What changed in this filing

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Item 1. Financial Statements

2025-06-25 compared with 2024-12-20 · 241 added, 412 removed, 518 unchanged (56% of the section changed)

4 unchanged sentences

Consolidated Balance Sheets

November 30, 2024 February 29, 2024

May 31, 2025 February 28, 2025

Cash and cash equivalents (note 3) $ 276.0 $ 266.7

4 unchanged sentences

Other current assets (note 4) 43.3 30.0

Assets held for sale, current (note 2) 24 37

Restricted cash and cash equivalents (note 3) 16.5 13.6

5 unchanged sentences

Goodwill (note 4) 476.9 472.4

Assets held for sale, non-current (note 2) 176 198

$ 1,210.4 $ 1,295.6

3 unchanged sentences

Deferred revenue, current (note 11) 136.3 161.5

Liabilities held for sale, current (note 2) 60 64

Deferred revenue, non-current (note 11) 8.8 5.6

2 unchanged sentences

Long-term notes (note 6) 195.6 195.3

Liabilities held for sale, non-current (note 2) 27 32

Commitments and contingencies (note 10)

6 unchanged sentences

Issued and outstanding - 594,528,763 voting common shares (February 28, 2025 - 596,230,655 )

2,970.5 2,976.4

Deficit ( 2,232.6 ) ( 2,237.3 )

8 unchanged sentences

Consolidated Statements of Shareholders’ Equity

Three Months Ended November 30, 2024

Capital Stock

and Additional

Paid-in Capital Deficit Accumulated

Comprehensive Loss Total

Balance as at August 31, 2024 $ 2,964 $ ( 2,219 ) $ ( 13 ) $ 732

Net loss — ( 11 ) — ( 11 )

Other comprehensive loss — — ( 4 ) ( 4 )

Stock-based compensation 6 — — 6

Shares issued:

Employee share purchase plan 2 — — 2

Balance as at November 30, 2024 $ 2,972 $ ( 2,230 ) $ ( 17 ) $ 725

Three Months Ended November 30, 2023

Capital Stock

and Additional

Paid-in Capital Deficit Accumulated

Comprehensive Loss Total

Balance as at August 31, 2023 $ 2,931 $ ( 2,081 ) $ ( 21 ) $ 829

Net loss — ( 21 ) — ( 21 )

Other comprehensive income — — 7 7

Stock-based compensation 8 — — 8

Shares issued:

Employee share purchase plan 2 — — 2

Balance as at November 30, 2023 $ 2,941 $ ( 2,102 ) $ ( 14 ) $ 825

See notes to consolidated financial statements.

BlackBerry Limited

(United States dollars, in millions) (unaudited)

Consolidated Statements of Shareholders’ Equity

Nine Months Ended November 30, 2024

Three Months Ended May 31, 2025

Capital Stock

3 unchanged sentences

Balance as at February 28, 2025 $ 2,976.4 $ ( 2,237.3 ) $ ( 19.2 ) $ 719.9

Net loss — ( 72 ) — ( 72 )

Other comprehensive loss — — ( 3 ) ( 3 )

Net income — 1.9 — 1.9

Other comprehensive income — — 6.4 6.4

Stock-based compensation (note 7) 5.7 — — 5.7

Share repurchase (note 7) ( 12.8 ) 2.8 — ( 10.0 )

Shares issued:

Employee share purchase plan (note 7) 1.2 — — 1.2

Balance as at November 30, 2024 $ 2,972 $ ( 2,230 ) $ ( 17 ) $ 725

Nine Months Ended November 30, 2023

Balance as at May 31, 2025 $ 2,970.5 $ ( 2,232.6 ) $ ( 12.8 ) $ 725.1

Three Months Ended May 31, 2024

Capital Stock

4 unchanged sentences

Net loss — ( 41.4 ) — ( 41.4 )

Other comprehensive income — — 10 10

Other comprehensive loss — — ( 0.3 ) ( 0.3 )

Stock-based compensation 7.7 — — 7.7

1 unchanged sentence

Employee share purchase plan 1.5 — — 1.5

Balance as at November 30, 2023 $ 2,941 $ ( 2,102 ) $ ( 14 ) $ 825

Balance as at May 31, 2024 $ 2,956.9 $ ( 2,199.7 ) $ ( 14.6 ) $ 742.6

See notes to consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Operations

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

Three Months Ended

May 31, 2025 May 31, 2024

Revenue (note 11) $ 121.7 $ 123.4

7 unchanged sentences

Impairment of long-lived assets (note 3) 0.1 3.5

Prior Debentures fair value adjustment (note 6) — ( 13 ) — 3

93 101 282 342

Operating income 19 18 7 25

Operating income (loss) 2.0 ( 12.9 )

Investment income, net (note 3 and note 6) 2.9 4.0

Income before income taxes 19 23 15 40

Income (loss) before income taxes 4.9 ( 8.9 )

Provision for income taxes (note 5) 3.0 7.6

1 unchanged sentence

Loss from discontinued operations, net of tax (note 2) — ( 24.9 )

Net loss $ ( 11 ) $ ( 21 ) $ ( 72 ) $ ( 74 )

Net income (loss) $ 1.9 $ ( 41.4 )

Earnings (loss) per share (note 8)

Basic earnings per share from continuing operations $ 0.02 $ 0.01 $ — $ 0.03

Total basic loss per share $ ( 0.02 ) $ ( 0.04 ) $ ( 0.12 ) $ ( 0.13 )

Basic earnings (loss) per share from continuing operations $ 0.00 $ ( 0.03 )

Total basic earnings (loss) per share $ 0.00 $ ( 0.07 )

Diluted earnings (loss) per share from continuing operations $ 0.00 $ ( 0.03 )

Total diluted loss per share $ ( 0.02 ) $ ( 0.05 ) $ ( 0.12 ) $ ( 0.13 )

Total diluted earnings (loss) per share $ 0.00 $ ( 0.07 )

See notes to consolidated financial statements.

1 unchanged sentence

(United States dollars, in millions) (unaudited)

Consolidated Statements of Comprehensive Loss

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

Net loss $ ( 11 ) $ ( 21 ) $ ( 72 ) $ ( 74 )

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended

May 31, 2025 May 31, 2024

Net income (loss) $ 1.9 $ ( 41.4 )

Other comprehensive income (loss)

Net change in fair value and amounts reclassified to net loss from derivatives designated as cash flow hedges during the period, net of income taxes of nil for the three and nine months ended November 30, 2024 and November 30, 2023 (note 9) ( 1 ) — ( 1 ) 1

Net change in fair value and amounts reclassified to net loss from derivatives designated as cash flow hedges during the three months ended, net of income taxes of nil (May 31, 2024 - income taxes of nil) (note 9) 2.4 ( 0.2 )

Foreign currency translation adjustment 4.0 ( 0.1 )

Net change in fair value from instrument-specific credit risk on the Prior Debentures, net of income taxes of nil for the three and nine months ended November 30, 2024 and November 30, 2023 (note 6) — 6 — 6

Other comprehensive income (loss) 6.4 ( 0.3 )

Comprehensive loss $ ( 15 ) $ ( 14 ) $ ( 75 ) $ ( 64 )

Comprehensive income (loss) $ 8.3 $ ( 41.7 )

See notes to consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Cash Flows

Nine Months Ended

November 30, 2024 November 30, 2023

Three Months Ended

May 31, 2025 May 31, 2024

Cash flows from operating activities

Net loss $ ( 72 ) $ ( 74 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Net income (loss) $ 1.9 $ ( 41.4 )

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Amortization 5.7 13.2

1 unchanged sentence

Impairment of long-lived assets (note 3) 0.1 3.5

Intellectual property disposed of by sale — 147

Prior Debentures fair value adjustment (note 6) — 3

Operating leases ( 1.6 ) ( 2.7 )

Other ( 0.7 ) ( 2.9 )

Net changes in working capital items

7 unchanged sentences

Deferred revenue ( 22.0 ) ( 16.4 )

Net cash provided by (used in) operating activities ( 25 ) 12

Net cash used in operating activities ( 18.0 ) ( 15.1 )

Cash flows from investing activities

Acquisition of long-term investments — ( 2 )

Proceeds on sale, maturity or distribution from long-term investments 0.1 —

Acquisition of property, plant and equipment ( 0.9 ) ( 1.4 )

Proceeds on sale of property, plant and equipment — 0.1

Acquisition of intangible assets ( 1.2 ) ( 1.5 )

1 unchanged sentence

Proceeds on sale or maturity of short-term investments 62.2 24.5

Net cash provided by investing activities 22 112

Net cash provided by (used in) investing activities 38.5 ( 27.2 )

Cash flows from financing activities

Issuance of common shares 1.2 1.5

Maturities of 2020 Debentures (note 6) — ( 365 )

Issuance of Extension Debentures (note 6) — 150

Net cash used in financing activities 3 ( 211 )

Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period — ( 87 )

Common shares repurchased ( 10.0 ) —

Net cash provided by (used in) financing activities ( 8.8 ) 1.5

Effect of foreign exchange gain on cash, cash equivalents, restricted cash, and restricted cash equivalents 0.5 —

Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period 12.2 ( 40.8 )

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period 280.3 200.5

10 unchanged sentences

In the opinion of management, all normal recurring adjustments considered necessary for fair presentation have been included in these interim consolidated financial statements.

