What changed in this filing

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Item 1. Financial Statements

2026-06-25 compared with 2025-12-19 · 221 added, 311 removed, 495 unchanged (52% of the section changed)

4 unchanged sentences

Consolidated Balance Sheets

November 30, 2025 February 28, 2025

May 31, 2026 February 28, 2026

Cash and cash equivalents (note 2) $ 256.8 $ 274.7

39 unchanged sentences

Consolidated Statements of Shareholders’ Equity

Three Months Ended November 30, 2025

Capital Stock

and Additional

Paid-in Capital Deficit Accumulated

Comprehensive Loss Total

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

Net income — 13.7 — 13.7

Other comprehensive loss — — ( 1.1 ) ( 1.1 )

Stock-based compensation 6.1 — — 6.1

Share repurchase ( 4.9 ) 0.9 — ( 4.0 )

Shares issued:

Employee share purchase plan 1.3 — — 1.3

Balance as at November 30, 2025 $ 2,953.8 $ ( 2,199.6 ) $ ( 13.1 ) $ 741.1

Three Months Ended November 30, 2024

Capital Stock

and Additional

Paid-in Capital Deficit Accumulated

Comprehensive Loss Total

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

Net loss — ( 10.5 ) — ( 10.5 )

Other comprehensive loss — — ( 4.5 ) ( 4.5 )

Stock-based compensation 6.5 — — 6.5

Shares issued:

Employee share purchase plan 1.6 — — 1.6

Balance as at November 30, 2024 $ 2,972.1 $ ( 2,229.9 ) $ ( 17.0 ) $ 725.2

See notes to consolidated financial statements.

BlackBerry Limited

(United States dollars, in millions) (unaudited)

Consolidated Statements of Shareholders’ Equity

Nine Months Ended November 30, 2025

Three Months Ended May 31, 2026

Capital Stock

4 unchanged sentences

Net income — 8.5 — 8.5

Other comprehensive income — — 6.1 6.1

Other comprehensive loss — — ( 1.6 ) ( 1.6 )

Stock-based compensation (note 6) 6.5 — — 6.5

2 unchanged sentences

Employee share purchase plan (note 6) 1.3 — — 1.3

Balance as at November 30, 2025 $ 2,953.8 $ ( 2,199.6 ) $ ( 13.1 ) $ 741.1

Nine Months Ended November 30, 2024

Balance as at May 31, 2026 $ 2,919.3 $ ( 2,155.8 ) $ ( 12.8 ) $ 750.7

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 — ( 71.6 ) — ( 71.6 )

Other comprehensive loss — — ( 2.7 ) ( 2.7 )

Net income — 1.9 — 1.9

Other comprehensive income — — 6.4 6.4

Stock-based compensation 5.7 — — 5.7

Share repurchase ( 12.8 ) 2.8 — ( 10.0 )

Shares issued:

Employee share purchase plan 1.2 — — 1.2

Balance as at November 30, 2024 $ 2,972.1 $ ( 2,229.9 ) $ ( 17.0 ) $ 725.2

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

See notes to consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Operations

Three Months Ended Nine Months Ended

November 30, 2025 November 30, 2024 November 30, 2025 November 30, 2024

Three Months Ended

May 31, 2026 May 31, 2025

Revenue (note 10) $ 152.9 $ 121.7

7 unchanged sentences

Impairment of long-lived assets (note 2) 0.1 0.1

98.0 92.7 271.4 282.0

Operating income 15.3 2.0

Investment income (loss), net (note 3 and note 6) 2.9 ( 0.6 ) 7.7 6.1

Investment income, net (note 2 and note 5) 1.1 2.9

Income before income tax 16.4 4.9

Provision for income taxes (note 4) 7.9 3.0

Income (loss) from continuing operations 13.7 12.3 28.9 ( 0.7 )

Loss from discontinued operations, net of tax (note 2) — ( 22.8 ) — ( 70.9 )

Net income (loss) $ 13.7 $ ( 10.5 ) $ 28.9 $ ( 71.6 )

Earnings (loss) per share (note 8)

Basic earnings per share from continuing operations $ 0.02 $ 0.02 $ 0.05 $ 0.00

Total basic earnings (loss) per share $ 0.02 $ ( 0.02 ) $ 0.05 $ ( 0.12 )

Diluted earnings per share from continuing operations $ 0.02 $ 0.02 $ 0.05 $ 0.00

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

Net income $ 8.5 $ 1.9

Earnings per share (note 7)

Basic $ 0.01 $ 0.00

Diluted $ 0.01 $ 0.00

See notes to consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended Nine Months Ended

November 30, 2025 November 30, 2024 November 30, 2025 November 30, 2024

Net income (loss) $ 13.7 $ ( 10.5 ) $ 28.9 $ ( 71.6 )

Three Months Ended

May 31, 2026 May 31, 2025

Net income $ 8.5 $ 1.9

Other comprehensive income (loss)

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 nine months ended November 30, 2025 and November 30, 2024 (note 9) ( 0.7 ) ( 1.8 ) 1.5 ( 1.2 )

Net change in unrealized losses on available-for-sale investments (note 8) ( 0.1 ) —

Net change in fair value and amounts reclassified to net income (loss) from derivatives designated as cash flow hedges during the three months ended, net of income taxes of nil (May 31, 2025 - income taxes of nil) (note 8) ( 0.5 ) 2.4

Foreign currency translation adjustment ( 1.0 ) 4.0

Other comprehensive income (loss) ( 1.6 ) 6.4

Comprehensive income (loss) $ 12.6 $ ( 15.0 ) $ 35.0 $ ( 74.3 )

Comprehensive income $ 6.9 $ 8.3

See notes to consolidated financial statements.

