UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~November~~May 3031, ~~2024~~2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-38232

______________________________________________________

BlackBerry Limited

(Exact name of registrant as specified in its charter)

Canada

98-0164408

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

2200 University Ave East

Waterloo

Ontario

Canada

N2K 0A7

(Address of Principal Executive Offices)

(Zip Code)

(519) 888-7465

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares	BB	New York Stock Exchange
Common Shares	BB	Toronto Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	o	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No x

The registrant had ~~591~~594,~~583~~530,~~200~~880 common shares issued and outstanding as of ~~December~~June 1720, ~~2024~~2025.

BLACKBERRY LIMITED
TABLE OF CONTENTS
		Page No.
PART I	FINANCIAL INFORMATION
Item 1	Financial Statements
	Consolidated Balance Sheets as of November 30, 2024 (unaudited) and February 29, 2024	5
	Consolidated Balance Sheets as of May 31, 2025 (unaudited) and February 28, 2025	5
	Consolidated Statements of Shareholders' Equity - Three and Nine Months Ended November 30, 2024 and 2023 (unaudited)	7
	Consolidated Statements of Shareholders' Equity - Three Months Ended May 31, 2025 and 2024 (unaudited)	6
	Consolidated Statements of Operations - Three and Nine Months Ended November 30, 2024 and 2023 (unaudited)	8
	Consolidated Statements of Operations - Three Months Ended May 31, 2025 and 2024 (unaudited)	7
	Consolidated Statements of Comprehensive Loss - Three and Nine Months Ended November 30, 2024 and 2023 (unaudited)	9
	Consolidated Statements of Comprehensive Income (Loss) - Three Months Ended May 31, 2025 and 2024 (unaudited)	8
	Consolidated Statements of Cash Flows - Nine Months Ended November 30, 2024 and 2023 (unaudited)	10
	Consolidated Statements of Cash Flows - Three Months Ended May 31, 2025 and 2024 (unaudited)	9
	Notes to the Consolidated Financial Statements	1110
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	3430
Item 3	Quantitative and Qualitative Disclosures about Market Risk	6550
Item 4	Controls and Procedures	6651
PART II	OTHER INFORMATION
Item 1	Legal Proceedings	6651
Item 6	Exhibits	67
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	52
Signatures		68
Item 5	Other Information	52
Item 6	Exhibits	52
Signatures		53

Unless the context otherwise requires, all references to the “Company” and “BlackBerry” include BlackBerry Limited and its subsidiaries.

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BlackBerry Limited

Incorporated under the Laws of Ontario

(United States dollars, in millions) (unaudited)

Consolidated Balance Sheets

	As at
	November 30, 2024		February 29, 2024
	May 31, 2025		February 28, 2025
Assets
Current
Cash and cash equivalents (note 3)	$	~~189~~276.0	$	~~175~~266.7
Short-term investments (note 3)	3130.6		6271.1
Accounts receivable, net of allowance of $6 and $6, respectively (note 4)	161		179
Accounts receivable, net of allowance of $6.0 and $6.6, respectively (note 4)	129.9		173.7
Other receivables (note 4)	651.7		1948.4
Income taxes receivable	51.7		41.6
Other current assets (note 4)	3943.3		3230.0
Assets held for sale, current (note 2)	24		37
	533.2		591.5
	455		508
Restricted cash and cash equivalents (note 3)	16.5		13.6
Restricted cash and cash equivalents (note 3)	11		25
Long-term investments (note 3)	58.8		58.9
Long-term investments (note 3)	35		36
Other long-term assets (note 4)	48.0		76.5
Other long-term assets (note 4)	73		54
Operating lease right-of-use assets, net	20.1		22.0
Operating lease right-of-use assets, net	21		22
Property, plant and equipment, net (note 4)	12.7		13.4
Property, plant and equipment, net (note 4)	14		19
Intangible assets, net (note 4)	44.2		47.3
Intangible assets, net (note 4)	51		58
Goodwill (note 4)	476.9		472.4
Goodwill (note 4)	473		475
	$	1,210.4	$	1,295.6
Assets held for sale, non-current (note 2)	176		198
	$	1,309	$	1,395
Liabilities
Current
Accounts payable	$	95.2	$	1631.1
Accrued liabilities (note 4)	9783.3		~~100~~126.2
Income taxes payable (note 5)	3328.6		2825.5
Deferred revenue, current (note 11)	~~133~~136.3		~~148~~161.5
Liabilities held for sale, current (note 2)	60		64
	253.4		344.3
	332		356
Deferred revenue, non-current (note 11)	8.8		5.6
Deferred revenue, non-current (note 11)	10		15
Operating lease liabilities	26.3		28.7
Operating lease liabilities	19		19
Other long-term liabilities	1.2		1.8
Other long-term liabilities	1		3
Long-term notes (note 6)	195.6		195.3
Long-term notes (note 6)	195		194
	485.3		575.7
Liabilities held for sale, non-current (note 2)	27		32
	584		619
Commitments and contingencies (note 10)
Shareholders’ equity
Capital stock and additional paid-in capital
Preferred shares: authorized unlimited number of non-voting, cumulative, redeemable and retractable	—		—
Common shares: authorized unlimited number of non-voting, redeemable, retractable Class A common shares and unlimited number of voting common shares
Issued and outstanding - 591,583,200 voting common shares (February 29, 2024 - 589,232,539)	2,972		2,948
Issued and outstanding - 594,528,763 voting common shares (February 28, 2025 - 596,230,655)	2,970.5		2,976.4
Deficit	(2,~~230~~232.6)		(2,~~158~~237.3)
Accumulated other comprehensive loss (note 9)	(1712.8)		(1419.2)
	725		776
	725.1		719.9
	$	1,~~309~~210.4	$	1,~~395~~295.6

See notes to consolidated financial statements.

On behalf of the Board:


John Giamatteo			Lisa Disbrow
Director			Director

BlackBerry Limited

(United States dollars, in millions) (unaudited)

Consolidated Statements of Shareholders’ Equity

	Three Months Ended November 30, 2024
	Three Months Ended May 31, 2025
	Capital Stockand AdditionalPaid-in Capital		Deficit		AccumulatedOtherComprehensive Loss		Total
Balance as at August 31, 2024	$	2,964	$	(2,219)	$	(13)	$	732
Balance as at February 28, 2025	$	2,976.4	$	(2,237.3)	$	(19.2)	$	719.9
Net loss	—		(11)		—		(11)
Net income	—		1.9		—		1.9
Other comprehensive loss	—		—		(4)		(4)
Other comprehensive income	—		—		6.4		6.4
Stock-based compensation	6		—		—		6
Stock-based compensation (note 7)	5.7		—		—		5.7
Share repurchase (note 7)	(12.8)		2.8		—		(10.0)
Shares issued:
Employee share purchase plan	2		—		—		2
Employee share purchase plan (note 7)	1.2		—		—		1.2
Balance as at November 30, 2024	$	2,972	$	(2,230)	$	(17)	$	725
Balance as at May 31, 2025	$	2,970.5	$	(2,232.6)	$	(12.8)	$	725.1

	Three Months Ended November 30, 2023
	Three Months Ended May 31, 2024
	Capital Stockand AdditionalPaid-in Capital		Deficit		AccumulatedOtherComprehensive Loss		Total
Balance as at August 31, 2023	$	2,931	$	(2,081)	$	(21)	$	829
Balance as at February 29, 2024	2,947.7		(2,158.3)		(14.3)		775.1
Net loss	—		(2141.4)		—		(2141.4)
Other comprehensive income	—		—		7		7
Other comprehensive loss	—		—		(0.3)		(0.3)
Stock-based compensation	87.7		—		—		87.7
Shares issued:
Employee share purchase plan	21.5		—		—		21.5
Balance as at November 30, 2023	$	2,941	$	(2,102)	$	(14)	$	825
Balance as at May 31, 2024	$	2,956.9	$	(2,199.7)	$	(14.6)	$	742.6

See notes to consolidated financial statements.

BlackBerry Limited

(United States dollars, in millions, except per share data) (unaudited)

Consolidated Statements of ~~Shareholders’ Equity~~Operations

	Nine Months Ended November 30, 2024
	Three Months Ended
	Capital Stockand AdditionalPaid-in Capital		Deficit		AccumulatedOtherComprehensive Loss		Total
	May 31, 2025		May 31, 2024
Balance as at February 29, 2024	$	2,948	$	(2,158)	$	(14)	$	776
Revenue (note 11)	$	121.7	$	123.4
Net loss	—		(72)		—		(72)
Cost of sales	31.4		33.4
Other comprehensive loss	—		—		(3)		(3)
Gross margin	90.3		90.0
Stock-based compensation (note 7)	21		—		—		21
Operating expenses
Shares issued:
Research and development	25.0		30.6
Employee share purchase plan (note 7)	3		—		—		3
Sales and marketing	28.7		23.8
Balance as at November 30, 2024	$	2,972	$	(2,230)	$	(17)	$	725
General and administrative	30.5		40.3
Amortization	4.0		4.7
Impairment of long-lived assets (note 3)	0.1		3.5
	88.3		102.9
Operating income (loss)	2.0		(12.9)
Investment income, net (note 3 and note 6)	2.9		4.0
Income (loss) before income taxes	4.9		(8.9)
Provision for income taxes (note 5)	3.0		7.6
Income (loss) from continuing operations	1.9		(16.5)
Loss from discontinued operations, net of tax (note 2)	—		(24.9)
Net income (loss)	$	1.9	$	(41.4)
Earnings (loss) per share (note 8)
Basic earnings (loss) per share from continuing operations	$	0.00	$	(0.03)
Total basic earnings (loss) per share	$	0.00	$	(0.07)
Diluted earnings (loss) per share from continuing operations	$	0.00	$	(0.03)
Total diluted earnings (loss) per share	$	0.00	$	(0.07)

	Nine Months Ended November 30, 2023
	Capital Stockand AdditionalPaid-in Capital		Deficit		AccumulatedOtherComprehensive Loss		Total
Balance as at February 28, 2023	$	2,909	$	(2,028)	$	(24)	$	857
Net loss	—		(74)		—		(74)
Other comprehensive income	—		—		10		10
Stock-based compensation	28		—		—		28
Shares issued:
Employee share purchase plan	4		—		—		4
Balance as at November 30, 2023	$	2,941	$	(2,102)	$	(14)	$	825

See notes to consolidated financial statements.

BlackBerry Limited

(United States dollars, in millions~~, except per share data~~) (unaudited)

Consolidated Statements of ~~Operations~~Comprehensive Income (Loss)

	Three Months Ended				~~Nine Months Ended~~
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
	May 31, 2025		May 31, 2024
Revenue (note 11)	$	143	$	152	$	391	$	606
Net income (loss)	$	1.9	$	(41.4)
Cost of sales	31		33		102		239
Other comprehensive income (loss)
Gross margin	112		119		289		367
Net change in fair value and amounts reclassified to net loss from derivatives designated as cash flow hedges during the three months ended, net of income taxes of nil (May 31, 2024 - income taxes of nil) (note 9)	2.4		(0.2)
Operating expenses
Foreign currency translation adjustment	4.0		(0.1)
Research and development	27		29		85		98
Other comprehensive income (loss)	6.4		(0.3)
Sales and marketing	23		25		68		77
Comprehensive income (loss)	$	8.3	$	(41.7)
General and administrative	38		45		111		133
Amortization	4		6		14		22
Impairment of long-lived assets (note 3)	1		9		4		9
Prior Debentures fair value adjustment (note 6)	—		(13)		—		3
	93		101		282		342
Operating income	19		18		7		25
Investment income, net (note 3 and note 6)	—		5		8		15
Income before income taxes	19		23		15		40
Provision for income taxes (note 5)	7		15		16		20
Income (loss) from continuing operations	12		8		(1)		20
Loss from discontinued operations, net of tax (note 2)	(23)		(29)		(71)		(94)
Net loss	$	(11)	$	(21)	$	(72)	$	(74)
Earnings (loss) per share (note 8)
Basic earnings per share from continuing operations	$	0.02	$	0.01	$	—	$	0.03
Total basic loss per share	$	(0.02)	$	(0.04)	$	(0.12)	$	(0.13)
Diluted earnings (loss) per share from continuing operations	$	0.02	$	(0.01)	$	—	$	0.03
Total diluted loss per share	$	(0.02)	$	(0.05)	$	(0.12)	$	(0.13)

See notes to consolidated financial statements.

BlackBerry Limited

(United States dollars, in millions) (unaudited)

Consolidated Statements of Cash Flows

Consolidated Statements of Comprehensive Loss


	Three Months Ended
	May 31, 2025		May 31, 2024
Cash flows from operating activities


Net income (loss)	$	1.9	$	(41.4)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization	5.7		13.2

Stock-based compensation	5.7		7.7


Impairment of long-lived assets (note 3)	0.1		3.5







Operating leases	(1.6)		(2.7)
Other	(0.7)		(2.9)
Net changes in working capital items
Accounts receivable, net of allowance	43.8		51.0
Other receivables	(3.3)		0.7

Income taxes receivable	(0.1)		0.9
Other assets	17.0		(11.6)
Accounts payable	(25.9)		(11.1)
Accrued liabilities	(41.7)		(6.5)
Income taxes payable	3.1		0.5
Deferred revenue	(22.0)		(16.4)
Net cash used in operating activities	(18.0)		(15.1)


Cash flows from investing activities

Proceeds on sale, maturity or distribution from long-term investments	0.1		—
Acquisition of property, plant and equipment	(0.9)		(1.4)
Proceeds on sale of property, plant and equipment	—		0.1
Acquisition of intangible assets	(1.2)		(1.5)


Acquisition of short-term investments	(21.7)		(48.9)

Proceeds on sale or maturity of short-term investments	62.2		24.5


Net cash provided by (used in) investing activities	38.5		(27.2)
Cash flows from financing activities
Issuance of common shares	1.2		1.5


Common shares repurchased	(10.0)		—





Net cash provided by (used in) financing activities	(8.8)		1.5
Effect of foreign exchange gain on cash, cash equivalents, restricted cash, and restricted cash equivalents	0.5		—
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period	12.2		(40.8)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	280.3		200.5
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	$	292.5	$	159.7

	Three Months Ended				Nine Months Ended
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
Net loss	$	(11)	$	(21)	$	(72)	$	(74)
Other comprehensive income (loss)
Net change in fair value and amounts reclassified to net loss from derivatives designated as cash flow hedges during the period, net of income taxes of nil for the three and nine months ended November 30, 2024 and November 30, 2023 (note 9)	(1)		—		(1)		1
Foreign currency translation adjustment	(3)		1		(2)		3
Net change in fair value from instrument-specific credit risk on the Prior Debentures, net of income taxes of nil for the three and nine months ended November 30, 2024 and November 30, 2023 (note 6)	—		6		—		6
Other comprehensive income (loss)	(4)		7		(3)		10
Comprehensive loss	$	(15)	$	(14)	$	(75)	$	(64)

See notes to consolidated financial statements.

BlackBerry Limited

(United States dollars, in millions) (unaudited)

	Nine Months Ended
	November 30, 2024		November 30, 2023
Cash flows from operating activities
Net loss	$	(72)	$	(74)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization	39		46
Stock-based compensation	21		28
Impairment of long-lived assets (note 3)	4		11
Intellectual property disposed of by sale	—		147
Prior Debentures fair value adjustment (note 6)	—		3
Operating leases	(8)		(7)
Net changes in working capital items
Accounts receivable, net of allowance	27		(63)
Other receivables	13		4
Income taxes receivable	(1)		(2)
Other assets	(22)		(58)
Accounts payable	(7)		(7)
Accrued liabilities	5		(16)
Income taxes payable	5		13
Deferred revenue	(29)		(13)
Net cash provided by (used in) operating activities	(25)		12
Cash flows from investing activities
Acquisition of long-term investments	—		(2)
Acquisition of property, plant and equipment	(3)		(5)
Acquisition of intangible assets	(6)		(12)
Acquisition of short-term investments	(92)		(92)
Proceeds on sale or maturity of short-term investments	123		223
Net cash provided by investing activities	22		112
Cash flows from financing activities
Issuance of common shares	3		4
Maturities of 2020 Debentures (note 6)	—		(365)
Issuance of Extension Debentures (note 6)	—		150
Net cash used in financing activities	3		(211)
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period	—		(87)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	200		322
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	$	200	$	235

See notes to consolidated financial statements.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES

Basis of Presentation and Preparation

These interim consolidated financial statements have been prepared by management in accordance with United States generally accepted accounting principles (“U.S. GAAP”). They do not include all of the disclosures required by U.S. GAAP for annual financial statements and should be read in conjunction with the audited consolidated financial statements of BlackBerry Limited (the “Company”) for the year ended February 2928, ~~2024~~2025 (the “Annual Financial Statements”), which have been prepared in accordance with U.S. GAAP. In the opinion of management, all normal recurring adjustments considered necessary for fair presentation have been included in these interim consolidated financial statements. Operating results for the three ~~and nine~~ months ended ~~November~~May 3031, ~~2024~~2025 are not necessarily indicative of the results that may be expected for the full year ending February 28, ~~2025~~2026. The consolidated balance sheet at February 2928, ~~2024~~2025 was derived from the audited Annual Financial Statements but does not contain all of the footnote disclosures from the Annual Financial Statements.

