Profit swing and QNX growth highlight BlackBerry (NYSE: BB) FY26 results
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
BlackBerry Limited reported a profitable fourth quarter and full fiscal year 2026 with improving growth and margins. Q4 revenue was $156.0 million, up 10% year-over-year, with GAAP net income of $24.3 million and adjusted EBITDA of $36.1 million, a 23% margin.
For fiscal 2026, revenue reached $549.1 million, up 3%, while GAAP net income swung to a $53.2 million profit from a $79.0 million loss. Adjusted net income rose to $97.3 million and adjusted EBITDA to $107.1 million, a 20% margin.
QNX drove performance with record Q4 revenue of $78.7 million, up 20%, and full-year revenue of $268.0 million, up 14%, supported by a royalty backlog of $950 million. Secure Communications returned to Q4 revenue growth and lifted ARR to $218 million, while total cash and investments increased to $432.4 million despite about $60 million of share buybacks.
Positive
- Profitable turnaround with stronger margins: GAAP net income improved from a $79.0 million loss to a $53.2 million profit in fiscal 2026, while adjusted EBITDA rose 27% to $107.1 million and the adjusted EBITDA margin expanded to 20%.
- QNX-led growth and backlog strength: QNX revenue grew 14% to $268.0 million with record Q4 revenue of $78.7 million (up 20%) and a royalty backlog of $950 million, supporting future embedded and automotive revenue.
- Improved cash generation and capital returns: Operating cash flow increased to $50.3 million and free cash flow to $46.5 million in fiscal 2026, while total cash and investments rose to $432.4 million even after about $60 million of share repurchases.
Negative
- None.
Insights
BlackBerry delivered a clear profitability turnaround with QNX-led growth and stronger cash generation.
BlackBerry posted Q4 revenue of $156.0 million, up 10%, and full-year revenue of $549.1 million, up 3%. The more important shift is earnings: GAAP net income improved to $24.3 million in Q4 and $53.2 million for fiscal 2026, from a prior-year loss of $79.0 million.
Non-GAAP metrics confirm the trend. Adjusted EBITDA rose 71% year-over-year in Q4 to $36.1 million, and 27% for the year to $107.1 million, expanding the adjusted EBITDA margin to 20%. Adjusted net income climbed to $97.3 million from $12.5 million, indicating much healthier underlying profitability after restructuring and impairment items.
QNX is the main growth engine, with record Q4 revenue of $78.7 million (up 20%) and full-year revenue of $268.0 million (up 14%) plus a $950 million royalty backlog. Secure Communications’ Q4 revenue grew 8%, while ARR increased to $218 million and DBNRR to 94%, pointing to better customer retention. The guidance for fiscal 2027—revenue of $584–$611 million, adjusted EBITDA of $110–$130 million, non-GAAP EPS of $0.15–$0.19, and operating cash flow of about $100 million—extends the profitable-growth narrative.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q4 2026 revenue: $156.0 million
FY 2026 revenue: $549.1 million
FY 2026 GAAP net income: $53.2 million
+5 more
8 metrics
Q4 2026 revenue
$156.0 million
Three months ended February 28, 2026; up 10% year-over-year
FY 2026 revenue
$549.1 million
Year ended February 28, 2026; up from $534.9 million
FY 2026 GAAP net income
$53.2 million
Improved from a $79.0 million loss in prior year
FY 2026 adjusted EBITDA
$107.1 million
27% year-over-year increase; 20% adjusted EBITDA margin
QNX royalty backlog
$950 million
As of February 28, 2026; up from $865 million
Secure Communications ARR
$218 million
As of February 28, 2026; increased by $10 million year-over-year
Cash and investments
$432.4 million
As of February 28, 2026; up $22.1 million year-over-year
FY 2027 revenue guidance
$584–$611 million
Company outlook for the fiscal year ending February 28, 2027
Key Terms
Adjusted EBITDA, Annual Recurring Revenue, Dollar-Based Net Retention Rate, Rule of 40, +1 more
5 terms
Adjusted EBITDA financial
"Total company adjusted EBITDA increased by 71% year-over-year to $36.1 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Annual Recurring Revenue financial
"Secure Communications ARR increased by $10 million, or 5% year-over-year to $218 million"
Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.
Dollar-Based Net Retention Rate financial
"Secure Communications DBNRR increased by 1 percentage point year-over-year to 94%"
Dollar-based net retention rate measures how much recurring revenue a company keeps and grows from its existing customers over a set period, after accounting for upgrades, downgrades, and churn. Think of it like checking whether a group of current customers are spending more, the same, or less this year compared with last year; investors use it as a thermometer for revenue health and the business’s ability to expand sales without finding new customers.
Rule of 40 financial
"QNX grows royalty backlog to $950 million and achieves Rule of 40 for both the quarter and the full fiscal year"
The "rule of 40" is a simple guideline used by investors to assess the health of a company's growth and profitability. It adds a company's growth rate to its profit margin; if the total is 40% or higher, the company is generally considered to be performing well. This helps investors quickly gauge whether a company is balancing rapid growth with solid profits, much like checking if a car’s speed and fuel efficiency together are within a safe and efficient range.
free cash flow financial
"Free cash flow was $46.5 million for the fiscal year ended February 28, 2026"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Earnings Snapshot
Q4 revenue: $156.0 million · Guidance included
Q4 and Fiscal 2026
Q4 revenue
$156.0 million
+10% year-over-year
FY 2026 revenue
$549.1 million
+3% year-over-year
FY 2026 GAAP net income
$53.2 million
from -$79.0 million prior year
FY 2026 adjusted EBITDA
$107.1 million
+27% year-over-year
Guidance
For fiscal 2027, the company guides total revenue of $584–$611 million, total adjusted EBITDA of $110–$130 million, non-GAAP basic EPS of $0.15–$0.19, and operating cash flow of approximately $100 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||||||||||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||||||||||||||||||||
(519 ) 888-7465
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Common Shares | BB | Toronto Stock Exchange | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o
Item 2.02 Results of Operations and Financial Condition
On April 9, 2026, BlackBerry Limited (“BlackBerry”) issued a press release announcing its financial results for the quarter and year ended February 28, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
The information contained in this Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | Press release, dated April 9, 2026, issued by BlackBerry Limited | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackBerry Limited | ||||||||||||||||||||
| Date: | April 9, 2026 | By: | /s/ Tim Foote | |||||||||||||||||
| Name: | Tim Foote | |||||||||||||||||||
| Title: | Chief Financial Officer | |||||||||||||||||||
Exhibit 99.1
April 9, 2026
BlackBerry Reports Fourth Quarter and Full Fiscal Year 2026 Results
•Reports 10% year-over-year revenue growth for the quarter; returns to top-line growth for fiscal year 2026
•Records eighth consecutive quarter of improvement in GAAP net income; reports operating cash flow of $45.6 million, up 9% year-over year
•QNX reports record quarterly revenue of $78.7 million, up 20% year-over-year and 14% for the full fiscal year; QNX grows royalty backlog to $950 million and achieves Rule of 401 for both the quarter and the full fiscal year
•Secure Communications returns to year-over-year revenue growth for the quarter, driven by accelerating demand for digital sovereignty solutions and expanding defence budgets
Waterloo, Ontario - BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months and fiscal year ended February 28, 2026 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).