Operating results for the three and nine months ended November 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending February 28, 2025.

Operating results for the three months ended May 31, 2025 are not necessarily indicative of the results that may be expected for the full year ending February 28, 2026.

The consolidated balance sheet at February 28, 2025 was derived from the audited Annual Financial Statements but does not contain all of the footnote disclosures from the Annual Financial Statements.

The preparation of the consolidated financial statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities.

Actual results could differ from these estimates and any such differences may be material to the Company’s consolidated financial statements.

Certain of the comparative figures have been reclassified to conform to the current year’s presentation, including for held for sale and discontinued operation, as further discussed in Note 2 and facilities discussed below.

The Company reclassified all expenses associated with its facilities within General and administrative expenses, whereas previously these costs were allocated amongst the functional expense areas of the business based on assumptions of usage of those facilities by the functional areas.

The impact of the change on previously issued financial statements was as follows for the three and nine months ended November 30, 2023:

Three Months Ended Nine Months Ended

Revised Revised

November 30, 2023 Impact of change November 30, 2023 November 30, 2023 Impact of change November 30, 2023

Certain of the comparative figures have been reclassified to conform to the current year’s presentation, including for facilities discussed below.

In the third quarter of fiscal 2025, the Company reclassified all expenses associated with its facilities within General and administrative expenses, whereas previously these costs were allocated amongst the functional expense areas of the business based on assumptions of usage of those facilities by the functional areas.

The impact of the change on previously issued financial statements was as follows for the three months ended May 31, 2024:

Three Months Ended

May 31, 2024 Impact of change May 31, 2024

Cost of sales 47.8 ( 1.5 ) 46.3

3 unchanged sentences

General and administrative 39.9 4.9 44.8

Cybersecurity

Segment cost of sales 37 ( 1 ) 36 110 ( 4 ) 106

Segment gross margin 77 1 78 176 4 180

Segment cost of sales 9 ( 1 ) 8 26 ( 2 ) 24

Segment gross margin 46 1 47 123 2 125

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

The Company is organized and managed as three reportable operating segments:

Secure Communications (formerly “Cybersecurity”), IoT (and, collectively with Cybersecurity, “Software & Services”), and Licensing, as further discussed in Note 11.

QNX, Secure Communications, and Licensing, as further discussed in Note 11.

Significant Accounting Policies and Critical Accounting Estimates

There have been no material changes to the Company’s accounting policies or critical accounting estimates from those described in the Annual Financial Statements with the exception of the below:

Assets held for sale and discontinued operations

When certain criteria are met, the Company reclassifies assets and related liabilities as held for sale at the lower of their carrying value or fair value less costs to sell and, if material, presents them separately on the Company’s consolidated balance sheets.

If the carrying value exceeds the fair value less costs to sell, a loss is recognized.

Assets classified as held for sale are no longer amortized.

Comparative figures are reclassified to conform to the current year’s presentation.

When the Company has disposed of or classified as held for sale a component of the entity, and certain criteria are met, the results of operations of the component, including any loss recognized, are reported separately on the consolidated statements of operations as discontinued operations.

Discontinued operations are presented if the component’s operations and cash flows have been, or will be, eliminated from the Company and the Company will not have significant continuing involvement in the operations of the component after the disposal.

Earnings (loss) per share amounts for both continuing operations and discontinued operations are presented separately on the consolidated statements of operations and income (loss) from continuing operations.

Comparative figures are reclassified to conform to the current year’s presentation.

There have been no material changes to the Company’s accounting policies or critical accounting estimates from those described in the Annual Financial Statements.

Accounting Standards Adopted During Fiscal 2026

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued ASU 2023-07 on the topic of segment reporting.

The standard requires additional disclosures for segment reporting.

These requirements include:

(i) disclosure of significant expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss (collectively referred to as the “significant expense principle”);

(ii) disclosure of an amount for other segment items (equal to the difference between segment revenue less segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment and a description of their composition;

(iii) annual disclosure of a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods;

(iv) clarification that, if the CODM uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report those additional measures of segment profit or loss;

(v) disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources;

and (vi) requiring a public entity that has a single reportable segment provide all the disclosures required by the amendments in this ASU, and all existing segment disclosures in Topic 280.

The guidance is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.

The Company early adopted this guidance in the first quarter of fiscal 2025 and have provided the applicable disclosures in Note 11.

The Company has not adopted any new standards to date during fiscal 2026.

BlackBerry Limited

2 unchanged sentences

Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740):

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09 “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures” on the topic of income taxes.

8 unchanged sentences

For public entities, the guidance is effective for annual periods beginning after December 15, 2024.

The Company will adopt this guidance in fiscal 2026 and is in the process of evaluating the new requirements.

The Company will adopt this guidance in its annual reporting for fiscal 2026 on a prospective basis and is in the process of evaluating the new requirements.

As a result, the Company has not yet determined the impact this new ASU will have on its disclosures.

2 unchanged sentences

The standard requires additional disclosure on specific expense categories included in the expense captions presented on the statements of operations.

The guidance is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

The Company will adopt this guidance in fiscal 2028 and is in process of evaluating the new requirements.

1 unchanged sentence

DISCONTINUED OPERATIONS

On October 16, 2024, the Company announced that it was revisiting capital allocation priorities within its Cybersecurity division and, as such, the Company would begin exploring opportunities for the business.

At November 30, 2024, the Company determined that the assets and liabilities constituting the Cylance business, which consists of the Company’s AI and machine learning-based cybersecurity solutions previously acquired on February 21, 2019, met the criteria requiring classification as held for sale as specified in ASC 360 Property, Plant and Equipment (“ASC 360”) and met the criteria for presentation as a discontinued operations under ASC 205 Presentation of Financial Statements.

While presented as a discontinued operations in its Consolidated Statement of Operations, the Company continues to operate Cylance during the time that the assets and liabilities constituting its business are held for sale.

Assets Held for Sale

For assets not covered by ASC 360, such as goodwill, the Company first considered whether any adjustment was required prior to measuring the fair value less costs to sell of the assets and liabilities associated with the Cylance business and determined none was required.

The Company then estimated the fair values of assets identified as held for sale, less costs to sell, and compared them against the carrying value of the assets and determined that no impairment was present.

The following table sets forth the aggregate carrying amounts of assets and liabilities held for sale related to the discontinued operations of Cylance as of November 30, 2024 and February 29, 2024:

November 30, 2024 February 29, 2024

Accounts receivable, net of allowance of $1 and nil, respectively $ 11 $ 20

Other receivables 2 2

Other current assets 11 15

Total currents assets of discontinued operations 24 37

Other long-term assets 3 3

Operating lease right-of-use assets, net 8 10

Property, plant and equipment, net 2 2

Intangible assets, net 76 96

Goodwill 87 87

Total long-term assets of discontinued operations 176 198

Accounts payable 1 1

Accrued liabilities 21 17

Deferred revenue, current 38 46

Total current liabilities of discontinued operations 60 64

Deferred revenue, non-current 12 13

Operating lease liabilities 15 19

Total long-term liabilities of discontinued operations 27 32

In the third quarter of fiscal 2025, the Company determined that the assets and liabilities constituting its Cylance business, which consisted of the Company’s artificial intelligence (“AI”) and machine learning-based cybersecurity solutions previously acquired on February 21, 2019, met the criteria requiring classification as held for sale as specified in Accounting Standards Codification (“ASC”) 360 Property, Plant and Equipment (“ASC 360”) and met the criteria for presentation as discontinued operations under ASC 205 Presentation of Financial Statements.

On February 3, 2025, the Company completed the sale of its Cylance endpoint security assets and related liabilities to Arctic Wolf Networks, Inc.

(“Arctic Wolf”).

In connection with the sale, the Company recognized a gain on disposal of discontinued operations before taxes of $ 10.4 million in the fourth quarter of fiscal 2025.

The financial results of Cylance are presented as “loss from discontinued operations, net of tax” in the Consolidated Statements of Operations and have been removed from the presentation of results from continuing operations.

The following table represents the financial results of Cylance for the three and nine months ended November 30, 2024 and November 30, 2023:

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

The following table represents the financial results of Cylance for the three months ended May 31, 2024:

Three Months Ended

Revenue $ 20.9

6 unchanged sentences

Amortization 6.8

Impairment of long-lived assets — 2 — 2

Operating loss ( 24.9 )

3 unchanged sentences

Diluted loss per share from discontinued operations $ ( 0.04 )

The following table represents the amortization, stock-based compensation (representing the significant non-cash operating item) and acquisition of property, plant and equipment of the discontinued operations for the three and nine months ended November 30, 2024 and November 30, 2023:

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

Three Months Ended

Amortization $ 6.8

9 unchanged sentences

or other inputs that are observable or can be corroborated by observable market data.