The preparation of the consolidated financial statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent ~~assets and~~ liabilities. Actual results could differ from these estimates and any such differences may be material to the Company’s consolidated financial statements.

Certain of the comparative figures have been reclassified to conform to the current year’s presentation, including for ~~held~~facilities ~~for sale and discontinued operation, as further~~ discussed inbelow. ~~Note~~In 2the ~~and~~third ~~facilities~~quarter ~~discussed~~of ~~below.~~fiscal ~~The~~2025, the Company reclassified all expenses associated with its facilities within General and administrative expenses, whereas previously these costs were allocated amongst the functional expense areas of the business based on assumptions of usage of those facilities by the functional areas.

The impact of the change on previously issued financial statements was as follows for the three ~~and nine~~ months ended ~~November~~May 3031, ~~2023~~2024:

	Three Months Ended			~~Nine Months Ended~~
			Revised			~~Revised~~
	November 30, 2023	Impact of change	November 30, 2023	November 30, 2023	Impact of change	November 30, 2023
	May 31, 2024	Impact of change	May 31, 2024
Cost of Sales	48	(2)	46	289	(6)	283
Cost of sales	47.8	(1.5)	46.3
Gross Margin	127	2	129	391	6	397
Gross margin	96.5	1.5	98.0
Research and development	4241.5	(2.3)	39.2	~~146~~	~~(10)~~	~~136~~
Sales and marketing	4237.9	(21.1)	4036.8	~~131~~	~~(7)~~	~~124~~
General and administrative	4339.9	74.9	5044.8	~~127~~	23	~~150~~
Cybersecurity
Segment cost of sales	37	(1)	36	110	(4)	106
Segment gross margin	77	1	78	176	4	180
IoT
Segment cost of sales	9	(1)	8	26	(2)	24
Segment gross margin	46	1	47	123	2	125

The Company is organized and managed as three reportable operating segments: QNX, Secure Communications, and Licensing, as further discussed in Note 11.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

The Company is organized and managed as three reportable operating segments: Secure Communications (formerly “Cybersecurity”), IoT (and, collectively with Cybersecurity, “Software & Services”), and Licensing, as further discussed in Note 11.

Significant Accounting Policies and Critical Accounting Estimates

There have been no material changes to the Company’s accounting policies or critical accounting estimates from those described in the Annual Financial Statements ~~with the exception of the below:~~ .

~~Assets~~Accounting ~~held~~Standards ~~for~~Adopted ~~sale~~During ~~and~~Fiscal ~~discontinued operations~~2026

~~When~~The ~~certain criteria are met, the~~ Company ~~reclassifies~~has ~~assets~~not ~~and~~adopted ~~related~~any ~~liabilities~~new asstandards ~~held for sale at the lower of their carrying value or fair value less costs~~ to ~~sell~~date ~~and,~~during iffiscal ~~material, presents them separately on the Company’s consolidated balance sheets~~2026. If the carrying value exceeds the fair value less costs to sell, a loss is recognized. Assets classified as held for sale are no longer amortized. Comparative figures are reclassified to conform to the current year’s presentation.

When the Company has disposed of or classified as held for sale a component of the entity, and certain criteria are met, the results of operations of the component, including any loss recognized, are reported separately on the consolidated statements of operations as discontinued operations. Discontinued operations are presented if the component’s operations and cash flows have been, or will be, eliminated from the Company and the Company will not have significant continuing involvement in the operations of the component after the disposal. Earnings (loss) per share amounts for both continuing operations and discontinued operations are presented separately on the consolidated statements of operations and income (loss) from continuing operations. Comparative figures are reclassified to conform to the current year’s presentation.10

Accounting Standards Adopted During Fiscal 2025

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued ASU 2023-07 on the topic of segment reporting. The standard requires additional disclosures for segment reporting. These requirements include: (i) disclosure of significant expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss (collectively referred to as the “significant expense principle”); (ii) disclosure of an amount for other segment items (equal to the difference between segment revenue less segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment and a description of their composition; (iii) annual disclosure of a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods; (iv) clarification that, if the CODM uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report those additional measures of segment profit or loss; (v) disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources; and (vi) requiring a public entity that has a single reportable segment provide all the disclosures required by the amendments in this ASU, and all existing segment disclosures in Topic 280. The guidance is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company early adopted this guidance in the first quarter of fiscal 2025 and have provided the applicable disclosures in Note 11.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Accounting Pronouncements Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” on the topic of income taxes. The standard requires additional disclosure for income taxes. These requirements include: (i) requiring a public entity to disclose specific categories in the rate reconciliation; (ii) disclosure of additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate); (iii) annual disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes; (iv) annual disclosure of the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received); (v) annual disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign; and (vi) annual disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. For public entities, the guidance is effective for annual periods beginning after December 15, 2024. The Company will adopt this guidance in its annual reporting for fiscal 2026 on a prospective basis and is in the process of evaluating the new requirements. As a result, the Company has not yet determined the impact this new ASU will have on its disclosures.

In November 2024, the FASB issued ASU 2024-03 to amend the codification on “Expense Disaggregation Disclosure” (Subtopic 220-40): Income Statement - Reporting Comprehensive Income”. The standard requires additional disclosure on specific expense categories included in the expense captions presented on the statements of operations. The guidance is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company will adopt this guidance in fiscal 2028 and is in process of evaluating the new requirements. As a result, the Company has not yet determined the impact this new ASU will have on its disclosures.

2. DISCONTINUED OPERATIONS

OnIn ~~October 16, 2024,~~ the ~~Company~~third ~~announced~~quarter ~~that~~of itfiscal ~~was revisiting capital allocation priorities within its Cybersecurity division and~~2025, ~~as such,~~ the Company ~~would begin exploring opportunities for the business. At November 30, 2024, the Company~~ determined that the assets and liabilities constituting ~~the~~its Cylance business, which ~~consists~~consisted of the Company’s artificial intelligence (“AI”) and machine learning-based cybersecurity solutions previously acquired on February 21, 2019, met the criteria requiring classification as held for sale as specified in Accounting Standards Codification (“ASC”) 360 Property, Plant and Equipment (“ASC 360”) and met the criteria for presentation as a discontinued operations under ASC 205 Presentation of Financial Statements. While presented as a discontinued operations in its Consolidated Statement of Operations, the Company continues to operate Cylance during the time that the assets and liabilities constituting its business are held for sale.

~~Assets~~On ~~Held~~February ~~for~~3, ~~Sale~~2025, the Company completed the sale of its Cylance endpoint security assets and related liabilities to Arctic Wolf Networks, Inc. (“Arctic Wolf”). In connection with the sale, the Company recognized a gain on disposal of discontinued operations before taxes of $10.4 million in the fourth quarter of fiscal 2025.

~~For~~The ~~assets~~financial ~~not~~results ~~covered~~of byCylance ~~ASC~~are ~~360,~~presented ~~such~~ as ~~goodwill,~~“loss ~~the~~from ~~Company~~discontinued ~~first~~operations, ~~considered~~net ~~whether~~of ~~any~~tax” ~~adjustment~~in ~~was required prior to measuring~~ the ~~fair~~Consolidated ~~value~~Statements ~~less costs to sell~~ of ~~the~~Operations ~~assets~~ and ~~liabilities~~have ~~associated~~been ~~with~~removed from the ~~Cylance~~presentation ~~business~~of ~~and~~results ~~determined~~from ~~none~~continuing ~~was required~~operations. The ~~Company~~following ~~then~~table ~~estimated~~represents the ~~fair~~financial ~~values~~results of ~~assets~~Cylance ~~identified as held~~ for ~~sale, less costs to sell, and compared them against~~ the ~~carrying~~three ~~value~~months ofended ~~the~~May ~~assets~~31, ~~and determined that no impairment was present.~~ 2024:

The following table sets forth the aggregate carrying amounts of assets and liabilities held for sale related to the discontinued operations of Cylance as of November 30, 2024 and February 29, 2024:


	Three Months Ended
	May 31, 2024
Revenue	$	20.9
Cost of sales	12.9

Gross margin	8.0

Operating expenses
Research and development	8.6
Sales and marketing	13.0
General and administrative	4.5
Amortization	6.8


	32.9
Operating loss	(24.9)
Provision for income taxes	—
Loss from discontinued operations, net of tax	$	(24.9)

Basic loss per share from discontinued operations	$	(0.04)
Diluted loss per share from discontinued operations	$	(0.04)

	As at
	November 30, 2024		February 29, 2024
Assets
Accounts receivable, net of allowance of $1 and nil, respectively	$	11	$	20
Other receivables	2		2
Other current assets	11		15
Total currents assets of discontinued operations	24		37
Other long-term assets	3		3
Operating lease right-of-use assets, net	8		10
Property, plant and equipment, net	2		2
Intangible assets, net	76		96
Goodwill	87		87
Total long-term assets of discontinued operations	176		198
Liabilities
Accounts payable	1		1
Accrued liabilities	21		17
Deferred revenue, current	38		46
Total current liabilities of discontinued operations	60		64
Deferred revenue, non-current	12		13
Operating lease liabilities	15		19
Total long-term liabilities of discontinued operations	27		32

The following table represents the amortization, stock-based compensation (representing the significant non-cash operating item) and acquisition of property, plant and equipment of the discontinued operations for the three months ended May 31, 2024:

The financial results of Cylance are presented as “loss from discontinued operations, net of tax” in the Consolidated Statements of Operations and have been removed from the presentation of results from continuing operations. The following table represents the financial results of Cylance for the three and nine months ended November 30, 2024 and November 30, 2023:


	Three Months Ended
	May 31, 2024
Amortization	$	6.8
Stock based compensation	1.5
Acquisition of property, plant and equipment	—

	Three Months Ended				Nine Months Ended
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
Revenue	$	19	$	23	$	60	$	74
Cost of sales	11		13		36		44
Gross margin	8		10		24		30
Operating expenses
Research and development	9		10		26		38
Sales and marketing	11		15		36		47
General and administrative	4		5		13		17
Amortization	7		7		20		20
Impairment of long-lived assets	—		2		—		2
	31		39		95		124
Operating loss	(23)		(29)		(71)		(94)
Provision for income taxes	—		—		—		—
Loss from discontinued operations, net of tax	$	(23)	$	(29)	$	(71)	$	(94)
Basic loss per share from discontinued operations	$	(0.04)	$	(0.05)	$	(0.12)	$	(0.16)
Diluted loss per share from discontinued operations	$	(0.04)	$	(0.06)	$	(0.12)	$	(0.16)

	Three Months Ended				Nine Months Ended
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
Amortization	$	7	$	7	$	20	$	20
Stock based compensation	2		1		5		3
Acquisition of property, plant and equipment	—		—		1		—

3. FAIR VALUE MEASUREMENTS, CASH, CASH EQUIVALENTS AND INVESTMENTS

Fair Value

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use in pricing the asset or liability, such as inherent risk, non-performance risk and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value into three levels:

•Level 1 - Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets.

•Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

13•Level 3 - Significant unobservable inputs that are supported by little or no market activity.

The fair value hierarchy also requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

•Level 3 - Significant unobservable inputs that are supported by little or no market activity.

The fair value hierarchy also requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The Company’s cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities are carried at amounts that approximate their fair values (Level 2 measurement) due to their short maturities.

Recurring Fair Value Measurements

In determining the fair value of investments held, the Company primarily relies on an independent third-party valuator for the fair valuation of securities. The Company also reviews the inputs used in the valuation process and assesses the pricing of the securities for reasonableness after conducting its own internal collection of quoted prices from brokers. Fair values for all investment categories provided by the independent third-party valuator that are in excess of 0.5% from the fair values determined by the Company are communicated to the independent third-party valuator for consideration of reasonableness. The independent third-party valuator considers the information provided by the Company before determining whether a change in their original pricing is warranted.

When the Company concludes that there is a significant financing component included within a contract with a customer due to timing differences between the fulfillment of certain performance obligations and the receipt of payment for those performance obligations, the Company determines the present value of the future consideration utilizing the discount rate that would be reflected in a separate financing transaction between the customer and the Company at contract inception based upon the credit characteristics of the customer receiving financing in the contract.

For a description of how the fair value of the 2020 Debentures (as defined in Note 6) was determined, see the “Convertible debentures” accounting policies in Note 1 to the Annual Financial Statements.

Non-Recurring Fair Value Measurements

Upon the occurrence of certain events, the Company re-measures the fair value of non-marketable equity investments for which it utilizes the measurement alternative, and long-lived assets, including property, plant and equipment, operating lease ROU assets, intangible assets and goodwill if an impairment or observable price adjustment is recognized in the current period.

Non-Marketable Equity Investments Measured Using the Measurement Alternative

Non-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which the Company does not own a controlling interest or have significant influence. ~~The~~Equity ~~estimation~~investments ofin private companies are recorded at fair value ~~used~~on ina ~~the~~non-recurring basis. The fair value ~~measurements~~of ~~required~~non-marketable equity investments are classified within Level 3 when the ~~use~~Company ofestimates fair value using significant unobservable inputs, ~~and~~such as awhen ~~result,~~the investment is remeasured due to impairment and changes resulting from the ~~fair~~issuance ~~value~~of ~~measurements~~new ~~were~~equity ~~classified~~by asan ~~Level~~investee 3in an orderly transaction for identical or similar investments of the same issuer.

Impairment of Long-Lived Assets

~~The~~During the three months ended May 31, 2024, the Company exited certain leased facilities and recorded a pre-tax and after-tax impairment charge of $13.5 million ~~and $4 million during the three and nine months ended November 30, 2024, respectively,~~ related to the operating lease right-of-use (“ROU”) assets and property, plant and equipment associated with those facilities ~~(three and nine months ended November 30, 2023 - $1 million)~~. The impairment was determined by comparing the fair value of the impacted ROU asset to the carrying value of the asset as of the impairment measurement date, as required under ASC 360, using Level 3 inputs. The fair value of the ROU asset was based on the estimated sublease income for certain facilities taking into consideration the estimated time period it will take to obtain a sublessor, the applicable discount rate and the sublease rate, which are considered unobservable inputs. The Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate as new or updated information becomes available. The fair value measurement of ROU impaired assets is classified as Level 3 of the fair value hierarchy.

The Company conducts regular reviews of the individual patents, both organically generated and acquired, comprising its patent portfolio. As a result of this review, for the three and nine months ended November 30, 2023, the Company determined it has an indicator of impairment, as it had ceased enforcement and abandoned the legal right and title to patents with a cost of $15 million, accumulated amortization of $7 million, and a net book value of $8 million, which is classified as an impairment of long-lived assets on the Company’s consolidated statements of operations.12

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Goodwill

During the third quarter of fiscal 2025, the Company reorganized its reporting structure resulting in its BlackBerry Spark reporting unit being disaggregated into two separate reporting units: UEM and Cylance. In accordance with ASC 350 Intangibles - Goodwill and Other, the Company conducted a valuation of the individual reporting units and allocated the goodwill associated with the previous BlackBerry Spark reporting unit to the UEM and Cylance reporting units using a relative fair value approach. The valuations of the reporting units were based on a combination of income approach using a discounted future cash flow model, market-based approach, and estimated exit value approaches for Cylance using the same critical accounting estimates as disclosed in Note 1 of the Annual Financial Statements. Following the assignment of assets, liabilities, and goodwill to the UEM and Cylance reporting units, the Company compared the carrying values of the reporting units against their fair values and determined no impairment was present in either reporting unit.