2 unchanged sentences

Consolidated Statements of Cash Flows

Nine Months Ended

November 30, 2025 November 30, 2024

Three Months Ended

May 31, 2026 May 31, 2025

Cash flows from operating activities

Net income (loss) $ 28.9 $ ( 71.6 )

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

Net income $ 8.5 $ 1.9

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

Amortization 4.1 5.7

Stock-based compensation 6.5 5.7

Impairment of long-lived assets (note 3) 1.2 4.7

Operating leases 1.0 ( 1.6 )

Other 1.0 ( 0.6 )

Net changes in working capital items

9 unchanged sentences

Cash flows from investing activities

Acquisition of long-term investments — ( 0.1 )

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

Acquisition of property, plant and equipment ( 2.9 ) ( 0.9 )

Proceeds on sale of property, plant and equipment — 0.1

Acquisition of intangible assets ( 1.6 ) ( 1.2 )

1 unchanged sentence

Proceeds on sale or maturity of short-term investments 61.4 62.2

Net cash provided by investing activities 30.8 22.1

Net cash provided by (used in) investing activities ( 13.5 ) 38.5

Cash flows from financing activities

Issuance of common shares 2.5 3.1

Common shares repurchased ( 34.0 ) —

Net cash provided by (used in) financing activities ( 31.5 ) 3.1

Issuance of common shares (note 6) 1.3 1.2

Common shares repurchased (note 6) ( 10.0 ) ( 10.0 )

Net cash used in financing activities ( 8.7 ) ( 8.8 )

Effect of foreign exchange gain (loss) on cash, cash equivalents, restricted cash, and restricted cash equivalents ( 0.3 ) 0.5

9 unchanged sentences

These interim consolidated financial statements have been prepared by management in accordance with United States generally accepted accounting principles (“U.S.

They do not include all of the disclosures required by U.S.

They do not include all the disclosures required by U.S.

GAAP for annual financial statements and should be read in conjunction with the audited consolidated financial statements of BlackBerry Limited (the “Company”) for the year ended February 28, 2026 (the “Annual Financial Statements”), which have been prepared in accordance with U.S.

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, 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.

Operating results for the three months ended May 31, 2026 are not necessarily indicative of the results that may be expected for the full year ending February 28, 2027.

The consolidated balance sheets as at February 28, 2026 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.

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

3 unchanged sentences

Accounting Standards Adopted During Fiscal 2027

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

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

The amendment provides guidance for entities that elect to apply the practical expedient when estimating expected credit losses on current accounts receivable and current contract assets arising from transactions under Topic 606, including those assets acquired in a transaction accounted for under Topic 805, business combinations.

Under the practical expedient, entities assume that current conditions as of the balance sheet date do not change for the remaining life of the asset.

ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years.

The Company adopted ASU 2025-05 in the first quarter of fiscal 2027 and has elected to apply the practical expedient prospectively.

The adoption of this guidance did not have, and is not expected to have, a material impact on the Company’s consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

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.

The standard requires additional disclosure for income taxes.

These requirements include:

(i) requiring a public entity to disclose specific categories in the rate reconciliation;

(ii) disclosure of additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate);

(iii) annual disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes;

(iv) annual disclosure of the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received);

(v) annual disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign;

and (vi) annual disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign.

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

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.

The adoption of ASU 2023-09 will expand the Company’s disclosures but is not expected to have a material 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):

2 unchanged sentences

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

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 new requirements.

The Company will adopt this guidance in fiscal 2028 and is in 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.

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, 2025, including interim periods within those fiscal years.

The Company will adopt this guidance in fiscal 2027 and does not expect the adoption to have a material impact on its results of operations, financial position and disclosures.

In November 2025, the FASB issued ASU 2025-09 to amend the guidance in “Derivatives and Hedging” (Topic 815).

1 unchanged sentence

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 has not yet determined the impact on its results of operations, financial position and disclosures.

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

In December 2025, the FASB issued ASU 2025-10 to amend the guidance in “Government Grants” (Topic 832).

2 unchanged sentences

a deferred income approach or a cost accumulation approach.

The guidance is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years.

The guidance is effective for fiscal

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)

years beginning after December 15, 2028, including interim periods within those fiscal years.

The Company will adopt this guidance in fiscal 2030 and has not yet determined the impact on its results of operations, financial position and disclosures.

In December 2025, the FASB issued ASU 2025-11 to amend the guidance in “Interim Reporting” (Topic 270).

The update provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period.

The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application.

The guidance is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years.

The Company will adopt this guidance in fiscal 2029 and has not yet determined the impact on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-12 “Codification Improvements” to address suggestions received from stakeholders on the Accounting Standards Codification and to make other incremental improvements to U.S.

The update represents changes to the Codification that (1) clarify, (2) correct errors, or (3) make minor improvements.

The amendments make the Codification easier to understand and apply.

