0001070235-25-000198
SEC filingBlackBerry reported segment revenue of $141.8M in Q3 2026, with QNX growth offset by Secure Communications decline; share repurchases of $34.0M in 9 months.
As of November 30, 2025, BlackBerry held $270.3 million in cash and cash equivalents, plus $33.9 million in short-term investments and $59.3 million in long-term investments, totaling $377.5 million in cash and investments. Restricted cash was $14.0 million. The company’s total debt consisted of $196.2 million in senior convertible notes (fair value $284.4 million). Shareholders’ equity stood at $741.1 million. Deferred revenue (current and non-current) was $126.1 million.
The Notes disclose $13.9 million in collateralized outstanding letters of credit supporting leasing arrangements, and a performance bond posted for a government contract. Additionally, $29.0 million has been recognized from QNX claims under the Strategic Innovation Fund, which may be repayable under certain conditions. No material purchase commitments for supply or capacity were disclosed.
During the nine months ended November 30, 2025, BlackBerry repurchased 8.6 million shares for $34.0 million under its NCIB program authorized on May 8, 2025 (up to 27.9 million shares). An additional 0.2 million shares were repurchased after quarter-end for $1.0 million. No dividends were paid. The carrying value of the long-term notes increased by $0.9 million due to amortization of debt issuance costs. Capital expenditures totaled $6.6 million ($2.6 million for property, plant and equipment and $4.0 million for intangible assets).
BlackBerry operates three segments: QNX, Secure Communications, and Licensing. For Q3 2026, QNX revenue was $68.7 million (up 10.3% YoY), Secure Communications $67.0 million (down 10.2% YoY), and Licensing $6.1 million (down 9.0% YoY). Segment adjusted gross margins were $57.4 million, $48.4 million, and $4.6 million, respectively. Geographically, North America contributed 45.5% of revenue, Europe/Middle East/Africa 35.8%, and other regions 18.7%. Revenue recognized over time was $65.4 million, and at a point in time $76.4 million.
Operating cash flow (OCF) of $4.2M for the nine months ended November 30, 2025 improved significantly from -$25.1M in the prior period, driven by working capital improvements and lower net loss ($28.9M vs -$71.6M). However, OCF was still well below net income due to large negative deferred revenue (-$41.0M) and accrued liabilities (-$16.2M). Capital expenditures (PP&E) were modest at $2.6M, resulting in a pre-FCF coverage of OCF minus capex of $1.6M, though intangible asset acquisitions added $4.0M in investing outflows. The company generated positive investing cash flow of $30.8M from net short-term investment sales. Financing cash flow was negative $31.5M due to $34.0M share repurchases, which exceeded OCF, indicating reliance on investment proceeds. Overall, the cash flow profile shows improving operational generation but ongoing working capital headwinds and aggressive capital returns.