Blackberry (BB) Q2 2025 earnings summary

Executive summary

• Achieved breakeven for both adjusted EBITDA and non-GAAP EPS ahead of plan, with significant year-over-year improvements in profitability and cash usage.

• Q2 FY25 revenue reached $145M, with both IoT and Cybersecurity segments achieving double-digit year-over-year growth, exceeding prior guidance.

• Operating expenses reduced to $99M, down 24% year-over-year from the $130M baseline, supporting improved profitability.

• Operating cash usage improved by $43M year-over-year, with free cash flow improving for the fourth consecutive quarter.

• Major product launches and industry recognitions, including Gartner Customers' Choice for endpoint protection and the launch of CylanceMDR Pro.

Financial highlights

• Total revenue for Q2 was $145M, exceeding the upper end of guidance, with non-GAAP gross margin at 66%.

• IoT revenue reached $55M (12% year-over-year growth), with gross margin improving to 82%.

• Cybersecurity revenue was $87M, up 10% year-over-year, with gross margin at 55%.

• Non-GAAP operating loss was $4M; adjusted EBITDA at breakeven, $22M better year-over-year.

• Total cash and investments: $265M; net cash used by operations: ($13M).

Outlook and guidance

• Q3 FY25 revenue guidance: $146M–$154M; full-year FY25: $591M–$616M.

• IoT Q3 revenue expected at $56–$60M; full-year guidance raised to $225–$235M.

• Cybersecurity Q3 revenue expected at $86–$90M; full-year guidance reiterated at $350–$365M.

• Adjusted EBITDA expected between $0M–$10M for Q3 and FY25; non-GAAP EPS between -$0.05 and -$0.02.

• Positive cash flow and EBITDA anticipated in Q4 FY25.