Which of these fallen tech stocks has a better shot at getting back up? BlackBerry (BB -0.88%) and Unity Software (U -4.96%) were both once high-growth tech stocks that lost their momentum and disappointed their investors. BlackBerry was once the world's top smartphone maker, but it lost that booming market to Apple's (AAPL -2.67%) iPhones and Android-powered devices. It subsequently stopped producing phones and expanded its cybersecurity and Internet of Things (IoT) services, even as it struggled to keep p ...

Core Points - The Board of Directors of Société BIC acknowledged Maëlys Castella's decision not to seek reelection as Director, with her term expiring in May 2025 [2] - The Board unanimously decided to propose Esther Gaide as an Independent Director at the upcoming Shareholders Meeting scheduled for May 20, 2025 [2][3] - Esther Gaide is recommended to be appointed as Chair of the Audit Committee and a member of the Remuneration Committee, pending shareholder approval [3] Background of Esther Gaide - Esther Gaide is a graduate of ESSEC and a chartered accountant, with a career beginning in external auditing at PricewaterhouseCoopers and Deloitte [4] - She has held various finance positions at the Bolloré Group and served as Chief Financial Officer at Technicolor and Elior Group [4] - Currently, she is a Director and Chair of the Audit Committee for Forvia and Iliad SA [4] Acknowledgment from the Board - Nikos Koumettis, Chair of the Board, expressed gratitude to Maëlys Castella for her contributions, especially as Chair of the Audit Committee, and welcomed Esther Gaide [5] Company Overview - BIC is a global leader in stationery, lighters, and shavers, known for its commitment to high-quality and affordable products [6] - The company operates in over 160 countries with a workforce of more than 13,000 employees [6] - BIC is listed on Euronext Paris and included in the SBF120 and CAC Mid 60 indexes, with a strong focus on sustainability and education [6]

Financial Performance - For the three months ended November 30, 2024, total segment revenue was $391 million, a decrease of 35.5% compared to $606 million for the same period in 2023[60]. - The Company reported a net loss of $19 million for the three months ended November 30, 2024, compared to a net income of $23 million for the same period in 2023[62]. - For the three months ended November 30, 2024, the company's revenue was $143 million, a decrease of 9% compared to $152 million for the same period in 2023[76]. - The net loss for the three months ended November 30, 2024, was $11 million, an improvement from a net loss of $21 million in the prior year, marking a 10% reduction[76]. - The company reported a net loss of $11 million, or $0.02 per share, for the three months ended November 30, 2024, compared to a net loss of $21 million, or $0.04 per share, for the same period in 2023[112]. - The company's revenue for the third quarter of fiscal 2025 was $391 million, a decrease of $215 million compared to $606 million in the same quarter of fiscal 2024[163]. Expenses and Cost Management - Research and development expenses for the three months ended November 30, 2024, were $36 million, down from $44 million in the same period of 2023, reflecting a decrease of 18.2%[60]. - Operating expenses decreased to $93 million from $101 million, representing an 8% reduction year-over-year[76]. - Research and development expenses for the three months were $27 million, down from $29 million, reflecting a 7% decrease[87]. - Total operating expenses for the nine months ended November 30, 2024, were $282 million, down from $342 million for the same period in 2023, a reduction of 17.6%[90]. - Adjusted operating expenses decreased by $9 million year-over-year to $79 million in Q3 fiscal 2025, primarily due to lower salaries and benefits expenses[134]. - General and administrative expenses decreased by $22 million, or 16.5%, in the first nine months of fiscal 2025 compared to the same period in fiscal 2024[180]. Revenue Streams and Growth Expectations - The Company anticipates revenue growth in fiscal 2025, driven by new product launches and market expansion efforts[44]. - BlackBerry IVY, an emerging intelligent vehicle data platform, is expected to enhance automakers' capabilities in accessing and utilizing vehicle sensor data[47]. - The licensing business remains a key component, managing a global patent portfolio that provides competitive advantages[47]. - The recurring software product revenue percentage was approximately 80% for the three months ended November 30, 2024, an increase from approximately 70% for the same period in 2023[97]. - The Company expects Secure Communications revenue to be between $62 million and $66 million in Q4 fiscal 2025[126]. - The company now expects IoT revenue for fiscal 2025 to be between $230 million and $235 million, up from the previous range of $225 million to $235 million[139]. Cash Flow and Financial Position - The company reported a free cash flow of $3 million for the three months ended November 30, 2024, compared to a usage of $33 million in the same period in 2023[93]. - The company had $266 million in cash, cash equivalents, and investments as of November 30, 2024, down from $298 million as of February 29, 2024[112]. - At November 30, 2024, cash and cash equivalents increased by $14 million to $189 million compared to $175 million at February 29, 2024[185]. - Current assets decreased by $53 million to $455 million at November 30, 2024, primarily due to a $31 million decrease in short-term investments[185]. Market and Strategic Initiatives - BlackBerry QNX continues to be a preferred supplier for safety-critical embedded systems, targeting industries such as automotive and medical devices[47]. - The Company expects IoT EBITDA to be in the range of $40 million to $45 million in fiscal 2025, with an EBITDA margin of approximately 18%[132]. - The Company has no intention to update or revise forward-looking statements unless required by applicable law, indicating a stable outlook for its strategic initiatives[44]. - The company is exploring opportunities for the Cylance business as it revisits capital allocation priorities[75]. Performance Metrics - Cybersecurity Annual Recurring Revenue (ARR) reached approximately $281 million as of November 30, 2024, up from $273 million a year earlier, indicating an increase of 2.9%[94]. - The Cybersecurity Dollar-Based Net Retention Rate improved to 90% for the three months ended November 30, 2024, compared to 82% for the same period in 2023, representing an increase of 8%[94]. - Secure Communications Annual Recurring Revenue (ARR) was approximately $215 million as of November 30, 2024, an increase from $199 million as of November 30, 2023[123]. - Cybersecurity Dollar-Based Net Retention Rate (DBNRR) was 90% as of November 30, 2024, up from 82% as of November 30, 2023[124]. - Secure Communications DBNRR was 95% as of November 30, 2024, an increase from 91% as of November 30, 2023[124].