“Since our leadership transition in 2023, we have been focused on a clear goal: to transform BlackBerry into a profitable growth company. Our performance this quarter and over the past year demonstrates that we are delivering. QNX is now a Rule of 40 business, and a clear leader in automotive, embedded in more than 275 million vehicles worldwide, with growing momentum in robotics, physical AI, and other adjacent markets. Secure Communications has returned to growth, driven by a real and accelerating digital sovereignty tailwind. That growth is translating into stronger profitability and cash generation, which we are deploying with discipline,” said John J. Giamatteo, CEO, BlackBerry. “We have strengthened our fundamentals while continuing to invest – in our people, products and platforms, as well as in certifications that position BlackBerry at the center of secure, mission-critical operations. We are no longer a company in transition. We are a growth company with a proven track record of execution, and we are well positioned for the path ahead.”
Fourth Quarter Fiscal 2026 Financial Highlights
•Total company revenue was $156.0 million, up 10% year-over-year.
•Total company adjusted gross margin improved by approximately 5 percentage points to 78.2% and GAAP gross margin improved by 4 percentage points to 77.8%.
•Total company adjusted EBITDA increased by 71% year-over-year to $36.1 million; Total company GAAP operating income increased by $30.9 million year-over-year to $22.9 million.
•QNX posted record quarterly revenue of $78.7 million, up 20% year-over-year; QNX segment adjusted gross margin expanded by 1 percentage point year-over-year to 84%.
•QNX segment adjusted EBITDA was $21.4 million, representing a 27% margin.
•QNX royalty backlog increased to approximately $950 million.
•Secure Communications revenue grew 8% year-over- year to $72.5 million; Secure Communications segment adjusted gross margin was 72%, up 8 percentage points year-over-year.
•Secure Communications ARR increased by $10 million, or 5% year-over-year to $218 million; Secure Communications DBNRR increased by 1 percentage point year-over-year to 94%.
•Secure Communications segment adjusted EBITDA increased by 55% year-over-year to $19.5 million, representing a 27% margin.
•Licensing revenue was $4.8 million; Licensing segment adjusted EBITDA was $6.3 million.
•Adjusted Corporate costs, excluding amortization, were $11.1 million, down 8% year-over-year.
•Adjusted net income increased by 92% year-over-year to $34.0 million and GAAP net income improved for the eighth consecutive quarter to $24.3 million.
•Adjusted basic earnings per share was $0.06; GAAP basic earnings per share was $0.04.
•Operating cash flow was $45.6 million.
•Total cash and investments increased by $22.1 million year-over-year to $432.4 million, in part due to the improved operating cash flow and approximately $38.1 million received in deferred proceeds from the sale of Cylance to Arctic Wolf, partially offset by $60 million of share buybacks.
Full Year Fiscal 2026 Financial Highlights
•Total company revenue was $549.1 million, up 3% year-over-year.
•Total company adjusted gross margin was 76.6% and GAAP gross margin was 76.2%.
•Total company adjusted EBITDA was $107.1 million, up 27% year-over-year; Total company GAAP operating income increased by $47.5 million year-over-year to $48.3 million.
•QNX revenue grew 14% year-over-year to $268.0 million, up from 10% growth in the prior year; QNX segment adjusted gross margin was 83%; and QNX segment adjusted EBITDA increased by 20% year-over-year to $71.0 million, at a 26% margin, resulting in a Rule of 401 year for QNX.
•Secure Communications revenue was $258.9 million; Secure Communications segment adjusted gross margin was 70% and Secure Communications segment adjusted EBITDA was $56.1 million, representing a 22% margin.
•Licensing revenue was $22.2 million; Licensing segment adjusted EBITDA was $21.0 million.
•Adjusted Corporate costs, excluding amortization, were $41.0 million, down 5% year-over-year.
•Adjusted net income was $97.3 million; GAAP net income improved from a loss of $79.0 million to a gain of $53.2 million year-over-year.
•Income from continuing operations for the full fiscal year improved by $61.7 million to $53.2 million compared to a loss from continuing operations of $8.5 million.
•Adjusted basic earnings per share for the full fiscal year increased by $0.14 to $0.16; GAAP basic earnings per share improved from a $0.13 loss to a $0.09 profit.
•Operating cash flow was $50.3 million.
1 The company defines the Rule of 40 metric as the sum of its GAAP revenue year-over-year growth percentage and its non-GAAP adjusted EBITDA margin percentage. Where the sum equals or exceeds 40, then the Rule of 40 is considered to have been achieved.
Business Highlights & Strategic Announcements
•Mercedes-Benz among automakers trialing early access version of QNX and Vector's Alloy Kore platform
•QNX technology to be integrated in BMW Group's next-generation ‘Neue Klasse’ software-defined vehicle architecture.
•QNX® Software Development Platform (SDP) 8.0 adds support for AMD Ryzen Embedded x86 processors, deployed in systems across automotive, industrial, robotics and medical markets.
•QNX released general access version of the QNX® Hypervisor 8.0 for Safety, enabling faster certification for customers targeting development in the physical AI space.
•QNX and Haleytek were chosen to enable software-defined audio using QNX Sound for Volvo Cars' EX60 fully-electric SUV.
•QNX demonstrated its full range of products for enabling robotics and physical AI at Embedded World 2026 conference in Nuremberg, Germany.
•QNX Everywhere program to increase awareness and adoption of QNX products, passes 12,000 free licenses and more than 100 academic partnerships.
•Government of Canada announced an expanded strategic partnership with BlackBerry, including significantly increasing the deployment of BlackBerry® SecuSUITE® across federal departments and agencies.