Cash, Cash Equivalents and Investments

The components of cash, cash equivalents and investments by fair value level as at ~~November~~May 3031, ~~2024~~2025 were as follows:

	Cost Basis (1)		UnrealizedGains		UnrealizedLosses		Fair Value		Cash andCashEquivalents		Short-termInvestments		Long-termInvestments		Restricted Cash and Cash Equivalents
Bank balances	$	~~105~~169.5	$	—	$	—	$	~~105~~169.5	$	~~105~~166.6	$	—	$	—	$	—2.9
Other investments	24		5		—		29		—		—		29		—
Equity investments in private companies	53.9		6.1		(1.2)		58.8		—		—		58.8		—
	129		5		—		134		105		—		29		—
	223.4		6.1		(1.2)		228.3		166.6		—		58.8		2.9
Level 1:
Equity securities	10.0		—		(10.0)		—		—		—		—		—
Level 2:
Term deposits, and certificates of deposits	1729.1		—		—		1729.1		1020.0		—		—		79.1
Bearer deposit notes	2632.7		—		—		2632.7		2632.7		—		—		—
Commercial paper	5850.1		—		—		5850.1		27.9		3117.7		—		—4.5
Non-U.S. promissory notes	127.4		—		—		127.4		119.5		—7.9		—		—
Non-U.S. government sponsored enterprise notes	45.0		—		—		45.0		—		—5.0		—		4—
Non-U.S. treasury bills	19.3		—		—		19.3		19.3		—		—		—
U.S. treasury bills	19		—		—		19		19		—		—		—
	153.6		—		—		153.6		109.4		30.6		—		13.6
	126		—		—		126		84		31		—		11
	$	387.0	$	6.1	$	(11.2)	$	381.9	$	276.0	$	30.6	$	58.8	$	16.5
Level 3:
Other investments	6		1		(1)		6		—		—		6		—
	$	271	$	6	$	(11)	$	266	$	189	$	31	$	35	$	11

______________________________

(1) Cost basis for ~~other~~equity investments in private companies includes the effect of returns of capital and impairment.

1513

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

The components of cash, cash equivalents and investments by fair value level as at February 2928, ~~2024~~2025 were as follows:

	Cost Basis (1)		UnrealizedGains		UnrealizedLosses		Fair Value		Cash andCashEquivalents		Short-termInvestments		Long-termInvestments		Restricted Cash and Cash Equivalents
Bank balances	$	96223.7	$	—	$	—	$	96223.7	$	96223.7	$	—	$	—	$	—
Other investments	30		6		—		36		—		—		36		—
Equity investments in private companies	23.3		4.9		—		28.2		—		—		28.2		—
	126		6		—		132		96		—		36		—
	247.0		4.9		—		251.9		223.7		—		28.2		—
Level 1:
Equity securities	10.0		—		(10.0)		—		—		—		—		—
Level 2:
Term deposits, and certificates of deposits	2139.3		—		—		2139.3		—		—30.1		—		219.2
Bearer deposit notes	5310.3		—		—		5310.3		287.3		253.0		—		—
Commercial paper	4755.5		—		—		4755.5		1527.8		3227.7		—		—
Non-U.S. promissory notes	359.8		—		—		359.8		307.9		51.9		—		—
U.S. treasury bills	10		—		—		10		6		—		—		4
Non-U.S. government sponsored enterprise notes	9.3		—		—		9.3		—		4.9		—		4.4
	166		—		—		166		79		62		—		25
Corporate notes/bonds	3.5		—		—		3.5		—		3.5		—		—
	$	302	$	6	$	(10)	$	298	$	175	$	62	$	36	$	25
	127.7		—		—		127.7		43.0		71.1		—		13.6
Level 3:
Equity investments in private companies	30.7		1.2		(1.2)		30.7		—		—		30.7		—
	$	415.4	$	6.1	$	(11.2)	$	410.3	$	266.7	$	71.1	$	58.9	$	13.6

______________________________

(1) Cost basis for ~~other~~equity investments in private companies includes the effect of returns of capital and impairment.

As at ~~November~~May 3031, ~~2024~~2025, the Company had non-marketable equity investments without readily determinable fair value of $3558.8 million (February 2928, ~~2024~~2025 - $3658.9 million). ~~During~~including ~~the~~common ~~three~~shares ~~and~~of ~~nine~~Arctic ~~months~~Wolf ~~ended~~received ~~November~~as ~~30,~~partial ~~2024,~~consideration for the ~~Company~~sale ~~recorded~~of ~~downward~~its ~~adjustments,~~Cylance ~~net~~endpoint ofsecurity ~~upward~~assets ~~adjustments,~~and ofliabilities ~~$2 million~~to ~~and~~Arctic ~~$1 million~~Wolf. During the three months ended May 31, ~~respectively~~2025, the Company did not record any adjustment to the carrying value of ~~certain~~ non-marketable equity investments without readily determinable fair value resulting from observable price changes in orderly transactions for identical or similar securities which have been included in investment income, net on the Company’s consolidated statements of operations (May 31, 2024 - upward adjustments of $1. 2 million). As of ~~November~~May 3031, ~~2024~~2025, the Company has recorded a cumulative impairment of $3.0 million to the carrying value of certain other non-marketable equity investments without readily determinable fair value (February 2928, ~~2024~~2025 - $3.0 million).

There were no realized gains or losses on available-for-sale securities for the three ~~and nine~~ months ended ~~November~~May 3031, ~~2024~~2025 and ~~November~~May 3031, ~~2023~~2024.

The Company has restricted cash and cash equivalents, consisting of cash and securities pledged as collateral to major banking partners in support of the Company’s requirements for letters of credit and a performance bond that the Company was required to post to support a government contract. These letters of credit support certain leasing arrangements entered into in the ordinary course of business. ~~The~~and ~~letters of credit~~ are for terms ranging from one month to seven years. The Company is legally restricted from accessing these funds during the term of the leases for which the letters of credit have been issued and during the term of the government contract; however, the Company can continue to invest the funds and receive investment income thereon.

The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents as at November 30, 2024 and February 29, 2024 from the consolidated balance sheets to the consolidated statements of cash flows:14

	As at
	November 30, 2024		February 29, 2024
Cash and cash equivalents	$	189	$	175
Restricted cash and cash equivalents	11		25
Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows	$	200	$	200

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

The ~~contractual~~following ~~maturities~~table provides a reconciliation of ~~available-for-sale~~cash, ~~investments~~cash equivalents, restricted cash, and restricted cash equivalents as at ~~November~~May 3031, ~~2024~~2025 and February 2928, ~~2024~~2025 ~~were~~from asthe ~~follows~~consolidated balance sheets to the consolidated statements of cash flows:

	As at
	November 30, 2024				February 29, 2024
	May 31, 2025		February 28, 2025
	Cost Basis		Fair Value		Cost Basis		Fair Value
Cash and cash equivalents	$	276.0	$	266.7
Due in one year or less	$	126	$	126	$	166	$	166
Restricted cash and cash equivalents	16.5		13.6
No fixed maturity	10		—		10		—
Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows	$	292.5	$	280.3
	$	136	$	126	$	176	$	166

AsThe atcontractual ~~November~~maturities ~~30,~~of ~~2024~~available-for-sale ~~and~~investments ~~February~~as ~~29,~~at ~~2024~~May 31, ~~the~~2025 ~~Company~~and ~~had~~February no28, ~~available-for-sale~~2025 ~~debt~~were ~~securities~~as ~~with continuous unrealized losses.~~follows:


	As at
	May 31, 2025				February 28, 2025
	Cost Basis		Fair Value		Cost Basis		Fair Value
Due in one year or less	$	153.6	$	153.6	$	127.7	$	127.7


No fixed maturity	10.0		—		10.0		—
	$	163.6	$	153.6	$	137.7	$	127.7

As at May 31, 2025 and February 28, 2025, the Company had no available-for-sale debt securities with continuous unrealized losses.

4. CONSOLIDATED BALANCE SHEET DETAILS

Accounts Receivable, Net of Allowance

The current estimated credit losses (“CECL”) for accounts receivable as at ~~November~~May 3031, ~~2024~~2025 were $6.0 million (February 2928, ~~2024~~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 ofto 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 28, 2023	$	1
Beginning balance as of February 29, 2024	$	6.0
Prior period provision for expected credit losses	5.3
Ending balance of the allowance for credit loss as at February 29, 2024	6
Write-offs charged against the allowance	(4.7)
Current period recovery for expected credit losses	—
Ending balance of the allowance for credit loss as at February 28, 2025	6.6
Ending balance of the allowance for credit loss as at November 30, 2024	$	6
Current period recovery for expected credit losses	(0.5)
Write-offs charged against the allowance	(0.1)
Ending balance of the allowance for credit loss as at May 31, 2025	$	6.0

The allowance for credit losses as at ~~November~~May 3031, ~~2024~~2025 consists of $10.6 million (February 2928, ~~2024~~2025 - $1.1 million) relating to CECL estimated based on days past due and region and $5.4 million (February 2928, ~~2024~~2025 - $5.5 million) relating to specific customers that were evaluated separately.

There were two customers that comprised more than 10% of accounts receivable as at ~~November~~May 3031, ~~2024~~2025 (February 2928, ~~2024~~2025 - two customers comprised more than 10%).

~~Other Receivables~~15

As at November 30, 2024 and February 29, 2024, other receivables included items such as receivables related to intellectual property sold in fiscal 2024, see Note 11 under the heading “Patent Sale”, and claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund program’s investment in BlackBerry QNX, among other items, none of which were greater than 5% of the current assets balance.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Other Receivables


	As at
	May 31, 2025		February 28, 2025
Arctic Wolf delayed cash payment (1)	$	38.6	$	38.6

Other	13.1		9.8
	$	51.7	$	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.

As at May 31, 2025 and February 28, 2025, other receivables included items such as claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund program’s investment in QNX, 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~~May 3031, ~~2024~~2025 and February 2928, ~~2024~~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, 2024		February 29, 2024
	May 31, 2025		February 28, 2025
Cost
BlackBerry operations and other information technology	$	7678.6	$	7680.6
Leasehold improvements and other	410.7		810.5
Furniture and fixtures	34.6		4.6
Manufacturing, repair and research and development equipment	2.4		32.2
	85		91
	96.3		97.9
Accumulated amortization	71		72
Accumulated amortization and impairment	83.6		84.5
Net book value	$	1412.7	$	1913.4

~~Intangible Assets, Net~~ 16

	As at November 30, 2024
	Cost		AccumulatedAmortization		Net BookValue
Acquired technology	$	673	$	672	$	1
Other acquired intangibles	197		193		4
Intellectual property	111		65		46
	$	981	$	930	$	51

	As at February 29, 2024
	Cost		AccumulatedAmortization		Net BookValue
Acquired technology	$	673	$	669	$	4
Other acquired intangibles	197		191		6
Intellectual property	111		63		48
	$	981	$	923	$	58

For the nine months ended November 30, 2024, amortization expense related to intangible assets amounted to $13 million (nine months ended November 30, 2023 - $18 million).

Total additions to intangible assets for the nine months ended November 30, 2024 amounted to $6 million (nine months ended November 30, 2023 - $12 million). During the nine months ended November 30, 2024, additions to intangible assets primarily consisted of payments for intellectual property relating to patent maintenance, registration and license fees.

Based on the carrying value of the identified intangible assets as at November 30, 2024, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for the remainder of fiscal 2025 and each of the five succeeding years is expected to be as follows: fiscal 2025 - $4 million; fiscal 2026 - $10 million; fiscal 2027 - $6 million; fiscal 2028 - $5 million; fiscal 2029 - $4 million and fiscal 2030 - $3 million.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Intangible Assets, Net

Intangible assets comprised the following:


	As at May 31, 2025
	Cost		Accumulated Amortization		Net Book Value
Acquired technology	$	29.8	$	29.8	$	—
Other acquired intangibles	40.4		39.1		1.3
Intellectual property	109.0		66.1		42.9
	$	179.2	$	135.0	$	44.2


	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 three months ended May 31, 2025, amortization expense related to intangible assets amounted to $4.2 million (three months ended May 31, 2024 - $11.0 million).

Total additions to intangible assets for the three months ended May 31, 2025 amounted to $1.2 million (three months ended May 31, 2024 - $1.5 million). During the three months ended May 31, 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 May 31, 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 - $7.1 million; fiscal 2027 - $5.7 million; fiscal 2028 - $5.0 million; fiscal 2029 - $3.9 million; fiscal 2030 - $3.7 million and fiscal 2031 - $2.8 million.

Goodwill

Changes to the carrying amount of goodwill during the ~~nine~~three months ended ~~November~~May 3031, ~~2024~~2025 were as follows:

	Carrying Amount
Carrying amount as at February 28, 2023	$	489
Carrying amount as at February 29, 2024	$	474.5
Goodwill impairment charge	(16)
Effect of foreign exchange on non-U.S. dollar denominated goodwill	(2.1)
Effect of foreign exchange on non-U.S. dollar denominated goodwill	2
Carrying amount as at February 28, 2025	472.4
Carrying amount as at February 29, 2024	475
Effect of foreign exchange on non-U.S. dollar denominated goodwill	4.5
Effect of foreign exchange on non-U.S. dollar denominated goodwill	(2)
Carrying amount as at May 31, 2025	$	476.9
Carrying amount as at November 30, 2024	$	473

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Other Long-term Assets

As at ~~November~~May 3031, ~~2024~~2025 and February 2928, ~~2024~~2025, other long-term assets included long-term receivables related to intellectual property sold ~~in fiscal 2024~~, ~~see Note 11 under the heading “Patent Sale”, other~~ long-term receivables, and the long-term portion of deferred commission, 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, 2024		February 29, 2024
	May 31, 2025		February 28, 2025
Variable incentive accrual	$	258.5	$	1431.4
Operating lease liabilities, current	1013.8		1415.0
Restructuring program liabilities, current portion	7		20
Other	61.0		79.8
Other	55		52
	$	83.3	$	126.2
	$	97	$	100

AsOther ataccrued ~~November~~liabilities ~~30,~~include ~~2024~~restructuring ~~and~~programs, ~~February~~current 29portion, ~~2024, other~~ accrued vendor liabilities, ~~included~~ accrued director fees, ~~accrued~~and ~~vendor liabilities,~~ payroll withholding taxes ~~and accrued royalties~~, among other items, none of which were greater than 5% of the current liabilities balance in any of the periods presented.

Restructuring

During fiscal ~~2023~~2025 and fiscal 2024, the Company commenced restructuring programs with the ~~objectives~~objective of reducing its annual costs and expenses relating to ~~the~~Secure Cybersecurity business, and later significantly separating and streamlining the Company’s centralized corporate functions into Cybersecurity and IoT specific teams such that the businesses may operate quasi-independently and on a profitable and cash flow positive basisCommunications. The reduction of overall Company costs has included and will continue to include rationalizing and streamlining existing central administrative functions, right-sizing cost structures within both business units including R&D and outsourced contracting, changes to overall product portfolio offerings and geographies the Company operates in and optimizing related support functions and organizational structure. Other charges and cash costs may occur as programs are implemented or changes are completed.

19The following table sets forth the activity in the Company’s restructuring program liabilities:


	Employee Termination Benefits		Facilities Costs		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	2.2		0.7		2.9
Cash payments made	(5.9)		(1.6)		(7.5)
Balance as at May 31, 2025	$	3.4	$	2.4	$	5.8

Current portion	$	3.4	$	1.5	$	4.9
Long-term portion	—		0.9		0.9
	$	3.4	$	2.4	$	5.8

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 and facilities costs. Total charges incurred for the three months ended May 31, 2025 and May 31, 2024 were $2.9 million and $7.3 million, respectively, recorded within General and administrative on the Consolidated Statements of Operations.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

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

	EmployeeTerminationBenefits		FacilitiesCosts		Total
Balance as at February 28, 2023	2		1		3
Charges incurred	31		6		37
Cash payments made	(16)		(3)		(19)
Balance as at February 29, 2024	17		4		21
Charges incurred	11		5		16
Cash payments made	(23)		(6)		(29)
Balance as at November 30, 2024	$	5	$	3	$	8
Current portion	$	5	$	2	$	7
Long-term portion	—		1		1
	$	5	$	3	$	8

The long-term portion of the restructuring liabilities is recorded at present value, determined by measuring the remaining payments at present value using an effective interest rate of 5.4%, 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 and facilities costs to better align the Company’s general and administrative and R&D cost profiles to its market competitors, create a more focused sales force and improve profitability and cash flow. Total charges incurred for the nine months ended November 30, 2024 and November 30, 2023 were $16 million and $17 million, respectively, recorded within General and administrative on the Consolidated Statements of Operations.

5. INCOME TAXES

For the ~~nine~~three months ended ~~November~~May 3031, ~~2024~~2025, the Company’s net effective income tax expense rate was approximately 2961% compared to a net effective income tax expense rate of 3722% for the ~~nine~~three months ended ~~November~~May 3031, ~~2023~~2024. The Company’s income tax rate reflects the change in unrecognized income tax benefit, if any, and the fact that the Company has a significant valuation allowance against its deferred income tax assets; in particular, any change in loss carry forwards or research and development credits, amongst other items, is offset by a corresponding adjustment of the valuation allowance. The Company’s net effective income tax rate also reflects the geographic mix of earnings in jurisdictions with different income tax rates.