• Level 3 - Significant unobservable inputs that are supported by little or no market activity.

The fair value hierarchy also requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

BlackBerry Limited

1 unchanged sentence

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

• Level 3 - Significant unobservable inputs that are supported by little or no market activity.

The fair value hierarchy also requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The Company’s cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities are carried at amounts that approximate their fair values (Level 2 measurement) due to their short maturities.

5 unchanged sentences

When the Company concludes that there is a significant financing component included within a contract with a customer due to timing differences between the fulfillment of certain performance obligations and the receipt of payment for those performance obligations, the Company determines the present value of the future consideration utilizing the discount rate that would be reflected in a separate financing transaction between the customer and the Company at contract inception based upon the credit characteristics of the customer receiving financing in the contract.

For a description of how the fair value of the 2020 Debentures (as defined in Note 6) was determined, see the “Convertible debentures” accounting policies in Note 1 to the Annual Financial Statements.

Non-Recurring Fair Value Measurements

2 unchanged sentences

Non-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which the Company does not own a controlling interest or have significant influence.

The estimation of fair value used in the fair value measurements required the use of significant unobservable inputs, and as a result, the fair value measurements were classified as Level 3.

Equity investments in private companies are recorded at fair value on a non-recurring basis.

The fair value of non-marketable equity investments are classified within Level 3 when the Company estimates fair value using significant unobservable inputs such as when the investment is remeasured due to impairment and changes resulting from the issuance of new equity by an investee in an orderly transaction for identical or similar investments of the same issuer.

Impairment of Long-Lived Assets

The Company exited certain leased facilities and recorded a pre-tax and after-tax impairment charge of $ 1 million and $ 4 million during the three and nine months ended November 30, 2024, respectively, related to the operating lease right-of-use (“ROU”) assets and property, plant and equipment associated with those facilities (three and nine months ended November 30, 2023 - $ 1 million).

During the three months ended May 31, 2024, the Company exited certain leased facilities and recorded a pre-tax and after-tax impairment charge of $ 3.5 million related to the operating lease right-of-use (“ROU”) assets and property, plant and equipment associated with those facilities.

The impairment was determined by comparing the fair value of the impacted ROU asset to the carrying value of the asset as of the impairment measurement date, as required under ASC 360, using Level 3 inputs.

1 unchanged sentence

The Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate as new or updated information becomes available.

The fair value measurement of ROU impaired assets is classified as Level 3.

The Company conducts regular reviews of the individual patents, both organically generated and acquired, comprising its patent portfolio.

As a result of this review, for the three and nine months ended November 30, 2023, the Company determined it has an indicator of impairment, as it had ceased enforcement and abandoned the legal right and title to patents with a cost of $ 15 million, accumulated amortization of $ 7 million, and a net book value of $ 8 million, which is classified as an impairment of long-lived assets on the Company’s consolidated statements of operations.

The fair value measurement of ROU impaired assets is classified as Level 3 of the fair value hierarchy.

BlackBerry Limited

1 unchanged sentence

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

During the third quarter of fiscal 2025, the Company reorganized its reporting structure resulting in its BlackBerry Spark reporting unit being disaggregated into two separate reporting units:

UEM and Cylance.

In accordance with ASC 350 Intangibles - Goodwill and Other, the Company conducted a valuation of the individual reporting units and allocated the goodwill associated with the previous BlackBerry Spark reporting unit to the UEM and Cylance reporting units using a relative fair value approach.

The valuations of the reporting units were based on a combination of income approach using a discounted future cash flow model, market-based approach, and estimated exit value approaches for Cylance using the same critical accounting estimates as disclosed in Note 1 of the Annual Financial Statements.

Following the assignment of assets, liabilities, and goodwill to the UEM and Cylance reporting units, the Company compared the carrying values of the reporting units against their fair values and determined no impairment was present in either reporting unit.

Cash, Cash Equivalents and Investments

The components of cash, cash equivalents and investments by fair value level as at November 30, 2024 were as follows:

The components of cash, cash equivalents and investments by fair value level as at May 31, 2025 were as follows:

Cost Basis (1)

5 unchanged sentences

Bank balances $ 169.5 $ — $ — $ 169.5 $ 166.6 $ — $ — $ 2.9

Other investments 24 5 — 29 — — 29 —

Equity investments in private companies 53.9 6.1 ( 1.2 ) 58.8 — — 58.8 —

223.4 6.1 ( 1.2 ) 228.3 166.6 — 58.8 2.9

6 unchanged sentences

treasury bills 9.3 — — 9.3 9.3 — — —

treasury bills 19 — — 19 19 — — —

153.6 — — 153.6 109.4 30.6 — 13.6

Other investments 6 1 ( 1 ) 6 — — 6 —

$ 387.0 $ 6.1 $ ( 11.2 ) $ 381.9 $ 276.0 $ 30.6 $ 58.8 $ 16.5

______________________________

(1) Cost basis for other investments includes the effect of returns of capital and impairment.

(1) Cost basis for equity investments in private companies includes the effect of returns of capital and impairment.

BlackBerry Limited

9 unchanged sentences

Bank balances $ 223.7 $ — $ — $ 223.7 $ 223.7 $ — $ — $ —

Other investments 30 6 — 36 — — 36 —

Equity investments in private companies 23.3 4.9 — 28.2 — — 28.2 —

247.0 4.9 — 251.9 223.7 — 28.2 —

4 unchanged sentences

promissory notes 9.8 — — 9.8 7.9 1.9 — —

treasury bills 10 — — 10 6 — — 4

government sponsored enterprise notes 9.3 — — 9.3 — 4.9 — 4.4

Corporate notes/bonds 3.5 — — 3.5 — 3.5 — —

127.7 — — 127.7 43.0 71.1 — 13.6

Equity investments in private companies 30.7 1.2 ( 1.2 ) 30.7 — — 30.7 —

$ 415.4 $ 6.1 $ ( 11.2 ) $ 410.3 $ 266.7 $ 71.1 $ 58.9 $ 13.6

______________________________

(1) Cost basis for other investments includes the effect of returns of capital and impairment.

As at November 30, 2024, the Company had non-marketable equity investments without readily determinable fair value of $ 35 million (February 29, 2024 - $ 36 million).

During the three and nine months ended November 30, 2024, the Company recorded downward adjustments, net of upward adjustments, of $ 2 million and $ 1 million, respectively, to the carrying value of certain non-marketable equity investments without readily determinable fair value resulting from observable price changes in orderly transactions for identical or similar securities which have been included in investment income, net on the Company’s consolidated statements of operations.

As of November 30, 2024, the Company has recorded a cumulative impairment of $ 3 million to the carrying value of certain other non-marketable equity investments without readily determinable fair value (February 29, 2024 - $ 3 million).

There were no realized gains or losses on available-for-sale securities for the three and nine months ended November 30, 2024 and November 30, 2023.

These letters of credit support certain leasing arrangements entered into in the ordinary course of business.

The letters of credit are for terms ranging from one month to seven years.

The Company is legally restricted from accessing these funds during the term of the leases for which the letters of credit have been issued;

(1) Cost basis for equity investments in private companies includes the effect of returns of capital and impairment.

As at May 31, 2025, the Company had non-marketable equity investments without readily determinable fair value of $ 58.8 million (February 28, 2025 - $ 58.9 million) including common shares of Arctic Wolf received as partial consideration for the sale of its Cylance endpoint security assets and liabilities to Arctic Wolf .

During the three months ended May 31, 2025, the Company did not record any adjustment to the carrying value of non-marketable equity investments without readily determinable fair value resulting from observable price changes in orderly transactions for identical or similar securities which have been included in investment income, net on the Company’s consolidated statements of operations ( May 31, 2024 - upward adjustments of $ 1.2 million).

As of May 31, 2025, the Company has recorded a cumulative impairment of $ 3.0 million to the carrying value of certain other non-marketable equity investments without readily determinable fair value (February 28, 2025 - $ 3.0 million).

There we re no re alized gains or losses on available-for-sale securities for the three months ended May 31, 2025 and May 31, 2024.

The Company has restricted cash and cash equivalents, consisting of cash and securities pledged as collateral to major banking partners in support of the Company’s requirements for letters of credit and a performance bond that the Company was required to post to support a government contract.

These letters of credit support certain leasing arrangements entered into in the ordinary course of business and are for terms ranging from one month to seven years.

The Company is legally restricted from accessing these funds during the term of the leases for which the letters of credit have been issued and during the term of the government contract;

however, the Company can continue to invest the funds and receive investment income thereon.

