What changed in this filing

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Item 1. Financial Statements

2025-09-25 compared with 2025-06-25 · 176 added, 137 removed, 622 unchanged (33% of the section changed)

4 unchanged sentences

Consolidated Balance Sheets

May 31, 2025 February 28, 2025

August 31, 2025 February 28, 2025

Cash and cash equivalents (note 3) $ 276.4 $ 266.7

39 unchanged sentences

Consolidated Statements of Shareholders’ Equity

Three Months Ended May 31, 2025

Three Months Ended August 31, 2025

Capital Stock

2 unchanged sentences

Comprehensive Loss Total

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

Net income — 13.3 — 13.3

Other comprehensive income — — 0.8 0.8

Stock-based compensation 5.9 — 5.9

Share repurchase ( 25.1 ) 5.1 — ( 20.0 )

Balance as at August 31, 2025 $ 2,951.3 $ ( 2,214.2 ) $ ( 12.0 ) $ 725.1

Three Months Ended August 31, 2024

Capital Stock

and Additional

Paid-in Capital Deficit Accumulated

Comprehensive Loss Total

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

Net loss — ( 19.7 ) — ( 19.7 )

Other comprehensive income — — 2.1 2.1

Stock-based compensation 7.1 — — 7.1

Balance as at August 31, 2024 $ 2,964.0 $ ( 2,219.4 ) $ ( 12.5 ) $ 732.1

See notes to consolidated financial statements.

BlackBerry Limited

(United States dollars, in millions) (unaudited)

Consolidated Statements of Shareholders’ Equity

Six Months Ended August 31, 2025

Capital Stock

and Additional

Paid-in Capital Deficit Accumulated

Comprehensive Loss Total

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

5 unchanged sentences

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

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

Three Months Ended May 31, 2024

Balance as at August 31, 2025 $ 2,951.3 $ ( 2,214.2 ) $ ( 12.0 ) $ 725.1

Six Months Ended August 31, 2024

Capital Stock

4 unchanged sentences

Net loss — ( 61.1 ) — ( 61.1 )

Other comprehensive loss — — ( 0.3 ) ( 0.3 )

Other comprehensive income — — 1.8 1.8

Stock-based compensation 14.8 — — 14.8

1 unchanged sentence

Employee share purchase plan 1.5 — — 1.5

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

Balance as at August 31, 2024 $ 2,964.0 $ ( 2,219.4 ) $ ( 12.5 ) $ 732.1

See notes to consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Operations

Three Months Ended

May 31, 2025 May 31, 2024

Three Months Ended Six Months Ended

August 31, 2025 August 31, 2024 August 31, 2025 August 31, 2024

Revenue (note 11) $ 129.6 $ 126.2 $ 251.3 $ 249.6

7 unchanged sentences

Impairment of long-lived assets (note 3) 0.5 0.6 0.6 4.1

85.1 86.4 173.4 189.3

Operating income (loss) 11.5 2.2 13.5 ( 10.7 )

14 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended

May 31, 2025 May 31, 2024

Three Months Ended Six Months Ended

August 31, 2025 August 31, 2024 August 31, 2025 August 31, 2024

Net income (loss) $ 13.3 $ ( 19.7 ) $ 15.2 $ ( 61.1 )

Other comprehensive income (loss)

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 )

Other comprehensive income

Net change in fair value and amounts reclassified to net income (loss) from derivatives designated as cash flow hedges during the period, net of income taxes of nil for the three and six months ended August 31, 2025 and August 31, 2024 (note 9) ( 0.2 ) 0.8 2.2 0.6

Foreign currency translation adjustment 1.0 1.3 5.0 1.2

Other comprehensive income (loss) 6.4 ( 0.3 )

Other comprehensive income 0.8 2.1 7.2 1.8

Comprehensive income (loss) $ 14.1 $ ( 17.6 ) $ 22.4 $ ( 59.3 )

3 unchanged sentences

Consolidated Statements of Cash Flows

Three Months Ended

May 31, 2025 May 31, 2024

Six Months Ended

August 31, 2025 August 31, 2024

Cash flows from operating activities

23 unchanged sentences

Proceeds on sale or maturity of short-term investments 91.7 93.8

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

Net cash provided by investing activities 52.8 16.6

Cash flows from financing activities

16 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 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.

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

The consolidated balance sheets at February 28, 2025 were derived from the audited Annual Financial Statements but do 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 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 facilities discussed below.