The Company’s total unrecognized income tax benefits as at ~~November~~May 3031, ~~2024~~2025 were $2019.6 million (February 2928, ~~2024~~2025 - $2019.5 million). As at ~~November~~May 3031, ~~2024~~2025, $2019.2 million of the unrecognized income tax benefits have been netted against deferred income tax assets and ~~nil~~$0.4 million has been recorded within income taxes payable on the Company’s consolidated balance sheets.

The Company is subject to ongoing examination by tax authorities in certain jurisdictions in which it operates. The Company regularly assesses the status of these examinations and the potential for adverse outcomes to determine the adequacy of the provision for income taxes as well as the provisions for indirect and other taxes and related penalties and interest. While the final resolution of audits is uncertain, the Company believes the ultimate resolution of these audits will not have a material adverse effect on its consolidated financial position, liquidity or results of operations.

6. ~~DEBENTURES~~LONG-TERM NOTES

On January 29, 2024, the Company issued $200.0 million aggregate principal amount of 3.00% ~~Convertible~~senior ~~Senior~~convertible unsecured notes (the “Notes”) in an offering to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended.

OnThe ~~January~~Notes 29are due on February 15, ~~2024~~2029 unless earlier converted, redeemed, or repurchased. Each $1,000 principal amount of the Notes is convertible into 257.5826 common shares of the Company ~~issued~~based ~~$200~~on the initial conversion rate, for a total of 52 million ~~aggregate~~common ~~principal~~shares ~~amount~~at a price of $3.~~00%~~88 ~~senior~~per ~~convertible~~share, ~~unsecured~~subject ~~notes~~to (adjustments. Prior to the “close of business on the business day immediately preceding November 15, 2028, the Notes” will be convertible only upon satisfaction of certain conditions and during certain periods, ~~collectively~~and ~~with~~thereafter, at any time until the ~~Extension~~close ~~Debentures~~of business on the second scheduled trading day immediately preceding February 15, 2029. The Company may satisfy any conversions of the Notes by paying or delivering, as the case may be, cash, its common shares or a combination of cash and ~~2020~~its ~~Debentures~~common shares, at the ~~“Debentures”)~~Company’s election (or, in anthe ~~offering~~case toof ~~qualified~~any ~~institutional~~Notes ~~buyers~~called infor ~~accordance~~redemption ~~with~~that ~~Rule~~are ~~144A~~converted ~~under~~during the ~~Securities~~related ~~Act~~redemption period, solely its common shares). Covenants associated with the Notes include general corporate maintenance, existence and reporting requirements. The Notes bear interest at a rate of ~~1933~~3.00% per annum, aspayable ~~amended~~semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2024.

The ~~Notes~~Company ~~are~~had ~~due~~recorded onthe ~~February 15~~Notes, ~~2029~~including ~~unless~~the ~~earlier~~debt ~~converted,~~itself ~~redeemed,~~and orall ~~repurchased.~~embedded ~~Each $1~~derivatives,~~000~~ ~~principal~~at ~~amount~~cost ofless ~~the~~debt ~~Notes~~issuance iscosts ~~convertible~~of ~~into 257~~$6.~~5826~~0 million ~~common~~and ~~shares~~presents of the ~~Company~~Notes ~~based~~as ~~on the initial conversion rate, for~~ a ~~total~~single ofhybrid ~~52 million~~financial ~~common~~instrument. ~~shares~~No atportion ~~a price~~ of ~~$3.88~~the ~~per~~embedded ~~share,~~derivatives ~~subject~~required tobifurcation ~~adjustments.~~from ~~Prior to~~ the ~~close~~host ofdebt ~~business on~~ contract.

20The following table summarizes the change in the Notes for the three months ended May 31, 2025:


	Carrying Amount



Balance as at February 28, 2025	$	195.3
Amortization of debt issuance costs	0.3
Balance as at May 31, 2025	$	195.6

The Company’s estimate of the fair value of the Notes as at May 31, 2025 is $259.8 million (February 28, 2025 - $289.5 million).

For the three months ended May 31, 2025, the Company recorded interest expense related to the Notes of $1.5 million which has been included in investment income, net on the Company’s consolidated statements of operations (three months ended May 31, 2024 - $1.5 million).

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

the business day immediately preceding November 15, 2028, the Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding February 15, 2029. The Company may satisfy any conversions of the Notes by paying or delivering, as the case may be, cash, its common shares or a combination of cash and its common shares, at the Company’s election (or, in the case of any Notes called for redemption that are converted during the related redemption period, solely its common shares). Covenants associated with the Notes include general corporate maintenance, existence and reporting requirements. The Notes bear interest at a rate of 3.00% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2024.

The Company had recorded the Notes, including the debt itself and all embedded derivatives, at cost less debt issuance costs of $6 million and presents the Notes as a single hybrid financial instrument. No portion of the embedded derivatives required bifurcation from the host debt contract.

The following table summarizes the change in the Notes for the nine months ended November 30, 2024:

	Carrying Amount
Balance as at February 29, 2024	$	194
Amortization of debt issuance costs	1
Balance as at November 30, 2024	$	195

Extension Debentures and 2020 Debentures

On November 17, 2023, the Company issued $150 million aggregate principal amount of 1.75% extendible convertible unsecured debentures (the “Extension Debentures”) in a private placement to certain controlled affiliates of Fairfax Financial Holdings Limited (“Fairfax”). The Company used the net proceeds from the issuance of the Extension Debentures, together with cash on hand, to repay its outstanding $365 million aggregate principal amount of 1.75% unsecured convertible debentures (the “2020 Debentures” and, collectively with the Extension Debentures, the “Prior Debentures”) at maturity on November 13, 2023. Aside from the maturity date, the terms of the Extension Debentures were substantially identical to those of the 2020 Debentures, except that the Extension Debentures were not listed on any stock exchange and did not involve an indenture trustee. The Extension Debentures matured on February 15, 2024.

Due to the conversion option and other embedded derivatives within the Prior Debentures, the Company elected to record the Prior Debentures, including the debt itself and all embedded derivatives, at fair value and presented the Prior Debentures as a single hybrid financial instrument. No portion of the fair value of the Prior Debentures were recorded as equity.

Each period, the fair value of the Prior Debentures were recalculated and resulting gains and losses from the change in fair value of the Prior Debentures associated with non-credit components were recognized in income, while the change in fair value associated with credit components was recognized in accumulated other comprehensive loss (“AOCL”). The fair value of the 2020 Debentures was determined using the significant Level 2 inputs interest rate curves, the market price and volatility of the Company’s listed common shares, and the significant Level 3 inputs related to credit spread and the implied discount of the 2020 Debentures at issuance. The fair value of the Extension Debentures was determined using observable interest rate curves, and the market price and volatility of the Company’s common shares.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

The following table shows the impact of the changes in fair value of the 2020 Debentures for the three and nine months ended November 30, 2024 and November 30, 2023:

	Three Months Ended				Nine Months Ended
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
Income associated with the change in fair value from non-credit components recorded in the consolidated statements of operations	$	—	$	18	$	—	$	2
Realized losses associated with the change in fair value from credit components recorded in the consolidated statements of operations on maturity of the 2020 Debentures	—		(6)		—		(6)
Realized losses associated with the change in fair value from credit components released from AOCL on maturity of the 2020 Debentures	—		6		—		6
Total decrease in the fair value of the 2020 Debentures	$	—	$	18	$	—	$	2

For the three and nine months ended November 30, 2024, the Company recorded interest expense related to the Debentures of $1 million and $5 million, respectively, which has been included in investment income, net on the Company’s consolidated statements of operations (three and nine months ended November 30, 2023 - $1 million and $5 million).

Fairfax, a related party under U.S. GAAP due to its beneficial ownership of common shares in the Company after taking into account potential conversion of the Extension Debentures and the 2020 Debentures, respectively, owned the full principal amount of the Extension Debentures and $330 million principal amount of the 2020 Debentures. As such, the payment of interest on the Prior Debentures, and their repayment, to Fairfax represented related party transactions.

7. CAPITAL STOCK

The following details the changes in issued and outstanding common shares for the ~~nine~~three months ended ~~November~~May 3031, ~~2024~~2025:

	Capital Stock andAdditional Paid-in Capital
	StockOutstanding(000s)	Amount
Common shares outstanding as at February 29, 2024	589,233	$	2,948
Common shares outstanding as at February 28, 2025	596,231	$	2,976.4
Common shares issued for restricted share unit settlements	1,187	—
Exercise of stock options	26	—
Stock-based compensation	—	21
Common shares issued for restricted share unit settlements	530	—
Common shares issued for employee share purchase plan	1,163	3
Stock-based compensation	—	5.7
Common shares outstanding as at November 30, 2024	591,583	$	2,972
Common shares issued for employee share purchase plan	312	1.2
Share repurchase	(2,570)	(12.8)
Common shares outstanding as at May 31, 2025	594,529	2,970.5

The Company had ~~592~~595 million voting common shares outstanding, 018.26 million ~~options~~restricted toshare ~~purchase~~units ~~voting~~(“RSUs”) ~~common~~and ~~shares,~~1.4 17 million ~~RSUs~~deferred ~~and~~shared 2units ~~million~~ (“DSUs”) outstanding as at ~~December~~June 1720, ~~2024~~2025 . In addition, 51.5 million common shares are issuable upon conversion in full of the Notes as described in Note 6.

22On May 8, 2025, the Company announced that it received acceptance from the Toronto Stock Exchange with respect to a normal course issuer bid to purchase for cancellation up to 27.9 million common shares of the Company, or approximately 4.7% of the outstanding public float at May 5, 2025. The NCIB commenced on May 12, 2025, and will terminate on the earliest of May 11, 2026, such date as the Company may determine, or the date on which the maximum number of common shares that may be purchased under the NCIB has been reached. The Company is not obligated to repurchase any common shares under the NCIB. During the three months ended May 31, 2025, the Company repurchased 2.6 million common shares at a cost of $10.0 million. The Company recorded a reduction of $12.8 million to capital stock and the amount paid below the per share paid-in capital of the common shares of $2.8 million was recorded to deficit. All common shares repurchased by the Company pursuant to the normal course issuer bid have been canceled.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

8. EARNINGS (LOSS) PER SHARE

The following table sets forth the computation of basic and diluted earnings (loss) per share:

	Three Months Ended				~~Nine Months Ended~~
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
	May 31, 2025		May 31, 2024
Net income (loss) from continuing operations for basic and diluted earnings (loss) per share available to common shareholders	$	121.9	$	8(16.5)	$	~~(1)~~	$	20
Less: Prior Debentures fair value adjustment (1) (2) (3)	—		(13)		—		—
Net income (loss) for basic and diluted earnings (loss) per share available to common shareholders	$	1.9	$	(41.4)
Add: interest expense on Debentures (1) (2) (3)	—		1		—		—
Weighted average number of shares outstanding (000’s) - basic (1)	596,300		589,821
Net income (loss) from continuing operations for diluted earnings (loss) per share available to common shareholders	$	12	$	(4)	$	(1)	$	20
Net loss for basic and diluted loss per share available to common shareholders	$	(11)	$	(21)	$	(72)	$	(74)
Less: Prior Debentures fair value adjustment (1) (2) (3)	—		(13)		—		—
Add: interest expense on Debentures (1) (2) (3)	—		1		—		—
Net loss for diluted loss per share available to common shareholders	$	(11)	$	(33)	$	(72)	$	(74)
Weighted average number of shares outstanding (000’s) - basic (5)	591,240		584,331		590,537		583,559
Effect of dilutive securities (000’s)
Stock-based compensation (4) (5)	2,290		—		—		5,272
Stock-based compensation (2)(3)	4,531		—
Conversion of 2020 Debentures (1) (2)	—		49,469		—		—
Weighted average number of shares and assumed conversions (000’s) diluted	600,831		589,821
Conversion of Extension Debentures (1) (3)	—		4,670		—		1,182
Weighted average number of shares and assumed conversions (000’s) diluted	593,530		638,470		590,537		590,013
Earnings (loss) per share - reported
Basic earnings per share from continuing operations	$	0.02	$	0.01	$	—	$	0.03
Basic earnings (loss) per share from continuing operations	$	0.00	$	(0.03)
Total basic loss per share	$	(0.02)	$	(0.04)	$	(0.12)	$	(0.13)
Total earnings (loss) per share	$	0.00	$	(0.07)
Diluted earnings (loss) per share from continuing operations	$	0.0200	$	(0.0103)	$	—	$	~~0.03~~
Total diluted loss per share	$	(0.02)	$	(0.05)	$	(0.12)	$	(0.13)
Total diluted earnings (loss) per share	$	0.00	$	(0.07)

______________________________

(1) The Company has not presented the dilutive effect of the ~~Debentures~~Notes using the if-converted method in the calculation of diluted loss per share for the three ~~and nine~~ months ended ~~November~~May 3031, ~~2024~~2025 and ~~nine~~May ~~months ended November 30~~31, ~~2023~~2024, as to do so would be antidilutive. See Note 6 for details on the ~~Debentures~~Notes.

(2) The Company has not presented the dilutive effect of in-the ~~2020 Debentures using the if~~-~~converted~~money ~~method~~options ~~for~~and ~~the~~RSUs ~~period~~that ~~the~~will ~~2020~~be ~~Debentures~~settled ~~were~~upon ~~outstanding,~~vesting ~~assuming~~by ~~conversion at~~ the ~~beginning~~issuance of ~~the~~new ~~quarter~~common ~~for~~shares in the ~~three~~calculation ~~months~~of ~~ended November 30, 2023. Accordingly, to calculate~~ diluted loss per share, ~~the Company adjusted net loss by eliminating the fair value adjustment made to the 2020 Debentures and interest expense incurred on the 2020 Debentures~~ for the three months ended ~~November~~May 3031, ~~2023~~2024, ~~and~~as ~~added~~to ~~the~~do ~~number~~so ~~of shares that~~ would ~~have~~be ~~been issued upon conversion to the diluted weighted average number of shares outstanding~~antidilutive. ~~See Note 6 for details on the 2020 Debentures.~~

(3) The Company has presented the dilutive effect of in-the ~~Extension Debentures using the if~~-~~converted~~money ~~method~~options ~~for~~and ~~the~~RSUs ~~period~~that ~~the~~will ~~Extension~~be ~~Debentures~~settled ~~were~~upon ~~outstanding,~~vesting ~~assuming~~by ~~conversion at~~ the issuance ~~date~~of ~~for~~new ~~the~~common ~~three~~shares ~~and~~in ~~nine~~the ~~months~~calculation ~~ended~~of ~~November 30, 2023. Accordingly, to calculate~~ diluted ~~loss~~earnings per share, for the ~~Company~~three ~~adjusted~~months ~~net~~ended ~~loss~~May by31, 2025.

2321

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

eliminating the fair value adjustment made to the Extension Debentures and interest expense incurred on the Extension Debentures for the three and nine months ended November 30, 2023 and added the number of shares that would have been issued upon conversion to the diluted weighted average number of shares outstanding. See Note 6 for details on the Extension Debentures.

(4) The Company has not presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted loss per share for the nine months ended November 30, 2024 and the three months ended November 30, 2023, as to do so would be antidilutive.

(5) The Company has presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted loss per share for the three months ended November 30, 2024 and the nine months ended November 30, 2023.