Financial Outlook
BlackBerry is providing the following guidance for the first fiscal quarter and the full fiscal year 2027 (ending February 28, 2027).
| Q1 FY27 | Full fiscal year FY27 | |||||||
| Total BlackBerry revenue: | $132 - $140 million | $584 - $611 million | ||||||
| QNX revenue: | $60 - $64 million | $290 - $307 million | ||||||
| Secure Communications revenue: | $66 - $70 million | $270 - $280 million | ||||||
| Licensing revenue: | Approximately $6 million | Approximately $24 million | ||||||
| QNX segment adjusted EBITDA: | $4 - $8 million | $69 - $81 million | ||||||
| Secure Communications segment adjusted EBITDA: | $14 - $18 million | $57 - $65 million | ||||||
| Licensing segment adjusted EBITDA: | Approximately $5 million | Approximately $20 million | ||||||
| Total Company adjusted EBITDA: | $14 - $22 million | $110 - $130 million | ||||||
Non-GAAP basic EPS2: | $0.02 – $0.03 | $0.15 – $0.19 | ||||||
| Operating cash flow | Breakeven – $10 million | Approximately $100 million | ||||||
2 EPS guidance does not include the effect of any potential future share repurchases not yet completed as of the date of this release.
Use of Non-GAAP Financial Measures
The tables at the end of this press release include a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios used by the Company to comparable U.S. GAAP measures and an explanation of why the
Company uses them. The Company does not provide a reconciliation of expected Adjusted EBITDA and expected
Non-GAAP basic EPS for the first quarter and full fiscal year 2027 to the most directly comparable expected GAAP measures because it is unable to predict with reasonable certainty, among other things, restructuring charges and impairment charges and, accordingly, a reconciliation is not available without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For more information on the non-GAAP financial measures, please refer to the tables at the end of this press release.
Conference Call and Webcast
A conference call and live webcast will be held today beginning at 8:00 a.m. ET, which can be accessed
using the following link (here) or through the Company’s investor webpage (BlackBerry.com/Investors) or by dialing toll free +1 (877) 883-0383 and entering Entry Number 9385158.
A replay of the conference call will be available at approximately 10:00 a.m. ET today, using the same webcast link (here) or by dialing toll free +1 (855) 669-9658 and entering Replay Access Code 9489234.
About BlackBerry
BlackBerry (NYSE: BB; TSX: BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company’s high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.
For more information, visit BlackBerry.com and follow @BlackBerry.
Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
investorrelations@blackberry.com
Media Contact:
BlackBerry Media Relations
+1 (519) 597-7273
mediarelations@blackberry.com
###
This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry’s plans, strategies and objectives.
The words “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “could”, “intend”, “believe”, “target”, “plan” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry’s expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, competition, and BlackBerry’s expectations regarding its financial performance. Many factors could cause BlackBerry’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry’s ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; BlackBerry’s ability to enhance, develop, introduce or monetize its products and services in a timely manner with competitive pricing, features and performance; significant changes in government customer demand or procurement requirements; BlackBerry’s sales cycles and the time and expense of its sales efforts; the occurrence or perception of a breach of BlackBerry’s network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; BlackBerry’s use of artificial intelligence technology and tools in its operations and in product development; adverse macroeconomic and geopolitical conditions, including trade policies and national security concerns; risks arising from a failure or perceived failure of the security features or functionality of BlackBerry’s solutions; litigation against BlackBerry; BlackBerry’s continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; network disruptions or other business interruptions; BlackBerry’s ability to foster an ecosystem of third-party application developers; BlackBerry’s dependence in part on its relationships with resellers and channel partners; BlackBerry’s products and services being dependent upon interoperability with rapidly changing systems provided by third parties; failure to protect BlackBerry’s intellectual property and to earn expected revenues from intellectual property rights; BlackBerry’s use of open source software and its ability to obtain rights to use third-party software; BlackBerry potentially being found to have infringed on the intellectual property rights of others; BlackBerry’s indebtedness, which could impact its operating flexibility and financial condition; the asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry’s products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerry’s suppliers, subcontractors, channel partners and
representatives to use acceptable ethical business practices or comply with applicable laws; potential impacts of acquisitions, divestitures and other business initiatives; risks associated with foreign operations, including fluctuations in foreign currencies; environmental events; the fluctuation of BlackBerry’s quarterly revenue and operating results; and the volatility of the market price of BlackBerry’s common shares.
These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry’s Annual Report on Form 10-K and the “Cautionary Note Regarding Forward-Looking Statements” section of BlackBerry’s MD&A (copies of which filings may be obtained at www.sedarplus.ca or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry’s forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry’s shareholders to view the anticipated performance and prospects of BlackBerry from management’s perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry’s financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry’s business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and BlackBerry has no intention and undertakes no obligation to update or revise any of them, except as required by law.