Financial Data and Key Metrics - The company achieved positive EBITDA and EPS in Q3, marking a return to profitability for the first time since Q3 FY2022 [11] - Operating cash flow improved by $136 million year-to-date (Q1-Q3) compared to the previous year [11] - Total revenue for Q3 was $162 million, exceeding the upper end of the guidance range [28] - Gross margins improved to 74% sequentially and year-over-year [28] - Positive operating and free cash flow of $3 million was achieved, one quarter ahead of schedule [33] Business Line Performance IoT Division - IoT revenue was $62 million, 13% year-over-year and sequential growth, driven by royalties and development seat licenses [13][14] - Key design wins included a German luxury automaker and a major Asian auto OEM for QNX hypervisor and operating system [15] - QNX SDP 8.0 gained traction with over 10 silicon vendors committing to support it [16] - IoT EBITDA was $18 million, a 38% sequential increase, with gross margins expanding to 85% [29][30] Cybersecurity Division - Cybersecurity revenue was $93 million, exceeding guidance, with 7% sequential growth (10% for Secure Communications) [21] - Secure Communications ARR increased by 3% sequentially and 8% year-over-year to $215 million [25] - Cybersecurity EBITDA was $8 million, with Secure Communications EBITDA at $22 million (30% margin) [30] - Dollar-based net retention rate (DBNRR) for Secure Communications was 95% [26] Licensing Division - Licensing revenue was $7 million, slightly above guidance, with gross margins at 71% [27][31] - EBITDA for Licensing was $6 million [31] Market Performance - Automotive sector led IoT growth, with strong performance in digital cockpit and ADAS [14] - Industrial automation, medical, and rail verticals showed progress, with new logos like Universal Signaling and Progress Rail [18] - Secure Communications saw strong renewals in government and financial sectors, including KfW, Scottish Police, and Johns Hopkins University [22][23] Strategic Direction and Industry Competition - The sale of Cylance to Arctic Wolf is expected to strengthen the balance sheet and align with the company's strategic direction [12][13] - Focus on IoT growth, particularly QNX, with increased R&D and sales investments [47] - Secure Communications is positioned as a stable business, with growth opportunities in AtHoc and Secusmart [80][84] Management Commentary on Operating Environment and Future Outlook - Management highlighted the company's pivot to profitability and positive cash flow as a significant milestone [11][39] - The sale of Cylance is seen as a transformational move to address financial challenges and focus on core growth areas [12][13] - The company expects Q4 revenue for Secure Communications to be $62-$66 million and IoT revenue to be $60-$65 million [35] - Adjusted EBITDA for Q4 is projected to be $10-$20 million, with full-year EBITDA expected to be $60-$70 million [36] Other Important Information - The company will participate in CES 2025, showcasing QNX developments in automotive and other industries [91] - FedRAMP high certification for AtHoc is expected to strengthen the company's competitive position in the U.S. federal market [72][73] Q&A Session Summary Question: Segment EBITDA and guidance adjustments [43] - The segmented EBITDA results are pre-corporate overhead, with corporate costs around $9 million in Q3 [51] - The sequential step down in EBITDA is due to a shift in revenue mix, with higher-margin Secusmart licenses in Q3 and more hardware components expected in Q4 [45][46] Question: Capital allocation post-Cylance sale [55] - The company plans to strengthen the balance sheet and invest in IoT growth, with potential for small tuck-in M&A and share buybacks [57][59] Question: QNX revenue mix and outlook [61] - QNX revenue mix is approximately 20% development, 20% services, and 60% royalties, with fluctuations in development seat licenses [62] - The company expects an uptick in development seat revenue as OEMs address design challenges [64] Question: Secure Communications DBNR and performance [66] - Secure Communications DBNR improved to 95%, driven by strong renewals and expansions in government and financial sectors [67] - The segment is expected to stabilize further post-Cylance sale [69] Question: FedRAMP high certification for AtHoc [70] - The certification process is nearing completion, with potential to strengthen the company's position in the federal market and open new opportunities [72][73] Question: Secure Comms ARR growth and Q4 guidance [76] - Secure Comms ARR has been trending up, with an 8% year-over-year increase in Q3 [77] - Q4 guidance reflects a stable business, with growth opportunities in Secusmart's software-based model [80][84] Question: IoT royalty strength and macro backdrop [86] - IoT growth is driven by content per vehicle rather than vehicle production volume, making it less dependent on macroeconomic conditions [87] Question: Tax losses from Cylance [88] - The company retains significant tax losses, providing a shelter for future U.S. profits [89]

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]