9. ACCUMULATED OTHER COMPREHENSIVE LOSS

The changes in AOCL by component net of tax, for the three ~~and nine~~ months ended ~~November~~May 3031, ~~2024~~2025 and ~~November~~May 3031, ~~2023~~2024 were as follows:

	Three Months Ended				~~Nine Months Ended~~
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
	May 31, 2025		May 31, 2024
Cash Flow Hedges
Balance, beginning of period	$	—(1.9)	$	—0.3	$	—	$	~~(1)~~
Other comprehensive income (loss) before reclassification	(1).9		—(0.2)		~~(1)~~		1
Amounts reclassified from AOCL into net loss	—		—		—		—
Amounts reclassified from AOCL into net income	0.5		—
Accumulated net unrealized gains on derivative instruments designated as cash flow hedges	$	~~(1)~~0.5	$	—0.1	$	~~(1)~~	$	—
Foreign Currency Cumulative Translation Adjustment
Balance, beginning of period	$	(1316.7)	$	(14.0)	$	~~(14)~~	$	~~(16)~~
Other comprehensive income (loss)	~~(3)~~4.0		(0.1)		~~(2)~~		3
Foreign currency cumulative translation adjustment	$	(1612.7)	$	(1314.1)	$	~~(16)~~	$	~~(13)~~
Change in Fair Value From Instrument-Specific Credit Risk On Prior Debentures
Balance, beginning of period	$	—	$	(6)	$	—	$	(6)
Amounts reclassified from AOCL into net loss	—		6		—		6
Change in fair value from instruments-specific credit risk on Prior Debentures	$	—	$	—	$	—	$	—
Other Post-Employment Benefit Obligations
Actuarial losses associated with other post-employment benefit obligations	$	—(0.6)	$	(10.6)	$	—	$	~~(1)~~
Accumulated Other Comprehensive Loss, End of Period	$	(1712.8)	$	(14.6)	$	~~(17)~~	$	~~(14)~~

10. COMMITMENTS AND CONTINGENCIES

(a)Letters of Credit

The Company had $1113.5 million in collateralized outstanding letters of credit in support of certain leasing arrangements entered into in the ordinary course of business as of ~~November~~May 3031, ~~2024~~2025. The Company has posted a performance bond as collateral to support a government contract for the term of the agreement. See the discussion of restricted cash in Note 3.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

(b)Contingencies

Litigation

The Company is involved in litigation in the normal course of its business, both as a defendant and as a plaintiff. The Company is subject to a variety of claims (including claims related to patent infringement, purported class actions and other claims in the normal course of business) and may be subject to additional claims either directly or through indemnities against claims that it provides to certain of its partners and customers. In particular, the industry in which the Company competes has many participants that own, or claim to own, intellectual property, including participants that have been issued patents and may have filed patent applications or may obtain additional patents and proprietary rights for technologies similar to those used by the Company in its products. The Company has received, and may receive in the future, assertions and claims from third parties that the Company’s products infringe on their patents or other intellectual property rights. Litigation has been, and will likely continue to be, necessary to determine the scope, enforceability and validity of third-party proprietary rights or to establish the Company’s proprietary rights. Regardless of whether claims against the Company have merit, those claims could be time-consuming to evaluate and defend, result in costly litigation, divert management’s attention and resources and subject the Company to significant liabilities.

Management reviews all of the relevant facts for each claim and applies judgment in evaluating the likelihood and, if applicable, the amount of any potential loss. Where a potential loss is considered probable and the amount is reasonably estimable, provisions for loss are made based on management’s assessment of the likely outcome. Where a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum amount in the range. The Company does not provide for claims for which the outcome is not probable or claims for which the amount of the loss cannot be reasonably estimated. Any settlements or awards under such claims are provided for when reasonably determinable.

As22 of November 30, 2024, there are no material claims outstanding for which the Company has assessed the potential loss as both probable to result and reasonably estimable; therefore, no accrual has been made. Further, there are claims outstanding for which the Company has assessed the potential loss as reasonably possible to result; however, an estimate of the amount of loss cannot reasonably be made. There are many reasons that the Company cannot make these assessments, including, among others, one or more of the following: the early stages of a proceeding does not require the claimant to specifically identify the patent claims that have allegedly been infringed or the products that are alleged to infringe; damages sought are unspecified, unsupportable, unexplained or uncertain; discovery has not been started or is incomplete; the facts that are in dispute are highly complex; the difficulty of assessing novel claims; the parties have not engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and the often slow pace of litigation.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

As of May 31, 2025, with the exception of the Canadian employment class action settlement discussed below, there are no other material claims for which the Company has assessed the potential loss as both probable to result and reasonably estimable; therefore, no accrual has been made. Further, there are claims outstanding for which the Company has assessed the potential loss as reasonably possible to result; however, an estimate of the amount of loss cannot reasonably be made. There are many reasons that the Company cannot make these assessments, including, among others, one or more of the following: the early stages of a proceeding does not require the claimant to specifically identify the patent claims that have allegedly been infringed or the products that are alleged to infringe; damages sought are unspecified, unsupportable, unexplained or uncertain; discovery has not been started or is incomplete; the facts that are in dispute are highly complex; the difficulty of assessing novel claims; the parties have not engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and the often slow pace of litigation.

The Company has included the following summaries of certain of its legal proceedings though they do not meet the test for accrual described above.

Between October and December 2013, several purported class action lawsuits and one individual lawsuit were filed against the Company and certain of its former officers in various jurisdictions in the U.S. and Canada alleging that the Company and certain of its officers made materially false and misleading statements regarding the Company’s financial condition and business prospects and that certain of the Company’s financial statements contain material misstatements. The individual lawsuit was voluntarily dismissed and the consolidated U.S. class actions were dismissed in September 2022 following final approval of the Stipulation of Settlement ~~was~~ executed effective June 7, 2022.

On July 23, 2014, the plaintiff in the putative Ontario class action (Swisscanto Fondsleitung AG v. BlackBerry Limited, et al.) filed a motion for class certification and for leave to pursue statutory misrepresentation claims. On November 17, 2015, the Ontario Superior Court of Justice issued an order granting the plaintiffs’ motion for leave to file a statutory claim for misrepresentation. On December 2, 2015, the Company filed a notice of motion seeking leave to appeal this ruling. On November 15, 2018, the Court denied the Company’s motion for leave to appeal the order granting the plaintiffs leave to file a statutory claim for misrepresentation. On February 5, 2019, the Court entered an order certifying a class comprised persons (a) who purchased BlackBerry common shares between March 28, 2013, and September 20, 2013, and still held at least some of those shares as of September 20, 2013, and (b) who acquired those shares on a Canadian stock exchange or acquired those shares on any other stock exchange and were a resident of Canada when the shares were acquired. Notice of class certification was published on March 6, 2019. The Company filed its Statement of Defence on April 1, 2019. Discovery is proceeding and the Court has not set a trial date.

OnOther ~~March~~contingencies 17, 2017, a putative employment class action was filed against the Company in the Ontario Superior Court of Justice (Parker v. BlackBerry Limited). The Statement of Claim alleges that actions the Company took when certain of its

As at May 31, 2025, the Company has recognized $25.0 million (February 28, 2025 - $20.5 million) in funds from claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund (“SIF”) program’s investment in QNX. A portion of this amount may be repayable in the future under certain circumstances if certain terms and conditions are not met by the Company, which is not probable at this time.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

~~employees decided to accept offers of employment from Ford Motor Company of Canada amounted to a wrongful termination of the employees’ employment with the Company. The claim seeks~~ (ic)Litigation an unspecified quantum of statutory, contractual, or common law termination entitlements; (ii) punitive or breach of duty of good faith damages of CAD$20 million, or such other amount as the Court finds appropriate, (iii) pre- and post- judgment interest, (iv) attorneys’ fees and costs, and (v) such other relief as the Court deems just. The Court granted the plaintiffs’ motion to certify the class action on May 27, 2019. The Company commenced a motion for leave to appeal the certification order on June 11, 2019. The Court denied the motion for leave to appeal on September 17, 2019. The Company filed its Statement of Defence on December 19, 2019. The parties participated in a mediation on November 9, 2022, which did not result in an agreement. The parties attended a pre-trial conference on December 4, 2024. The Court has set a trial date of June 2, 2025. Discovery is proceeding.Settlements

~~Other~~On ~~contingencies~~March 17, 2017, a putative employment class action was filed against the Company in the Ontario Superior Court of Justice (Parker v. BlackBerry Limited). The Statement of Claim alleges that actions the Company took when certain of its employees decided to accept offers of employment from Ford Motor Company of Canada amounted to a wrongful termination of the employees’ employment with the Company. The claim sought (i) an unspecified quantum of statutory, contractual, or common law termination entitlements; (ii) punitive or breach of duty of good faith damages of CAD$20 million, or such other amount as the Court finds appropriate, (iii) pre- and post- judgment interest, (iv) attorneys’ fees and costs, and (v) such other relief as the Court deems just. The Court granted the plaintiffs’ motion to certify the class action on May 27, 2019. The Company commenced a motion for leave to appeal the certification order on June 11, 2019. The Court denied the motion for leave to appeal on September 17, 2019. The Company filed its Statement of Defence on December 19, 2019. The parties participated in a mediation on November 9, 2022, which did not result in an agreement. The matter had a trial date of June 2, 2025. The parties attended a pre-trial conference on December 4, 2024. At a further pretrial conference on January 24, 2025, the parties reached a settlement in principle for approximately $2.8 million or CDN $4.0 million inclusive of all fees and costs. On February 18, 2025, the parties settled the matter for CDN $4.0 million inclusive of all fees and costs, subject to Court approval. On March 10, 2025, the Company paid the settlement amount into a trust held by the plaintiffs’ counsel. A settlement approval hearing is scheduled for July 30, 2025.

~~As at November 30, 2024, the Company has recognized $17 million~~ (~~February 29, 2024 - $17 million~~d) in funds from claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund program’s investment in BlackBerry QNX. A portion of this amount may be repayable in the future under certain circumstances if certain terms and conditions are not met by the Company, which is not probable at this time.Indemnifications

(c)Indemnifications

The Company enters into certain agreements that contain indemnification provisions under which the Company could be subject to costs and damages, including in the event of an infringement claim against the Company or an indemnified third party. Such intellectual property infringement indemnification clauses are generally not subject to any dollar limits and remain in effect for the term of the Company’s agreements. To date, the Company has not encountered material costs as a result of such indemnifications.

The Company has entered into indemnification agreements with its current and former directors and executive officers. Under these agreements, the Company agreed, subject to applicable law, to indemnify its current and former directors and executive officers against all costs, charges and expenses reasonably incurred by such individuals in respect of any civil, criminal or administrative action that could arise by reason of their status as directors or officers. The Company maintains liability insurance coverage for the benefit of the Company, and its current and former directors and executive officers. The Company has not encountered material costs as a result of such indemnifications in the current period.

11. 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.

During the third quarter of fiscal 2025, the CODM added the segment EBITDA as a measure of profit or loss used under the “management” approach in reviewing the results of the Company’s operating segments to its existing measure of profit or loss of segment gross margin. Prior period comparatives have been recast to reflect the change in metric, including the significant operating expenses included within that metric, and the change in presentation relating to expenses associated with its facilities as disclosed in Note 1.

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.

2624

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Segment Disclosures

With the sale of the Cylance business ~~being~~in ~~presented~~the asfourth aquarter 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 ~~(formerly Cybersecurity)~~, ~~IoT,~~ 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~~May 3031, ~~2024~~2025 and ~~November~~May 3031, ~~2023~~2024:

	For the Three Months Ended
	Secure Communications				IoT			Licensing		Segment Totals
	QNX				Secure Communications			Licensing		Segment Totals
	November 30,					November 30,				November 30,				November 30,
	May 31,					May 31,				May 31,				May 31,
	2024		2023			2024		2023		2024		2023		2024		2023
	2025		2024			2025		2024		2025		2024		2025		2024
Segment revenue	$	7457.5	$	9153.2		$	6259.5	$	5564.2	$	4.7	$	6.0	$	~~143~~121.7	$	~~152~~123.4
Segment cost of sales	2011.2		239.5			918.1		21.8		21.6		1.4		3130.9		32.7
Segment gross margin (1)	$	5446.3	$	6843.7		$	5341.4	$	4742.4	$	53.1	$	54.6	$	~~112~~90.8	$	~~120~~90.7
Segment research and development	11		12			16		15		—		—		27		27
Segment sales and marketing	12		15			11		10		—		—		23		25
Segment general and administrative	10		9			9		10		1		6		20		25
Less amortization included in the above	1		1			1		—		2		3		4		4
Total Segment EBITDA (1)	$	22	$	33		$	18	$	12	$	6	$	2	$	46	$	47
	For the Nine Months Ended
	Secure Communications				IoT			Licensing		Segment Totals
	November 30,					November 30,				November 30,				November 30,
	2024		2023			2024		2023		2024		2023		2024		2023
Segment revenue	$	205	$	212		$	170	$	149	$	16	$	245	$	391	$	606
Segment cost of sales	67		62			28		24		5		150		100		236
Segment gross margin (1)	$	138	$	150		$	142	$	125	$	11	$	95	$	291	$	370
Segment research and development	36		44			47		49		—		—		83		93
Segment sales and marketing	34		45			32		31		—		—		66		76
Segment general and administrative	30		35			25		32		5		19		60		86
Less amortization included in the above	3		4			2		2		6		8		11		14
Total Segment EBITDA (1)	$	41	$	30		$	40	$	15	$	12	$	84	$	93	$	129

______________________________

(1) A reconciliation of total segment gross margin ~~and~~to ~~segment~~consolidated ~~EBITDA~~pre-tax toincome ~~consolidated~~from ~~totals~~continuing operations is set forth below.

QNX consists of BlackBerry® QNX®, BlackBerry® Certicom®, BlackBerry Radar®, 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.

IoT consists of BlackBerry® QNX®, BlackBerry® Certicom®, BlackBerry Radar®, BlackBerry IVY® and other IoT applications. IoT 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.

27The following table reconciles total segment gross margin for the three months ended May 31, 2025 and May 31, 2024 to the Company’s consolidated totals:

BlackBerry Limited


	Three Months Ended
	May 31, 2025		May 31, 2024
Total segment gross margin	$	90.8	$	90.7
Adjustments (1):
Stock compensation	0.5		0.7

Less:
Research & development	25.0		30.6
Sales and marketing	28.7		23.8
General and administrative	30.5		40.3
Amortization	4.0		4.7
Impairment of long-lived assets	0.1		3.5




Investment income, net	(2.9)		(4.0)
Consolidated income (loss) from continuing operations before income taxes	$	4.9	$	(8.9)

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

The following table reconciles total segment gross margin for the three and nine months ended November 30, 2024 and November 30, 2023 to the Company’s consolidated totals:

	Three Months Ended				Nine Months Ended
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
Total segment gross margin	$	112	$	120	$	291	$	370
Adjustments (1):
Stock compensation expense	—		1		2		3
Less:
Research & development	27		29		85		98
Sales and marketing	23		25		68		77
General and administrative	38		45		111		133
Amortization	4		6		14		22
Impairment of long-lived assets	1		9		4		9
Prior Debentures fair value adjustment	—		(13)		—		3
Investment income, net	—		(5)		(8)		(15)
Consolidated income from continuing operations before income taxes	$	19	$	23	$	15	$	40

______________________________

(1) The CODM reviews segment gross margin information on an adjusted basis, which excludes ~~certain~~Stock ~~amounts~~compensation asexpenses ~~described~~- ~~below:~~which is a non-cash expense and is not included in the CODM’s measure of segment gross margin when evaluating performance and allocating resources to the segment.

~~Stock~~25 ~~compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company’s management.~~

	Three Months Ended				Nine Months Ended
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
Total Segment EBITDA	$	46	$	47	$	93	$	129
Adjustments (1):
Stock compensation expense	4		7		16		25
Restructuring expenses	7		9		16		17
Less
Corporate general and administrative expense	9		10		31		24
Amortization	6		7		19		26
Impairment of long-lived assets	1		9		4		9
Prior Debentures fair value adjustment	—		(13)		—		3
Investment income	—		(5)		(8)		(15)
Consolidated income from continuing operations before income taxes	$	19	$	23	$	15	$	40

______________________________

(1) The CODM reviews segment information on an adjusted basis, which excludes certain amounts as described below:

Stock compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company’s management.

Restructuring expenses - Restructuring costs relate to employee termination benefits, facilities, streamlining many of the Company’s centralized corporate functions into Secure Communications (previously Cybersecurity) and IoT specific teams, and other costs pursuant to programs to reduce the Company’s annual expenses amongst R&D, infrastructure and other functions do not reflect expected future operating expenses, are not indicative of the

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Company’s core operating performance, and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

Patent Sale

On May 11, 2023, the Company completed the sale of certain non-core patent assets to Malikie Innovations Limited for $170 million in cash on closing, an additional $30 million in fixed consideration due by no later than the third anniversary of closing and variable consideration in the form of future royalties in the aggregate amount of up to $700 million (the “Malikie Transaction”). Pursuant to the terms of the Malikie Transaction, the Company received a license back to the patents sold, which relate primarily to mobile devices, messaging and wireless networking.

In the first quarter of fiscal 2024, the Company recognized revenue of $218 million and cost of sales of $147 million related to intellectual property sold. As at November 30, 2024, the remaining financing component on the patent sale was $6 million and will be recognized as interest income over the payment terms.