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except share and per share amounts)
Consolidated Statements of Operations
| Three Months Ended | For the Years Ended | ||||||||||||||||||||||||||||
| February 28, 2026 | November 30, 2025 | February 28, 2025 | February 28, 2026 | February 28, 2025 | |||||||||||||||||||||||||
| Revenue | $ | 156.0 | $ | 141.8 | $ | 141.7 | $ | 549.1 | $ | 534.9 | |||||||||||||||||||
| Cost of sales | 34.6 | 31.9 | 37.6 | 130.9 | 140.0 | ||||||||||||||||||||||||
| Gross margin | 121.4 | 109.9 | 104.1 | 418.2 | 394.9 | ||||||||||||||||||||||||
| Gross margin % | 77.8 | % | 77.5 | % | 73.5 | % | 76.2 | % | 73.8 | % | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Research and development | 33.4 | 29.6 | 23.2 | 113.6 | 108.8 | ||||||||||||||||||||||||
| Sales and marketing | 31.6 | 29.3 | 27.1 | 114.0 | 95.5 | ||||||||||||||||||||||||
| General and administrative | 30.7 | 36.1 | 50.0 | 128.8 | 159.7 | ||||||||||||||||||||||||
| Amortization | 1.9 | 2.4 | 4.1 | 11.4 | 17.7 | ||||||||||||||||||||||||
| Impairment of long-lived assets | 0.9 | 0.6 | 4.9 | 2.1 | 9.6 | ||||||||||||||||||||||||
| Litigation settlements | — | — | 2.8 | — | 2.8 | ||||||||||||||||||||||||
| 98.5 | 98.0 | 112.1 | 369.9 | 394.1 | |||||||||||||||||||||||||
| Operating income (loss) | 22.9 | 11.9 | (8.0) | 48.3 | 0.8 | ||||||||||||||||||||||||
| Investment income, net | 3.0 | 2.9 | 1.6 | 10.7 | 7.7 | ||||||||||||||||||||||||
| Income (loss) before income taxes | 25.9 | 14.8 | (6.4) | 59.0 | 8.5 | ||||||||||||||||||||||||
| Provision for income taxes | 1.6 | 1.1 | 1.4 | 5.8 | 17.0 | ||||||||||||||||||||||||
| Income (loss) from continuing operations | 24.3 | 13.7 | (7.8) | 53.2 | (8.5) | ||||||||||||||||||||||||
| Gain from disposal of discontinued operation, net of tax | — | — | 10.2 | — | 10.2 | ||||||||||||||||||||||||
| Loss from discontinued operations, net of tax | — | — | (9.8) | — | (80.7) | ||||||||||||||||||||||||
| Net income (loss) | $ | 24.3 | $ | 13.7 | $ | (7.4) | $ | 53.2 | $ | (79.0) | |||||||||||||||||||
| Earnings (loss) per share | |||||||||||||||||||||||||||||
| Basic earnings (loss) per share from continuing operations | $ | 0.04 | $ | 0.02 | $ | (0.01) | $ | 0.09 | $ | (0.01) | |||||||||||||||||||
| Total basic earnings (loss) per share | $ | 0.04 | $ | 0.02 | $ | (0.01) | $ | 0.09 | $ | (0.13) | |||||||||||||||||||
| Diluted earnings (loss) per share from continuing operations | $ | 0.04 | $ | 0.02 | $ | (0.01) | $ | 0.09 | $ | (0.01) | |||||||||||||||||||
| Total diluted earnings (loss) per share | $ | 0.04 | $ | 0.02 | $ | (0.01) | $ | 0.09 | $ | (0.13) | |||||||||||||||||||
| Weighted-average number of common shares outstanding (000s) | |||||||||||||||||||||||||||||
| Basic | 588,783 | 590,892 | 594,267 | 592,251 | 591,470 | ||||||||||||||||||||||||
| Diluted | 643,613 | 596,303 | 594,267 | 597,585 | 591,470 | ||||||||||||||||||||||||
| Total common shares outstanding (000s) | 587,431 | 590,392 | 596,231 | 587,431 | 596,231 | ||||||||||||||||||||||||
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)
Consolidated Balance Sheets
| As at | ||||||||||||||
| February 28, 2026 | February 28, 2025 | |||||||||||||
| Assets | ||||||||||||||
| Current | ||||||||||||||
| Cash and cash equivalents | $ | 274.7 | $ | 266.7 | ||||||||||
| Short-term investments | 85.2 | 71.1 | ||||||||||||
| Accounts receivable, net of allowance of $3.4 and $6.6, respectively | 156.0 | 173.7 | ||||||||||||
| Other receivables | 7.5 | 48.4 | ||||||||||||
| Income taxes receivable | 2.6 | 1.6 | ||||||||||||
| Other current assets | 42.2 | 30.0 | ||||||||||||
| 568.2 | 591.5 | |||||||||||||
| Restricted cash and cash equivalents | 14.2 | 13.6 | ||||||||||||
| Long-term investments | 58.3 | 58.9 | ||||||||||||
| Other long-term assets | 56.3 | 76.5 | ||||||||||||
| Operating lease right-of-use assets, net | 16.7 | 22.0 | ||||||||||||
| Property, plant and equipment, net | 12.3 | 13.4 | ||||||||||||
| Intangible assets, net | 40.1 | 47.3 | ||||||||||||
| Goodwill | 479.1 | 472.4 | ||||||||||||
| $ | 1,245.2 | $ | 1,295.6 | |||||||||||
| Liabilities | ||||||||||||||
| Current | ||||||||||||||
| Accounts payable | $ | 5.5 | $ | 31.1 | ||||||||||
| Accrued liabilities | 111.7 | 126.2 | ||||||||||||
| Income taxes payable | 12.4 | 25.5 | ||||||||||||
| Deferred revenue, current | 138.5 | 161.5 | ||||||||||||
| 268.1 | 344.3 | |||||||||||||
| Deferred revenue, non-current | 14.1 | 5.6 | ||||||||||||
| Operating lease liabilities | 18.8 | 28.7 | ||||||||||||
| Other long-term liabilities | 1.7 | 1.8 | ||||||||||||
| Long-term notes | 196.5 | 195.3 | ||||||||||||
| 499.2 | 575.7 | |||||||||||||
| Shareholders’ equity | ||||||||||||||
| Capital stock and additional paid-in capital | 2,924.4 | 2,976.4 | ||||||||||||
| Deficit | (2,167.2) | (2,237.3) | ||||||||||||
| Accumulated other comprehensive loss | (11.2) | (19.2) | ||||||||||||
| 746.0 | 719.9 | |||||||||||||
| $ | 1,245.2 | $ | 1,295.6 | |||||||||||
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)
Consolidated Statements of Cash Flows
| For the Years Ended | |||||||||||
| February 28, 2026 | February 28, 2025 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income (loss) | $ | 53.2 | $ | (79.0) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Amortization | 17.8 | 44.7 | |||||||||
| Stock-based compensation | 23.2 | 25.6 | |||||||||
| Gain on disposal of discontinued operation | — | (10.4) | |||||||||
| Impairment of long-lived assets | 2.1 | 9.6 | |||||||||
| Operating leases | (11.3) | (10.8) | |||||||||
| Other | 1.2 | 2.3 | |||||||||
| Net changes in working capital items | |||||||||||
| Accounts receivable, net of allowance | 17.7 | 25.0 | |||||||||
| Other receivables | 2.8 | 11.7 | |||||||||
| Income taxes receivable | (1.0) | 2.0 | |||||||||
| Other assets | 8.2 | (16.0) | |||||||||
| Accounts payable | (26.5) | 14.2 | |||||||||
| Accrued liabilities | (9.5) | 6.4 | |||||||||
| Income taxes payable | (13.1) | (2.9) | |||||||||
| Deferred revenue | (14.5) | (5.9) | |||||||||
| Net cash provided by operating activities | 50.3 | 16.5 | |||||||||
| Cash flows from investing activities | |||||||||||
| Proceeds on sale, maturity or distribution from long-term investments | 1.1 | — | |||||||||
| Acquisition of property, plant and equipment | (3.8) | (3.1) | |||||||||
| Acquisition of intangible assets | (5.7) | (7.0) | |||||||||
| Cash proceeds from disposal of discontinued operation | 38.1 | 79.8 | |||||||||
| Acquisition of short-term investments | (153.6) | (154.9) | |||||||||