The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents as at November 30, 2024 and February 29, 2024 from the consolidated balance sheets to the consolidated statements of cash flows:

November 30, 2024 February 29, 2024

Cash and cash equivalents $ 189 $ 175

Restricted cash and cash equivalents 11 25

Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows

BlackBerry Limited

1 unchanged sentence

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

The contractual maturities of available-for-sale investments as at November 30, 2024 and February 29, 2024 were as follows:

November 30, 2024 February 29, 2024

The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents as at May 31, 2025 and February 28, 2025 from the consolidated balance sheets to the consolidated statements of cash flows:

May 31, 2025 February 28, 2025

Cash and cash equivalents $ 276.0 $ 266.7

Restricted cash and cash equivalents 16.5 13.6

Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows

$ 292.5 $ 280.3

The contractual maturities of available-for-sale investments as at May 31, 2025 and February 28, 2025 were as follows:

May 31, 2025 February 28, 2025

Cost Basis Fair Value Cost Basis Fair Value

2 unchanged sentences

$ 163.6 $ 153.6 $ 137.7 $ 127.7

As at November 30, 2024 and February 29, 2024, the Company had no available-for-sale debt securities with continuous unrealized losses .

As at May 31, 2025 and February 28, 2025, the Company had no av ailable-for-sale debt securities with continuous unrealized losses .

CONSOLIDATED BALANCE SHEET DETAILS

Accounts Receivable, Net of Allowance

The current estimated credit losses (“CECL”) for accounts receivable as at November 30, 2024 were $ 6 million (February 29, 2024 - $ 6 million).

The current estimated credit losses (“CECL”) for accounts receivable as at May 31, 2025 were $ 6.0 million (February 28, 2025 - $ 6.6 million).

The Company also has long-term accounts receivable included in Other long-term assets.

The CECL for long-term accounts receivable is estimated using the probability of default method and the default exposure due to limited historical information.

The exposure of default is represented by the assets’ amortized carrying amount at the reporting date.

The exposure to default is represented by the assets’ amortized carrying amount at the reporting date.

The following table sets forth the activity in the Company’s allowance for credit losses:

2 unchanged sentences

Prior period provision for expected credit losses 5.3

Write-offs charged against the allowance

Ending balance of the allowance for credit loss as at February 28, 2025 6.6

Current period recovery for expected credit losses ( 0.5 )

Ending balance of the allowance for credit loss as at November 30, 2024 $ 6

The allowance for credit losses as at November 30, 2024 consists of $ 1 million (February 29, 2024 - $ 1 million) relating to CECL estimated based on days past due and region and $ 5 million (February 29, 2024 - $ 5 million) relating to specific customers that were evaluated separately.

There were two customers that comprised more than 10% of accounts receivable as at November 30, 2024 (February 29, 2024 - two customers comprised more than 10%).

Other Receivables

As at November 30, 2024 and February 29, 2024, other receivables included items such as receivables related to intellectual property sold in fiscal 2024, see Note 11 under the heading “Patent Sale”, and claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund program’s investment in BlackBerry QNX, among other items, none of which were greater than 5% of the current assets balance.

Write-offs charged against the allowance ( 0.1 )

Ending balance of the allowance for credit loss as at May 31, 2025 $ 6.0

The allowance for credit losses as at May 31, 2025 consists of $ 0.6 million (February 28, 2025 - $ 1.1 million) relating to CECL estimated based on days past due and region and $ 5.4 million (February 28, 2025 - $ 5.5 million) relating to specific customers that were evaluated separately.

There were two customers that comprised more than 10% of accounts receivable as at May 31, 2025 (February 28, 2025 - two customers comprised more than 10%).

BlackBerry Limited

1 unchanged sentence

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Other Receivables

May 31, 2025 February 28, 2025

Arctic Wolf delayed cash payment (1)

$ 38.6 $ 38.6

Other 13.1 9.8

$ 51.7 $ 48.4

______________________________

( 1) As partial consideration for the sale of its Cylance endpoint security assets and liabilities to Arctic Wolf, as described in Note 2, the Company is owed a delayed cash payment one year following the closing.

As at May 31, 2025 and February 28, 2025, other receivables included items such as claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund program’s investment in QNX, among other items, none of which were greater than 5% of the current assets balance as at balance sheet dates.

Other Current Assets

As at November 30, 2024 and February 29, 2024, other current assets included the current portion of deferred commissions and prepaid expenses, among other items, none of which were greater than 5% of the current assets balance as at the balance sheet dates.

As at May 31, 2025 and February 28, 2025, other current assets included items such as the current portion of deferred commissions and prepaid expenses, among other items, none of which were greater than 5% of the current assets balance as at the balance sheet dates.

Property, Plant and Equipment, Net

Property, plant and equipment comprised the following:

November 30, 2024 February 29, 2024

May 31, 2025 February 28, 2025

BlackBerry operations and other information technology $ 78.6 $ 80.6

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Manufacturing, repair and research and development equipment 2.4 2.2

Accumulated amortization 71 72

Accumulated amortization and impairment 83.6 84.5

Net book value $ 12.7 $ 13.4

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Intangible Assets, Net

Intangible assets comprised the following:

As at November 30, 2024

As at May 31, 2025

Cost Accumulated

11 unchanged sentences

$ 180.6 $ 133.3 $ 47.3

For the nine months ended November 30, 2024, amortization expense related to intangible assets amounted to $13 million (nine months ended November 30, 2023 - $18 million).

Total additions to intangible assets for the nine months ended November 30, 2024 amounted to $ 6 million (nine months ended November 30, 2023 - $ 12 million).

During the nine months ended November 30, 2024, additions to intangible assets primarily consisted of payments for intellectual property relating to patent maintenance, registration and license fees.

Based on the carrying value of the identified intangible assets as at November 30, 2024, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for the remainder of fiscal 2025 and each of the five succeeding years is expected to be as follows:

For the three months ended May 31, 2025, amortization expense related to intangible assets amounted to $4.2 million (three months ended May 31, 2024 - $11.0 million).

Total additions to intangible assets for the three months ended May 31, 2025 amounted to $ 1.2 million (three months ended May 31, 2024 - $ 1.5 million).

During the three months ended May 31, 2025, additions to intangible assets primarily consisted of payments for intellectual property relating to patent maintenance and registration fees.

Based on the carrying value of the identified intangible assets as at May 31, 2025, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for the remainder of fiscal 2026 and each of the five succeeding years is expected to be as follows:

fiscal 2026 - $ 7.1 million;

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fiscal 2030 - $ 3.7 million and fiscal 2031 - $ 2.8 million.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Changes to the carrying amount of goodwill during the nine months ended November 30, 2024 were as follows:

Changes to the carrying amount of goodwill during the three months ended May 31, 2025 were as follows:

Carrying Amount

Carrying amount as at February 29, 2024 $ 474.5

Goodwill impairment charge ( 16 )

Effect of foreign exchange on non-U.S.

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dollar denominated goodwill 4.5

Carrying amount as at November 30, 2024 $ 473

Carrying amount as at May 31, 2025 $ 476.9

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Other Long-term Assets

As at November 30, 2024 and February 29, 2024, other long-term assets included long-term receivables related to intellectual property sold in fiscal 2024, see Note 11 under the heading “Patent Sale”, other long-term receivables, and the long-term portion of deferred commission, among other items, none of which were greater than 5% of the total assets balance.

As at May 31, 2025 and February 28, 2025, other long-term assets included long-term receivables related to intellectual property sold, long-term receivables, and the long-term portion of deferred commission, among other items, none of which were greater than 5% of the total assets balance.

Accrued Liabilities

Accrued liabilities is comprised of the following:

November 30, 2024 February 29, 2024

May 31, 2025 February 28, 2025

Variable incentive accrual $ 8.5 $ 31.4

Operating lease liabilities, current 13.8 15.0

Restructuring program liabilities, current portion 7 20

As at November 30, 2024 and February 29, 2024, other accrued liabilities included accrued director fees, accrued vendor liabilities, payroll withholding taxes and accrued royalties, among other items, none of which were greater than 5% of the current liabilities balance in any of the periods presented.

Other 61.0 79.8

$ 83.3 $ 126.2

Other accrued liabilities include restructuring programs, current portion, accrued vendor liabilities, accrued director fees, and payroll withholding taxes, among other items, none of which were greater than 5% of the current liabilities balance in any of the periods presented.

Restructuring

During fiscal 2023 and fiscal 2024, the Company commenced restructuring programs with the objectives of reducing its annual costs and expenses relating to the Cybersecurity business, and later significantly separating and streamlining the Company’s centralized corporate functions into Cybersecurity and IoT specific teams such that the businesses may operate quasi-independently and on a profitable and cash flow positive basis.

The reduction of overall Company costs has included and will continue to include rationalizing and streamlining existing central administrative functions, right-sizing cost structures within both business units including R&D and outsourced contracting, changes to overall product portfolio offerings and geographies the Company operates in and optimizing related support functions and organizational structure.

During fiscal 2025 and fiscal 2024, the Company commenced restructuring programs with the objective of reducing its annual costs and expenses relating to Secure Communications.

