One-glance verdict
Overvalued
$1.76 our estimate vs market $8.62
Wall Street consensus: $9.71 (451.3% higher than our fair-value estimate)
389% above our estimate, beyond the bull case
Fundamentals snapshot
BlackBerry Limited
BB · NYQ · Technology · Software - Infrastructure
Current price
$8.62
52-week range
$3.12 - $13.59
Market cap
$5.05B
Balance sheet
Healthy
8.40x Adequate
Net cash $129.80M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 5.7% last year.
- Reward Returns 8.1% on equity, ahead of 60% of its peers.
- Risk Stock trades 128.8% above its 5-year average P/E.
- Risk Insider ownership is only 0.3% (peer median: 0.6%).
What this company does
BlackBerry Limited
BlackBerry has shifted from making phones to selling specialized software, mainly focusing on cybersecurity products for governments and large companies to keep their information safe. The company's other major business is its QNX software, which acts as the operating system for computer systems in millions of cars, and it also earns money by licensing (letting other companies pay to use) its technology patents.
How the company got here
Once known as Research In Motion (RIM), BlackBerry was a pioneer in the smartphone world, famous for its phones with physical keyboards and secure email. At its highest point, it held over half of the U.S. smartphone market. However, the company was slow to adapt to the rise of touchscreen phones like the iPhone and devices using Google's Android operating system. After its phone business declined, BlackBerry reinvented itself, shifting its focus from hardware to become a software company specializing in security and the 'Internet of Things' (the network of connected devices).
What it actually does
Today, BlackBerry is a software company that provides security and operating systems for governments and businesses. Think of them as providing the behind-the-scenes brains and security for complex systems. For example, their software is used in cars to run everything from the dashboard display to safety features. They also offer cybersecurity (the practice of protecting computer systems and networks from digital attacks) to protect sensitive information for large organizations.
IoT (Internet of Things)
This is BlackBerry's largest and fastest-growing business, centered around its QNX software. This software is a real-time operating system (a type of computer program that reacts to input extremely quickly and reliably) used in situations where delays can be catastrophic, like in cars, medical devices, and industrial robots. Automakers are the biggest customers, paying BlackBerry to use its QNX software to run in-car infotainment systems and advanced driver-assistance features. This segment makes up more than half of the company's revenue.
Cybersecurity
This part of the business provides software and services to protect companies and governments from digital threats. Their products help secure all of an organization's connected devices, like laptops and smartphones, a concept known as endpoint security. They also offer services for managing critical events and ensuring communications are secure and encrypted (converted into a code to prevent unauthorized access). This segment is a significant part of the business, contributing over a third of its revenue.
Licensing
BlackBerry owns a large collection of patents (exclusive rights granted for an invention) from its days as a smartphone maker. This smaller segment makes money by licensing (selling permission to use) this intellectual property to other companies. For example, another company might pay a fee to use BlackBerry's patented technology in their own products. This provides a steady, high-margin (the portion of sales revenue left after costs are paid) stream of income for the company.
What management is betting on now
BlackBerry's leadership is focused on expanding its QNX software beyond cars into other connected devices like robotics and medical equipment. They are betting on the growth of the 'Internet of Things' and what they call 'Physical AI,' where smart, connected machines need highly reliable and secure operating systems. The company is also focused on its cybersecurity business, aiming to be a go-to provider for governments and large companies that need to protect sensitive data. To accelerate growth, they are also forming strategic partnerships with other major technology firms.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$-15.00M
FY2025 Q3
$3.00M
FY2025 Q4
$41.40M
FY2026 Q1
$-18.90M
FY2026 Q2
$3.10M
FY2026 Q3
$17.40M
FY2026 Q4
$44.90M
FY2027 Q1
$1.70M
Revenue
$152.90M
Net income
$8.50M
Diluted EPS
—
Operating cash flow
$4.60M
Free cash flow
$1.70M
Fetching…
Sources
Revenue
$156.00M
Net income
$24.30M
Diluted EPS
0.05
Operating cash flow
$46.10M
Free cash flow
$44.90M
Fetching…
Sources
Revenue
$141.80M
Net income
$13.70M
Diluted EPS
0.02
Operating cash flow
$18.30M
Free cash flow
$17.40M
Fetching…
Sources
Revenue
$129.60M
Net income
$13.30M
Diluted EPS
0.02
Operating cash flow
$3.90M
Free cash flow
$3.10M
Fetching…
Sources
Revenue
$121.70M
Net income
$1.90M
Diluted EPS
0.00
Operating cash flow
$-18.00M
Free cash flow
$-18.90M
Fetching…
Sources
Revenue
$102.90M
Net income
$-7.00M
Diluted EPS
-0.01
Operating cash flow
$41.50M
Free cash flow
$41.40M
Fetching…
Sources
Revenue
$143.00M
Net income
$-11.00M
Diluted EPS
-0.02
Operating cash flow
$3.00M
Free cash flow
$3.00M
Fetching…
Sources
Revenue
$145.00M
Net income
$-19.00M
Diluted EPS
-0.03
Operating cash flow
$-13.00M
Free cash flow
$-15.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $1.76 vs current price $8.62
Wall Street consensus is the average analyst price target: $9.71 (451.3% higher than our fair-value estimate).
Our most-likely fair value is $1.76 a share — about 79.6% below today's price of $8.62, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $129.8M - more cash than debt. Interest coverage 8.4x.
Net debt
$-129.80M
Interest coverage
8.40x
BlackBerry Limited's profit covers its interest bill about 8.4 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
BB
BASELINE
BlackBerry Limited
Total debt $221.10M Interest coverage 8.40x This is the baseline the peer rows are being compared against.
Total debt $0.00 Interest coverage -1,807.27x -100% vs BB This peer has almost no interest-payment cushion compared with BB.
Total debt $187.05M Interest coverage 1.28x -85% vs BB Carries about 6.5x less debt cushion than BB.
Total debt $53.00M Interest coverage 38.25x +355% vs BB Carries about 4.6x more debt cushion than BB.
What you should know
The case for and against BB
3 Rewards
2 Risks
Rewards
-
Revenue grew 5.7% last year.
-
Returns 8.1% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Stock trades 128.8% above its 5-year average P/E.
-
Insider ownership is only 0.3% (peer median: 0.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
86.20x
Forward P/E
37.71x
P/B
6.73x
P/S
8.71x
EV/EBITDA
52.93x
PEG ratio
1.47x
Profitability
How much profit each dollar creates
Gross margin
77.1%
Operating margin
10.3%
Net margin
10.3%
ROE
8.1%
ROA
3.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.29x
Current ratio
2.20x
Quick ratio
2.04x
Total debt
$221.10M
Total cash
$350.90M
Growth
How the business has been compounding
Revenue TTM
$580.30M
Revenue 5Y CAGR
-6.5%
EPS TTM
0.10
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$72.90M
Free CF TTM
$46.50M
FCF margin
8.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—