| Proceeds on sale or maturity of short-term investments | 139.5 | 145.9 | |||||||||
| Net cash provided by investing activities | 15.6 | 60.7 | |||||||||
| Cash flows from financing activities | |||||||||||
| Issuance of common shares | 2.5 | 3.1 | |||||||||
| Common shares repurchased | (60.7) | — | |||||||||
| Net cash provided by (used in) financing activities | (58.2) | 3.1 | |||||||||
| Effect of foreign exchange gain (loss) on cash, cash equivalents, restricted cash, and restricted cash equivalents | 0.9 | (0.5) | |||||||||
| Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents during the year | 8.6 | 79.8 | |||||||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year | 280.3 | 200.5 | |||||||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | $ | 288.9 | $ | 280.3 | |||||||
| As at | February 28, 2026 | February 28, 2025 | |||||||||
| Cash and cash equivalents | $ | 274.7 | $ | 266.7 | |||||||
| Restricted cash and cash equivalents | 14.2 | 13.6 | |||||||||
| Short-term investments | 85.2 | 71.1 | |||||||||
| Long-term investments | 58.3 | 58.9 | |||||||||
| $ | 432.4 | $ | 410.3 | ||||||||
Reconciliations of the Company’s Segment Results and Segment Adjusted EBITDA to the Consolidated Results
The following tables show information by operating segments for the three months and years ended February 28, 2026 and February 28, 2025. The Company reports segment information in accordance with U.S. GAAP, pursuant to the Financial Accounting Standards Board’s Accounting Standard Codification Topic 280, Segment Reporting, based on the “management” approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance of the Company’s reportable operating segments. The measure of segment profit or loss disclosed by the Company in the Consolidated Financial Statements under the “management” approach in reviewing the results of the Company’s operating segments is segment adjusted gross margin. Additionally, the following tables include the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA, a non-GAAP financial measure, which excludes amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment charge. For the three months and year ended February 28, 2026, the Company presented segment adjusted EBITDA results excluding amortization in segment research and development, segment sales and marketing and segment general and administrative to align to the operating expense presentation on the Consolidated Statement of Operations. For purposes of comparability, the Company’s segment adjusted EBITDA for the three months and year ended February 28, 2025 has been updated to conform to the current year’s presentation.
For the Three Months Ended (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| QNX | Secure Communications | Licensing | |||||||||||||||||||||||||||||||||||||||||||||||||||
| February 28, | Change | February 28, | Change | February 28, | Change | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Segment revenue | $ | 78.7 | $ | 65.8 | $ | 12.9 | $ | 72.5 | $ | 67.3 | $ | 5.2 | $ | 4.8 | $ | 8.6 | $ | (3.8) | |||||||||||||||||||||||||||||||||||
| Segment cost of sales | 12.2 | 11.1 | 1.1 | 20.3 | 24.5 | (4.2) | 1.5 | 1.6 | (0.1) | ||||||||||||||||||||||||||||||||||||||||||||
| Segment adjusted gross margin | $ | 66.5 | $ | 54.7 | $ | 11.8 | $ | 52.2 | $ | 42.8 | $ | 9.4 | $ | 3.3 | $ | 7.0 | $ | (3.7) | |||||||||||||||||||||||||||||||||||
| Segment research and development | 19.6 | 12.9 | 6.7 | 12.3 | 9.0 | 3.3 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Segment sales and marketing | 17.0 | 14.4 | 2.6 | 12.9 | 12.0 | 0.9 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Segment general and administrative | 8.5 | 8.2 | 0.3 | 7.5 | 9.2 | (1.7) | (1.5) | 7.1 | (8.6) | ||||||||||||||||||||||||||||||||||||||||||||
| Less amortization included in segment cost of sales | — | — | — | — | — | — | 1.5 | 1.5 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Segment adjusted EBITDA | $ | 21.4 | $ | 19.2 | $ | 2.2 | $ | 19.5 | $ | 12.6 | $ | 6.9 | $ | 6.3 | $ | 1.4 | $ | 4.9 | |||||||||||||||||||||||||||||||||||
| For the Years Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| QNX | Secure Communications | Licensing | |||||||||||||||||||||||||||||||||||||||||||||||||||
| February 28, | Change | February 28, | Change | February 28, | Change | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Segment revenue | $ | 268.0 | $ | 236.0 | $ | 32.0 | $ | 258.9 | $ | 272.6 | $ | (13.7) | $ | 22.2 | $ | 26.3 | $ | (4.1) | |||||||||||||||||||||||||||||||||||
| Segment cost of sales | 45.4 | 38.8 | 6.6 | 77.2 | 92.7 | (15.5) | 6.1 | 6.1 | — | ||||||||||||||||||||||||||||||||||||||||||||
| Segment adjusted gross margin | $ | 222.6 | $ | 197.2 | $ | 25.4 | $ | 181.7 | $ | 179.9 | $ | 1.8 | $ | 16.1 | $ | 20.2 | $ | (4.1) | |||||||||||||||||||||||||||||||||||
| Segment research and development | 61.7 | 59.3 | 2.4 | 45.8 | 43.8 | 2.0 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Segment sales and marketing | 56.2 | 46.4 | 9.8 | 51.0 | 46.4 | 4.6 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Segment general and administrative | 33.8 | 32.4 | 1.4 | 29.0 | 37.7 | (8.7) | 1.2 | 10.4 | (9.2) | ||||||||||||||||||||||||||||||||||||||||||||
| Less amortization included in segment cost of sales | 0.1 | — | 0.1 | 0.2 | 0.3 | (0.1) | 6.1 | 6.0 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Segment adjusted EBITDA | $ | 71.0 | $ | 59.1 | $ | 11.9 | $ | 56.1 | $ | 52.3 | $ | 3.8 | $ | 21.0 | $ | 15.8 | $ | 5.2 | |||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures
In the Company’s internal reports, management evaluates the performance of the Company’s business on a non-GAAP basis by excluding the impact of certain items from the Company’s U.S. GAAP financial results. The Company believes that these non-GAAP financial measures and non-GAAP ratios provide management, as well as readers of the Company’s financial statements, with a consistent basis for comparison across accounting periods and are useful in helping management and readers understand the Company’s operating results and underlying operational trends.
Readers are cautioned that adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted Corporate operating costs, adjusted Corporate operating costs excluding amortization, adjusted net income, adjusted earnings per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income, adjusted EBITDA, segment adjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA margin percentage and free cash flow and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies.
Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the three months ended February 28, 2026 and February 28, 2025
A reconciliation of the most directly comparable U.S. GAAP gross margin and gross margin percentage for the three months ended February 28, 2026 and February 28, 2025 to both adjusted gross margin and adjusted gross margin percentage are reflected in the table below:
| For the Three Months Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
| Gross margin | $ | 121.4 | $ | 104.1 | ||||||||||
| Stock compensation expense | 0.6 | 0.4 | ||||||||||||
| Adjusted gross margin | $ | 122.0 | $ | 104.5 | ||||||||||
| Gross margin % | 77.8 | % | 73.5 | % | ||||||||||
| Stock compensation expense | 0.4 | % | 0.2 | % | ||||||||||
| Adjusted gross margin % | 78.2 | % | 73.7 | % | ||||||||||
Reconciliation of U.S. GAAP operating expenses for the three months ended February 28, 2026, and February 28, 2025 to adjusted operating expenses is reflected in the table below:
| For the Three Months Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
| Operating expenses | $ | 98.5 | $ | 112.1 | ||||||||||
| Restructuring charges | 3.3 | 11.4 | ||||||||||||
| Stock compensation expense | 4.9 | 3.9 | ||||||||||||
| Acquired intangibles amortization | — | 1.7 | ||||||||||||
| Litigation settlements | — | 2.8 | ||||||||||||
| LLA impairment charge | 0.9 | 4.9 | ||||||||||||
| Adjusted operating expenses | $ | 89.4 | $ | 87.4 | ||||||||||
Reconciliation of U.S. GAAP Corporate operating costs for the three months ended February 28, 2026 and February 28, 2025 to adjusted Corporate operating costs excluding amortization is reflected in the table below:
| For the Three Months Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
Corporate operating costs | $ | 17.6 | $ | 31.1 | ||||||||||
| Restructuring charges | 3.3 | 11.4 | ||||||||||||
| Stock compensation expense | 2.1 | 1.3 | ||||||||||||
| Litigation settlements | — | 2.8 | ||||||||||||
| LLA impairment charge | 0.9 | 2.9 | ||||||||||||
| Adjusted Corporate operating costs | 11.3 | 12.7 | ||||||||||||
| Amortization | 0.2 | 0.6 | ||||||||||||
| Adjusted Corporate operating costs excluding amortization | $ | 11.1 | $ | 12.1 | ||||||||||
Reconciliation of U.S. GAAP net income (loss) and U.S. GAAP basic earnings (loss) per share for the three months ended February 28, 2026 and February 28, 2025 to adjusted net income and adjusted basic earnings per share is reflected in the table below:
| For the Three Months Ended (in millions, except per share amounts) | February 28, 2026 | February 28, 2025 | ||||||||||||||||||||||||
| Basic earnings per share | Basic earnings (loss) per share | |||||||||||||||||||||||||
| Net income (loss) | $ | 24.3 | $ | 0.04 | $ | (7.4) | $(0.01) | |||||||||||||||||||
| Restructuring charges | 3.3 | 11.4 | ||||||||||||||||||||||||
| Stock compensation expense | 5.5 | 4.3 | ||||||||||||||||||||||||
| Acquired intangibles amortization | — | 1.7 | ||||||||||||||||||||||||
| Litigation settlements | — | 2.8 | ||||||||||||||||||||||||
| LLA impairment charge | 0.9 | 4.9 | ||||||||||||||||||||||||
| Adjusted net income | $ | 34.0 | $ | 0.06 | $ | 17.7 | $0.03 | |||||||||||||||||||
Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the three months ended February 28, 2026 and February 28, 2025 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:
| For the Three Months Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
| Research and development | $ | 33.4 | $ | 23.2 | ||||||||||
| Stock compensation expense | 1.3 | 1.2 | ||||||||||||
| Adjusted research and development expense | $ | 32.1 | $ | 22.0 | ||||||||||
| Sales and marketing | $ | 31.6 | $ | 27.1 | ||||||||||
| Stock compensation expense | 1.2 | 0.7 | ||||||||||||
| Adjusted sales and marketing expense | $ | 30.4 | $ | 26.4 | ||||||||||
| General and administrative | $ | 30.7 | $ | 50.0 | ||||||||||
| Restructuring charges | 3.3 | 11.4 | ||||||||||||
| Stock compensation expense | 2.4 | 2.0 | ||||||||||||
| Adjusted general and administrative expense | $ | 25.0 | $ | 36.6 | ||||||||||
| Amortization | $ | 1.9 | $ | 4.1 | ||||||||||
| Acquired intangibles amortization | — | 1.7 | ||||||||||||
| Adjusted amortization expense | $ | 1.9 | $ | 2.4 | ||||||||||
Reconciliation of U.S GAAP operating income (loss) to adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the three months ended February 28, 2026 and February 28, 2025 are reflected in the table below.
| For the Three Months Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
| Operating income (loss) | $ | 22.9 | $ | (8.0) | ||||||||||
| Non-GAAP adjustments to operating income (loss) | ||||||||||||||
| Restructuring charges | 3.3 | 11.4 | ||||||||||||
| Stock compensation expense | 5.5 | 4.3 | ||||||||||||
| Acquired intangibles amortization | — | 1.7 | ||||||||||||
| Litigation settlements | — | 2.8 | ||||||||||||
| LLA impairment charge | 0.9 | 4.9 | ||||||||||||
| Total non-GAAP adjustments to operating income | 9.7 | 25.1 | ||||||||||||
| Adjusted operating income | 32.6 | 17.1 | ||||||||||||
| Amortization | 3.5 | 5.7 | ||||||||||||
| Acquired intangibles amortization | — | (1.7) | ||||||||||||
| Adjusted EBITDA | $ | 36.1 | $ | 21.1 | ||||||||||
| Revenue | $ | 156.0 | $ | 141.7 | ||||||||||
Adjusted operating income margin % (1) | 21 | % | 12 | % | ||||||||||
Adjusted EBITDA margin % (2) | 23 | % | 15 | % | ||||||||||
______________________________
(1) Adjusted operating income margin % is calculated by dividing adjusted operating income by revenue.
(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue.