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

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:

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2024

Revenue $ 18.6 $ 59.8

Cost of sales 10.8 35.8

Gross margin 7.8 24.0

Operating expenses

Research and development 8.4 25.8

Sales and marketing 11.6 36.0

General and administrative 3.8 12.7

Amortization 6.8 20.4

Operating loss ( 22.8 ) ( 70.9 )

Provision for income taxes — —

Loss from discontinued operations, net of tax $ ( 22.8 ) $ ( 70.9 )

Basic loss per share from discontinued operations $ ( 0.04 ) $ ( 0.12 )

Diluted loss per share from discontinued operations $ ( 0.04 ) $ ( 0.12 )

The discontinued operations had nil in acquisition of property, plant and equipment for the three and nine months ended November 30, 2024.

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

Three Months Ended Nine Months Ended

November 30, 2024 November 30, 2024

Amortization $ 6.8 $ 20.4

Stock based compensation 1.7 5.0

FAIR VALUE MEASUREMENTS, CASH, CASH EQUIVALENTS AND INVESTMENTS

8 unchanged sentences

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

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’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.

Recurring Fair Value Measurements

In determining the fair value of investments held, the Company primarily relies on an independent third-party valuator for the fair valuation of securities.

In determining the fair value of investments, the Company primarily relies on an independent third-party valuator for the fair valuation of securities.

The Company also reviews the inputs used in the valuation process and assesses the pricing of the securities for reasonableness after conducting its own internal collection of quoted prices from brokers.

7 unchanged sentences

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

The fair values of non-marketable equity investments are classified as 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

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 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 and nine months ended November 30, 2025, the Company recorded a pre-tax and after-tax impairment charge of $ 0.6 million and $ 1.2 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 nine months ended November 30, 2024 - $ 0.6 million and $ 4.7 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.

During the three months ended May 31, 2026, the Company recorded a pre-tax and after-tax impairment charge o f $ 0.1 million , relating to property, plant and equipment associated with exiting certain leased facilities (three months ended May 31, 2025 - $ 0.1 million ).

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.

1 unchanged sentence

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

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)

Cash, Cash Equivalents and Investments

The components of cash, cash equivalents and investments by fair value level as at November 30, 2025 were as follows:

The components of cash, cash equivalents and investments by fair value level and balance sheet classification as at May 31, 2026 were as follows:

Cost Basis (1)

11 unchanged sentences

promissory notes 53.1 — — 53.1 40.5 12.6 — —

treasury bills 15.1 — — 15.1 15.1 — — —

282.4 — ( 0.1 ) 282.3 174.0 94.1 — 14.2

2 unchanged sentences

______________________________

(1) Cost basis for investments in privately-held companies includes the effect of returns of capital and impairment.

2 unchanged sentences

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

The components of cash, cash equivalents and investments by fair value level as at February 28, 2025 were as follows:

The components of cash, cash equivalents and investments by fair value level and balance sheet classification as at February 28, 2026 were as follows:

Cost Basis (1)

7 unchanged sentences

220.1 2.4 ( 1.2 ) 221.3 168.6 — 52.7 —

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

Term deposits, and certificates of deposits 49.7 — — 49.7 20.1 20.0 — 9.6

2 unchanged sentences

promissory notes 24.4 — — 24.4 24.4 — —

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

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

treasury bills/notes 13.3 — — 13.3 13.3 — — —

205.5 — — 205.5 106.1 85.2 — 14.2

3 unchanged sentences

(1) Cost basis for investments in privately-held companies includes the effect of returns of capital and impairment.

As at November 30, 2025, the Company had non-marketable equity investments without readily determinable fair value of $ 59.3 million (February 28, 2025 - $ 58.9 million) including common shares of Arctic Wolf received as partial consideration for the sale of its Cylance endpoint sec urity assets and liabilities to Arctic Wolf.

During the three and nine months ended November 30, 2025, the Company recorded $ 1.8 million in upward 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 nine months ended November 30, 2024 - downward adjustments of $ 2.4 million and downward adjustment, net of upward adjustment of $ 1.2 million, respectively).

During the three and nine months ended November 30, 2025, the Compa ny recorded a $ 1.3 million impairment to these investments.

As of November 30, 2025, the Company has recorded a cumulative impairment of $ 4.3 million to t he 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 debt securities for the three and nine months ended November 30, 2025 and November 30, 2024.

As at May 31, 2026, the Company had non-marketable equity investments without readily determinable fair value of $ 57.8 million (February 28, 2026 - $ 58.3 million) including common shares of Arctic Wolf Networks, Inc.

(“Arctic Wolf”) received as partial consideration for the sale of its Cylance endpoint sec urity assets and liabilities to Arctic Wolf in the fourth quarter of fiscal 2025 .

During the three months ended May 31, 2026, the Company did not record any observable price adjustments 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 months ended May 31, 2025 - nil ).

During the three months ended May 31, 2026, the Company recorded a $ 0.5 million impairment to non-marketable equity investments without readily determinable fair value (three months ended May 31, 2025 - nil ).

As of May 31, 2026, the Company has recorded a cumulative impairment of $ 5.8 million to the carrying value of the non-marketable equity investments without readily determinable fair value (February 28, 2026 - $ 5.3 million).

There w ere no realize d gains or losses on available-for-sale debt securities for the three months ended May 31, 2026 and May 31, 2025.

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 fro m 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;

These letters of credit support certain leasing arrangements entered in the ordinary course of business and are for terms ranging fro m one month to approximately five years.

The Company is contractually 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.

