BlackBerry stock sinks following Q4 earnings report

• BlackBerry (TSX:BB) saw its stock price tumble after the company reported a net loss of US$7.4 million for its Q4 ended February 28th, 2025
• This compares to a significantly larger loss of US$56.2 million in the same quarter a year earlier
• The net loss amounted to a penny US per share, a stark contrast to the loss of 10 cents US per share reported in the Q4 of the previous year
• BlackBerry stock (TSX:BB) last traded at C$4.86

BlackBerry (TSX:BB) saw its stock price tumble by over 9 per cent after the company reported a net loss of US$7.4 million for its Q4 ended February 28th, 2025. This compares to a significantly larger loss of US$56.2 million in the same quarter a year earlier. Despite the improvement, the company’s revenue fell short of expectations, contributing to the stock’s decline.

The net loss amounted to a penny US per share, a stark contrast to the loss of 10 cents US per share reported in the Q4 of the previous year. Revenue for the quarter totalled US$141.7 million, down from US$152.9 million a year ago.

The decline in revenue was driven by a drop in secure communications revenue, which totalled US$67.3 million, down from US$71.6 million a year earlier. QNX revenue also saw a slight decrease, amounting to US$65.8 million compared to US$65.9 million in the same quarter last year. Licensing revenue experienced a significant drop, falling to US$8.6 million from US$15.4 million a year ago.

Despite these challenges, BlackBerry reported an adjusted net income of three cents US per share, consistent with the previous year’s Q4. However, the company projected a decline in fiscal 2026 revenue, anticipating it to be between US$504 million and US$534 million, compared to US$534.9 million recorded in fiscal 2025. This projection falls short of the current consensus among analysts, which is for sales of US$535.4 million for the ongoing fiscal year.

The market reacted negatively to the news, with BlackBerry’s stock price dropping to US$3.38, reflecting investor concerns about the company’s future revenue prospects and overall financial health.

“We started the year with a goal to deliver profitability and positive cash flow, and we’re pleased we delivered across the board,” BlackBerry’s CEO, John J. Giamatteo said in a news release. “BlackBerry goes into the new fiscal year in a strong financial position, with a solid balance sheet that provides optionality for driving shareholder value.”

About BlackBerry Ltd.

BlackBerry Ltd.  offers intelligent security software and services to enterprises and governments worldwide. The company leverages AI and machine learning to deliver cybersecurity, safety and data privacy solutions.

BlackBerry stock (TSX:BB) last traded at C$4.86 and despite being down 10.99 per cent since the year began, it has risen 23.98 per cent since this time last year.

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(Top image: BlackBerry.)