The CODM also uses the segment metric of segment adjusted EBITDA, which is a non-GAAP measure including segment expenses that exclude amounts related to investment income, taxes, amortization, stock compensation expenses, long-lived asset impairment and restructuring charges. The following table reconciles the U.S. GAAP measures of segment profit or loss disclosed by the Company in the Consolidated Financial Statements of segment adjusted gross margin to segment adjusted EBITDA for the three months ended February 28, 2026 and February 28, 2025.
| For the Three Months Ended | |||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| QNX | Secure Communications | Licensing | |||||||||||||||||||||||||||||||||
| February 28, | February 28, | February 28, | |||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||
| Segment adjusted gross margin | $ | 66.5 | $ | 54.7 | $ | 52.2 | $ | 42.8 | $ | 3.3 | $ | 7.0 | |||||||||||||||||||||||
| Segment research and development | 19.6 | 12.9 | 12.3 | 9.0 | — | — | |||||||||||||||||||||||||||||
| Segment sales and marketing | 17.0 | 14.4 | 12.9 | 12.0 | — | — | |||||||||||||||||||||||||||||
| Segment general and administrative | 8.5 | 8.2 | 7.5 | 9.2 | (1.5) | 7.1 | |||||||||||||||||||||||||||||
| Less amortization included in segment cost of sales | — | — | — | — | 1.5 | 1.5 | |||||||||||||||||||||||||||||
| Segment adjusted EBITDA | $ | 21.4 | $ | 19.2 | $ | 19.5 | $ | 12.6 | $ | 6.3 | $ | 1.4 | |||||||||||||||||||||||
Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the years ended February 28, 2026 and February 28, 2025.
A reconciliation of the most directly comparable U.S. GAAP gross margin and gross margin percentage for the years ended February 28, 2026 and February 28, 2025 to both adjusted gross margin and adjusted gross margin percentage are reflected in the table below:
| For the Fiscal Years Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
| Gross margin | $ | 418.2 | $ | 394.9 | ||||||||||
| Stock compensation expense | 2.2 | 2.4 | ||||||||||||
| Adjusted gross margin | $ | 420.4 | $ | 397.3 | ||||||||||
| Gross margin % | 76.2 | % | 73.8 | % | ||||||||||
| Stock compensation expense | 0.4 | % | 0.5 | % | ||||||||||
| Adjusted gross margin % | 76.6 | % | 74.3 | % | ||||||||||
Reconciliation of U.S. GAAP operating expenses for the years ended February 28, 2026 and February 28, 2025 to adjusted operating expenses is reflected in the table below:
| For the Fiscal Years Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
| Operating expenses | $ | 369.9 | $ | 394.1 | ||||||||||
| Restructuring charges | 15.7 | 26.1 | ||||||||||||
| Stock compensation expense | 21.0 | 18.2 | ||||||||||||
| Acquired intangibles amortization | 3.1 | 7.0 | ||||||||||||
| Litigation settlements | — | 2.8 | ||||||||||||
| LLA impairment charge | 2.1 | 9.6 | ||||||||||||
| Adjusted operating expenses | $ | 328.0 | $ | 330.4 | ||||||||||
Reconciliation of U.S. GAAP Corporate operating costs for the years ended February 28, 2026 and February 28, 2025 to adjusted Corporate operating costs excluding amortization is reflected in the table below:
| For the Fiscal Years Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
Corporate operating costs | $ | 68.1 | $ | 86.4 | ||||||||||
| Restructuring charges | 15.7 | 26.0 | ||||||||||||
| Stock compensation expense | 8.2 | 4.3 | ||||||||||||
| Litigation settlements | — | 2.8 | ||||||||||||
| Goodwill impairment charge | — | — | ||||||||||||
| LLA impairment charge | 2.1 | 7.5 | ||||||||||||
| Adjusted Corporate operating costs | 42.1 | 45.8 | ||||||||||||
| Amortization | 1.1 | 2.8 | ||||||||||||
| Adjusted Corporate operating costs excluding amortization | $ | 41.0 | $ | 43.0 | ||||||||||
Reconciliation of U.S. GAAP net income (loss) and U.S. GAAP basic earnings (loss) per share for the years ended February 28, 2026 and February 28, 2025 to adjusted net income and adjusted basic earnings per share is reflected in the table below:
| For the Fiscal Years Ended (in millions, except per share amounts) | February 28, 2026 | February 28, 2025 | |||||||||||||||||||||||||||
| Basic earnings per share | Basic earnings (loss) per share | ||||||||||||||||||||||||||||
| Net income (loss) | $ | 53.2 | $ | 0.09 | $ | (79.0) | $ | (0.13) | |||||||||||||||||||||
| Restructuring charges | 15.7 | 26.1 | |||||||||||||||||||||||||||
| Stock compensation expense | 23.2 | 25.6 | |||||||||||||||||||||||||||
| Acquired intangibles amortization | 3.1 | 27.4 | |||||||||||||||||||||||||||
| Litigation settlements | — | 2.8 | |||||||||||||||||||||||||||
| LLA impairment charge | 2.1 | 9.6 | |||||||||||||||||||||||||||
| Adjusted net income | $ | 97.3 | $ | 0.16 | $ | 12.5 | $ | 0.02 | |||||||||||||||||||||
Reconciliation of U.S GAAP research and development, sales and marketing, general and administrative, and amortization expense for the years ended February 28, 2026 and February 28, 2025 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:
| For the Fiscal Years Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
| Research and development | $ | 113.6 | $ | 108.8 | ||||||||||
| Stock compensation expense | 5.4 | 5.3 | ||||||||||||
| Adjusted research and development expense | $ | 108.2 | $ | 103.5 | ||||||||||
| Sales and marketing | $ | 114.0 | $ | 95.5 | ||||||||||
| Stock compensation expense | 5.1 | 2.8 | ||||||||||||
| Adjusted sales and marketing expense | $ | 108.9 | $ | 92.7 | ||||||||||
| General and administrative | $ | 128.8 | $ | 159.7 | ||||||||||
| Restructuring charges | 15.7 | 26.1 | ||||||||||||
| Stock compensation expense | 10.5 | 10.1 | ||||||||||||
| Adjusted general and administrative expense | $ | 102.6 | $ | 123.5 | ||||||||||
| Amortization | $ | 11.4 | $ | 17.7 | ||||||||||
| Acquired intangibles amortization | 3.1 | 7.0 | ||||||||||||
| Adjusted amortization expense | $ | 8.3 | $ | 10.7 | ||||||||||
Reconciliation of U.S GAAP operating income to adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the years ended February 28, 2026 and February 28, 2025 are reflected in the table below.
| For the Fiscal Years Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
| Operating income | $ | 48.3 | $ | 0.8 | ||||||||||
| Non-GAAP adjustments to operating income | ||||||||||||||
| Restructuring charges | 15.7 | 26.1 | ||||||||||||
| Stock compensation expense | 23.2 | 20.6 | ||||||||||||
| Acquired intangibles amortization | 3.1 | 7.0 | ||||||||||||
| Litigation settlements | — | 2.8 | ||||||||||||
| LLA impairment charge | 2.1 | 9.6 | ||||||||||||
| Total non-GAAP adjustments to operating income | 44.1 | 66.1 | ||||||||||||
| Adjusted operating income | 92.4 | 66.9 | ||||||||||||
| Amortization | 17.8 | 24.3 | ||||||||||||
| Acquired intangibles amortization | (3.1) | (7.0) | ||||||||||||
| Adjusted EBITDA | $ | 107.1 | $ | 84.2 | ||||||||||
| Revenue | $ | 549.1 | $ | 534.9 | ||||||||||
Adjusted operating income margin % (1) | 17 | % | 13 | % | ||||||||||
Adjusted EBITDA margin % (2) | 20 | % | 16 | % | ||||||||||
______________________________
(1) Adjusted operating income margin % is calculated by dividing adjusted operating income by revenue.
