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Revenue and Segment Disclosures | 9 Months Ended
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Nov. 30, 2025
Segment Reporting [Abstract] |
Revenue and Segment Disclosures | REVENUE AND SEGMENT DISCLOSURES 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 CODM, who is the CEO of the Company, makes decisions and assesses the performance of the Company using three operating segments. The CODM does not evaluate operating segments using discrete asset information. The Company does not specifically allocate assets to operating segments for internal reporting purposes. 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: 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:
| 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, |  |  |  |  |  |
| 2025 |  | 2024 |  |  |  | 2025 |  | 2024 |  |  |  | 2025 |  | 2024 |  |  |  | 2025 |  | 2024 |  |  |  |  |  |
Segment revenue | $ | 189.3 |  |  | $ | 170.2 |  |  |  |  | $ | 186.4 |  |  | $ | 205.3 |  |  |  |  | $ | 17.4 |  |  | $ | 17.7 |  |  |  |  | $ | 393.1 |  |  | $ | 393.2 |  |  |  |  |  |  |
Segment cost of sales | 33.2 |  |  | 27.7 |  |  |  |  | 56.9 |  |  | 68.2 |  |  |  |  | 4.6 |  |  | 4.5 |  |  |  |  |  |  |  |  |  |  |  |  |
Segment adjusted gross margin (1) | $ | 156.1 |  |  | $ | 142.5 |  |  |  |  | $ | 129.5 |  |  | $ | 137.1 |  |  |  |  | $ | 12.8 |  |  | $ | 13.2 |  |  |  |  | $ | 298.4 |  |  | $ | 292.8 |  |  |  |  |  |  |
______________________________ (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 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. Secure Communications consists of BlackBerry® UEM, BlackBerry® AtHoc® and BlackBerry® SecuSUITE®. The Company’s endpoint management platform includes BlackBerry® UEM, BlackBerry® Dynamics™, and BlackBerry® Workspaces solutions. Secure Communications revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services. Licensing consists of the Company’s intellectual property arrangements and settlement awards. 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
Total segment adjusted gross margin | $ | 110.4 |  |  | $ | 112.9 |  |  | $ | 298.4 |  |  | $ | 292.8 |
Adjustments (1): |  |  |  |  |  |  |
Less: Stock compensation | 0.5 |  |  | 0.7 |  |  | 1.6 |  |  | 2.0 |
Less: |  |  |  |  |  |  |
Research & development | 29.6 |  |  | 27.9 |  |  | 80.2 |  |  | 85.6 |
Sales and marketing | 29.3 |  |  | 23.4 |  |  | 82.4 |  |  | 68.5 |
General and administrative | 36.1 |  |  | 36.4 |  |  | 98.1 |  |  | 109.5 |
Amortization | 2.4 |  |  | 4.4 |  |  | 9.5 |  |  | 13.7 |
Impairment of long-lived assets | 0.6 |  |  | 0.6 |  |  | 1.2 |  |  | 4.7 |
Add: |  |  |  |  |  |  |
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 |
______________________________ (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. Revenue 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 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
North America (1) | $ | 64.5 |  |  | $ | 62.5 |  |  | $ | 181.6 |  |  | $ | 176.9 |
Europe, Middle East and Africa | 50.7 |  |  | 53.5 |  |  | 133.1 |  |  | 140.8 |
Other regions | 26.6 |  |  | 27.6 |  |  | 78.4 |  |  | 75.5 |
Total | $ | 141.8 |  |  | $ | 143.6 |  |  | $ | 393.1 |  |  | $ | 393.2 |
North America (1) | 45.5 | % |  | 43.5 | % |  | 46.2 | % |  | 45.0 | %
Europe, Middle East and Africa | 35.8 | % |  | 37.3 | % |  | 33.9 | % |  | 35.8 | %
Other regions | 18.7 | % |  | 19.2 | % |  | 19.9 | % |  | 19.2 | %
Total | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | %
______________________________ (1) North America includes all revenue from Licensing, due to the global applicability of the patent portfolio and licensing arrangements thereof. 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
Products and services transferred over time | $ | 65.4 |  |  | $ | 62.1 |  |  | $ | 184.1 |  |  | $ | 181.9 |
Products and services transferred at a point in time | 76.4 |  |  | 81.5 |  |  | 209.0 |  |  | 211.3 |
Total | $ | 141.8 |  |  | $ | 143.6 |  |  | $ | 393.1 |  |  | $ | 393.2 |
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:
| Accounts Receivable |  | Deferred Revenue |  | Deferred Commissions
Opening balance as at February 28, 2025 | $ | 240.0 |  |  | $ | 167.1 |  |  | $ | 14.6 |
Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other | 372.5 |  |  | 325.8 |  |  | 12.1 |
Decrease due to payment, fulfillment of performance obligations, or other | (419.1) |  |  | (366.8) |  |  | (13.2) |
Decrease, net | (46.6) |  |  | (41.0) |  |  | (1.1) |
Closing balance as at November 30, 2025 | $ | 193.4 |  |  | $ | 126.1 |  |  | $ | 13.5 |
Current portion | $ | 149.5 |  |  | $ | 121.3 |  |  | $ | 7.5 |
Long-term portion | 43.9 |  |  | 4.8 |  |  | 6.0 |
| $ | 193.4 |  |  | $ | 126.1 |  |  | $ | 13.5 |
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 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
| Less than 12 Months |  | 12 to 24 Months |  | Thereafter |  | Total
Remaining performance obligations | $ | 121.3 |  |  | $ | 2.4 |  |  | $ | 2.4 |  |  | $ | 126.1 |
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). 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).

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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