2 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 November 30, 2025 and February 28, 2025 from the consolidated balance sheets to the consolidated statements of cash flows:

November 30, 2025 February 28, 2025

The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents as at May 31, 2026 and February 28, 2026 from the consolidated balance sheets to the consolidated statements of cash flows:

May 31, 2026 February 28, 2026

Cash and cash equivalents $ 256.8 $ 274.7

2 unchanged sentences

$ 271.0 $ 288.9

The contractual maturities of available-for-sale investments as at November 30, 2025 and February 28, 2025 were as follows:

November 30, 2025 February 28, 2025

The contractual maturities of available-for-sale investments as at May 31, 2026 and February 28, 2026 were as follows:

May 31, 2026 February 28, 2026

Cost Basis Fair Value Cost Basis Fair Value

Due in one year or less $ 282.4 $ 282.3 $ 205.5 $ 205.5

No fixed maturity — — 10.0 —

$ 178.4 $ 178.4 $ 137.7 $ 127.7

As at November 30, 2025 and February 28, 2025, the Company had no avail able-for-sale debt securities with continuous unrealized losses .

As at May 31, 2026 and February 28, 2026, the Company had no available-for-sale debt securities with con tinuous unrealized losses .

CONSOLIDATED BALANCE SHEET DETAILS

Accounts Receivable, Net of Allowance

The current estimated credit losses (“CECL”) for accounts receivable as at November 30, 2025 was $ 5.7 million (February 28, 2025 - $ 6.6 million).

The current estimated credit losses (“CECL”) for accounts receivable as at May 31, 2026 was $ 3.6 million (February 28, 2026 - $ 3.4 million).

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

4 unchanged sentences

Beginning balance as of February 28, 2025 $ 6.6

Prior period provision for expected credit losses 5.3

Prior period recovery of expected credit losses ( 2.4 )

Write-offs charged against the allowance

Ending balance of the allowance for credit loss as at February 28, 2026 3.4

Current period recovery for expected credit losses ( 0.4 )

Write-offs charged against the allowance ( 0.5 )

Ending balance of the allowance for credit loss as at November 30, 2025 $ 5.7

The allowance for credit losses as at November 30, 2025 consists of $ 0.9 million (February 28, 2025 - $ 1.1 million) relating to CECL estimated based on days past due and region and $ 4.8 million (February 28, 2025 - $ 5.5 million) relating to specific customers that were evaluated separately.

There were three customers that comprised more than 10% of accounts receivable as at November 30, 2025 (February 28, 2025 - two customers comprised more than 10%).

Current period provision for expected credit losses 0.2

Ending balance of the allowance for credit loss as at May 31, 2026 $ 3.6

The allowance for credit losses as at May 31, 2026 consists of $ 1.3 million (February 28, 2026 - $ 1.0 million) relating to CECL estimated based on days past due and region and $ 2.3 million (February 28, 2026 - $ 2.4 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, 2026 (February 28, 2026 - two customers comprised more than 10%).

Other Receivables

As at May 31, 2026 and February 28, 2026, 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 ite ms, none of which were greater than 5% of the c urrent assets balance as at balance sheet dates.

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

November 30, 2025 February 28, 2025

Arctic Wolf delayed cash payment (1)

$ 38.1 $ 38.6

Other 10.6 9.8

$ 48.7 $ 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 that is due on February 10, 2026.

As at November 30, 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 ite ms, none of wh ich were greater than 5% of the current assets balance as at balance sheet dates.

Other Current Assets

As at November 30, 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 w hich were greater than 5% of the current assets balance as at the balance sheet dates.

As at May 31, 2026 and February 28, 2026, 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, 2025 February 28, 2025

May 31, 2026 February 28, 2026

BlackBerry operations and other information technology $ 79.2 $ 78.0

4 unchanged sentences

Net book value $ 13.1 $ 12.3

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)

Intangible Assets, Net

Intangible assets comprised the following:

As at November 30, 2025

As at May 31, 2026

Cost Accumulated

Amortization Net Book

Amortization and Impairment Net Book

Acquired technology $ 29.8 $ 29.8 $ —

4 unchanged sentences

Cost Accumulated

Amortization Net Book

Amortization and Impairment Net Book

Acquired technology $ 29.8 $ 29.8 $ —

2 unchanged sentences

$ 175.5 $ 135.4 $ 40.1

For the nine months ended November 30, 2025, amortization expense related to intangible assets amounted to $ 10.2 million (nine months ended November 30, 2024 - $ 12.6 million).

Total additions to intangible assets for the nine months ended November 30, 2025 amounted to $ 4.0 million (nine months ended November 30, 2024 - $ 5.7 million).

During the nine months ended November 30, 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 November 30, 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 three months ended May 31, 2026, amortization expense related to intangible assets amoun ted to $ 2.2 million (three months ended May 31, 2025 - $ 4.2 million).

For the three months ended May 31, 2026, the Company held acquired technology and other acquired intangibles that were fully amortized but still in use.

Total additions to intangible assets for the three months ended May 31, 2026 amounted to $ 1.5 million (three months ended May 31, 2025 - $ 1.2 million).

During the three months ended May 31, 2026, 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, 2026, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for the remainder of fiscal 2027 and each of the five succeeding years is expected to be as follows:

fiscal 2027 - $ 6.1 million;

3 unchanged sentences

fiscal 2031 - $ 3.6 million and fiscal 2032 - $ 2.9 million.