(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue.
The CODM also uses the segment metric of segment adjusted EBITDA, which is a non-GAAP measure including segment expenses that exclude amounts related to investment income, taxes, amortization, stock compensation expenses, long-lived asset impairment and restructuring charges. The following table reconciles the U.S. GAAP measures of segment profit or loss disclosed by the Company in the Consolidated Financial Statements of segment adjusted gross margin to segment adjusted EBITDA for the years ended February 28, 2026 and February 28, 2025.
| For the Years Ended | |||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| QNX | Secure Communications | Licensing | |||||||||||||||||||||||||||||||||
| February 28, | February 28, | February 28, | |||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||
| Segment adjusted gross margin | $ | 222.6 | $ | 197.2 | $ | 181.7 | $ | 179.9 | $ | 16.1 | $ | 20.2 | |||||||||||||||||||||||
| Segment research and development | 61.7 | 59.3 | 45.8 | 43.8 | — | — | |||||||||||||||||||||||||||||
| Segment sales and marketing | 56.2 | 46.4 | 51.0 | 46.4 | — | — | |||||||||||||||||||||||||||||
| Segment general and administrative | 33.8 | 32.4 | 29.0 | 37.7 | 1.2 | 10.4 | |||||||||||||||||||||||||||||
| Less amortization included in segment cost of sales | 0.1 | — | 0.2 | 0.3 | 6.1 | 6.0 | |||||||||||||||||||||||||||||
| Segment adjusted EBITDA | $ | 71.0 | $ | 59.1 | $ | 56.1 | $ | 52.3 | $ | 21.0 | $ | 15.8 | |||||||||||||||||||||||
Free cash flow
The Company uses free cash flow when assessing its sources of liquidity, capital resources, and quality of earnings. The Company believes that free cash flow is helpful in understanding the Company’s capital requirements and provides an additional means to reflect the cash flow trends in the Company’s business.
Reconciliation of U.S. GAAP net cash provided by operating activities for the three months and years ended February 28, 2026 and February 28, 2025 to free cash flow is reflected in the table below:
| For the Three Months Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
| Net cash provided by operating activities | $ | 45.6 | $ | 42.0 | ||||||||||
| Acquisition of property, plant and equipment | (1.2) | (0.5) | ||||||||||||
| Free cash flow | $ | 44.4 | $ | 41.5 | ||||||||||
| For the Fiscal Years Ended (in millions) | February 28, 2026 | February 28, 2025 | ||||||||||||
| Net cash provided by operating activities | $ | 50.3 | $ | 16.5 | ||||||||||
| Acquisition of property, plant and equipment | (3.8) | (3.1) | ||||||||||||
| Free cash flow | $ | 46.5 | $ | 13.4 | ||||||||||
Key Metrics
The Company regularly monitors a number of financial and operating metrics, including the following key metrics, in order to measure the Company’s current performance and estimated future performance. Readers are cautioned that Secure Communications annual recurring revenue (“ARR”), Secure Communications dollar-based net retention rate (“DBNRR”) and QNX royalty backlog do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies.
Comparative breakdowns of certain key metrics for the three months ended or as at February 28, 2026 and February 28, 2025 are set forth below:
| For the Three Months Ended (in millions) | February 28, 2026 | February 28, 2025 | Change | ||||||||||||||
| Secure Communications Annual Recurring Revenue | $ | 218 | $ | 208 | $ | 10 | |||||||||||
| Secure Communications Dollar-Based Net Retention Rate | 94 | % | 93 | % | 1 | % | |||||||||||
| QNX Royalty Backlog | $ | 950 | $ | 865 | $ | 85 | |||||||||||
FAQ
How did BlackBerry (BB) perform financially in Q4 fiscal 2026?
BlackBerry reported Q4 fiscal 2026 revenue of $156.0 million, up 10% year-over-year, with GAAP net income of $24.3 million. Adjusted EBITDA reached $36.1 million, a 23% margin, reflecting both higher sales and improved gross margin of 77.8% during the quarter.
What were BlackBerry (BB)’s full-year 2026 revenue and profit figures?
For fiscal 2026, BlackBerry generated $549.1 million in revenue, up 3% year-over-year, and GAAP net income of $53.2 million, reversing a prior-year loss of $79.0 million. Adjusted net income was $97.3 million and adjusted EBITDA was $107.1 million, with a 20% margin.
How is BlackBerry’s QNX segment contributing to growth?
QNX delivered record Q4 revenue of $78.7 million, up 20% year-over-year, and full-year revenue of $268.0 million, up 14%. QNX achieved an 83% adjusted gross margin and 26% adjusted EBITDA margin, supported by a $950 million royalty backlog and strong automotive and embedded demand.
What is the status of BlackBerry’s Secure Communications business?
Secure Communications Q4 revenue grew 8% year-over-year to $72.5 million, with a 72% adjusted gross margin. Annual recurring revenue reached $218 million, up $10 million, and dollar-based net retention improved to 94%, indicating better customer expansion and retention trends in this segment.
How strong is BlackBerry (BB)’s balance sheet and cash position?
As of February 28, 2026, BlackBerry held $432.4 million in cash and investments. Operating cash flow for fiscal 2026 was $50.3 million, and free cash flow was $46.5 million. The company also repurchased about $60.7 million of common shares during the year.
What financial guidance did BlackBerry provide for fiscal 2027?
For Q1 fiscal 2027, BlackBerry guided total revenue of $132–$140 million. For full-year 2027, it expects revenue of $584–$611 million, adjusted EBITDA of $110–$130 million, non-GAAP EPS of $0.15–$0.19, and operating cash flow of about $100 million.