BlackBerry Beats Revenue Guidance and Shows Strong Growth in IoT and Cybersecurity

By Bobby Samwell • Friday, December 20 10:17 • Permanent Link

BlackBerry Limited has reported its financial results for the third quarter of fiscal year 2025, highlighting a significant improvement in its performance. The company beat the top end of the revenue guidance range for both its cybersecurity and IoT divisions and raised the bottom end of the full-year guidance range for IoT.

In terms of specific financial highlights, BlackBerry reported a total company revenue of $162 million for the quarter. The company's IoT revenue grew by 13% sequentially, exceeding previously-provided guidance at $62 million, with an IoT gross margin increasing by 3 percentage points from the prior quarter to 85%. Additionally, IoT adjusted EBITDA increased by 38% sequentially to $18 million.

The cybersecurity division also saw positive growth, with cybersecurity revenue growing by 7% sequentially and exceeding previously-provided guidance at $93 million. Cybersecurity gross margin increased by 12 percentage points sequentially to 67%. Cybersecurity ARR increased by 1% sequentially to $281 million, while cybersecurity DBNRR increased by 2 percentage points sequentially to 90%. Cybersecurity adjusted EBITDA increased by $14 million sequentially to $8 million.

Moreover, BlackBerry's licensing revenue exceeded guidance at $7 million, with licensing adjusted EBITDA at $6 million. Non-GAAP net income was $12 million, while GAAP net loss was $11 million. Non-GAAP basic earnings per share increased by $0.02 sequentially to $0.02, beating the previously-provided guidance, and GAAP basic loss per share improved by $0.01 sequentially to $0.02.

In terms of financial outlook, BlackBerry provided guidance for the fourth quarter and the full fiscal year 2025. The company expects total BlackBerry revenue in the range of $126 million to $135 million for the fourth quarter and $517 million to $526 million for the full fiscal year 2025. The guidance also includes specific revenue projections for the IoT, secure communications, and licensing segments, as well as adjusted EBITDA and non-GAAP basic EPS expectations.

Following these announcements, the company's shares moved 17.6%, and are now trading at a price of $3.5. Check out the company's full 8-K submission here.

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