Changes to the carrying amount of goodwill during the nine months ended November 30, 2025 were as follows:

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 three months ended May 31, 2026 were as follows:

Carrying Amount

5 unchanged sentences

dollar denominated goodwill ( 0.7 )

Carrying amount as at November 30, 2025 $ 478.1

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)

Carrying amount as at May 31, 2026 $ 478.4

Other Long-term Assets

As at November 30, 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.

As at May 31, 2026 and February 28, 2026, 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:

November 30, 2025 February 28, 2025

May 31, 2026 February 28, 2026

Variable incentive accrual $ 8.8 $ 36.5

Operating lease liabilities, current 11.0 15.0

Deferred share unit liability (1)

Other 73.6 69.2

$ 99.0 $ 111.7

Other accrued liabilities include the current portion of the restructuring programs, 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.

______________________________

(1) The Company has a Deferred Share Unit Plan under which each independent director is credited with Deferred Share Units (“DSUs”) in satisfaction of all or a portion of the cash fees otherwise payable to them for serving as a director of the Company.

DSUs are accounted for as liability-classified awards and are awarded on a quarterly basis.

These awards are measured at their fair value on the date of issuance and remeasured at each reporting period until settlement.

Other accrued liabilities include the accrued current portion of the operating lease liability, the current portion of the restructuring programs, 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

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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:

Benefits Facilities and Other

Charges Total

Balance as at February 28, 2025 $ 7.1 3.3 10.4

2 unchanged sentences

Balance as at February 28, 2026 6.3 2.0 8.3

Charges incurred 9.3 3.1 12.4

Charges incurred (recovered) 0.8 ( 0.5 ) 0.3

Cash payments made ( 3.5 ) ( 0.4 ) ( 3.9 )

Balance as at November 30, 2025

Balance as at May 31, 2026

$ 3.6 $ 1.1 $ 4.7

2 unchanged sentences

$ 3.6 $ 1.1 $ 4.7

______________________________

(1) Other charges primarily consist of costs associated with system transformation to streamline corporate functions into QNX and Secure Communications.

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, facilities and other charges.

Total charges incurred for the nine months ended November 30, 2025 and November 30, 2024 we re $ 12.4 million and $ 14.7 million , respectively, recorded within General and administrative on the Consolidated Statements of Operations.

The long-term portion of the restructuring liabilities is re corded by measuring the remaining payments at present value u sing an effective interest rate of 5.3 %, 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, facilities and other charges primarily associated with system transformation to streamline corporate functions into QNX and Secure Communications.

Total charges incurred for the three months ended May 31, 2026 and May 31, 2025 were $ 0.3 million and $ 2.9 million, respectively, recorded within General and administrative on the Consolidated Statements of Operations.

For the three months ended May 31, 2026, the Company’s net effective income tax expense rate was approximately 48 % compared to a net effective income tax expense rate of 61 % for the three months ended May 31, 2025.

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

in particular, any change in loss carry forwards or research and development credits, amongst other items, is offset by a corresponding adjustment of the valuation allowance.

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

The Company records a valuation allowance to reduce deferred income tax assets to the amount that is more likely than not to be realized.

The Company assesses the need for a valuation allowance on its deferred tax assets each reporting period.

In assessing the realizability of deferred tax assets, the Company considers both positive and negative evidence, to determine whether, based upon the weight of that evidence, it is more likely than not that the Company’s deferred tax assets will not be realized and a valuation allowance is required.

This assessment involves significant judgment, particularly with respect to the relative impact of such evidence.

All available evidence, both positive and negative, that may affect the realization of deferred tax assets must be identified and considered in determining the appropriate amount of the valuation allowance.

The Company has recently generated cumulative pre-tax income in certain jurisdictions and continues to evaluate whether sufficient positive evidence exists to support the realization of its deferred tax assets.

This evaluation is performed on a jurisdiction-by-jurisdiction basis, and the conclusions reached may vary based on the sustainability of earnings in each jurisdiction.

Based on recent operating profits and current forecasts, it is reasonably possible that the Company’s assessment of the realizability of its deferred tax assets may change in a future period, including within the current fiscal year, as additional positive evidence becomes available in relation to the realizability of deferred tax assets.

Such a change could result in the release of a significant portion of the Company’s valuation allowance, which could have a material impact on income tax expense in the period of release.

The Company’s total unrecognized income tax benefits as at May 31, 2026 were $ 19.7 million (February 28, 2026 - $ 19.7 million).

As at May 31, 2026, $ 19.6 million of the unrecognized income tax benefits have been netted against deferred income tax assets and $ 0.1 million has been recorded within income taxes payable on the Company’s consolidated balance sheets.

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 nine months ended November 30, 2025, the Company’s net effective income tax expense rate was approximately 13 % compared to a net effective income tax expense rat e of 28 % for the nine months ended November 30, 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;

in particular, any change in loss carry forwards or research and development credits, amongst other items, is offset by a corresponding adjustment of the valuation allowance.

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, 2025 were $ 19.7 million (February 28, 2025 - $ 19.5 million).

As at November 30, 2025 , $ 19.3 million of the unrecognized income tax benefits have been netted against deferred income tax assets an d $ 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.

5 unchanged sentences

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 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).

Covenants associated with the Notes include general corporate maintenance, existence and reporting requirements.

The Notes bear interest at a rate of 3.00 % per annum, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2024.