PART I - FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents BlackBerry Limited's unaudited consolidated financial statements for the three and six months ended August 31, 2024, including balance sheets, statements of shareholders' equity, operations, comprehensive loss, and cash flows, along with detailed notes on accounting policies, fair value measurements, balance sheet specifics, income taxes, debentures, capital stock, loss per share, accumulated other comprehensive loss, commitments, contingencies, revenue, and segment disclosures [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets | Metric | August 31, 2024 (in millions) | February 29, 2024 (in millions) | | :----- | :---------------------------- | :------------------------------ | | Total Assets | $1,299 | $1,395 | | Total Liabilities | $567 | $619 | | Total Shareholders' Equity | $732 | $776 | - Current assets decreased from **$508 million** as of February 29, 2024, to **$438 million** as of August 31, 2024, primarily due to decreases in cash and cash equivalents, short-term investments, and accounts receivable[10](index=10&type=chunk) - Current liabilities decreased from **$356 million** as of February 29, 2024, to **$305 million** as of August 31, 2024, mainly driven by reductions in accounts payable, accrued liabilities, and current deferred revenue[10](index=10&type=chunk) [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Consolidated Statements of Shareholders' Equity | Metric | August 31, 2024 (in millions) | May 31, 2024 (in millions) | | :----- | :---------------------------- | :------------------------- | | Capital Stock and Additional Paid-in Capital | $2,964 | $2,957 | | Deficit | $(2,219) | $(2,200) | | Accumulated Other Comprehensive Loss | $(13) | $(15) | | Total Shareholders' Equity | $732 | $742 | - Shareholders' equity decreased from **$776 million** as of February 29, 2024, to **$732 million** as of August 31, 2024, primarily due to a net loss of **$61 million** for the six months ended August 31, 2024[17](index=17&type=chunk) - Stock-based compensation contributed **$15 million** to capital stock and additional paid-in capital for the six months ended August 31, 2024[17](index=17&type=chunk) [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Three Months Ended August 31 | Metric | 2024 (in millions) | 2023 (in millions) | Change (YoY) | | :----- | :----------------- | :----------------- | :----------- | | Revenue | $145 | $132 | +$13 | | Gross Margin | $94 | $85 | +$9 | | Operating Loss | $(21) | $(47) | +$26 | | Net Loss | $(19) | $(42) | +$23 | | Basic Loss per Share | $(0.03) | $(0.07) | +$0.04 | Six Months Ended August 31 | Metric | 2024 (in millions) | 2023 (in millions) | Change (YoY) | | :----- | :----------------- | :----------------- | :----------- | | Revenue | $289 | $505 | $(216) | | Gross Margin | $190 | $264 | $(74) | | Operating Loss | $(60) | $(58) | $(2) | | Net Loss | $(61) | $(53) | $(8) | | Basic Loss per Share | $(0.10) | $(0.09) | $(0.01) | - For the three months ended August 31, 2024, revenue increased by **$13 million**, and net loss decreased by **$23 million**, indicating improved operational performance[21](index=21&type=chunk)[22](index=22&type=chunk) - For the six months ended August 31, 2024, revenue decreased significantly by **$216 million**, primarily due to the one-time patent sale in the prior year, leading to an increased net loss of **$8 million**[21](index=21&type=chunk)[22](index=22&type=chunk) [Consolidated Statements of Comprehensive Loss](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) Three Months Ended August 31 | Metric | 2024 (in millions) | 2023 (in millions) | | :----- | :----------------- | :----------------- | | Net Loss | $(19) | $(42) | | Other Comprehensive Income | $2 | $1 | | Comprehensive Loss | $(17) | $(41) | Six Months Ended August 31 | Metric | 2024 (in millions) | 2023 (in millions) | | :----- | :----------------- | :----------------- | | Net Loss | $(61) | $(53) | | Other Comprehensive Income | $1 | $3 | | Comprehensive Loss | $(60) | $(50) | - Foreign currency translation adjustment contributed **$2 million** and **$1 million** to other comprehensive income for the three and six months ended August 31, 2024, respectively[25](index=25&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Six Months Ended August 31 | Metric | 2024 (in millions) | 2023 (in millions) | Change (YoY) | | :----- | :----------------- | :----------------- | :----------- | | Net Cash Provided by (Used in) Operating Activities | $(28) | $43 | $(71) | | Net Cash Provided by Investing Activities | $15 | $76 | $(61) | | Net Cash Provided by Financing Activities | $1 | $2 | $(1) | | Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $(12) | $121 | $(133) | | Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, End of Period | $188 | $443 | $(255) | - Operating activities shifted from providing **$43 million** in cash in 2023 to using **$28 million** in 2024, primarily due to the prior year's patent sale and changes in working capital[28](index=28&type=chunk)[236](index=236&type=chunk) - Investing activities provided **$15 million** in cash in 2024, a decrease from **$76 million** in 2023, mainly due to lower net proceeds from short-term and long-term investments[28](index=28&type=chunk)[236](index=236&type=chunk) [Notes to the Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [1. Summary of Significant Accounting Policies and Critical Accounting Estimates](index=11&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES%20AND%20CRITICAL%20ACCOUNTING%20ESTIMATES) - The interim consolidated financial statements are prepared in accordance with U.S. GAAP and include normal recurring adjustments for fair presentation[31](index=31&type=chunk) - The Company early adopted ASU 2023-07 on segment reporting in Q1 fiscal 2025, which did not have a material impact on disclosures[32](index=32&type=chunk) - No material changes to accounting policies or critical accounting estimates from the Annual Financial Statements[31](index=31&type=chunk) [2. Fair Value Measurements, Cash, Cash Equivalents and Investments](index=12&type=section&id=2.