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

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

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

Three Months Ended Six Months Ended

Revised Revised

August 31, 2024 Impact of change August 31, 2024 August 31, 2024 Impact of change August 31, 2024

Cost of sales $ 50.9 $ ( 1.2 ) $ 49.7 $ 98.7 $ ( 2.7 ) $ 96.0

25 unchanged sentences

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.

The adoption of ASU 2023-09 will expand the Company’s disclosures, however the Company has not yet determined the impact on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03 to amend the codification on “Expense Disaggregation Disclosure” (Subtopic 220-40):

4 unchanged sentences

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

In July 2025, the FASB issued ASU 2025-05 to amend the guidance in “Financial Instruments—Credit Losses” (Topic 326).

The update provides targeted improvements and clarifications related to the recognition and measurement of expected credit losses, particularly for off-balance-sheet credit exposures and certain practical expedients.

The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years.

The Company will adopt this guidance in fiscal 2028 and does not expect the adoption to have a material impact on its results of operations, financial position and disclosures .

DISCONTINUED OPERATIONS

4 unchanged sentences

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 months ended May 31, 2024:

Three Months Ended

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

Three Months Ended Six Months Ended

August 31, 2024 August 31, 2024

Revenue $ 20.3 $ 41.2

11 unchanged sentences

Diluted loss per share from discontinued operations $ ( 0.04 ) $ ( 0.08 )

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 months ended May 31, 2024:

Three Months Ended

Three Months Ended Six Months Ended

August 31, 2024 August 31, 2024

Amortization $ 6.8 $ 13.6

26 unchanged sentences

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.

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 or observable price changes in the equity of an investee resulting from an orderly transaction for identical or similar investments of the same issuer.

Impairment of Long-Lived Assets

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.

During the three and six months ended August 31, 2025, the Company recorded a pre-tax and after-tax impairment charge of $ 0.5 million and $ 0.6 million, respectively, relating to operating lease right-of-use (“ROU”) assets and property, plant and equipment associated with exiting certain leased facilities and the change in the extent or manner in which certain information technology assets are used (three and six months ended August 31, 2024 - $ 0.6 million and $ 4.1 million, respectively).

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

The fair value of the ROU asset was based on the estimated sublease income for certain facilities taking into consideration the estimated time period it will take to obtain a sublessor, the applicable discount rate and the sublease rate, which are considered unobservable inputs.

5 unchanged sentences

Cash, Cash Equivalents and Investments

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

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

Cost Basis (1)

7 unchanged sentences

206.5 6.1 ( 1.2 ) 211.4 152.6 — 58.8 —

Equity securities 10.0 — ( 10.0 ) — — — — —

Term deposits, and certificates of deposits 29.7 — — 29.7 20.1 — — 9.6

2 unchanged sentences

promissory notes 20.9 — — 20.9 20.9 — — —

government sponsored enterprise notes 5.0 — — 5.0 — 5.0 — —

treasury bills 2.8 — — 2.8 2.8 — — —

28 unchanged sentences

(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.

As at August 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 and six months ended August 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 ( three and six months ended August 31, 2024 - upward adjustments of nil and $ 1.2 million, respectively).

During the three and six months ended August 31, 2025 and August 31, 2024, the Company did not record any impairment to these investments.

As of August 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 realize d gains or losses on available-for-sale securities for the three and six months ended August 31, 2025 and August 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.

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 six 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;

3 unchanged sentences

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

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

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

August 31, 2025 February 28, 2025

Cash and cash equivalents $ 276.4 $ 266.7

2 unchanged sentences

$ 290.6 $ 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

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

August 31, 2025 February 28, 2025

Cost Basis Fair Value Cost Basis Fair Value

2 unchanged sentences

$ 152.1 $ 152.1 $ 137.7 $ 127.7

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

As at August 31, 2025 and February 28, 2025, the Company h ad 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 May 31, 2025 were $ 6.0 million (February 28, 2025 - $ 6.6 million).

The current estimated credit losses (“CECL”) for accounts receivable as at August 31, 2025 were $ 5.4 million (February 28, 2025 - $ 6.6 million).

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

9 unchanged sentences

Write-offs charged against the allowance ( 0.5 )

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%).

Ending balance of the allowance for credit loss as at August 31, 2025 $ 5.4

The allowance for credit losses as at August 31, 2025 consists of $ 0.5 million (February 28, 2025 - $ 1.1 million) relating to CECL estimated based on days past due and region and $ 4.9 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 August 31, 2025 (February 28, 2025 - two customers comprised more than 10%).

BlackBerry Limited

2 unchanged sentences

Other Receivables

May 31, 2025 February 28, 2025

August 31, 2025 February 28, 2025

Arctic Wolf delayed cash payment (1)

4 unchanged sentences

(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.