The Company had recorded the Notes, including the debt itself and all embedded derivatives, at cost less debt issuance costs of $ 6.0 million and presents the Notes as a single hybrid financial instrument.

Prior to the close of business on the business day immediately preceding November 15, 2028, the Notes will be convertible only upon satisfaction of specified conditions, including the trading price of the Company’s common shares.

The trading price condition is met during any calendar quarter commencing after March 31, 2024, if for at least 20 trading days (whether or not consecutive) within the 30 consecutive trading day period ending on the last trading day of the immediately preceding calendar quarter, the last reported sale price of the Company’s common shares was greater than or equal to 130 % of the applicable conversion price on each such trading day.

Satisfaction of the condition, allows the holders to convert their Notes in the subsequent calendar quarter.

On and after November 15, 2028, the Notes may be converted at any time until the close of business on the second scheduled trading day immediately preceding February 15, 2029 , regardless of the foregoing conditions.

Subsequent to the three months ended May 31, 2026, the closing price of the Company’s common shares exceeded 130 % of the conversion price for at least 20 trading days within a period of 30 consecutive trading days ending on June 30, 2026.

The contingent condition permitting holders of Notes to convert their Notes was satisfied on June 15, 2026.

Accordingly, the Notes are eligible for conversion, at the option of the holders, from July 1, 2026 through September 30, 2026.

The Company recorded the Notes, including the debt itself and all embedded derivatives, at cost less debt issuance costs of $ 6.0 million and presents the Notes as a single hybrid financial instrument.

Debt issuance costs related to the Notes have been recorded as a direct deduction from the face amount of the Notes and are amortized using the effective interest method.

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, 2025:

The following table summarizes the change in the Notes for the three months ended May 31, 2026:

Carrying Amount

1 unchanged sentence

Amortization of debt issuance costs 0.3

Balance as at November 30, 2025 $ 196.2

The Company’s estimate of the fair value of the Notes as at November 30, 2025 is $ 284.4 million (February 28, 2025 - $ 289.5 million).

For the three and nine months ended November 30, 2025, the Company recorded interest expense related to the Notes of $ 1.5 million and $ 4.5 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, 2024 - $ 1.5 million and $ 4.5 million, respectively).

Balance as at May 31, 2026 $ 196.8

The Company’s estimate of the fair value of the Notes as at May 31, 2026 is $ 441.1 million (February 28, 2026 - $ 241.7 million).

For the three months ended May 31, 2026, 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, 2025 - $ 1.5 million).

BlackBerry Limited

2 unchanged sentences

CAPITAL STOCK

The following details the changes in issued and outstanding common shares for the nine months ended November 30, 2025:

The following details the changes in issued and outstanding common shares for the three months ended May 31, 2026:

Capital Stock and

7 unchanged sentences

Share repurchase ( 2,587 ) ( 12.9 )

Common shares outstanding as at November 30, 2025 590,392 2,953.8

The Company had 590 million voting common shares outstanding, 16.8 million restricted share units (“RSUs”) and 1.6 million deferred shared units (“DSUs”) outstanding as at December 16, 2025.

Common shares outstanding as at May 31, 2026 586,061 2,919.3

The Company had 586 million voting common shares outstanding, 20.0 million restricted share units (“RSUs”) and 1.8 million deferred shared units (“DSUs”) outstanding as at June 22, 2026.

In addition, 51.5 million common shares are issuable upon conversion in full of the Notes as described in Note 5.

On May 8, 2025, the Company announced that it 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.

On May 8, 2025, the Company received acceptance from the Toronto Stock Exchange (“TSX”) with respect to a normal course issuer bid (“2025 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 as of May 5, 2025.

The 2025 NCIB share buyback program commenced on May 12, 2025, and expired on May 11, 2026.

On May 8, 2026, the Company received acceptance from the TSX for the renewal of its normal course issuer bid (“2026 NCIB”) share buyback program.

The 2026 NCIB share buyback program allows for the repurchase of up to 26.8 million of the Company’s common shares, representing approximately 4.58 % of the outstanding public float as of April 30, 2026.

The 2026 NCIB share buyback program commenced on May 12, 2026, and will expire on May 11, 2027, such date as the Company may determine, or the date on which the maximum number of common shares that may be purchased under the 2026 NCIB share buyback program has been reached.

The Company is not obligated to repurchase any common shares under the 2026 NCIB share buyback program .

During the nine months ended November 30, 2025, the Company repurchased and settled 8.6 million common shares, at a cost of $ 34.0 million.

During the three months ended May 31, 2026, the Company repurchased 2.6 million common shares, at a cost of $ 10.0 million.

All shares were repurchased under the 2025 NCIB share buyback program .

The Company recorded a reduction of $ 12.9 million to capital stock and the amount paid below the per share paid-in capital of the common shares of $ 2.9 million was recorded to deficit.

All common shares repurchased by the Company pursuant to the 2025 NCIB share buyback program have been canceled.

The Company also repurchased 0.2 million common shares, at a cost of $ 1.0 million on November 28, 2025 that settled on December 1, 2025.