The Company estimated variable consideration from future royalty revenues using an expected value method including inputs from both internal and external sources related to patent monetization activities and cash flows, and constrained the recognition of that variable consideration based on the Company’s accounting policies and critical accounting estimates as described in Note 1. The present value of variable consideration recognized as revenue was $23 million and the amount of variable consideration constrained was $210 million. The Company evaluates its conclusions as to whether the constraints are still applicable on an ongoing basis, and will make updates when it observes a sufficient amount of evidence that amounts of variable consideration are no longer subject to constraint or the estimated amount of variable consideration has changed.

Revenue

The Company 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, 2024			November 30, 2023			November 30, 2024			November 30, 2023
	May 31, 2025			May 31, 2024
North America (1)	$	6354.8		$	6256.2		$	~~177~~		$	~~418~~
Europe, Middle East and Africa	5342.5			4743.7			~~141~~			~~116~~
Other regions	2724.4			4323.5			73			72
Total	$	~~143~~121.7		$	~~152~~123.4		$	~~391~~		$	~~606~~
North America (1)	4445.10		%	4045.85		%	~~45.3~~		%	~~69.0~~		%
Europe, Middle East and Africa	3734.09		%	3035.94		%	~~36.0~~		%	~~19.2~~		%
Other regions	1820.91		%	2819.31		%	~~18.7~~		%	~~11.9~~		%
Total	100.0		%	100.0		%	~~100.0~~		%	~~100.0~~		%

______________________________

(1) North America includes all revenue from the Company’s intellectual property arrangements, 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, 2024

November 30, 2023

November 30, 2024

November 30, 2023

May 31, 2025

May 31, 2024

Products and services transferred over time

6258.5

6059.4

~~182~~

~~179~~

Products and services transferred at a point in time

8163.2

9264.0

~~209~~

~~427~~

Total

~~143~~121.7

~~152~~123.4

~~391~~

~~606~~

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

Revenue contract balances

The following table sets forth the activity in the Company’s revenue contract balances for the ~~nine~~three months ended ~~November~~May 3031, ~~2024~~2025:

	Accounts and Other Receivable		Deferred Revenue		Deferred Commissions
	Accounts Receivable		Deferred Revenue		Deferred Commissions
Opening balance as at February 29, 2024	$	234	$	162	$	15
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	~~403~~104.7		~~355~~91.4		153.1
Decrease due to payment, fulfillment of performance obligations, or other	(~~411~~176.3)		(~~375~~113.4)		(164.4)
Decrease, net	(871.6)		(2022.0)		(1.3)
Closing balance as at November 30, 2024	$	226	$	142	$	14
Closing balance as at May 31, 2025	$	168.4	$	145.1	$	13.3
Current portion	$	129.9	$	136.3	$	7.4
Long-term portion	38.5		8.8		5.9
	$	168.4	$	145.1	$	13.3

~~Transaction~~26 ~~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, 2024 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 potential future royalty revenues from the Malikie Transaction, which have been constrained based on the Company’s accounting policies and critical accounting estimates and as described under “Patent Sale” in this Note 11.

	As at November 30, 2024
	Less than 12 Months		12 to 24 Months		Thereafter		Total
Remaining performance obligations	$	133	$	3	$	6	$	142

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

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 May 31, 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 May 31, 2025
	Less than 12 Months		12 to 24 Months		Thereafter		Total
Remaining performance obligations	$	136.3	$	3.8	$	5.0	$	145.1

Revenue recognized for performance obligations satisfied in prior periods

For the three ~~and nine~~ months ended ~~November~~May 3031, ~~2024~~2025, revenue of nil ~~and $2 million respectively,~~ was recognized relating to performance obligations satisfied in a prior period (three ~~and nine~~ months ended ~~November~~May 3031, ~~2023~~2024 - ~~$1 million and $32 million respectively~~nil).

Assets by Geography

Property, plant and equipment, intangible assets, operating lease ROU assets and goodwill, classified by geographic region in which the Company’s assets are located, were as follows:

	As at
	November 30, 2024				February 29, 2024
	Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill		Total Assets		Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill		Total Assets
Canada	$	76	$	357	$	78	$	342
United States	455		841		467		923
Other	28		111		29		130
	$	559	$	1,309	$	574	$	1,395

Information About Major Customers

There was one customer that comprised 1813% of the Company’s revenue ~~and one customer that comprised 15% of the Company’s revenue~~ in the three ~~and nine~~ months ended ~~November~~May 3031, ~~2024,~~2025 ~~respectively~~ (three ~~and nine~~ months ended ~~November~~May 3031, ~~2023~~2024 - ~~two customers that comprised 29% of the Company’s revenue and~~ one customer that comprised 3713% of the Company’s revenue~~, due to the completed Malikie Transaction~~).

3127

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

12. CASH FLOW AND ADDITIONAL INFORMATION

(a) Certain consolidated statements of cash flow information related to interest and income taxes paid is summarized as follows:

	Three Months Ended				~~Nine Months Ended~~
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
	May 31, 2025		May 31, 2024
Interest paid during the period	$	1.5	$	1.5	$	5	$	5
Income taxes paid during the period	21.7		16.8		12		5
Income tax refunds received during the period	—		—		—		—

(b) Additional Information

Foreign exchange

The Company is exposed to foreign exchange risk as a result of transactions in currencies other than its functional currency, the U.S. dollar. The majority of the Company’s revenue in the ~~third~~first quarter of fiscal ~~2025~~2026 was transacted in U.S. dollars. Portions of the revenue were denominated in Canadian dollars, euros and British pounds. Other expenses, consisting mainly of salaries and certain other operating costs, were incurred primarily in Canadian dollars, but were also incurred in U.S. dollars, euros and British pounds. At ~~November~~May 3031, ~~2024~~2025, approximately 239% of cash and cash equivalents, 2418% of accounts receivable and 8884% of accounts payable were denominated in foreign currencies (February 2928, ~~2024~~2025 – 19%, 2529% and 5971%, respectively). These foreign currencies primarily include the Canadian dollar, euro and British pound. As part of its risk management strategy, the Company maintains net monetary asset and/or liability balances in foreign currencies and engages in foreign currency hedging activities using derivative financial instruments, including currency forward contracts and currency options. The Company does not use derivative instruments for speculative purposes.

Interest rate risk

Cash and cash equivalents and investments are invested in certain instruments with fixed interest rates of varying maturities. Consequently, the Company is exposed to interest rate risk as a result of holding investments of varying maturities and the significant financing components within certain revenue contracts with customers. The fair value of investments, as well as the investment income derived from the investment portfolio, will fluctuate with changes in prevailing interest rates. The Company also has significant financing components within certain revenue contracts with customers and is exposed to interest rate risk as a result of discounting the future payments from customers with a fixed interest rate. The Company ~~has~~ also ~~issued~~has outstanding Notes with a fixed interest rate, as described in Note 6. The Company is exposed to interest rate risk as a result of the Notes. The Company does not currently utilize interest rate derivative instruments.

Credit risk

The Company is exposed to market and credit risk on its investment portfolio. The Company is also exposed to credit risk with customers, as described in Note 4. The Company reduces this risk from its investment portfolio by investing in liquid, investment-grade securities and by limiting exposure to any one entity or group of related entities. As at ~~November~~May 3031, ~~2024~~2025, no single issuer represented more than 3243% of the total cash, cash equivalents and investments (February 2928, ~~2024~~2025 - no single issuer represented more than 3047% of the total cash, cash equivalents and investments), with the largest such issuer representing bearer deposits, term deposits and cash balances with one of the Company’s banking counterparties.

~~Liquidity~~In addition, 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. This deferred consideration is included as “Other Receivables” and is approximately $38.6 million as at May 31, 2025. The Company is exposed to risk related to potential non-payment of the deferred cash consideration from Arctic Wolf.

~~Cash,~~28 cash equivalents, and investments were approximately $266 million as at November 30, 2024. The Company’s management remains focused on efficiently managing working capital balances and managing the liquidity needs of the business. Based on its current financial projections, the Company believes its financial resources, together with expected future operating cash generating and operating expense reduction activities, should be sufficient to meet funding requirements for current financial commitments and future operating expenditures not yet committed, and should provide the necessary financial capacity for the foreseeable future.

BlackBerry Limited

Notes to the Consolidated Financial Statements

In millions of United States dollars, except share and per share data, and except as otherwise indicated (unaudited)

~~13. SUBSEQUENT~~Liquidity ~~EVENTS~~risk

OnCash, ~~December~~cash 15equivalents, ~~2024, the Company entered into an Equity~~ and ~~Asset~~investments ~~Purchase~~were ~~Agreement~~$381.9 ~~(the~~million ~~“Equity~~as ~~and~~at ~~Asset~~May ~~Purchase Agreement”) with Arctic Wolf Networks~~31, ~~Inc~~2025. ~~(“Arctic~~As ~~Wolf”)~~partial ~~and~~consideration ~~certain~~for ~~subsidiaries of~~ the ~~Company~~sale ~~and~~of ~~Arctic~~its ~~Wolf,~~Cylance ~~pursuant~~endpoint tosecurity ~~which~~assets and ~~upon~~liabilities ~~the terms and subject~~ to ~~the conditions described therein,~~ Arctic Wolf, ~~will acquire~~ the Company’s ~~Cylance®~~received ~~endpoint~~common ~~security~~shares ~~assets~~of ~~for~~Arctic aWolf ~~purchase~~with ~~price~~an ~~consisting~~estimated offair ~~$160 million~~value of ~~cash, subject to certain purchase price adjustments set forth in the Equity and Asset Purchase Agreement (the “Cash Consideration”), and 5~~$24.56 million. The common shares inof Arctic Wolf ~~(the~~are ~~“Equity~~illiquid ~~Consideration”).~~securities ~~After~~without ~~giving~~a ~~effect~~public tomarket ~~the~~and, ~~purchase~~as ~~price~~such, ~~adjustments~~they tocannot ~~the~~be ~~Cash~~readily ~~Consideration,~~sold ~~the~~or ~~Company~~exchanged ~~will~~for ~~receive~~cash. ~~approximately~~The ~~$80 million~~Company ofmay ~~the~~not ~~Cash~~be ~~Consideration~~able ~~and~~to ~~the~~sell ~~Equity~~these ~~Consideration~~shares at ~~closing~~desired oftimes ~~the~~or ~~transaction~~prices, ~~and~~which ~~approximately~~could ~~$40 million~~negatively ofimpact ~~the~~its ~~Cash~~financial ~~Consideration~~condition onand ~~the~~results ~~one-year anniversary~~ of ~~closing~~operations.

The ~~Equity~~Company’s ~~and~~management ~~Asset~~remains ~~Purchase~~focused ~~Agreement~~on ~~contains~~efficiently ~~customary~~managing ~~representation,~~working ~~warranties,~~capital ~~covenants~~balances and ~~indemnification~~managing ~~made by~~ the ~~Company~~liquidity ~~and~~needs ~~Arctic~~of ~~Wolf. In addition,~~ the ~~Equity~~business. ~~and~~Based ~~Asset~~on ~~Purchase~~its ~~Agreement~~current ~~provides~~financial ~~that~~projections, on the ~~closing~~Company ~~date~~believes ofits ~~the~~financial ~~transaction~~resources, ~~the~~together ~~Company~~with ~~and~~expected ~~Arctic~~future ~~Wolf~~operating ~~will~~cash ~~enter~~generating ~~into~~and ~~(i)~~operating aexpense ~~non-exclusive~~reduction ~~patent license agreement~~activities, ~~(ii)~~should abe ~~partner~~sufficient ~~agreement pursuant~~ to ~~which~~meet ~~the~~funding ~~Company~~requirements ~~will~~for ~~agree~~current tofinancial ~~resell~~commitments ~~certain~~and ~~products~~future ~~and~~operating ~~services~~expenditures ofnot ~~Arctic~~yet ~~Wolf~~committed, and ~~(iii)~~should ~~a strategic customer support agreement, pursuant to which Arctic Wolf will agree to~~ provide ~~certain~~the ~~customer~~necessary ~~support~~financial ~~services~~capacity tofor the ~~Company~~foreseeable future.

~~Completion~~29 ~~of the transaction is conditional upon the provision of customary closing deliverables and satisfaction of customary conditions.~~

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read together with the unaudited interim consolidated financial statements and the accompanying notes (the “Consolidated Financial Statements”) of BlackBerry Limited for the three ~~and nine~~ months ended ~~November~~May 3031, ~~2024~~2025, included in Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as the Company’s audited consolidated financial statements and accompanying notes and MD&A for the fiscal year ended February 2928, ~~2024~~2025 (the “Annual MD&A”) included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2025 (the “Annual Report”). The Consolidated Financial Statements are presented in U.S. dollars and have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All financial information in this MD&A is presented in U.S. dollars, unless otherwise indicated.

Additional information about the Company, which is included in the Company’s Annual Report ~~on Form 10-K for the fiscal year ended February 29~~, ~~2024 (the “Annual Report”),~~ can be found on SEDAR+ at www.sedarplus.ca and on the SEC’s website at www.sec.gov.

Cautionary Note Regarding Forward-Looking Statements

This MD&A contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements relating to:

•the Company’s plans, strategies and objectives, including its intentions to increase and enhance its product and service offerings, ~~and~~benefit tofrom changes in market demand, and patent new innovations;

•the Company’s expectations with respect to ~~the~~its ~~sale~~revenue, ofsegment ~~its~~adjusted ~~Cylance®~~EBITDA, ~~endpoint~~adjusted ~~security~~Corporate ~~assets~~operating tocosts, ~~Arctic~~total ~~Wolf~~and ~~Networks~~segment adjusted EBITDA, ~~Inc.~~non-GAAP ~~(“Arctic~~EPS ~~Wolf”);~~and operating cash flow in the second quarter of fiscal 2026;

•the Company’s expectations with respect to its revenue, ~~segment~~adjusted ~~EBITDA~~corporate operating costs, Secure Communications adjusted EBITDA, ~~non-GAAP~~and ~~EPS~~total adjusted EBITDA for fiscal 2026 and operating cash flow in the ~~fourth~~second ~~quarter~~half of fiscal ~~2025, and these items for fiscal 2025 as a whole~~2026;

•the Company’s estimates of purchase obligations and other contractual commitments; and

•the Company’s expectations with respect to the sufficiency of its financial resources.

The words “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “could”, “intend”, “believe”, “target”, “plan” and similar expressions are intended to identify forward-looking statements in this MD&A, including in the sections entitled “Business Overview”, “Business Overview - Products and Services”, “Results of Operations - Three months ended ~~November~~May 3031, ~~2024~~2025 compared to the three months ended ~~November~~May 3031, ~~2023~~2024 - Revenue - Revenue by Segment”, “Results of Operations - Three months ended ~~November~~May 3031, 2025 compared to the three months ended May 31, 2024 - Revenue - Gross Margin and Adjusted EBITDA by Segment”, “Results of Operations - Three months ended May 31, 2025 compared to the three months ended ~~November~~May 3031, ~~2023~~2024 - Revenue - Operating Expenses - Adjusted Operating Expenses” , “Results of Operations - Three months ended May 31, 2025 compared to the three months ended May 31, 2024 - Net Income (~~loss~~Loss)” and “Financial Condition - Contractual and Other Obligations”. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances, including but not limited to, the Company’s expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, competition, and the Company’s expectations regarding its financial performance. Many factors could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the risk factors discussed in Part I, Item 1A “Risk Factors” in the Annual Report.

All of these factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking statements. Any statements that are forward-looking statements are intended to enable the Company’s shareholders to view the anticipated performance and prospects of the Company from management’s perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting the Company’s financial results and performance for future periods, particularly over longer periods, given changes in technology and the Company’s business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which the Company operates. See the “Strategy” subsection in Part I, Item 1 “Business” of the Annual Report.

The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

3430

Business Overview

~~BlackBerry~~Founded ~~(NYSE:~~in ~~BB;~~1984, ~~TSX:~~BlackBerry BBLimited (the “Company”) ~~provides~~is ~~enterprises~~a ~~and~~leading ~~governments~~provider ~~the~~of intelligent software and services ~~that~~to ~~power~~enterprises, ~~the~~governments ~~world~~and ~~around~~leading ~~us.~~OEMs ~~Based~~around ~~in Waterloo, Ontario,~~ the ~~Company~~world. ~~offers~~Its ~~the~~products ~~embedded~~enable OSmore ofthan ~~choice~~255 ~~across~~million ~~industries~~vehicles and ~~powers~~secure ~~the~~17 ~~safety-critical systems~~ of ~~over~~the ~~255M~~G20 ~~vehicles~~governments. ~~With~~The aCompany’s ~~deep~~common ~~heritage~~shares intrade ~~its~~under ~~Secure~~the ~~Communications,~~ticker ~~BlackBerry~~symbol ~~delivers~~“BB” ~~operational~~on ~~resiliency with~~ the ~~most~~New ~~comprehensive,~~York ~~highly~~Stock ~~secure,~~Exchange ~~and~~(“NYSE”) ~~extensively certified platform for mobile fortification, mission-critical communications,~~ and ~~critical~~the ~~events~~Toronto ~~management.~~Stock ~~The~~Exchange ~~Company is also a pioneer in leveraging Artificial Intelligence and Machine Learning to deliver advanced cybersecurity solutions to its customers~~(“TSX”).