Other charges and cash costs may occur as programs are implemented or changes are completed.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

The following table sets forth the activity in the Company’s restructuring program liabilities:

6 unchanged sentences

Cash payments made ( 5.9 ) ( 1.6 ) ( 7.5 )

Balance as at November 30, 2024

Balance as at May 31, 2025

$ 3.4 $ 2.4 $ 5.8

Current portion $ 3.4 $ 1.5 $ 4.9

Long-term portion — 0.9 0.9

The long-term portion of the restructuring liabilities is recorded at present value, determined by measuring the remaining payments at present value using an effective interest rate of 5.4 %, and the Company recorded interest expense over time to arrive at the total face value of the remaining payments.

The restructuring charges included employee termination benefits and facilities costs to better align the Company’s general and administrative and R&D cost profiles to its market competitors, create a more focused sales force and improve profitability and cash flow.

Total charges incurred for the nine months ended November 30, 2024 and November 30, 2023 were $ 16 million and $ 17 million, respectively, recorded within General and administrative on the Consolidated Statements of Operations.

For the nine months ended November 30, 2024, the Company’s net effective income tax expense rate was approximately 29 % compared to a net effective income tax expense rate of 37 % for the nine months ended November 30, 2023.

$ 3.4 $ 2.4 $ 5.8

The long-term portion of the restructuring liabilities is re corded by measuring the remaining payments at present value using an effective interest rate of 4.8 %, and the Company recorded interest expense over time to arrive at the total face value of the remaining payments.

The restructuring charges included employee termination benefits and facilities costs.

Total charges incurred for the three months ended May 31, 2025 and May 31, 2024 were $ 2.9 million and $ 7.3 million, respectively, recorded within General and administrative on the Consolidated Statements of Operations.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

For the three months ended May 31, 2025, the Company’s net effective income tax expense rate was approximately 61 % compared to a net effective income tax expense rate of 22 % for the three months ended May 31, 2024.

The Company’s income tax rate reflects the change in unrecognized income tax benefit, if any, and the fact that the Company has a significant valuation allowance against its deferred income tax assets;

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The Company’s net effective income tax rate also reflects the geographic mix of earnings in jurisdictions with different income tax rates.

The Company’s total unrecognized income tax benefits as at November 30, 2024 were $ 20 million (February 29, 2024 - $ 20 million).

As at November 30, 2024, $ 20 million of the unrecognized income tax benefits have been netted against deferred income tax assets and nil has been recorded within income taxes payable on the Company’s consolidated balance sheets.

The Company’s total unrecognized income tax benefits as at May 31, 2025 were $ 19.6 million (February 28, 2025 - $ 19.5 million).

As at May 31, 2025, $ 19.2 million of the unrecognized income tax benefits have been netted against deferred income tax assets and $ 0.4 million has been recorded within income taxes payable on the Company’s consolidated balance sheets.

The Company is subject to ongoing examination by tax authorities in certain jurisdictions in which it operates.

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While the final resolution of audits is uncertain, the Company believes the ultimate resolution of these audits will not have a material adverse effect on its consolidated financial position, liquidity or results of operations.

3.00% Convertible Senior Notes

On January 29, 2024, the Company issued $ 200 million aggregate principal amount of 3.00% senior convertible unsecured notes (the “Notes” and, collectively with the Extension Debentures and 2020 Debentures, the “Debentures”) in an offering to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended.

LONG-TERM NOTES

On January 29, 2024, the Company issued $ 200.0 million aggregate principal amount of 3.00% senior convertible unsecured notes (the “Notes”) in an offering to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended.

The Notes are due on February 15, 2029 unless earlier converted, redeemed, or repurchased.

Each $ 1,000 principal amount of the Notes is convertible into 257.5826 common shares of the Company based on the initial conversion rate, for a total of 52 million common shares at a price of $ 3.88 per share, subject to adjustments.

Prior to the close of business on

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

the business day immediately preceding November 15, 2028, the Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding February 15, 2029.

Prior to the close of business on the business day immediately preceding November 15, 2028, the Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding February 15, 2029.

The Company may satisfy any conversions of the Notes by paying or delivering, as the case may be, cash, its common shares or a combination of cash and its common shares, at the Company’s election (or, in the case of any Notes called for redemption that are converted during the related redemption period, solely its common shares).

3 unchanged sentences

No portion of the embedded derivatives required bifurcation from the host debt contract.

The following table summarizes the change in the Notes for the nine months ended November 30, 2024:

The following table summarizes the change in the Notes for the three months ended May 31, 2025:

Carrying Amount

1 unchanged sentence

Amortization of debt issuance costs 0.3

Balance as at November 30, 2024 $ 195

Extension Debentures and 2020 Debentures

On November 17, 2023, the Company issued $ 150 million aggregate principal amount of 1.75% extendible convertible unsecured debentures (the “Extension Debentures”) in a private placement to certain controlled affiliates of Fairfax Financial Holdings Limited (“Fairfax”).

The Company used the net proceeds from the issuance of the Extension Debentures, together with cash on hand, to repay its outstanding $ 365 million aggregate principal amount of 1.75% unsecured convertible debentures (the “2020 Debentures” and, collectively with the Extension Debentures, the “Prior Debentures”) at maturity on November 13, 2023 .

Aside from the maturity date, the terms of the Extension Debentures were substantially identical to those of the 2020 Debentures, except that the Extension Debentures were not listed on any stock exchange and did not involve an indenture trustee.

The Extension Debentures matured on February 15, 2024 .

Due to the conversion option and other embedded derivatives within the Prior Debentures, the Company elected to record the Prior Debentures, including the debt itself and all embedded derivatives, at fair value and presented the Prior Debentures as a single hybrid financial instrument.

No portion of the fair value of the Prior Debentures were recorded as equity.

Each period, the fair value of the Prior Debentures were recalculated and resulting gains and losses from the change in fair value of the Prior Debentures associated with non-credit components were recognized in income, while the change in fair value associated with credit components was recognized in accumulated other comprehensive loss (“AOCL”).

The fair value of the 2020 Debentures was determined using the significant Level 2 inputs interest rate curves, the market price and volatility of the Company’s listed common shares, and the significant Level 3 inputs related to credit spread and the implied discount of the 2020 Debentures at issuance.

The fair value of the Extension Debentures was determined using observable interest rate curves, and the market price and volatility of the Company’s common shares.

Balance as at May 31, 2025 $ 195.6

The Company’s estimate of the fair value of the Notes as at May 31, 2025 is $ 259.8 million (February 28, 2025 - $ 289.5 million).

For the three months ended May 31, 2025, the Company recorded interest expense related to the Notes of $ 1.5 million which has been included in investment income, net on the Company’s consolidated statements of operations (three months ended May 31, 2024 - $ 1.5 million).

BlackBerry Limited

1 unchanged sentence

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

The following table shows the impact of the changes in fair value of the 2020 Debentures for the three and nine months ended November 30, 2024 and November 30, 2023:

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

Income associated with the change in fair value from non-credit components recorded in the consolidated statements of operations $ — $ 18 $ — $ 2

Realized losses associated with the change in fair value from credit components recorded in the consolidated statements of operations on maturity of the 2020 Debentures — ( 6 ) — ( 6 )

Realized losses associated with the change in fair value from credit components released from AOCL on maturity of the 2020 Debentures — 6 — 6

Total decrease in the fair value of the 2020 Debentures $ — $ 18 $ — $ 2

For the three and nine months ended November 30, 2024, the Company recorded interest expense related to the Debentures of $ 1 million and $ 5 million, respectively, which has been included in investment income, net on the Company’s consolidated statements of operations (three and nine months ended November 30, 2023 - $ 1 million and $ 5 million).

Fairfax, a related party under U.S.

GAAP due to its beneficial ownership of common shares in the Company after taking into account potential conversion of the Extension Debentures and the 2020 Debentures, respectively, owned the full principal amount of the Extension Debentures and $ 330 million principal amount of the 2020 Debentures.

As such, the payment of interest on the Prior Debentures, and their repayment, to Fairfax represented related party transactions.

CAPITAL STOCK

The following details the changes in issued and outstanding common shares for the nine months ended November 30, 2024:

The following details the changes in issued and outstanding common shares for the three months ended May 31, 2025:

Capital Stock and

2 unchanged sentences

Common shares outstanding as at February 28, 2025 596,231 $ 2,976.4

Exercise of stock options 26 —

Common shares issued for restricted share unit settlements 530 —

1 unchanged sentence

Common shares issued for employee share purchase plan 312 1.2

Common shares outstanding as at November 30, 2024 591,583 $ 2,972

The Company had 592 million voting common shares outstanding, 0.2 million options to purchase voting common shares, 17 million RSUs and 2 million DSUs outstanding as at December 17, 2024.

In addition, 51.5 million common shares are issuable upon conversion in full of the Notes as described in Note 6.