BlackBerry Limited

1 unchanged sentence

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

EARNINGS (LOSS) PER SHARE

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

Three Months Ended Nine Months Ended

November 30, 2025 November 30, 2024 November 30, 2025 November 30, 2024

Net income (loss) from continuing operations for basic and diluted earnings (loss) per share available to common shareholders $ 13.7 $ 12.3 $ 28.9 $ ( 0.7 )

Net income (loss) for basic and diluted earnings (loss) per share available to common shareholders $ 13.7 $ ( 10.5 ) $ 28.9 $ ( 71.6 )

EARNINGS PER SHARE

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

Three Months Ended

May 31, 2026 May 31, 2025

Net income for basic and diluted earnings per share available to common shareholders $ 8.5 $ 1.9

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

2 unchanged sentences

Stock-based compensation (2)

5,411 2,290 4,668 —

Weighted average number of shares and assumed conversions (000’s) diluted 593,193 600,831

Earnings (loss) per share - reported

Basic earnings per share from continuing operations $ 0.02 $ 0.02 $ 0.05 $ 0.00

Total earnings (loss) per share $ 0.02 $ ( 0.02 ) $ 0.05 $ ( 0.12 )

Diluted earnings per share from continuing operations $ 0.02 $ 0.02 $ 0.05 $ 0.00

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

Earnings per share - reported

Basic $ 0.01 $ 0.00

Diluted $ 0.01 $ 0.00

______________________________

(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 nine months ended November 30, 2025 and November 30, 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 per share for the three months ended May 31, 2026 and May 31, 2025, as to do so would be antidilutive.

See Note 5 for details on the Notes.

(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 nine months ended November 30, 2025 and for the three months ended November 30, 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 nine months ended November 30, 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 and nine months ended November 30, 2025 and November 30, 2024 were as follows:

Three Months Ended Nine Months Ended

November 30, 2025 November 30, 2024 November 30, 2025 November 30, 2024

The changes in AOCL by component, net of tax, for the three months ended May 31, 2026 and May 31, 2025 were as follows:

Three Months Ended

May 31, 2026 May 31, 2025

Available-for-Sale Debt Securities

Balance, beginning of period $ — $ —

Other comprehensive loss before reclassification ( 0.1 ) —

Accumulated net unrealized loss on available-for-sale debt securities $ ( 0.1 ) $ —

Cash Flow Hedges

1 unchanged sentence

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

Amounts reclassified from AOCL into net income (loss) 0.2 — 0.5 0.1

Amounts reclassified from AOCL into net income — 0.5

Accumulated net unrealized loss on derivative instruments designated as cash flow hedges $ ( 0.2 ) $ 0.5

8 unchanged sentences

(a) Letters of Credit

The Company had $ 13.9 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, 2025.

The Company ha d $ 14.2 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, 2026.

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

BlackBerry Limited

1 unchanged sentence

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

loss cannot be reasonably estimated.

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.

As of November 30, 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;

As of May 31, 2026, there are no 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.

20 unchanged sentences

The Company filed its Statement of Defence on April 1, 2019.

A mediation took place on April 21 and 22, 2026, during which no settlement was reached.

A pretrial conference has been scheduled for September 16, 2026.

Trial is set for January 11, 2027.

Other contingencies

As at November 30, 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.

As at May 31, 2026, the Company has re cognized $ 28.6 million (February 28, 2026 - $ 28.6 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.

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 alleged 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.

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.

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

(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.

3 unchanged sentences

Under these agreements, the Company agreed, subject to applicable law, to indemnify its current and former directors and executive officers against all costs, charges and expenses reasonably incurred by such individuals in respect of any civil, criminal or administrative action that could arise by reason of their status as directors or officers.

The Company maintains

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)

liability insurance coverage for the benefit of the Company, and its current and former directors and executive officers.

The Company maintains liability insurance coverage for the benefit of the Company, and its current and former directors and executive officers.

The Company has not encountered material costs as a result of such indemnifications in the current period.

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The Company reports segment information based on the “management” approach.

The management approach designates the internal reporting used by the CODM for making decisions and assessing performance as a source of the Company’s reportable operating segments.

The management approach designates the internal reporting used by the CODM for making decisions and assessing performance as a source of the Company’s

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)

reportable operating segments.

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

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Segment Disclosures

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:

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 and nine months ended November 30, 2025 and November 30, 2024:

The following table shows information by reportable operating segment for the three months ended May 31, 2026 and May 31, 2025:

For the Three Months Ended

QNX Secure Communications Licensing Segment Totals

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

2025 2024 2025 2024 2025 2024 2025 2024

Segment revenue $ 68.7 $ 62.3 $ 67.0 $ 74.6 $ 6.1 $ 6.7 $ 141.8 $ 143.6

Segment cost of sales 11.3 8.9 18.6 20.3 1.5 1.5

Segment adjusted gross margin (1)

$ 57.4 $ 53.4 $ 48.4 $ 54.3 $ 4.6 $ 5.2 $ 110.4 $ 112.9

For the Nine Months Ended

QNX Secure Communications Licensing Segment Totals

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

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

2026 2025 2026 2025 2026 2025 2026 2025

4 unchanged sentences

______________________________

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

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

QNX consists of BlackBerry® QNX®, BlackBerry Radar®, BlackBerry® Certicom®, 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.

QNX revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services and through royalties which are volume-based, but may also be fixed based upon customers committing to certain minimum volumes.