%20FAIR%20VALUE%20MEASUREMENTS,%20CASH,%20CASH%20EQUIVALENTS%20AND%20INVESTMENTS) - Fair value measurements are categorized into Level 1, 2, and 3 based on input observability, with the Company maximizing observable inputs[36](index=36&type=chunk) Cash, Cash Equivalents and Investments (August 31, 2024, in millions) | Category | Fair Value | | :------- | :--------- | | Cash and Cash Equivalents | $171 | | Short-term Investments | $40 | | Long-term Investments | $37 | | Restricted Cash and Cash Equivalents | $17 | | **Total** | **$265** | - An impairment charge of **$3 million** was recorded for operating lease ROU assets and property, plant and equipment due to exiting certain leased facilities for the six months ended August 31, 2024[42](index=42&type=chunk) [3. Consolidated Balance Sheet Details](index=16&type=section&id=3.%20CONSOLIDATED%20BALANCE%20SHEET%20DETAILS) - Allowance for credit losses for accounts receivable remained at **$6 million** as of August 31, 2024[52](index=52&type=chunk)[53](index=53&type=chunk) Intangible Assets, Net (in millions) | Category | August 31, 2024 | February 29, 2024 | | :------- | :-------------- | :---------------- | | Acquired technology | $45 | $54 | | Other acquired intangibles | $45 | $52 | | Intellectual property | $46 | $48 | | **Total Net Book Value** | **$136** | **$154** | - Goodwill increased by **$1 million** to **$563 million** as of August 31, 2024, primarily due to the effect of foreign exchange[63](index=63&type=chunk) - Restructuring program liabilities decreased from **$21 million** as of February 29, 2024, to **$8 million** as of August 31, 2024, with **$22 million** in cash payments made during the six months[69](index=69&type=chunk) [4. Income Taxes](index=19&type=section&id=4.%20INCOME%20TAXES) - The net effective income tax expense rate for the six months ended August 31, 2024, was approximately **17%**, up from **10%** in the prior year, reflecting changes in unrecognized income tax benefits and geographic mix of earnings[70](index=70&type=chunk) - Total unrecognized income tax benefits remained at **$20 million** as of August 31, 2024[70](index=70&type=chunk) [5. Debentures](index=19&type=section&id=5.%20DEBENTURES) - The Company issued **$200 million** aggregate principal amount of **3.00%** senior convertible unsecured notes in January 2024, due February 15, 2029, convertible into **52 million** common shares[71](index=71&type=chunk) - The carrying amount of the Notes increased from **$194 million** to **$195 million** for the six months ended August 31, 2024, due to amortization of debt issuance costs[73](index=73&type=chunk) - The 2020 Debentures matured on November 13, 2023, and no fair value adjustments were recorded for the three and six months ended August 31, 2024[74](index=74&type=chunk)[75](index=75&type=chunk) [6. Capital Stock](index=21&type=section&id=6.%20CAPITAL%20STOCK) Common Shares Outstanding (000s) | Date | Shares Outstanding | | :--- | :----------------- | | February 29, 2024 | 589,233 | | August 31, 2024 | 590,728 | Change in Capital Stock and Additional Paid-in Capital (in millions) | Item | Amount | | :--- | :----- | | Stock-based compensation | $15 | | Employee share purchase plan | $1 | | **Total Increase** | **$16** | - As of September 24, 2024, the Company had **591 million** voting common shares outstanding, with an additional **51.5 million** common shares issuable upon conversion of the Notes[78](index=78&type=chunk) [7. Loss Per Share](index=21&type=section&id=7.%20LOSS%20PER%20SHARE) Loss Per Share (Three Months Ended August 31) | Metric | 2024 | 2023 | | :----- | :--- | :--- | | Basic Loss per Share | $(0.03) | $(0.07) | | Diluted Loss per Share | $(0.03) | $(0.07) | Loss Per Share (Six Months Ended August 31) | Metric | 2024 | 2023 | | :----- | :--- | :--- | | Basic Loss per Share | $(0.10) | $(0.09) | | Diluted Loss per Share | $(0.10) | $(0.09) | - The weighted average number of shares outstanding for basic and diluted loss per share was **590,549 thousand** for the three months ended August 31, 2024, and **590,188 thousand** for the six months ended August 31, 2024[79](index=79&type=chunk) [8. Accumulated Other Comprehensive Loss](index=22&type=section&id=8.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) Accumulated Other Comprehensive Loss (in millions) | Category | August 31, 2024 | August 31, 2023 | | :------- | :-------------- | :-------------- | | Foreign Currency Cumulative Translation Adjustment | $(13) | $(14) | | Change in Fair Value From Instrument-Specific Credit Risk On Debentures | $0 | $(6) | | Other Post-Employment Benefit Obligations | $0 | $(1) | | **Total Accumulated Other Comprehensive Loss** | **$(13)** | **$(21)** | - The total accumulated other comprehensive loss decreased from **$(21) million** in August 2023 to **$(13) million** in August 2024, primarily due to the absence of fair value changes from instrument-specific credit risk on debentures and other post-employment benefit obligations[82](index=82&type=chunk) [9. Commitments and Contingencies](index=22&type=section&id=9.