As at August 31, 2025 and February 28, 2025, other receivables included items such as claims filed by QNX with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund (“SIF”), 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 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.

As at August 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:

May 31, 2025 February 28, 2025

August 31, 2025 February 28, 2025

BlackBerry operations and other information technology $ 77.8 $ 80.6

9 unchanged sentences

Intangible assets comprised the following:

As at May 31, 2025

As at August 31, 2025

Cost Accumulated

11 unchanged sentences

$ 180.6 $ 133.3 $ 47.3

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:

For the six months ended August 31, 2025, amortization expense related to intangible assets amounted to $ 7.6 million (six months ended August 31, 2024 - $ 22.0 million).

Total additions to intangible assets for the six months ended August 31, 2025 amounted to $ 2.6 million ( six months ended August 31, 2024 - $ 3.8 million).

D uring the six months ended August 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 August 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 - $ 4.2 million;

3 unchanged sentences

fiscal 2030 - $ 3.5 million and fiscal 2031 - $ 2.8 million.

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

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

Carrying Amount

5 unchanged sentences

dollar denominated goodwill 6.1

Carrying amount as at May 31, 2025 $ 476.9

Carrying amount as at August 31, 2025 $ 478.5

BlackBerry Limited

2 unchanged sentences

Other Long-term Assets

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.

As at August 31, 2025 and February 28, 2025, other long-term assets included long-term receivables related to intellectual property sold, long-term receivables relating to minimum royalty commitments from QNX customers, and the long-term portion of deferred commissions, among other items, none of which were greater than 5% of the total assets balance.

Accrued Liabilities

Accrued liabilities is comprised of the following:

May 31, 2025 February 28, 2025

August 31, 2025 February 28, 2025

Variable incentive accrual $ 16.8 $ 31.4

4 unchanged sentences

Restructuring

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.

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

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

7 unchanged sentences

Cash payments made ( 8.8 ) ( 2.7 ) ( 11.5 )

Balance as at May 31, 2025

Balance as at August 31, 2025

$ 3.0 $ 2.2 $ 5.2

2 unchanged sentences

$ 3.0 $ 2.2 $ 5.2

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 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 Com pany 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.

Total charges incurred for the six months ended August 31, 2025 and August 31, 2024 we re $ 6.3 million and $ 8.2 million, respectively, recorded within General and administrative on the Consolidated Statements of Operations.

BlackBerry Limited

1 unchanged sentence

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.

For the six months ended August 31, 2025, the Company’s net effective income tax expense rate was approximately 17 % compared to a net effective income tax expense rate of 17 % for the six months ended August 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;

1 unchanged sentence

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 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’s total unrecognized income tax benefits as at August 31, 2025 w ere $ 19.6 million (February 28, 2025 - $ 19.5 million).

As at August 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 t he Company’s consolidated balance sheets.

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

11 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 three months ended May 31, 2025:

The following table summarizes the change in the Notes for the six months ended August 31, 2025:

Carrying Amount

1 unchanged sentence

Amortization of debt issuance costs 0.6

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).

Balance as at August 31, 2025 $ 195.9

The Company’s estimate of the fair value of the Notes as at August 31, 2025 is $ 249.0 million (February 28, 2025 - $ 289.5 million).

For the three and six months ended August 31, 2025, the Company recorded interest expense related to the Notes of $ 1.5 million and $ 3.0 million, respectively, which has been included in investment income, net on the Company’s consolidated statements of operations (three and six months ended August 31, 2024 - $ 1.5 million and $ 3.0 million, respectively).

BlackBerry Limited

2 unchanged sentences

CAPITAL STOCK

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

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

Capital Stock and

7 unchanged sentences

Share repurchase ( 7,595 ) ( 37.9 )

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 .

Common shares outstanding as at August 31, 2025 590,361 2,951.3

The Company had 590 million voting common shares outstanding, 17.6 million restricted share units (“RSUs”) and 1.5 million deferred shared units (“DSUs”) outstanding as at September 22, 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.

On May 8, 2025, the Company announced that i t received acceptance from the Toronto Stock Exchange with respect to a normal course issuer bid (“NCIB”) share buyback program 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 share buyback program 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 share buyback program has been reached.

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

During the six months ended August 31, 2025, the Company repurchased 7.6 million common shares, at a cost of $ 30.0 million.

The Company recorded a reduction of $ 37.9 million to capital stock and the amount paid below the per share paid-in capital of the common shares of $ 7.9 million was recorded to deficit.

