Q: What is BlackBerry(BB) 2025Q3 Earnings Summary?
**Bullish Points:**
1. The company's net loss for the fiscal year was $79.0 million, an improvement from the previous year's net loss of $130.2 million.
2. The QNX segment reported revenue of $236.0 million, an increase of $20.6 million from the previous year.
3. Gross margin percentage increased to 73.8%, up from 64.6% the previous year.
4. Operating expenses decreased by $85.6 million to $394.1 million, primarily due to reductions in salaries, benefits, and restructuring costs.
5. The company completed the sale of its Cylance endpoint security assets to Arctic Wolf for $160.0 million in cash and 5.5 million common shares of Arctic Wolf.
6. The company expects positive operating cash flow of approximately $35 million for fiscal 2026.
7. The company expects adjusted EBITDA to be in the range of $69 million to $84 million for fiscal 2026.
8. The company expects non-GAAP EPS to be in the range of $0.08 to $0.10 for fiscal 2026.
**Bearish Points:**
1. Total revenue for the fiscal year was $534.9 million, a decrease of $224.2 million compared to the previous year.
2. The Secure Communications segment generated $272.6 million in revenue, a decrease of $11.2 million from the previous year.
3. The Licensing segment's revenue decreased significantly by $233.6 million to $26.3 million, primarily due to a one-time patent sale in the previous year.
4. Gross margin for the fiscal year was $394.9 million, a decrease of $95.8 million.
5. The company expects total BlackBerry revenue to be in the range of $504 million to $534 million for fiscal 2026, indicating a potential stagnation in revenue growth.
6. The company settled the Parker employment class action for $2.8 million, indicating ongoing legal challenges.
7. North American revenue decreased significantly, accounting for 46.5% of total revenue, down from 65.5% in the previous year.
**Summary:**
BlackBerry's financial report for the fiscal year ended February 28, 2025, presents a mixed outlook. On the positive side, the company has managed to reduce its net loss significantly and has seen growth in its QNX segment. Additionally, the increase in gross margin percentage and the reduction in operating expenses are positive indicators. The sale of Cylance assets and the expectation of positive operating cash flow for fiscal 2026 further bolster the company's financial position.
However, the overall revenue decline, particularly in the Secure Communications and Licensing segments, is a cause for concern. The significant drop in North American revenue and the ongoing legal challenges also present potential risks. The company's revenue projections for fiscal 2026 suggest limited growth, which may impact investor sentiment.
For more information, you can read the original text of BlackBerry's financial report.
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