%20COMMITMENTS%20AND%20CONTINGENCIES) - The Company had **$16 million** in collateralized outstanding letters of credit as of August 31, 2024, supporting leasing arrangements[83](index=83&type=chunk) - No material claims outstanding as of August 31, 2024, for which potential loss is both probable and reasonably estimable[85](index=85&type=chunk) - The Company is involved in ongoing litigation, including a putative Ontario class action and an employment class action, with trial dates set for June 2, 2025, for the latter[85](index=85&type=chunk) [10. Revenue and Segment Disclosures](index=24&type=section&id=10.%20REVENUE%20AND%20SEGMENT%20DISCLOSURES) Segment Revenue (Three Months Ended August 31, in millions) | Segment | 2024 | 2023 | Change | | :------ | :--- | :--- | :----- | | Cybersecurity | $87 | $79 | +$8 | | IoT | $55 | $49 | +$6 | | Licensing | $3 | $4 | $(1) | | **Total** | **$145** | **$132** | **+$13** | Segment Revenue (Six Months Ended August 31, in millions) | Segment | 2024 | 2023 | Change | | :------ | :--- | :--- | :----- | | Cybersecurity | $172 | $172 | $0 | | IoT | $108 | $94 | +$14 | | Licensing | $9 | $239 | $(230) | | **Total** | **$289** | **$505** | **$(216)** | - The significant decrease in Licensing revenue for the six months ended August 31, 2024, was primarily due to the **$218 million** patent sale in Q1 fiscal 2024, which was a one-time event[95](index=95&type=chunk)[199](index=199&type=chunk) Revenue by Geographic Region (Three Months Ended August 31, in millions) | Region | 2024 | 2023 | Change | | :----- | :--- | :--- | :----- | | North America | $69 | $72 | $(3) | | Europe, Middle East and Africa | $47 | $39 | +$8 | | Other regions | $29 | $21 | +$8 | Revenue by Geographic Region (Six Months Ended August 31, in millions) | Region | 2024 | 2023 | Change | | :----- | :--- | :--- | :----- | | North America | $137 | $389 | $(252) | | Europe, Middle East and Africa | $94 | $76 | +$18 | | Other regions | $58 | $40 | +$18 | - Revenue from products and services transferred over time was **$79 million** for the three months and **$156 million** for the six months ended August 31, 2024[100](index=100&type=chunk) - Remaining performance obligations as of August 31, 2024, totaled **$189 million**, with **$161 million** expected to be recognized within 12 months[105](index=105&type=chunk) [11. Cash Flow and Additional Information](index=29&type=section&id=11.%20CASH%20FLOW%20AND%20ADDITIONAL%20INFORMATION) Cash Flow Information (Six Months Ended August 31, in millions) | Metric | 2024 | 2023 | | :----- | :--- | :--- | | Interest Paid | $3 | $3 | | Income Taxes Paid | $10 | $4 | | Income Tax Refunds Received | $0 | $0 | - The Company is exposed to foreign exchange risk, with approximately **26%** of cash and cash equivalents, **26%** of accounts receivable, and **73%** of accounts payable denominated in foreign currencies as of August 31, 2024[113](index=113&type=chunk) - Liquidity risk is managed with **$265 million** in cash, cash equivalents, and investments as of August 31, 2024, deemed sufficient for foreseeable future funding requirements[116](index=116&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=30&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on BlackBerry Limited's financial condition and results of operations for the three and six months ended August 31, 2024, compared to the prior year, covering business overview, recent developments, financial highlights, non-GAAP measures, key metrics, detailed segment performance, and liquidity, emphasizing the virtual separation of its Cybersecurity and IoT businesses and ongoing cost management efforts [Business Overview](index=31&type=section&id=Business%20Overview) - BlackBerry provides intelligent security software and services, leveraging AI and machine learning in cybersecurity, safety, and data privacy, securing over **235 million** vehicles[122](index=122&type=chunk) - The Company's two core divisions, Cybersecurity and IoT, address growing market opportunities, with IoT solutions implemented in all top ten automotive OEMs and 24 of the 25 top EV OEMs[122](index=122&type=chunk) - Key recent developments include the addition of QNX Containers, launch of CylanceMDR™ Pro, and partnerships with ETAS and AMD to advance software-defined vehicles and robotics[128](index=128&type=chunk)[129](index=129&type=chunk) - The virtual separation of IoT and Cybersecurity businesses has substantially realized its objective, achieving approximately **$130 million** in operating expense reduction since its inception in Q3 fiscal 2024[130](index=130&type=chunk) [Second Quarter Fiscal 2025 Summary Results of Operations](index=33&type=section&id=Second%20Quarter%20Fiscal%202025%20Summary%20Results%20of%20Operations) Q2 Fiscal 2025 vs. Q2 Fiscal 2024 (in millions, except per share) | Metric | Q2 FY25 | Q2 FY24 | Change | | :----- | :------ | :------ | :----- | | Revenue | $145 | $132 | +$13 | | Gross