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

5 unchanged sentences

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 nine months ended November 30, 2025 and November 30, 2024 to the Company’s consolidated totals:

Three Months Ended Nine Months Ended

November 30, 2025 November 30, 2024 November 30, 2025 November 30, 2024

The following table reconciles total segment adjusted gross margin for the three months ended May 31, 2026 and May 31, 2025 to the Company’s consolidated totals:

Three Months Ended

May 31, 2026 May 31, 2025

Total segment adjusted gross margin $ 120.2 $ 90.8

6 unchanged sentences

Impairment of long-lived assets 0.1 0.1

Investment income (loss), net 2.9 ( 0.6 ) 7.7 6.1

Consolidated income from continuing operations before income taxes $ 14.8 $ 18.9 $ 33.1 $ 14.9

Investment income, net 1.1 2.9

Consolidated income before income tax $ 16.4 $ 4.9

______________________________

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

The Compan y 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 Compan y disaggregates revenue from contracts with customers based on geographical regions, timing of revenue recognition, and segment revenue, 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, 2025 November 30, 2024 November 30, 2025 November 30, 2024

Three Months Ended

May 31, 2026 May 31, 2025

North America (1)

14 unchanged sentences

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

Three Months Ended Nine Months Ended

November 30, 2025 November 30, 2024 November 30, 2025 November 30, 2024

Three Months Ended

May 31, 2026 May 31, 2025

Products and services transferred over time $ 56.7 $ 58.5

2 unchanged sentences

Revenue contract balances

The following table sets forth the activity in the Company’s revenue contract balances for the nine months ended November 30, 2025:

The following table sets forth the activity in the Company’s revenue contract balances for the three months ended May 31, 2026:

Accounts Receivable Deferred Revenue Deferred Commissions

2 unchanged sentences

Decrease due to payment, fulfillment of performance obligations, or other ( 134.1 ) ( 140.6 ) ( 5.1 )

Decrease, net ( 46.6 ) ( 41.0 ) ( 1.1 )

Closing balance as at November 30, 2025 $ 193.4 $ 126.1 $ 13.5

Increase (decrease), net 1.0 ( 18.7 ) ( 0.1 )

Closing balance as at May 31, 2026 $ 203.6 $ 133.9 $ 14.2

Current portion $ 160.6 $ 121.5 $ 7.0

2 unchanged sentences

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, 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 May 31, 2026 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 November 30, 2025

As at May 31, 2026

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 and nine months ended November 30, 2025, revenue of $ 1.9 million was recognized relating to performance obligations satisfied in a prior period (three and nine months ended November 30, 2024 - nil and $ 2.4 million, respectively).

For the three months ended May 31, 2026, revenue of $ 0.6 million was recognized relating to performance obligations satisfied in a prior period (three months ended May 31, 2025 - nil ).

Information About Major Customers

There was no customer that comprised more than 10 % of the Company’s revenue and one customer that comprised 10 % of the Company’s revenue in the three and nine months ended November 30, 2025, respectively (three and nine months ended November 30, 2024 - one customer that comprised 18 % of the Company’s revenue and one customer that comprised 15 % of the Company’s revenue, respectively).

There was one c ustomer that comprised 13 % of the Company’s revenue in the three months ended May 31, 2026, (three months ended May 31, 2025 - one customer that comprised 13 % of the Company’s revenue).

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 Nine Months Ended

November 30, 2025 November 30, 2024 November 30, 2025 November 30, 2024

Three Months Ended

May 31, 2026 May 31, 2025

Interest paid during the period $ 1.5 $ 1.5

4 unchanged sentences

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 2026 was transacted in U.S.

The majority of the Company’s revenue in the first quarter of fiscal 2027 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, 2025, approximately 13 % of cash and cash equivalents, 32 % of accounts receivable and 49 % of accounts payable were denominated in foreign currencies (February 28, 2025 – 19 %, 29 % and 71 %, respectively).

At May 31, 2026, approximately 15 % of c ash and cash equiv alents, 38 % of accounts receivable and 66 % of accounts payable were denominated in foreign currencies (February 28, 2026 – 15 %, 22 % and 46 %, 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 November 30, 2025, no single issuer represented more than 34 % 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 $ 38.1 million as at November 30, 2025.

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

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 at May 31, 2026, no single issuer represented more than 22 % of the total cash, cash equivalents and investments (February 28, 2026 - no single issuer represented more than 34 % of the total cash, cash equivalents and investments), wi th 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 $ 377.5 million as at November 30, 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 and investments in privately-held companies are illiquid securities without a public market and, as such, they cannot be readily sold or exchanged for cash.

Cash, cash equivalents, and investments were $ 422.9 million as at May 31, 2026.

The Company holds certain equity investments in privately-held companies that 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.

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.

Based on its current financial projections, the Company believes its financial resources, together with expected future operating cash generating activities, should be sufficient to meet funding requirements for

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)

current financial commitments and future operating expenditures not yet committed, and should provide the necessary financial capacity for the foreseeable future.

Equity Investments Risk

The Company holds non-marketable equity investments in privately-held companies in which the Company does not own a controlling interest or have significant influence.

The Company's equity investments in privately-held companies are subject to a wide variety of market-related risks that could substantially reduce or increase the fair value of its holdings.

The Company's equity investments in privately-held companies are recorded using the measurement alternative and are assessed each reporting period for observable price changes and impairments, which may involve estimates and judgments given the lack of readily available market data.

Certain equity investments in privately-held companies are in the early stages of development and are inherently risky due to their lack of operational history.

The Company has a high concentration of risk associated with a small number of non-marketable equity investments that are impacted by fluctuations in their fair values or by observable changes or impairments.

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