Share repurchase ( 2,570 ) ( 12.8 )

Common shares outstanding as at May 31, 2025 594,529 2,970.5

The Company had 595 million voting common shares outstanding, 18.6 million restricted share units (“RSUs”) and 1.4 million deferred shared units (“DSUs”) outstanding as at June 20, 2025 .

In addition, 51.5 million c ommon shares are issuable upon conversion in full of the Notes as described in Note 6.

On May 8, 2025, the Company announced that it received acceptance from the Toronto Stock Exchange with respect to a normal course issuer bid to purchase for cancellation up to 27.9 million common shares of the Company, or approximately 4.7 % of the outstanding public float at May 5, 2025.

The NCIB commenced on May 12, 2025, and will terminate on the earliest of May 11, 2026, such date as the Company may determine, or the date on which the maximum number of common shares that may be purchased under the NCIB has been reached.

The Company is not obligated to repurchase any common shares under the NCIB.

During the three months ended May 31, 2025, the Company repurchased 2.6 million common shares at a cost of $ 10.0 million.

The Company recorded a reduction of $ 12.8 million to capital stock and the amount paid below the per share paid-in capital of the common shares of $ 2.8 million was recorded to deficit.

All common shares repurchased by the Company pursuant to the normal course issuer bid have been canceled.

BlackBerry Limited

3 unchanged sentences

The following table sets forth the computation of basic and diluted earnings (loss) per share:

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

Three Months Ended

May 31, 2025 May 31, 2024

Net income (loss) from continuing operations for basic and diluted earnings (loss) per share available to common shareholders $ 1.9 $ ( 16.5 )

Prior Debentures fair value adjustment (1) (2) (3)

interest expense on Debentures (1) (2) (3)

Net income (loss) from continuing operations for diluted earnings (loss) per share available to common shareholders $ 12 $ ( 4 ) $ ( 1 ) $ 20

Net loss for basic and diluted loss per share available to common shareholders $ ( 11 ) $ ( 21 ) $ ( 72 ) $ ( 74 )

Prior Debentures fair value adjustment (1) (2) (3)

interest expense on Debentures (1) (2) (3)

Net loss for diluted loss per share available to common shareholders $ ( 11 ) $ ( 33 ) $ ( 72 ) $ ( 74 )

Net income (loss) for basic and diluted earnings (loss) per share available to common shareholders $ 1.9 $ ( 41.4 )

Weighted average number of shares outstanding (000’s) - basic (1)

2 unchanged sentences

Stock-based compensation (2)(3)

2,290 — — 5,272

Conversion of 2020 Debentures (1) (2)

Conversion of Extension Debentures (1) (3)

— 4,670 — 1,182

Weighted average number of shares and assumed conversions (000’s) diluted 600,831 589,821

Earnings (loss) per share - reported

Basic earnings per share from continuing operations $ 0.02 $ 0.01 $ — $ 0.03

Total basic loss per share $ ( 0.02 ) $ ( 0.04 ) $ ( 0.12 ) $ ( 0.13 )

Basic earnings (loss) per share from continuing operations $ 0.00 $ ( 0.03 )

Total earnings (loss) per share $ 0.00 $ ( 0.07 )

Diluted earnings (loss) per share from continuing operations $ 0.00 $ ( 0.03 )

Total diluted loss per share $ ( 0.02 ) $ ( 0.05 ) $ ( 0.12 ) $ ( 0.13 )

Total diluted earnings (loss) per share $ 0.00 $ ( 0.07 )

______________________________

(1) The Company has not presented the dilutive effect of the Debentures using the if-converted method in the calculation of diluted loss per share for the three and nine months ended November 30, 2024 and nine months ended November 30, 2023, as to do so would be antidilutive.

See Note 6 for details on the Debentures.

(2) The Company has presented the dilutive effect of the 2020 Debentures using the if-converted method for the period the 2020 Debentures were outstanding, assuming conversion at the beginning of the quarter for the three months ended November 30, 2023.

Accordingly, to calculate diluted loss per share, the Company adjusted net loss by eliminating the fair value adjustment made to the 2020 Debentures and interest expense incurred on the 2020 Debentures for the three months ended November 30, 2023, and added the number of shares that would have been issued upon conversion to the diluted weighted average number of shares outstanding.

See Note 6 for details on the 2020 Debentures.

(3) The Company has presented the dilutive effect of the Extension Debentures using the if-converted method for the period the Extension Debentures were outstanding, assuming conversion at the issuance date for the three and nine months ended November 30, 2023.

Accordingly, to calculate diluted loss per share, the Company adjusted net loss by

( 1) The Company has not presented the dilutive effect of the Notes using the if-converted method in the calculation of diluted loss per share for the three months ended May 31, 2025 and May 31, 2024, as to do so would be antidilutive.

See Note 6 for details on the Notes.

(2) The Company has not presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted loss per share for the three months ended May 31, 2024, as to do so would be antidilutive.

(3 ) The Company has presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted earnings per share for the three months ended May 31, 2025 .

BlackBerry Limited

1 unchanged sentence

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

eliminating the fair value adjustment made to the Extension Debentures and interest expense incurred on the Extension Debentures for the three and nine months ended November 30, 2023 and added the number of shares that would have been issued upon conversion to the diluted weighted average number of shares outstanding.

See Note 6 for details on the Extension Debentures.

(4) The Company has not presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted loss per share for the nine months ended November 30, 2024 and the three months ended November 30, 2023, as to do so would be antidilutive.

(5) The Company has presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted loss per share for the three months ended November 30, 2024 and the nine months ended November 30, 2023.

ACCUMULATED OTHER COMPREHENSIVE LOSS

The changes in AOCL by component net of tax, for the three and nine months ended November 30, 2024 and November 30, 2023 were as follows:

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

The changes in AOCL by component net of tax, for the three months ended May 31, 2025 and May 31, 2024 were as follows:

Three Months Ended

May 31, 2025 May 31, 2024

Cash Flow Hedges

1 unchanged sentence

Other comprehensive income (loss) before reclassification 1.9 ( 0.2 )

Amounts reclassified from AOCL into net loss — — — —

Amounts reclassified from AOCL into net income 0.5 —

Accumulated net unrealized gains on derivative instruments designated as cash flow hedges $ 0.5 $ 0.1

3 unchanged sentences

Foreign currency cumulative translation adjustment $ ( 12.7 ) $ ( 14.1 )

Change in Fair Value From Instrument-Specific Credit Risk On Prior Debentures

Balance, beginning of period $ — $ ( 6 ) $ — $ ( 6 )

Amounts reclassified from AOCL into net loss — 6 — 6

Change in fair value from instruments-specific credit risk on Prior Debentures

$ — $ — $ — $ —

Other Post-Employment Benefit Obligations

3 unchanged sentences

(a) Letters of Credit

The Company had $ 11 million in collateralized outstanding letters of credit in support of certain leasing arrangements entered into in the ordinary course of business as of November 30, 2024.

The Company had $ 13.5 million in collateralized outstanding letters of credit in support of certain leasing arrangements entered into in the ordinary course of business as of May 31, 2025.

The Company has posted a performance bond as collateral to support a government contract for the term of the agreement.

See the discussion of restricted cash in Note 3.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

(b) Contingencies

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Any settlements or awards under such claims are provided for when reasonably determinable.

As of November 30, 2024, there are no material claims outstanding for which the Company has assessed the potential loss as both probable to result and reasonably estimable;

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

As of May 31, 2025, with the exception of the Canadian employment class action settlement discussed below, there are no other material claims for which the Company has assessed the potential loss as both probable to result and reasonably estimable;

therefore, no accrual has been made.

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The individual lawsuit was voluntarily dismissed and the consolidated U.S.

class actions Stipulation of Settlement was executed effective June 7, 2022.

class actions were dismissed in September 2022 following final approval of the Stipulation of Settlement executed effective June 7, 2022.

On July 23, 2014, the plaintiff in the putative Ontario class action ( Swisscanto Fondsleitung AG v.

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Discovery is proceeding and the Court has not set a trial date.

On March 17, 2017, a putative employment class action was filed against the Company in the Ontario Superior Court of Justice ( Parker v.

BlackBerry Limited ).

The Statement of Claim alleges that actions the Company took when certain of its

Other contingencies

As at May 31, 2025, the Company has recognized $ 25.0 million (February 28, 2025 - $ 20.5 million) in funds from claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund (“SIF”) program’s investment in QNX.

A portion of this amount may be repayable in the future under certain circumstances if certain terms and conditions are not met by the Company, which is not probable at this time.

BlackBerry Limited

1 unchanged sentence

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

employees decided to accept offers of employment from Ford Motor Company of Canada amounted to a wrongful termination of the employees’ employment with the Company.

The claim seeks (i) an unspecified quantum of statutory, contractual, or common law termination entitlements;

On March 17, 2017, a putative employment class action was filed against the Company in the Ontario Superior Court of Justice (Parker v.

BlackBerry Limited).

The Statement of Claim alleges that actions the Company took when certain of its employees decided to accept offers of employment from Ford Motor Company of Canada amounted to a wrongful termination of the employees’ employment with the Company.