Margin | $94 | $85 | +$9 | | Operating Expenses | $115 | $132 | $(17) | | Net Loss | $(19) | $(42) | +$23 | | Basic Loss per Share | $(0.03) | $(0.07) | +$0.04 | - Cybersecurity revenue increased by **$8 million** to **$87 million**, driven by strong product revenue in Secusmart[133](index=133&type=chunk) - IoT revenue increased by **$6 million** to **$55 million**, primarily due to strong BlackBerry QNX royalty revenue[133](index=133&type=chunk) [Financial Highlights](index=35&type=section&id=Financial%20Highlights) - Cash, cash equivalents, and investments totaled **$265 million** as of August 31, 2024, down from **$298 million** as of February 29, 2024[139](index=139&type=chunk) Q2 Fiscal 2025 Financial Highlights (in millions, except per share) | Metric | U.S. GAAP | Non-GAAP | | :----- | :-------- | :------- | | Revenue | $145 | N/A | | Net Loss | $(19) | $(2) | | Basic Loss per Share | $(0.03) | $0.00 | [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) - Non-GAAP measures exclude items like debentures fair value adjustment, restructuring charges, stock compensation expenses, amortization of acquired intangible assets, and long-lived asset impairment charges to provide a clearer view of core operating performance[141](index=141&type=chunk) Adjusted Gross Margin (Three Months Ended August 31, in millions) | Metric | 2024 | 2023 | | :----- | :--- | :--- | | Gross Margin | $94 | $85 | | Stock Compensation Expense | $1 | $1 | | **Adjusted Gross Margin** | **$95** | **$86** | | Adjusted Gross Margin % | 65.5% | 65.2% | Adjusted Operating Expense (Three Months Ended August 31, in millions) | Metric | 2024 | 2023 | | :----- | :--- | :--- | | Operating Expense | $115 | $132 | | Adjustments | $(16) | $(18) | | **Adjusted Operating Expense** | **$99** | **$114** | Adjusted Net Loss (Three Months Ended August 31, in millions) | Metric | 2024 | 2023 | | :----- | :--- | :--- | | Net Loss | $(19) | $(42) | | Adjustments | $17 | $19 | | **Adjusted Net Loss** | **$(2)** | **$(23)** | Adjusted EBITDA (Six Months Ended August 31, in millions) | Metric | 2024 | 2023 | | :----- | :--- | :--- | | Operating Loss | $(60) | $(58) | | Total Non-GAAP Adjustments to Operating Loss | $44 | $65 | | Adjusted Operating Income (Loss) | $(16) | $7 | | Amortization (excluding acquired intangibles) | $9 | $12 | | **Adjusted EBITDA** | **$(7)** | **$19** | | Adjusted EBITDA Margin % | (2%) | 4% | [Key Metrics](index=41&type=section&id=Key%20Metrics) Key Metrics (Three Months Ended August 31) | Metric | 2024 | 2023 | Change | | :----- | :--- | :--- | :----- | | Cybersecurity Annual Recurring Revenue (ARR) | $279M | $279M | $0 | | Cybersecurity Dollar-Based Net Retention Rate (DBNRR) | 88% | 81% | +7% | | Recurring Software Product Revenue Percentage | ~80% | ~90% | -10% | - Cybersecurity DBNRR increased to **88%** as of August 31, 2024, from **81%** in the prior year, indicating improved retention from existing customers[165](index=165&type=chunk) - Recurring software product revenue percentage decreased to approximately **80%** for the three months ended August 31, 2024, from **90%** in the prior year, due to product mix[166](index=166&type=chunk) [Results of Operations - Three months ended August 31, 2024 compared to the three months ended August 31, 2023](index=42&type=section&id=Results%20of%20Operations%20-%20Three%20months%20ended%20August%2031,%202024%20compared%20to%20the%20three%20months%20ended%20August%2031,%202023) Revenue by Segment (Three Months Ended August 31, in millions) | Segment | 2024 | 2023 | Change | | :------ | :--- | :--- | :----- | | Cybersecurity | $87 | $79 | +$8 | | IoT | $55 | $49 | +$6 | | Licensing | $3 | $4 | $(1) | | **Total** | **$145** | **$132** | **+$13** | - Cybersecurity revenue exceeded expectations at **$87 million**, driven by strong Secusmart product revenue[171](index=171&type=chunk) - IoT revenue also surpassed expectations at **$55 million**, primarily due to robust BlackBerry QNX royalty revenue[171](index=171&type=chunk) Operating Expenses (Three Months Ended August 31, in millions) | Expense Category | 2024 | 2023 | Change | | :--------------- | :--- | :--- | :----- | | Research and development | $37 | $50 | $(13) | | Sales and marketing | $34 | $43 | $(9) | | General and administrative | $33 | $30 | +$3 | | Amortization | $11 | $14 | $(3) | | **Total Operating Expenses** | **$115** | **$132** | **$(17)** | - Net loss decreased by **$23 million** to **$19 million**, primarily due to lower operating expenses and increased revenue[190](index=190&type=chunk) [Results of Operations - Six months ended August 31, 2024 compared to the six months ended August 31, 2023](index=48&type=section&id=Results%20of%20Operations%20-%20Six%20months%20ended%20August%2031,%202024%20compared%20to%20the%20six%20months%20ended%20August%2031,%202023) Revenue by Segment (Six Months Ended August 31, in millions) | Segment | 2024 | 2023 | Change | | :------ | :--- | :--- | :----- | | Cybersecurity | $172 | $172 | $0 | | IoT | $108 | $94 | +$14 | | Licensing | $9 | $239 | $(230) | | **Total** | **$289** | **$505** | **$(216)** | - The **$230 million** decrease in Licensing revenue was primarily due to the one-time **$218 million** patent sale in Q1 fiscal 2024[199](index=199&type=chunk) Operating Expenses (Six Months Ended August 31, in millions) | Expense