4 million for the nine months ended November 30, 2025, down from $282.0 million in the same period of 2024, indicating cost management efforts[196]. Shareholder Equity and Stock - The company’s total shareholders' equity increased to $741.1 million as of November 30, 2025, compared to $719.9 million as of February 28, 2025[17]. - Basic earnings per share from continuing operations for the three months ended November 30, 2025, was $0.02, consistent with the same period in 2024[25]. - BlackBerry's total basic earnings per share for the three months ended November 30, 2025, was $0.02, compared to a loss of $0.02 in the same period last year[25]. - The Company repurchased 8.6 million common shares at a cost of $34.0 million during the nine months ended November 30, 2025, reducing capital stock by $42.8 million[100]. - Common shares outstanding as of November 30, 2025, totaled 590.4 million, down from 596.2 million as of February 28, 2025[99]. Segment Performance - QNX segment revenue for the three months ended November 30, 2025, was $68.7 million, up 10.3% from $62.3 million in 2024[125]. - Secure Communications segment revenue for the three months ended November 30, 2025, was $67.0 million, down 10.1% from $74.6 million in 2024[125]. - Licensing segment revenue for the three months ended November 30, 2025, was $6.1 million, a decrease of 8.9% compared to $6.7 million in 2024[125]. - The total segment adjusted gross margin for the three months ended November 30, 2025, was $110.4 million, down from $112.9 million in 2024[130]. - The Secure Communications Annual Recurring Revenue (ARR) reached approximately $216 million as of November 30, 2025, showing a growth from $215 million in the same period last year[208]. Impairments and Adjustments - The company recorded a pre-tax impairment charge of $0.6 million and $1.2 million for the three and nine months ended November 30, 2025, respectively, related to operating lease right-of-use assets and property, plant, and equipment[59]. - The company recorded no realized gains or losses on available-for-sale debt securities for the three and nine months ended November 30, 2025[66]. - The company has restricted cash and cash equivalents pledged as collateral for letters of credit and a performance bond, which are legally restricted from access during the lease terms[67]. - The company recorded an accumulated other comprehensive loss of $13.1 million as of November 30, 2025[106]. Taxation - The net effective income tax expense rate for the nine months ended November 30, 2025, was approximately 13%, a decrease from 28% for the same period in 2024[91]. - The Company's total unrecognized income tax benefits as of November 30, 2025, were $19.7 million, slightly up from $19.5 million as of February 28, 2025[92]. Future Outlook and Strategy - The QNX division aims to increase adoption of its QNX SDP 8.0 and capture a larger share of the automotive software stack in fiscal 2026[164]. - BlackBerry Radar provides asset monitoring and telematics solutions for the transportation and logistics industry, enhancing fleet management analytics[166]. - The Secure Communications division focuses on government and regulated enterprise markets, providing highly secure communication solutions[160]. - The Company expects to meet its funding requirements for current financial commitments and future operating expenditures based on its financial projections[149].