The claim sought (i) an unspecified quantum of statutory, contractual, or common law termination entitlements;

(ii) punitive or breach of duty of good faith damages of CAD$20 million, or such other amount as the Court finds appropriate, (iii) pre- and post- judgment interest, (iv) attorneys’ fees and costs, and (v) such other relief as the Court deems just.

4 unchanged sentences

The parties participated in a mediation on November 9, 2022, which did not result in an agreement.

The matter had a trial date of June 2, 2025.

The parties attended a pre-trial conference on December 4, 2024.

The Court has set a trial date of June 2, 2025.

Discovery is proceeding.

Other contingencies

As at November 30, 2024, the Company has recognized $ 17 million (February 29, 2024 - $ 17 million) in funds from claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund program’s investment in BlackBerry QNX.

A portion of this amount may be repayable in the future under certain circumstances if certain terms and conditions are not met by the Company, which is not probable at this time.

At a further pretrial conference on January 24, 2025, the parties reached a settlement in principle for approximately $ 2.8 million or CDN $ 4.0 million inclusive of all fees and costs.

On February 18, 2025, the parties settled the matter for CDN $ 4.0 million inclusive of all fees and costs, subject to Court approval.

On March 10, 2025, the Company paid the settlement amount into a trust held by the plaintiffs’ counsel.

A settlement approval hearing is scheduled for July 30, 2025.

(d) Indemnifications

The Company enters into certain agreements that contain indemnification provisions under which the Company could be subject to costs and damages, including in the event of an infringement claim against the Company or an indemnified third party.

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The CODM, who is the CEO of the Company, makes decisions and assesses the performance of the Company using three operating segments.

During the third quarter of fiscal 2025, the CODM added the segment EBITDA as a measure of profit or loss used under the “management” approach in reviewing the results of the Company’s operating segments to its existing measure of profit or loss of segment gross margin.

Prior period comparatives have been recast to reflect the change in metric, including the significant operating expenses included within that metric, and the change in presentation relating to expenses associated with its facilities as disclosed in Note 1.

The CODM does not evaluate operating segments using discrete asset information.

4 unchanged sentences

Segment Disclosures

With the Cylance business being presented as a discontinued operations as discussed in Note 2, the Company is organized and managed as three operating segments:

Secure Communications (formerly Cybersecurity), IoT, and Licensing.

The following table shows information by operating segment for the three and nine months ended November 30, 2024 and November 30, 2023:

With the sale of the Cylance business in the fourth quarter of fiscal 2025, and the classification of the business as discontinued operations as discussed in Note 2, the Company is organized and managed as three operating segments:

QNX, Secure Communications, and Licensing.

Prior period comparatives have been recast to reflect this change in reportable operating segments.

The following table shows information by reportable operating segment for the three months ended May 31, 2025 and May 31, 2024:

For the Three Months Ended

Secure Communications IoT Licensing Segment Totals

November 30, November 30, November 30, November 30,

2024 2023 2024 2023 2024 2023 2024 2023

Segment revenue $ 74 $ 91 $ 62 $ 55 $ 7 $ 6 $ 143 $ 152

Segment cost of sales 20 23 9 8 2 1 31 32

Segment gross margin (1)

$ 54 $ 68 $ 53 $ 47 $ 5 $ 5 $ 112 $ 120

Segment research and development 11 12 16 15 — — 27 27

Segment sales and marketing 12 15 11 10 — — 23 25

Segment general and administrative 10 9 9 10 1 6 20 25

Less amortization included in the above 1 1 1 — 2 3 4 4

Total Segment EBITDA (1)

$ 22 $ 33 $ 18 $ 12 $ 6 $ 2 $ 46 $ 47

For the Nine Months Ended

Secure Communications IoT Licensing Segment Totals

November 30, November 30, November 30, November 30,

QNX Secure Communications Licensing Segment Totals

May 31, May 31, May 31, May 31,

2025 2024 2025 2024 2025 2024 2025 2024

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$ 46.3 $ 43.7 $ 41.4 $ 42.4 $ 3.1 $ 4.6 $ 90.8 $ 90.7

Segment research and development 36 44 47 49 — — 83 93

Segment sales and marketing 34 45 32 31 — — 66 76

Segment general and administrative 30 35 25 32 5 19 60 86

Less amortization included in the above 3 4 2 2 6 8 11 14

Total Segment EBITDA (1)

______________________________

(1) A reconciliation of total segment gross margin and segment EBITDA to consolidated totals is set forth below.

(1) A reconciliation of total segment gross margin to consolidated pre-tax income from continuing operations is set forth below.

QNX consists of BlackBerry® QNX®, BlackBerry® Certicom®, BlackBerry Radar®, and other QNX applications.

QNX revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services and through volume-based royalties.

Secure Communications consists of BlackBerry® UEM, BlackBerry® AtHoc® and BlackBerry® SecuSUITE®.

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Secure Communications revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services.

IoT consists of BlackBerry® QNX®, BlackBerry® Certicom®, BlackBerry Radar®, BlackBerry IVY® and other IoT applications.

IoT revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services.

Licensing consists of the Company’s intellectual property arrangements and settlement awards.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

The following table reconciles total segment gross margin for the three and nine months ended November 30, 2024 and November 30, 2023 to the Company’s consolidated totals:

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

The following table reconciles total segment gross margin for the three months ended May 31, 2025 and May 31, 2024 to the Company’s consolidated totals:

Three Months Ended

May 31, 2025 May 31, 2024

Total segment gross margin $ 90.8 $ 90.7

Adjustments (1) :

Stock compensation expense — 1 2 3

Stock compensation 0.5 0.7

Research & development 25.0 30.6

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Impairment of long-lived assets 0.1 3.5

Prior Debentures fair value adjustment — ( 13 ) — 3

Investment income, net ( 2.9 ) ( 4.0 )

Consolidated income from continuing operations before income taxes $ 19 $ 23 $ 15 $ 40

______________________________

(1) The CODM reviews segment information on an adjusted basis, which excludes certain amounts as described below:

Stock compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company’s management.

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

Total Segment EBITDA $ 46 $ 47 $ 93 $ 129

Adjustments (1) :

Stock compensation expense 4 7 16 25

Restructuring expenses 7 9 16 17

Corporate general and administrative expense 9 10 31 24

Amortization 6 7 19 26

Impairment of long-lived assets 1 9 4 9

Prior Debentures fair value adjustment — ( 13 ) — 3

Investment income — ( 5 ) ( 8 ) ( 15 )

Consolidated income from continuing operations before income taxes $ 19 $ 23 $ 15 $ 40

Consolidated income (loss) from continuing operations before income taxes $ 4.9 $ ( 8.9 )

______________________________

(1) The CODM reviews segment information on an adjusted basis, which excludes certain amounts as described below:

Stock compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company’s management.

Restructuring expenses - Restructuring costs relate to employee termination benefits, facilities, streamlining many of the Company’s centralized corporate functions into Secure Communications (previously Cybersecurity) and IoT specific teams, and other costs pursuant to programs to reduce the Company’s annual expenses amongst R&D, infrastructure and other functions do not reflect expected future operating expenses, are not indicative of the

(1) The CODM reviews segment gross margin information on an adjusted basis, which excludes Stock compensation expenses - which is a non-cash expense and is not included in the CODM’s measure of segment gross margin when evaluating performance and allocating resources to the segment.

BlackBerry Limited

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In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Company’s core operating performance, and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

On May 11, 2023, the Company completed the sale of certain non-core patent assets to Malikie Innovations Limited for $ 170 million in cash on closing, an additional $ 30 million in fixed consideration due by no later than the third anniversary of closing and variable consideration in the form of future royalties in the aggregate amount of up to $ 700 million (the “Malikie Transaction”).

Pursuant to the terms of the Malikie Transaction, the Company received a license back to the patents sold, which relate primarily to mobile devices, messaging and wireless networking.

In the first quarter of fiscal 2024, the Company recognized revenue of $ 218 million and cost of sales of $ 147 million related to intellectual property sold.

As at November 30, 2024, the remaining financing component on the patent sale was $ 6 million and will be recognized as interest income over the payment terms.

The Company estimated variable consideration from future royalty revenues using an expected value method including inputs from both internal and external sources related to patent monetization activities and cash flows, and constrained the recognition of that variable consideration based on the Company’s accounting policies and critical accounting estimates as described in Note 1.

The present value of variable consideration recognized as revenue was $ 23 million and the amount of variable consideration constrained was $ 210 million.

The Company evaluates its conclusions as to whether the constraints are still applicable on an ongoing basis, and will make updates when it observes a sufficient amount of evidence that amounts of variable consideration are no longer subject to constraint or the estimated amount of variable consideration has changed.

The Company disaggregates revenue from contracts with customers based on geographical regions, timing of revenue recognition, and the major product and service types, as discussed above in “Segment Disclosures”.

