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Consolidated Balance Sheets Details

9 Months Ended

Nov. 30, 2025

Balance Sheet Related Disclosures [Abstract]

Consolidated Balance Sheet Details

4.    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 Company also has long-term accounts receivable included in Other long-term assets. The CECL for long-term accounts receivable is estimated using the probability of default method and the default exposure due to limited historical information. The exposure to default is represented by the assets’ amortized carrying amount at the reporting date.

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

			Carrying Amount
Beginning balance as of February 29, 2024			$	6.0
Prior period provision for expected credit losses			5.3
Write-offs charged against the allowance			(4.7)
Ending balance of the allowance for credit loss as at February 28, 2025			6.6
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%).

Other Receivables

			As at
			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 items, none of which were greater than 5% of the current assets balance as at balance sheet dates.

Other Current Assets

As at November 30, 2025 and February 28, 2025, other current assets included items such as the current portion of deferred commissions and prepaid expenses, among other items, none of which were greater than 5% of the current assets balance as at the balance sheet dates.

Property, Plant and Equipment, Net

Property, plant and equipment comprised the following:

			As at
			November 30, 2025						February 28, 2025
Cost
BlackBerry operations and other information technology			$	77.8					$	80.6
Leasehold improvements and other			11.9						10.5
Furniture and fixtures			4.7						4.6
Manufacturing, repair and research and development equipment			2.5						2.2
			96.9						97.9
Accumulated amortization and impairment			85.2						84.5
Net book value			$	11.7					$	13.4

Intangible Assets, Net

Intangible assets comprised the following:

			As at November 30, 2025
			Cost						Accumulated Amortization						Net Book Value
Acquired technology			$	29.8					$	29.8					$	—
Other acquired intangibles			40.4						40.4						—
Intellectual property			106.1						65.4						40.7
			$	176.3					$	135.6					$	40.7

			As at February 28, 2025
			Cost						Accumulated Amortization						Net Book Value
Acquired technology			$	29.8					$	29.1					$	0.7
Other acquired intangibles			40.4						38.0						2.4
Intellectual property			110.4						66.2						44.2
			$	180.6					$	133.3					$	47.3

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: fiscal 2026 - $2.1 million; fiscal 2027 - $7.0 million; fiscal 2028 - $6.0 million; fiscal 2029 - $4.9 million; fiscal 2030 - $4.2 million and fiscal 2031 - $3.6 million.

Goodwill

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

			Carrying Amount
Carrying amount as at February 29, 2024			$	474.5
Effect of foreign exchange on non-U.S. dollar denominated goodwill			(2.1)
Carrying amount as at February 28, 2025			472.4
Effect of foreign exchange on non-U.S. dollar denominated goodwill			5.7
Carrying amount as at November 30, 2025			$	478.1

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.

Accrued Liabilities

Accrued liabilities is comprised of the following:

			As at
			November 30, 2025						February 28, 2025
Variable incentive accrual			$	26.0					$	31.4
Operating lease liabilities, current			11.0						15.0
Other			69.1						79.8
			$	106.1					$	126.2

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.

Restructuring and Integration

Restructuring

During fiscal 2025 and fiscal 2024, the Company commenced restructuring programs with the objective of reducing its annual costs and expenses. Other charges and cash costs may occur as programs are implemented or changes are completed.

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

			Employee Termination Benefits						Facilities and Other Charges (1)												Total
Balance as at February 29, 2024			$	16.8					4.3												21.1
Charges incurred			21.3						4.8												26.1
Cash payments made			(31.0)						(5.8)												(36.8)
Balance as at February 28, 2025			7.1						3.3												10.4
Charges incurred			9.3						3.1												12.4
Cash payments made			(10.7)						(3.5)												(14.2)
Balance as at November 30, 2025			$	5.7					$	2.9											$	8.6
Current portion			$	5.7					$	1.5											$	7.2
Long-term portion			—						1.4												1.4
			$	5.7					$	2.9											$	8.6

______________________________

(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 recorded by measuring the remaining payments at present value using an effective interest rate of 4.8%, and the Company recorded interest expense over time to arrive at the total face value of the remaining payments.

The restructuring charges included employee termination benefits, facilities and other charges. Total charges incurred for the nine months ended November 30, 2025 and November 30, 2024 were $12.4 million and $14.7 million, respectively, recorded within General and administrative on the Consolidated Statements of Operations.

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