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Nov 30, 2024

BlackBerry Q3 2025 Earnings Report

BlackBerry's Q3 2025 performance reflected strong revenue in Cybersecurity and IoT divisions, improved profitability, and positive cash flow.

Key Takeaways

BlackBerry reported strong Q3 2025 results, driven by revenue beats in both Cybersecurity and IoT divisions. The company achieved positive adjusted EBITDA and EPS, with GAAP EPS improving both sequentially and year-over-year. A definitive agreement for the sale of Cylance to Arctic Wolf was announced.

Revenue exceeded top end of guidance for both Cybersecurity and IoT.

Adjusted EBITDA and adjusted EPS surpassed guidance.

GAAP basic EPS improved both sequentially and year-over-year.

Positive operating and free cash flow achieved ahead of schedule.

Total Revenue
$143M
Previous year: $175M
-18.3%
EPS
$0.02
Previous year: $0.01
+100.0%
Gross Profit
$108M
Previous year: $127M
-15.0%
Cash and Equivalents
$189M
Previous year: $210M
-10.0%
Free Cash Flow
$3.09M
Previous year: -$33.4M
-109.3%
Total Assets
$1.31B
Previous year: $1.4B
-6.5%

BlackBerry

BlackBerry

Forward Guidance

BlackBerry provided revenue and EBITDA guidance for Q4 FY25 and full fiscal year 2025, excluding Cylance business.

Positive Outlook

  • Total BlackBerry revenue: $126 – $135 million
  • IoT revenue: $60 – $65 million
  • Secure Communications revenue: $62 – $66 million
  • Licensing revenue: Approximately $4 million
  • Total Company adjusted EBITDA: $10 – $20 million

Challenges Ahead

  • Non-GAAP basic EPS: ($0.01) – +$0.01
  • IoT segment EBITDA: $8 - $10 million
  • Secure Communications segment EBITDA: $4 - $6 million
  • Licensing segment EBITDA: Approximately $3 million