The Company’s revenue, classified by major geographic region in which the Company’s customers are located, was as follows:

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

Three Months Ended

May 31, 2025 May 31, 2024

North America (1)

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Revenue, classified by timing of recognition, was as follows:

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

Three Months Ended

May 31, 2025 May 31, 2024

Products and services transferred over time $ 58.5 $ 59.4

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Total $ 121.7 $ 123.4

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Revenue contract balances

The following table sets forth the activity in the Company’s revenue contract balances for the nine months ended November 30, 2024:

Accounts and Other Receivable Deferred Revenue Deferred Commissions

The following table sets forth the activity in the Company’s revenue contract balances for the three months ended May 31, 2025:

Accounts Receivable Deferred Revenue Deferred Commissions

Opening balance as at February 28, 2025 $ 240.0 $ 167.1 $ 14.6

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Decrease, net ( 71.6 ) ( 22.0 ) ( 1.3 )

Closing balance as at November 30, 2024 $ 226 $ 142 $ 14

Closing balance as at May 31, 2025 $ 168.4 $ 145.1 $ 13.3

Current portion $ 129.9 $ 136.3 $ 7.4

Long-term portion 38.5 8.8 5.9

$ 168.4 $ 145.1 $ 13.3

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Transaction price allocated to the remaining performance obligations

The table below discloses the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as at November 30, 2024 and the time frame in which the Company expects to recognize this revenue.

The table below discloses the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as at May 31, 2025 and the time frame in which the Company expects to recognize this revenue.

The disclosure includes estimates of variable consideration, except when the variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property.

The disclosure excludes estimates of variable consideration relating to potential future royalty revenues from the Malikie Transaction, which have been constrained based on the Company’s accounting policies and critical accounting estimates and as described under “Patent Sale” in this Note 11.

As at November 30, 2024

The disclosure excludes estimates of variable consideration relating to future royalty revenues from the sale of certain non-core patent assets to Malikie Innovations Limited in May 2023, which have been constrained based on the Company’s accounting policies and critical accounting estimates.

As at May 31, 2025

Less than 12 Months 12 to 24 Months Thereafter Total

Remaining performance obligations $ 136.3 $ 3.8 $ 5.0 $ 145.1

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Revenue recognized for performance obligations satisfied in prior periods

For the three and nine months ended November 30, 2024, revenue of nil and $ 2 million respectively, was recognized relating to performance obligations satisfied in a prior period (three and nine months ended November 30, 2023 - $ 1 million and $ 32 million respectively).

Assets by Geography

Property, plant and equipment, intangible assets, operating lease ROU assets and goodwill, classified by geographic region in which the Company’s assets are located, were as follows:

November 30, 2024 February 29, 2024

Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill Total Assets Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill Total Assets

Canada $ 76 $ 357 $ 78 $ 342

United States 455 841 467 923

Other 28 111 29 130

$ 559 $ 1,309 $ 574 $ 1,395

For the three months ended May 31, 2025, revenue of nil was recognized relating to performance obligations satisfied in a prior period (three months ended May 31, 2024 - nil ).

Information About Major Customers

There was one customer that comprised 18 % of the Company’s revenue and one customer that comprised 15 % of the Company’s revenue in the three and nine months ended November 30, 2024, respectively (three and nine months ended November 30, 2023 - two customers that comprised 29 % of the Company’s revenue and one customer that comprised 37 % of the Company’s revenue, due to the completed Malikie Transaction ).

There was one customer that comprised 13 % of the Company’s revenue in the three months ended May 31, 2025 (three months ended May 31, 2024 - one customer that comprised 13 % of the Company’s revenue).

BlackBerry Limited

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(a) Certain consolidated statements of cash flow information related to interest and income taxes paid is summarized as follows:

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

Three Months Ended

May 31, 2025 May 31, 2024

Interest paid during the period $ 1.5 $ 1.5

Income taxes paid during the period 1.7 6.8

Income tax refunds received during the period — — — —

(b) Additional Information

1 unchanged sentence

The Company is exposed to foreign exchange risk as a result of transactions in currencies other than its functional currency, the U.S.

The majority of the Company’s revenue in the third quarter of fiscal 2025 was transacted in U.S.

The majority of the Company’s revenue in the first quarter of fiscal 2026 was transacted in U.S.

Portions of the revenue were denominated in Canadian dollars, euros and British pounds.

1 unchanged sentence

dollars, euros and British pounds.

At November 30, 2024, approximately 23 % of cash and cash equivalents, 24 % of accounts receivable and 88 % of accounts payable were denominated in foreign currencies (February 29, 2024 – 19 %, 25 % and 59 %, respectively).

At May 31, 2025, approximately 9 % of cash and cash equivalents, 18 % of accounts receivable and 84 % of accounts payable were denominated in foreign currencies (February 28, 2025 – 19 %, 29 % and 71 %, respectively).

These foreign currencies primarily include the Canadian dollar, euro and British pound.

6 unchanged sentences

The Company also has significant financing components within certain revenue contracts with customers and is exposed to interest rate risk as a result of discounting the future payments from customers with a fixed interest rate.

The Company has also issued Notes with a fixed interest rate, as described in Note 6.

The Company also has outstanding Notes with a fixed interest rate, as described in Note 6.

The Company is exposed to interest rate risk as a result of the Notes.

3 unchanged sentences

The Company reduces this risk from its investment portfolio by investing in liquid, investment-grade securities and by limiting exposure to any one entity or group of related entities.

As at November 30, 2024, no single issuer represented more than 32 % of the total cash, cash equivalents and investments (February 29, 2024 - no single issuer represented more than 30 % of the total cash, cash equivalents and investments), with the largest such issuer representing bearer deposits, term deposits and cash balances with one of the Company’s banking counterparties.

Liquidity risk

Cash, cash equivalents, and investments were approximately $ 266 million as at November 30, 2024.

The Company’s management remains focused on efficiently managing working capital balances and managing the liquidity needs of the business.

Based on its current financial projections, the Company believes its financial resources, together with expected future operating cash generating and operating expense reduction activities, should be sufficient to meet funding requirements for current financial commitments and future operating expenditures not yet committed, and should provide the necessary financial capacity for the foreseeable future.

As at May 31, 2025, no single issuer represented more than 43 % of the total cash, cash equivalents and investments (February 28, 2025 - no single issuer represented more than 47 % of the total cash, cash equivalents and investments), with the largest such issuer representing bearer deposits, term deposits and cash balances with one of the Company’s banking counterparties.

In addition, as partial consideration for the sale of its Cylance endpoint security assets and liabilities to Arctic Wolf, as described in Note 2, the Company is owed a delayed cash payment one year following the closing.

This deferred consideration is included as “Other Receivables” and is approximately $ 38.6 million as at May 31, 2025.

The Company is exposed to risk related to potential non-payment of the deferred cash consideration from Arctic Wolf.

BlackBerry Limited

1 unchanged sentence

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

SUBSEQUENT EVENTS

On December 15, 2024 , the Company entered into an Equity and Asset Purchase Agreement (the “Equity and Asset Purchase Agreement”) with Arctic Wolf Networks, Inc.

(“Arctic Wolf”) and certain subsidiaries of the Company and Arctic Wolf, pursuant to which and upon the terms and subject to the conditions described therein, Arctic Wolf will acquire the Company’s Cylance® endpoint security assets for a purchase price consisting of $ 160 million of cash, subject to certain purchase price adjustments set forth in the Equity and Asset Purchase Agreement (the “Cash Consideration”), and 5.5 million common shares in Arctic Wolf (the “Equity Consideration”).

After giving effect to the purchase price adjustments to the Cash Consideration, the Company will receive approximately $ 80 million of the Cash Consideration and the Equity Consideration at closing of the transaction, and approximately $ 40 million of the Cash Consideration on the one-year anniversary of closing.

The Equity and Asset Purchase Agreement contains customary representation, warranties, covenants and indemnification made by the Company and Arctic Wolf.

In addition, the Equity and Asset Purchase Agreement provides that, on the closing date of the transaction, the Company and Arctic Wolf will enter into (i) a non-exclusive patent license agreement, (ii) a partner agreement pursuant to which the Company will agree to resell certain products and services of Arctic Wolf, and (iii) a strategic customer support agreement, pursuant to which Arctic Wolf will agree to provide certain customer support services to the Company.

Completion of the transaction is conditional upon the provision of customary closing deliverables and satisfaction of customary conditions.

Liquidity risk

Cash, cash equivalents, and investments were $ 381.9 million as at May 31, 2025.

As partial consideration for the sale of its Cylance endpoint security assets and liabilities to Arctic Wolf, the Company received common shares of Arctic Wolf with an estimated fair value of $ 24.6 million.

The common shares of Arctic Wolf are illiquid securities without a public market and, as such, they cannot be readily sold or exchanged for cash.

The Company may not be able to sell these shares at desired times or prices, which could negatively impact its financial condition and results of operations.

The Company’s management remains focused on efficiently managing working capital balances and managing the liquidity needs of the business.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements