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Aug 31, 2024

BlackBerry Q2 2025 Earnings Report

Reached breakeven adjusted EBITDA and non-GAAP EPS for the quarter, with revenue growth in IoT and Cybersecurity divisions and improved operating cash usage.

Key Takeaways

BlackBerry reported breakeven adjusted EBITDA and non-GAAP EPS, driven by double-digit revenue growth in both IoT and Cybersecurity divisions and cost structure rationalization. The company's GAAP net loss improved by $23 million year-over-year, and operating cash usage also improved significantly.

Achieved breakeven adjusted EBITDA and non-GAAP EPS for the quarter.

GAAP net loss improved by $23 million, or 55% year-on-year.

Revenue for both IoT and Cybersecurity divisions grew double-digit year-over-year.

Operating cash usage improved by $43 million year-over-year.

Total Revenue
$145M
Previous year: $132M
+9.8%
EPS
-$0.01
Previous year: -$0.04
-75.0%
Gross Profit
$94M
Previous year: $85M
+10.6%
Cash and Equivalents
$171M
Previous year: $415M
-58.8%
Free Cash Flow
-$15M
Previous year: -$57M
-73.7%
Total Assets
$1.3B
Previous year: $1.61B
-19.5%

BlackBerry

BlackBerry

Forward Guidance

BlackBerry is providing the following guidance for the third quarter (ending November 30, 2024) and the full fiscal year 2025 (ending February 28, 2025).

Positive Outlook

  • Total BlackBerry revenue: $146 - $154 million
  • IoT revenue: $56 - $60 million
  • Cybersecurity revenue: $86 - $90 million
  • Licensing & Other revenue: Approximately $4 million
  • Adjusted EBITDA: Breakeven - +$10 million

Challenges Ahead

  • Non-GAAP basic EPS: ($0.01) - +$0.01
  • Total BlackBerry revenue: $591 - $616 million
  • IoT revenue: $225 - $235 million
  • Cybersecurity revenue: $350 - $365 million
  • Licensing & Other revenue: Approximately $16 million
  • Non-GAAP basic EPS: ($0.05) - ($0.02)