Category | 2024 | 2023 | Change | | :--------------- | :--- | :--- | :----- | | Research and development | $79 | $104 | $(25) | | Sales and marketing | $72 | $88 | $(16) | | General and administrative | $73 | $84 | $(11) | | Amortization | $23 | $29 | $(6) | | **Total Operating Expenses** | **$250** | **$322** | **$(72)** | - Net loss increased by **$8 million** to **$61 million**, primarily due to the decrease in revenue from the prior year's patent sale, partially offset by reduced operating expenses and an improved gross margin percentage[225](index=225&type=chunk) [Financial Condition](index=54&type=section&id=Financial%20Condition) Cash, Cash Equivalents, and Investments (in millions) | Metric | August 31, 2024 | February 29, 2024 | Change | | :----- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $171 | $175 | $(4) | | Restricted cash and cash equivalents | $17 | $25 | $(8) | | Short-term investments | $40 | $62 | $(22) | | Long-term investments | $37 | $36 | +$1 | | **Total** | **$265** | **$298** | **$(33)** | Working Capital (in millions) | Metric | August 31, 2024 | February 29, 2024 | Change | | :----- | :-------------- | :---------------- | :----- | | Current assets | $438 | $508 | $(70) | | Current liabilities | $305 | $356 | $(51) | | **Working capital** | **$133** | **$152** | **$(19)** | - The decrease in current assets was primarily due to a **$49 million** decrease in accounts receivable and a **$22 million** decrease in short-term investments[233](index=233&type=chunk) - The decrease in current liabilities was mainly driven by a **$33 million** decrease in deferred revenue and a **$10 million** decrease in accounts payable[233](index=233&type=chunk) Contractual and Other Obligations (as of August 31, 2024, in millions) | Obligation Type | Total | Short-term (next 12 months) | Long-term (>12 months) | | :-------------- | :---- | :-------------------------- | :--------------------- | | Operating lease obligations | $60 | $18 | $42 | | Purchase obligations and commitments | $48 | $48 | $0 | | Debt interest and principal payments | $227 | $6 | $221 | | **Total** | **$335** | **$72** | **$263** | [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=57&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details BlackBerry Limited's exposure to market risks, specifically foreign exchange, interest rate, and credit/customer concentration risks, which the Company actively manages through hedging activities for foreign currency and by investing in liquid, investment-grade securities, while continuously monitoring customer creditworthiness - The Company is exposed to foreign exchange risk, with **26%** of cash, **26%** of accounts receivable, and **73%** of accounts payable denominated in foreign currencies as of August 31, 2024[244](index=244&type=chunk) - Interest rate risk arises from fixed-rate investments and financing components in customer contracts, as well as the fixed-rate Notes, with no current use of interest rate derivative instruments[245](index=245&type=chunk)[247](index=247&type=chunk) - Credit risk is managed by investing in liquid, investment-grade securities and monitoring customer financial condition; one customer comprised **11%** of revenue for the three months and **12%** for the six months ended August 31, 2024[248](index=248&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=58&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) As of August 31, 2024, BlackBerry Limited's management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective in ensuring timely and accurate reporting of information required under the Exchange Act, with no material changes to internal control over financial reporting occurring during the quarter - Disclosure controls and procedures were evaluated and deemed effective as of August 31, 2024[249](index=249&type=chunk) - No material changes to internal control over financial reporting occurred during the three months ended August 31, 2024[250](index=250&type=chunk) PART II - OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=58&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 9 of the Consolidated Financial Statements for details on BlackBerry Limited's ongoing legal proceedings, which include various litigations in the normal course of business, such as class action lawsuits - Information regarding legal proceedings is detailed in Note 9 to the Consolidated Financial Statements[251](index=251&type=chunk) [ITEM 5. OTHER INFORMATION](index=58&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section states that neither BlackBerry Limited nor its officers or directors adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements for the sale of common shares during the three months ended August 31, 2024 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by the Company or its officers/directors during the three months ended August 31, 2024[252](index=252&type=chunk) [ITEM 6. EXHIBITS](index=58&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including employment and separation agreements, certifications from the CEO and CFO, and XBRL-related documents - Key exhibits include employment agreement with Tim Foote, separation agreement with Steve Rai, and certifications from the CEO and CFO[252](index=252&type=chunk)[253](index=253&type=chunk) - XBRL instance and taxonomy extension documents are also filed as exhibits[253](index=253&type=chunk)