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

All common shares repurchased by the Company pursuant to the NCIB share buyback program 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

May 31, 2025 May 31, 2024

Three Months Ended Six Months Ended

August 31, 2025 August 31, 2024 August 31, 2025 August 31, 2024

Net income (loss) from continuing operations for basic and diluted earnings (loss) per share available to common shareholders $ 13.3 $ 3.5 $ 15.2 $ ( 13.0 )

4 unchanged sentences

Stock-based compensation (2) (3)

4,431 1,061 4,073 —

Weighted average number of shares and assumed conversions (000’s) diluted 597,369 591,610 598,697 590,188

5 unchanged sentences

______________________________

( 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.

(1) The Company has not presented the dilutive effect of the Notes using the if-converted method in the calculation of diluted earnings (loss) per share for the three and six months ended August 31, 2025 and August 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 .

(2) 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 and six months ended August 31, 2025 and for the three months ended August 31, 2024.

(3) 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 six months ended August 31, 2024, as to do so would be antidilutive .

BlackBerry Limited

2 unchanged sentences

ACCUMULATED OTHER COMPREHENSIVE LOSS

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

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

Three Months Ended Six Months Ended

August 31, 2025 August 31, 2024 August 31, 2025 August 31, 2024

Cash Flow Hedges

1 unchanged sentence

Other comprehensive income (loss) before reclassification ( 0.1 ) 0.7 1.9 0.5

Amounts reclassified from AOCL into net income 0.5 —

Amounts reclassified from AOCL into net income (loss) ( 0.1 ) 0.1 0.3 0.1

Accumulated net unrealized gains on derivative instruments designated as cash flow hedges $ 0.3 $ 0.9 $ 0.3 $ 0.9

1 unchanged sentence

Balance, beginning of period $ ( 12.7 ) $ ( 14.1 ) $ ( 16.7 ) $ ( 14.0 )

Other comprehensive income (loss) 4.0 ( 0.1 )

Other comprehensive income 1.0 1.3 5.0 1.2

Foreign currency cumulative translation adjustment $ ( 11.7 ) $ ( 12.8 ) $ ( 11.7 ) $ ( 12.8 )

4 unchanged sentences

(a) Letters of Credit

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 had $ 14.1 million in collateralized outstanding letters of credit in support of certain leasing arrangements entered into in the ordinary course of business as of August 31, 2025.

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

10 unchanged sentences

Where a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum amount in the range.

The Company does not provide for claims for which the outcome is not probable or claims for which the amount of the loss cannot be reasonably estimated.

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

The Company does not provide for claims for which the outcome is not probable or claims for which the amount of the

BlackBerry Limited

1 unchanged sentence

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;

loss cannot be reasonably estimated.

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

As of August 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.

11 unchanged sentences

The Company has included the following summaries of certain of its legal proceedings though they do not meet the test for accrual described above.

Between October and December 2013, several purported class action lawsuits and one individual lawsuit were filed against the Company and certain of its former officers in various jurisdictions in the U.S.

and Canada alleging that the Company and certain of its officers made materially false and misleading statements regarding the Company’s financial condition and business prospects and that certain of the Company’s financial statements contain material misstatements.

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

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

Between October and December 2013, several purported class action lawsuits were filed against the Company and certain of its former officers in various jurisdictions in Canada alleging that certain of the Company’s financial statements contain material misstatements.

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

BlackBerry Limited, et al.

) filed a motion for class certification and for leave to pursue statutory misrepresentation claims.

BlackBerry Limited, et al.) filed a motion for class certification and for leave to pursue statutory misrepresentation claims.

On November 17, 2015, the Ontario Superior Court of Justice issued an order granting the plaintiffs’ motion for leave to file a statutory claim for misrepresentation.

6 unchanged sentences

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.

As at August 31, 2025, the Company has recognized $ 29.0 million (February 28, 2025 - $ 20.5 million) in funds from claims filed by QNX with the Ministry of Innovation, Science and Economic Development Canada relating to its SIF.

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.

15 unchanged sentences

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

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.

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

On February 18, 2025, the parties settled the matter for $ 2.8 million or CAD $ 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.

On July 30, 2025, the Court held a settlement approval hearing and issued an order approving the settlement.