Financial Data and Key Metrics Changes - BlackBerry's total revenue for Q2 2025 was $145 million, exceeding the upper end of the guidance range of $144 million [20] - Non-GAAP operating loss was $4 million, with adjusted EBITDA reaching break-even, which is $22 million better year-on-year [22] - Cash usage improved by $2 million sequentially to $13 million, which is $43 million better than Q2 last year [22][26] Business Line Data and Key Metrics Changes - The IoT division generated revenue of $55 million, representing 12% year-over-year growth and 4% sequential growth [7] - The Cybersecurity division reported revenue of $87 million, achieving 10% year-over-year growth, driven by UEM, AtHoc, and Secusmart products [13][14] - Cylance revenue experienced a year-over-year decline due to churn in the product-only segment, although managed services saw traction [17][65] Market Data and Key Metrics Changes - The UEM market remains mature with strong competition, but BlackBerry's on-premise deployments are gaining traction, particularly in government and financial services [14] - Annual recurring revenue (ARR) for Cybersecurity remained stable at $279 million, with a dollar-based net retention rate improving by 7 percentage points year-on-year [18] Company Strategy and Development Direction - BlackBerry is focusing on integrating IVY into the QNX team to drive efficiencies and leverage expertise [12][38] - The company is strategically enhancing UEM features to deepen its competitive moat in a mature market [14] - BlackBerry is exploring opportunities in generative AI and cloud environments, positioning itself as a startup tackling new challenges [60][63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term trends in the automotive software market, despite delays in development programs [53] - The company is monitoring potential impacts from proposed bans on Chinese auto software and hardware, emphasizing its geographic diversification [50] - Management highlighted the importance of maintaining a balance between operational efficiency and cost reduction during organizational changes [42] Other Important Information - The company appointed Tim Foote as the new CFO, who aims to increase shareholder value and recognizes the underappreciated potential of BlackBerry [20][19] - An upcoming Investor Day on October 16th will provide segmented P&Ls for IoT and Cybersecurity divisions and a deeper dive into capital allocation priorities [67] Q&A Session Summary Question: What magnitude of opportunity does QNX Containers and the HaleyTek integration open up? - Management indicated that QNX Containers are part of the ongoing expansion of the total addressable market, with traction seen in cloud environments [30] Question: Can you elaborate on the EBITDA progression reaching break-even sooner than expected? - Management noted that while Q2 reached break-even, they are being prudent with guidance for the full year, expecting sequential improvements [36] Question: Could you provide an update on the separation process? - Management reported significant progress in separating IT systems and aligning them with business units, while maintaining operational efficiency [41][43] Question: Was the higher mix of licensed revenue a primary driver of the upside? - Management confirmed that both license and hardware contributed to the revenue upside, particularly from German customers during device refresh cycles [47] Question: Any potential impact from the proposed ban on Chinese auto software and hardware? - Management is closely monitoring the situation, noting that BlackBerry is well-diversified geographically [50] Question: What caused the sequential decline in ARR for Cybersecurity? - Management attributed the decline to churn in the Cylance product segment, while UEM and AtHoc showed positive trends [54] Question: Is the improvement in net revenue retention due to better upsell and cross-sell? - Management indicated that the improvement is a combination of upsell successes and some churn in the Cylance segment [56]

Exhibit 99.1 September 26, 2024 FOR IMMEDIATE RELEASE BlackBerry Reports Second Quarter Fiscal Year 2025 Results • Achieves breakeven adjusted EBITDA and non-GAAP EPS for the quarter; GAAP net loss improves by $23 million, or 55% year-on-year to $19 million, and GAAP loss per share improves by $0.04 to $0.03 • Operating cash usage beats expectations, improving by $2 million sequentially and $43 million year-overyear • Revenue for both IoT and Cybersecurity divisions grows double-digit year-over-year; raises ...

BlackBerry Limited (NYSE:BB) KeyBanc Capital Markets 2024 Technology Leadership Forum August 6, 2024 12:30 PM ET Company Participants Tim Foote - Chief Financial Officer Nathan Jenniges - SVP & General Manager, Cybersecurity Products Conference Call Participants Eric Heath - KeyBanc Capital Eric Heath All right, Part number one. RKD and QBEX software research team covering security and data. I'm pleased to be joined by the newly appointed CFO of Blackberry division, [inaudible] and then Nathan Jen as well, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38232 ______________________________________________________ BlackBerry Limited (Exact name of registrant as specifi ...