(d) Indemnifications

19 unchanged sentences

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:

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

For the Three Months Ended

QNX Secure Communications Licensing Segment Totals

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

August 31, August 31, August 31, August 31,

2025 2024 2025 2024 2025 2024 2025 2024

1 unchanged sentence

Segment cost of sales 10.7 9.3 20.2 26.1 1.5 1.6 32.4 37.0

Segment gross margin (1)

Segment adjusted gross margin (1)

$ 52.4 $ 45.4 $ 39.7 $ 40.4 $ 5.1 $ 3.4 $ 97.2 $ 89.2

For the Six Months Ended

QNX Secure Communications Licensing Segment Totals

August 31, August 31, August 31, August 31,

2025 2024 2025 2024 2025 2024 2025 2024

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

Segment revenue $ 120.6 $ 107.9 $ 119.4 $ 130.7 $ 11.3 $ 11.0 $ 251.3 $ 249.6

Segment cost of sales 21.9 18.8 38.3 47.9 3.1 3.0 63.3 69.7

Segment adjusted gross margin (1)

$ 98.7 $ 89.1 $ 81.1 $ 82.8 $ 8.2 $ 8.0 $ 188.0 $ 179.9

______________________________

(1) A reconciliation of total segment adjusted 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.

4 unchanged sentences

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

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

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 adjusted gross margin for the three and six months ended August 31, 2025 and August 31, 2024 to the Company’s consolidated totals:

Three Months Ended Six Months Ended

August 31, 2025 August 31, 2024 August 31, 2025 August 31, 2024

Total segment adjusted gross margin $ 97.2 $ 89.2 $ 188.0 $ 179.9

Adjustments (1) :

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______________________________

(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

Notes to the Consolidated Financial Statements

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

(1) The CODM reviews segment adjusted 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 adjusted gross margin when evaluating performance and allocating resources to the segment.

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

May 31, 2025 May 31, 2024

Three Months Ended Six Months Ended

August 31, 2025 August 31, 2024 August 31, 2025 August 31, 2024

North America (1)

9 unchanged sentences

______________________________

(1) North America includes all revenue from the Company’s intellectual property arrangements, due to the global applicability of the patent portfolio and licensing arrangements thereof .

(1) North America includes all revenue from Licensing, due to the global applicability of the patent portfolio and licensing arrangements thereof .

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, classified by timing of recognition, was as follows:

Three Months Ended

May 31, 2025 May 31, 2024

Three Months Ended Six Months Ended

August 31, 2025 August 31, 2024 August 31, 2025 August 31, 2024

Products and services transferred over time $ 60.2 $ 61.5 $ 118.7 $ 120.9

2 unchanged sentences

Revenue contract balances

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

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

Accounts Receivable Deferred Revenue Deferred Commissions

3 unchanged sentences

Decrease, net ( 73.3 ) ( 31.9 ) ( 1.5 )

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

Closing balance as at August 31, 2025 $ 166.7 $ 135.2 $ 13.1

Current portion $ 125.0 $ 128.5 $ 7.4

1 unchanged sentence

$ 166.7 $ 135.2 $ 13.1

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)

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 May 31, 2025 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 August 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 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

As at August 31, 2025

Less than 12 Months 12 to 24 Months Thereafter Total

1 unchanged sentence

Revenue recognized for performance obligations satisfied in prior periods

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 ).

For the three and six months ended August 31, 2025, revenue of nil was recognized relating to performance obligations satisfied in a prior period (three and six months ended August 31, 2024 - $ 2.4 million and $ 2.4 million, respectively).

Information About Major Customers

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).

There was no customer that comprised more than 10 % of the Company’s revenue and one customer that comprised 11 % of the Company’s revenue in the three and six months ended August 31, 2025, respectively (three and six months ended August 31, 2024 - one customer that comprised 13 % of the Company’s revenue and one customer that comprised 14 % of the Company’s revenue, respectively).

BlackBerry Limited

3 unchanged sentences

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

Three Months Ended

May 31, 2025 May 31, 2024

Three Months Ended Six Months Ended

August 31, 2025 August 31, 2024 August 31, 2025 August 31, 2024

Interest paid during the period $ 1.5 $ 1.5 $ 3.0 $ 3.0

Income taxes paid during the period 16.4 3.1 18.1 9.8

Income tax refunds received during the period 0.2 — 0.2 —

(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 first quarter of fiscal 2026 was transacted in U.S.

The majority of the Company’s revenue in the second 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 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).

At August 31, 2025, approximately 10 % of cash and cash equivalents, 25 % of accounts receivable and 71 % 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.

12 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 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.

As at August 31, 2025, no single issuer represented more than 42 % 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.

This deferred consideration is included as “Other Receivables” and is approximately $ 38.1 million as at August 31, 2025.

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

3 unchanged sentences

Liquidity risk

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

Cash, cash equivalents, and investments were $ 363.5 million as at August 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 common shares of Arctic Wolf and the Company’s equity investments in private companies 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.

2 unchanged sentences

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