~~The~~Based in Waterloo, Ontario, the Company has two core divisions, ~~Secure Communications and IoT,~~ each addressing large and growing market opportunities.

The Company’s ~~Secure~~QNX ~~Communications~~ division ~~delivers~~is ~~operational~~a ~~resiliency~~leader ~~with~~in embedded software where the ~~most~~Company ~~comprehensive~~believes it is the world’s leading automotive foundational software vendor. Its customers include leading automotive OEMs and Tier 1 suppliers that use its products in vehicles, ~~highly~~as ~~secure~~well as manufacturers in other markets where high-performance, safety-critical foundational embedded software platforms and ~~extensively~~solutions ~~certified~~are important, such as robotics, medical devices, industrial automation solutions, ~~for~~rail ~~mobile~~systems, ~~fortification~~hardware security modules, and other mission-critical ~~communications~~applications (collectively, the general embedded market or “GEM”). QNX solutions are implemented into all the top 10 automotive OEMs, top 7 Tier 1 suppliers, 24 of the 25 top EV OEMs, and ~~critical~~9 ~~events~~of ~~management~~the 10 top medical OEMs.

The Company’s ~~IoT~~Secure Communications division ~~provides~~delivers ~~embedded~~operational ~~software~~resiliency ~~solutions~~with ~~and~~a ~~the~~comprehensive, ~~Company~~highly ~~believes~~secure, ~~it is the world’s leading automotive foundational software supplier. Its customers include major automotive original equipment manufacturers (“OEMs”)~~ and ~~Tier~~extensively 1certified ~~suppliers~~product ~~that~~portfolio ~~use~~for ~~its~~mobile ~~products in vehicles~~fortification, asmission-critical ~~well~~communications ~~as top medical OEMs. The Company’s solutions are implemented into all of the top ten automotive OEMs, top seven Tier 1 suppliers, 24 of the 25 top EV OEMs,~~ and ~~nine~~critical ofevent ~~the ten top medical OEMs~~management.

~~The~~Secure ~~Company~~Communications ~~primarily~~focuses ~~generates~~on ~~revenue from~~ the ~~licensing~~government ofsector ~~enterprise software~~ and sales of associated services, including its secure communications solutions, BlackBerry QNX® software for the embedded market, technology licensing and professional consulting services. The Company focuses on strategic industries with vertical-specific use cases, including regulated enterprise markets such as financial services~~, government, healthcare, professional services and automotive, and other markets where embedded software and critical infrastructure are important, such as medical equipment and industrial automation~~.

Products and Services

The Company has a rich pedigree in innovation and has developed a range of products and services that assist customers in addressing their needs as their industries evolve, which are structured in three ~~segments~~divisions: ~~Secure Communications~~QNX, ~~IoT (collectively with~~ Secure Communications, ~~“software~~ and ~~services”) and~~ Licensing.

Prior to the third quarter of fiscal 2025, the Company’s Secure Communications segment included the Company’s Cylance® cybersecurity solutions business and was reported as the Cybersecurity segment. See “Business Overview - Cylance” below.QNX

~~Secure~~The ~~Communications~~QNX division consists of the QNX® business (“QNX”), BlackBerry Radar® and BlackBerry® Certicom®.

~~The~~With ~~Secure~~45 ~~Communications~~years of embedded software expertise and a rich intellectual property portfolio, QNX is an industry leader whose high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business ~~consists~~models, all without sacrificing safety, security and reliability. QNX is a trusted supplier of ~~BlackBerry~~operating ~~unified~~systems, ~~endpoint~~hypervisors, ~~management~~frameworks ~~(“UEM”)~~and ~~solutions~~development tools that help reduce hardware dependency while enabling new possibilities in high-performance compute, ~~SecuSUITE®~~standards-based virtualization technologies, and ~~BlackBerry®~~cloud ~~AtHoc®~~enablement.

~~The~~QNX ~~Company’s~~offers ~~UEM~~a ~~offerings~~growing ~~include~~portfolio ~~BlackBerry®~~of ~~UEM~~safety-certified, ~~BlackBerry®~~secure ~~Dynamics™,~~and ~~BlackBerry®~~reliable ~~Workspaces,~~platform solutions and ~~BlackBerry~~is ~~Messenger~~focused ~~(BBM®)~~on ~~Enterprise.~~achieving ~~BlackBerry~~design ~~UEM~~wins ~~employs~~with aautomotive ~~containerized~~OEMs, ~~approach~~Tier to1 ~~manage~~vendors and ~~secure~~automotive ~~devices,~~semiconductor ~~third~~suppliers. ~~party~~These ~~and~~solutions ~~custom~~include ~~applications,~~the ~~identity~~QNX® real-time operating system, ~~content~~QNX® ~~and~~Hypervisor ~~endpoints~~for ~~across~~Safety ~~all~~and ~~leading~~QNX® ~~operating~~Software ~~systems~~Development Platform (SDP), as well as ~~providing~~other ~~regulatory~~products designed to alleviate the challenges of compliance ~~tools~~with ISO 26262, the automotive industry’s functional safety standard. ~~BlackBerry~~The ~~Dynamics~~QNX® ~~offers~~pre-certified amicrokernel ~~best~~operating system is specifically tailored for safety-~~in-class~~critical ~~development~~embedded ~~platform~~systems and ~~secure~~toolchains ~~container~~that are pre-qualified for ~~mobile~~building ~~applications,~~these ~~including~~systems. ~~the~~The ~~Company’s~~QNX ~~own~~Hypervisor ~~enterprise~~for ~~applications~~Safety ~~such~~prevents assafety ~~BlackBerry®~~systems ~~Work~~from ~~and~~potential ~~BlackBerry®~~impact ~~Connect~~of ~~for~~malfunction ~~secure~~in ~~collaboration~~other systems. These ~~BlackBerry~~products ~~Workspaces~~help isdrive a ~~secure~~faster ~~Enterprise~~time ~~File~~to ~~Sync~~market and ~~Share~~also ~~(EFSS)~~reduce ~~solution~~developer friction. ~~BBM~~In ~~Enterprise~~fiscal is2026, anQNX’s ~~enterprise~~priorities in the automotive space include promoting increased adoption of QNX SDP 8.0 and also working with partners to develop a vehicle platform featuring pre-~~grade~~integrated ~~secure~~middleware ~~instant~~solutions ~~messaging~~with ~~solution~~a ~~for~~view ~~messaging,~~to ~~voice~~capturing a larger share of the automotive software stack and ~~video~~increasing future royalties per vehicle.

~~BlackBerry~~QNX ~~SecuSUITE~~ is also a ~~certified,~~preferred ~~multi-OS~~supplier ~~voice~~of ~~and~~embedded ~~text~~systems ~~messaging~~for ~~solution~~companies in the GEM space. QNX collaborates closely with ~~advanced~~customers ~~encryption,~~to ~~anti-eavesdropping~~understand their specific requirements and ~~continuous~~more ~~authentication~~quickly ~~capabilities,~~and ~~providing~~effectively adevelop ~~maximum~~solutions ~~level~~to ofmeet ~~security~~their onevolving ~~conventional~~needs. The ~~mobile~~Company ~~devices~~is ~~for~~investing ~~government~~in ~~and~~initiatives ~~businesses~~to increase the revenue that it derives from GEM opportunities.

BlackBerry AtHoc is a secure, networked critical event management solution that enables people, devices and organizations to exchange critical information in real time during business continuity and life safety operations. The platform securely connects with a diverse set of endpoints to distribute emergency mass notifications, improves personnel accountability and facilitates the bidirectional collection and sharing of data within and between organizations.

IoT

The IoT business consists of BlackBerry QNX, BlackBerry Radar®, BlackBerry® Certicom®, and BlackBerry IVY®.

BlackBerry QNX is a global provider of real-time operating systems, hypervisors, middleware, development tools, and professional services for connected embedded systems in the automotive, medical, industrial automation and other markets. A recognized leader in automotive software, BlackBerry QNX offers a growing portfolio of safety-certified, secure and reliable platform solutions and is focused on achieving design wins with automotive OEMs, Tier 1 vendors and automotive

semiconductor suppliers. These solutions include the BlackBerry QNX real-time operating system, QNX® Hypervisor for Safety and QNX® Software Development Platform (SDP), as well as other products designed to alleviate the challenges of compliance with ISO 26262, the automotive industry’s functional safety standard. The QNX pre-certified microkernel operating system is specifically tailored for safety-critical embedded systems and toolchains that are pre-qualified for building these systems. The QNX Hypervisor for Safety prevents safety systems from potential impact of malfunction in other systems. These products help drive a faster time to market and also reduce developer friction.

BlackBerry QNX is also a preferred supplier of embedded systems for companies building medical devices, train-control systems, industrial robots, hardware security modules, building automation systems, green energy solutions, and other mission-critical applications. BlackBerry QNX collaborates closely with customers to understand their specific requirements and more quickly and effectively develop solutions to meet their evolving needs.

BlackBerry Radar is a family of asset monitoring and telematics solutions for the transportation and logistics industry. The BlackBerry Radar solution includes devices and secure cloud-based dashboards for tracking containers, trailers, chassis, flatbeds and heavy machinery, for reporting locations and sensor data, and for enabling custom alerts and fleet management analytics.

BlackBerry Certicom leverages patented elliptic curve cryptography to provide device security, anti-counterfeiting and product authentication solutions to protect vehicles, critical infrastructure and IoT deployments from product counterfeiting, re-manufacturing and unauthorized network access.

~~BlackBerry~~The ~~IVY~~QNX isdivision analso ~~emerging~~provides ~~intelligent~~engineering ~~vehicle~~consulting ~~data~~services, ~~platform~~including ~~that~~services ~~allows automakers~~ to ~~safely~~assist ~~access~~OEM acustomers ~~vehicle’s~~to ~~sensor~~bring ~~data,~~their ~~normalize~~products ~~it, and apply machine learning at the edge~~ to ~~generate~~market ~~and~~on ~~share~~time, ~~predictive~~as ~~insights~~well ~~and~~as ~~inferences.~~services ~~Automakers and developers can use this information~~ to ~~create~~ensure ~~responsive~~compliance ~~in-vehicle~~with ~~applications~~relevant ~~and~~functional ~~services~~safety ~~that enhance driver and passenger experiences~~standards.

~~The~~31 BlackBerry Secure Communications and IoT divisions are complemented by the enterprise and cybersecurity consulting services offered by the Company’s BlackBerry® Professional Services business. BlackBerry Professional Services provides platform-agnostic strategies to address mobility-based challenges, providing expert deployment support, end-to-end delivery (from system design to user training), application consulting, and experienced project management.

Secure Communications

The Secure Communications division consists of BlackBerry UEM solutions, BlackBerry® SecuSUITE® and BlackBerry® AtHoc®.

The Company’s endpoint management offerings include BlackBerry® UEM, BlackBerry® Dynamics™, BlackBerry® Workspaces, and BlackBerry Messenger (BBM®) Enterprise. BlackBerry UEM employs a containerized approach to manage and secure devices, third party and custom applications, identity, content and endpoints across all leading operating systems, as well as providing regulatory compliance tools. BlackBerry Dynamics offers a best-in-class development platform and secure container for mobile applications, including the Company’s own enterprise applications such as BlackBerry® Work and BlackBerry® Connect for secure collaboration. BlackBerry Workspaces is a secure Enterprise File Sync and Share (EFSS) solution. BBM Enterprise is an enterprise-grade secure instant messaging solution for messaging, voice and video.

BlackBerry SecuSUITE is a certified, multi-OS voice and data solution with advanced encryption, anti-eavesdropping and continuous authentication capabilities, providing a maximum level of security on conventional mobile devices for government and businesses.

BlackBerry AtHoc is a secure, networked critical event management solution that enables people, devices and organizations to exchange critical information in real time during business continuity and life safety operations. The platform securely connects with a diverse set of endpoints to distribute emergency mass notifications, improve personnel accountability and facilitate the bidirectional collection and sharing of data within and between organizations.

In fiscal 2026, the Secure Communications division expects to benefit from an increase in government market demand for on-premise solutions that are designed to protect data sovereignty.

The Secure Communications division also provides enterprise consulting services, including platform-agnostic strategies to address mobility-based challenges, providing expert deployment support, end-to-end delivery (from system design to user training), application consulting, and experienced project management.

Licensing

The Licensing ~~consists~~division ~~primarily~~is responsible for the management and monetization of the Company’s global patent portfolio. The patent portfolio continues to provide a competitive advantage in the Company’s core product areas as well as providing leverage in the development of future technologies and licensing ~~business~~programs in both core and adjacent vertical markets. The Company owns rights to an array of patented and patent pending technologies which include, but are not limited to, operating systems, networking infrastructure, acoustics, messaging, enterprise software, automotive subsystems, cybersecurity, cryptography and wireless communications.

The Company’s Licensing business is responsible for the management and monetization of the Company’s global patent portfolio. The patent portfolio continues to provide a competitive advantage in the Company’s core product areas as well as providing leverage in the development of future technologies and licensing programs in both core and adjacent vertical markets. The Company owns rights to an array of patented and patent pending technologies which include, but are not limited to, operating systems, networking infrastructure, acoustics, messaging, enterprise software, automotive subsystems, cybersecurity, cryptography and wireless communications.

Cylance

On October 16, 2024, the Company announced that it was revisiting capital allocation priorities, noting that estimates of the level of investment required to grow the Cylance business to scale and profitability would be substantial and would require a number of years and, as such, the Company would begin exploring opportunities for the business. At November 30, 2024, the Company determined that the assets and liabilities constituting the Cylance business met the criteria requiring them to be classified as held for sale as specified in Accounting Standards Codification (“ASC”) 360 Property, Plant and Equipment, which in turn meant that the Cylance business met the criteria for presentation as a discontinued operations under ASC 205 Presentation of Financial Statements. While presented as a discontinued operations in its Consolidated Statement of Operations, the Company continues to operate Cylance during the time that the assets and liabilities constituting its business are held for sale. As a result of Cylance becoming a discontinued operation, it is no longer reported alongside UEM, SecuSuite and AtHoc as the Cybersecurity segment, and those three businesses are now reported separately from Cylance as the Secure Communications segment.

On December 15, 2024, the Company entered into an agreement to sell the Company’s Cylance endpoint security assets to Arctic Wolf for a purchase price consisting of $160 million of cash, subject to certain purchase price adjustments (the “Cash Consideration”), and 5.5 million common shares in Arctic Wolf. After giving effect to the purchase price adjustments, the Company will receive the common shares and approximately $80 million of the Cash Consideration at the closing of the transaction, and approximately $40 million of the Cash Consideration on the one-year anniversary of closing.

Cylance’s cybersecurity solutions include: CylanceENDPOINT™, an integrated endpoint security solution that leverages the Cylance AI model and OneAlert EDR console, to prevent, detect and remediate cyber threats at the endpoint, including on mobile; CylanceMDR™, a managed detection and response solution that provides 24/7 threat hunting and monitoring, as well as integrated critical event management communications during a cyber incident; and CylanceEDGE™, an AI-powered

continuous authentication zero trust network access solution that provides secure access to applications and data loss prevention. The Company also offers incident response, compromise assessment and containment services to assist clients with forensic analysis, state of existing systems and remediation of attacks.

Recent Developments

The Company has continued to execute on its strategy in fiscal ~~2025~~2026 and announced the following significant achievements during and subsequent to the most recent quarter:

Products and Innovation:

•~~Announced~~QNX ~~that~~launched QNX® ~~embedded~~Hypervisor ~~technology~~8.0, ~~powers~~built ~~more~~on ~~than~~the ~~255~~next-generation ~~million~~SDP ~~vehicles~~8.0 architecture, facilitating high-performance virtualization of multiple operating systems on a single system-on-a-chip; and

•BlackBerry ~~QNX~~AtHoc ~~introduced~~became ~~software-defined~~the ~~functional~~first ~~safety~~critical ~~platform~~event inmanagement ~~collaboration~~provider ~~with~~to ~~Intel~~achieve ~~for~~FedRAMP ~~industrial~~High ~~automation; and~~authorization.

•Announced that BlackBerry AtHoc is "in process" to become the first critical events management solution to obtain FedRAMP high authorization.

Customers and Partners:

•~~BlackBerry~~WeRide ~~QNX~~launched ~~was~~its ~~selected~~next-generation byADAS ~~Hyundai~~platform ~~Mobis~~for toL2++ ~~power~~autonomous ~~its~~drive, ~~next-generation~~built ~~digital~~upon ~~cockpit~~QNX® ~~platform;~~OS ~~and~~for Safety;

•~~Announced~~Leapmotor ~~the~~selected ~~Government~~QNX® oftechnology ~~Canada's~~as ~~investment~~the infoundation ~~the~~of ~~Malaysia~~its ~~Cybersecurity~~intelligent ~~Center~~digital ofcockpit ~~Excellence~~and toautonomous ~~enhance~~drive ~~cyber~~domain ~~resilience~~controllers in ~~Southeast~~its ~~Asia.~~new B10 electric SUV;

•Direct ChassisLink Inc (DCLI) announced the deployment of BlackBerry Radar across 100,000 chassis; and

•Malaysia Cybersecurity Center of Excellence celebrated its first anniversary with new partnerships, scholarships and expanded education programs.

Environmental, Sustainability and Corporate Governance:

•BlackBerry ~~and Arctic Wolf~~ announced ~~that~~a ~~they~~share ~~have~~buyback ~~entered~~program ~~into~~for athe ~~definitive~~repurchase ~~agreement~~of ~~for~~up ~~Arctic Wolf~~ to ~~acquire~~27,855,153 ~~BlackBerry’s~~of ~~Cylance~~its ~~endpoint~~common ~~security assets; and~~ shares.

~~•Appointed~~32 ~~Lisa Bahash, an automotive OEM and Tier 1 supplier veteran, to the Board of Directors.~~

~~Third~~First Quarter Fiscal ~~2025~~2026 Summary Results of Operations

The following table sets forth certain consolidated statements of operations data for the quarter ended May 31, 2025 compared to the quarter ended May 31, 2024 under U.S. GAAP:

	For the Three Months Ended(in millions, except for share and per share amounts)
	November 30, 2024		November 30, 2023		Change
	May 31, 2025		May 31, 2024		Change
Revenue	$	~~143~~121.7	$	~~152~~123.4	$	(91.7)
Gross margin	~~112~~90.3		~~119~~90.0		~~(7)~~0.3
Operating expenses	9388.3		~~101~~102.9		(814.6)
Investment income, net	—2.9		54.0		(51.1)
Income before income taxes	19		23		(4)
Income (loss) before income taxes	4.9		(8.9)		13.8
Provision for income taxes	73.0		157.6		(84.6)
Income from continuing operations	12		8		4
Income (loss) from continuing operations	1.9		(16.5)		18.4
Loss from discontinued operations	(23)		(29)		6
Loss from discontinued operations (1)	—		(24.9)		24.9
Net loss	$	(11)	$	(21)	$	10
Net income (loss)	$	1.9	$	(41.4)	$	43.3
Loss per share - reported
Earnings (loss) per share - reported
Basic	$	(0.~~02)~~00	$	(0.0407)
Diluted	$	(0.~~02)~~00	$	(0.0507)
Weighted-average number of shares outstanding (000’s)
Basic	~~591~~596,~~240~~300		~~584~~589,~~331~~821
Diluted (1)	593,530		638,470
Diluted (2)	600,831		589,821

______________________________

(1)~~Diluted~~Prior ~~loss~~to ~~per~~the ~~share~~third onquarter aof ~~U.S.~~fiscal ~~GAAP~~2025, ~~basis~~the ~~for~~Company’s Secure Communications segment included the ~~third~~Company’s ~~quarter~~Cylance® ofcybersecurity ~~fiscal~~solutions ~~2025~~business ~~does~~and ~~not~~was ~~include~~reported as the ~~dilutive~~Cybersecurity ~~effect~~segment. As a result of the ~~Debentures~~Cylance ~~(as~~sale ~~defined~~ in ~~“Financial~~the ~~Condition~~fourth -quarter ~~Debt~~of ~~Financing~~fiscal ~~and~~2025, ~~Other~~Cylance ~~Funding~~is ~~Sources”)~~no longer reported alongside UEM, asSecuSuite toand doAtHoc soas ~~would~~the beCybersecurity ~~anti-dilutive.~~segment, ~~Diluted~~and ~~loss~~those ~~per~~three ~~share~~businesses onare anow ~~U.S.~~reported ~~GAAP~~separately ~~basis~~from ~~for~~Cylance as the ~~third~~Secure ~~quarter~~Communications segment. The financial results of ~~fiscal~~Cylance ~~2024~~are ~~does~~presented ~~not~~as ~~include~~“loss ~~the~~from ~~dilutive~~discontinued ~~effect~~operations, net of ~~stock-based~~tax” ~~compensation~~in asthe toConsolidated doStatements soof ~~would~~Operations beand ~~anti-dilutive.~~have ~~See~~been ~~Note~~removed 8from to the ~~Consolidated~~presentation ~~Financial~~of ~~Statements~~results ~~for~~from ~~the~~continuing ~~Company’s~~operations. ~~calculation~~Prior ofperiod ~~the~~comparatives ~~diluted~~have ~~weighted~~been ~~average~~recast ~~number~~to ofreflect ~~shares~~this ~~outstanding~~change.

37(2)Diluted earnings (loss) per share on a U.S. GAAP basis for the first quarter of fiscal 2026 and fiscal 2025 does not include the dilutive effect of the Notes (as defined in “Financial Condition - Debt Financing and Other Funding Sources”), as to do so would be anti-dilutive. Diluted loss per share on a U.S. GAAP basis for the first quarter of fiscal 2025 does not include the dilutive effect of stock-based compensation as to do so would be anti-dilutive. See Note 8 to the Consolidated Financial Statements for the Company’s calculation of the diluted weighted average number of shares outstanding.

~~The~~33 following tables show information by operating segment for the three and nine months ended November 30, 2024 and November 30, 2023. The Company reports segment information in accordance with U.S. GAAP ASC Section 280 based on the “management” approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance of the Company’s reportable operating segments. During the third quarter of fiscal 2025, the CODM changed the measure of profit or loss used under the “management” approach in reviewing the results of the Company’s operating segments from segment gross margin to segment EBITDA. Prior period comparatives have been recast to reflect the change in metric along with the significant categories of operating expenses included within this metric, and the change in presentation relating to facilities reclassed as disclosed in Note 1 to the Consolidated Financial Statements. See Note 11 to the Consolidated Financial Statements for a description of the Company’s operating segments.

	For the Three Months Ended(in millions)
	Secure Communications						IoT						Licensing						Segment Totals
	November 30,				Change		November 30,				Change		November 30,				Change		November 30,				Change
	2024		2023				2024		2023				2024		2023				2024		2023
Segment revenue	$	74	$	91	$	(17)	$	62	$	55	$	7	$	7	$	6	$	1	$	143	$	152	$	(9)
Segment cost of sales	20		23		(3)		9		8		1		2		1		1		31		32		(1)
Segment gross margin	$	54	$	68	$	(14)	$	53	$	47	$	6	$	5	$	5	$	—	$	112	$	120	$	(8)
Segment research and development	11		12		(1)		16		15		1		—		—		—		27		27		—
Segment sales and marketing	12		15		(3)		11		10		1		—		—		—		23		25		(2)
Segment general and administrative	10		9		1		9		10		(1)		1		6		(5)		20		25		(5)
Less amortization included in the above	1		1		—		1		—		1		2		3		(1)		4		4		—
Segment EBITDA	$	22	$	33	$	(11)	$	18	$	12	$	6	$	6	$	2	$	4	$	46	$	47	$	(1)

The following tables show information by operating segment for the three months ended May 31, 2025 and May 31, 2024. The Company reports segment information in accordance with U.S. GAAP, pursuant to the Financial Standards Accounting Board’s Accounting Standard Codification Topic 280, Segment Reporting, based on the “management” approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance of the Company’s reportable operating segments. The measure of segment profit or loss disclosed by the Company in the Consolidated Financial Statements under the “management” approach in reviewing the results of the Company’s operating segments is segment adjusted gross margin. Additionally, the following table includes the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA, a non-GAAP financial measure. See Note 11 to the Consolidated Financial Statements for a description of the Company’s operating segments.

	For the Nine Months Ended
	For the Three Months Ended(in millions)
	(in millions)
	QNX						Secure Communications						Licensing						Segment Totals
	Secure Communications						IoT						Licensing						Segment Totals
	May 31,				Change		May 31,				Change		May 31,				Change		May 31,				Change
	November 30,				Change		November 30,				Change		November 30,				Change		November 30,				Change
	2025		2024				2025		2024				2025		2024				2025		2024
	2024		2023				2024		2023				2024		2023				2024		2023
Segment revenue	$	57.5	$	53.2	$	4.3	$	59.5	$	64.2	$	(4.7)	$	4.7	$	6.0	$	(1.3)	$	121.7	$	123.4	$	(1.7)
Segment revenue	$	205	$	212	$	(7)	$	170	$	149	$	21	$	16	$	245	$	(229)	$	391	$	606	$	(215)
Segment cost of sales	11.2		9.5		1.7		18.1		21.8		(3.7)		1.6		1.4		0.2		30.9		32.7		(1.8)
Segment cost of sales	67		62		5		28		24		4		5		150		(145)		100		236		(136)
Segment adjusted gross margin	$	46.3	$	43.7	$	2.6	$	41.4	$	42.4	$	(1.0)	$	3.1	$	4.6	$	(1.5)	$	90.8	$	90.7	$	0.1
Segment gross margin	$	138	$	150	$	(12)	$	142	$	125	$	17	$	11	$	95	$	(84)	$	291	$	370	$	(79)
Segment research and development	12.4		16.4		(4.0)		11.3		12.3		(1.0)		—		—		—		23.7		28.7		(5.0)
Segment research and development	36		44		(8)		47		49		(2)		—		—		—		83		93		(10)
Segment sales and marketing	13.3		10.7		2.6		13.6		12.2		1.4		—		—		—		26.9		22.9		4.0
Segment sales and marketing	34		45		(11)		32		31		1		—		—		—		66		76		(10)
Segment general and administrative	8.6		8.2		0.4		7.5		9.6		(2.1)		1.6		2.1		(0.5)		17.7		19.9		(2.2)
Segment general and administrative	30		35		(5)		25		32		(7)		5		19		(14)		60		86		(26)
Less amortization included in the above	0.7		0.5		0.2		0.6		1.0		(0.4)		2.3		2.2		0.1		3.6		3.7		(0.1)
Less amortization included in the above	3		4		(1)		2		2		—		6		8		(2)		11		14		(3)
Segment adjusted EBITDA	$	12.7	$	8.9	$	3.8	$	9.6	$	9.3	$	0.3	$	3.8	$	4.7	$	(0.9)	$	26.1	$	22.9	$	3.2
Segment EBITDA	$	41	$	30	$	11	$	40	$	15	$	25	$	12	$	84	$	(72)	$	93	$	129	$	(36)

38The following tables reconcile the Company’s segment adjusted gross margin results for the three months ended May 31, 2025 to consolidated U.S. GAAP results:

The following tables reconcile the Company’s segment gross margin results for the three and nine months ended November 30, 2024 to consolidated U.S. GAAP results:


	For the Three Months Ended May 31, 2025
	(in millions)
	QNX		Secure Communications		Licensing		Segment Totals		Reconciling Items		Consolidated U.S. GAAP
Revenue	$	57.5	$	59.5	$	4.7	$	121.7	$	—	$	121.7
Cost of sales	11.2		18.1		1.6		30.9		0.5		31.4
Gross margin (1)	$	46.3	$	41.4	$	3.1	$	90.8	$	(0.5)	$	90.3
Operating expenses									88.3		88.3
Investment income, net									2.9		2.9
Income before income taxes											$	4.9

	For the Three Months Ended November 30, 2024
	(in millions)
	Secure Communications		IoT		Licensing		Segment Totals		Reconciling Items		Consolidated U.S. GAAP
Revenue	$	74	$	62	$	7	$	143	$	—	$	143
Cost of sales	20		9		2		31		—		31
Gross margin (1)	$	54	$	53	$	5	$	112	$	—	$	112
Operating expenses									93		93
Investment income, net									—		—
Income before income taxes											$	19

	For the Nine Months Ended November 30, 2024
	(in millions)
	Secure Communications		IoT		Licensing		Segment Totals		Reconciling Items		Consolidated U.S. GAAP
Revenue	$	205	$	170	$	16	$	391	$	—	$	391
Cost of sales	67		28		5		100		2		102
Gross margin (1)	$	138	$	142	$	11	$	291	$	(2)	$	289
Operating expenses									282		282
Investment income, net									8		8
Income before income taxes											$	15

______________________________

(1) See “Non-GAAP Financial Measures” for a reconciliation of selected U.S. GAAP-based measures to adjusted measures for the three ~~and nine~~ months ended ~~November~~May 3031, ~~2024~~2025.

~~The~~34 ~~following tables reconcile the Company’s segment gross margin results for the three and nine months ended November 30, 2023 to consolidated U.S. GAAP results:~~

	For the Three Months Ended November 30, 2023
	(in millions)
	Secure Communications		IoT		Licensing		Segment Totals		Reconciling Items		Consolidated U.S. GAAP
Revenue	$	91	$	55	$	6	$	152	$	—	$	152
Cost of sales	23		8		1		32		1		33
Gross margin (1)	$	68	$	47	$	5	$	120	$	(1)	$	119
Operating expenses									101		101
Investment income, net									5		5
Income before income taxes											$	23

The following tables reconcile the Company’s segment adjusted gross margin results for the three months ended May 31, 2024 to consolidated U.S. GAAP results:

	For the Nine Months Ended November 30, 2023
	For the Three Months Ended May 31, 2024
	(in millions)
	Secure Communications		IoT		Licensing		Segment Totals		Reconciling Items		Consolidated U.S. GAAP
	QNX		Secure Communications		Licensing		Segment Totals		Reconciling Items		Consolidated U.S. GAAP
Revenue	$	~~212~~53.2	$	~~149~~64.2	$	~~245~~6.0	$	~~606~~123.4	$	—	$	~~606~~123.4
Cost of sales	629.5		2421.8		~~150~~1.4		~~236~~32.7		30.7		~~239~~33.4
Gross margin (1)	$	~~150~~43.7	$	~~125~~42.4	$	954.6	$	~~370~~90.7	$	(30.7)	$	~~367~~90.0
Operating expenses									~~342~~102.9		~~342~~102.9
Investment income, net									154.0		154.0
Income before income taxes											$	40
Loss before income taxes											$	(8.9)

______________________________

39(1) See “Non-GAAP Financial Measures” for a reconciliation of selected U.S. GAAP-based measures to adjusted measures for the three months ended May 31, 2024.

~~(1)~~The ~~See~~following ~~“Non-GAAP~~table ~~Financial~~reconciles ~~Measures”~~total ~~for~~segment aadjusted ~~reconciliation~~EBITDA offor ~~selected~~the ~~U.S.~~three ~~GAAP-based~~months ~~measures~~ended toMay ~~adjusted~~31, ~~measures~~2025 ~~for~~and ~~the~~May ~~three~~31, ~~and~~2024 ~~nine~~to ~~months~~the ~~ended~~Company’s ~~November~~consolidated ~~30, 2023.~~totals:

The following tables reconcile the Company’s segment EBITDA results for the three and nine months ended November 30, 2024 and November 30, 2023 to consolidated U.S. GAAP results:


	Three Months Ended
	May 31, 2025		May 31, 2024















Total Segment Adjusted EBITDA	$	26.1	$	22.9
Adjustments (1):
Stock compensation expense	5.7		6.2
Restructuring charges	2.9		7.3
Less:
Corporate general and administrative expense	9.7		12.4
Amortization	5.7		6.4
Impairment of long-lived assets	0.1		3.5




Investment income	(2.9)		(4.0)
Consolidated income (loss) from continuing operations before income taxes	$	4.9	$	(8.9)

	For the Three Months Ended				For the Nine Months Ended
	(in millions)				(in millions)
	November 30, 2024		November 30, 2023		November 30, 2024		November 30, 2023
Total Segment EBITDA	$	46	$	47	$	93	$	129
Adjustments (1):
Stock compensation expense	4		7		16		25
Restructuring expenses	7		9		16		17
Less
Corporate general and administrative expense	9		10		31		24
Amortization	6		7		19		26
Impairment of long-lived assets	1		9		4		9
Prior Debentures fair value adjustment	—		(13)		—		3
Investment income	—		(5)		(8)		(15)
Consolidated income from continuing operations before income taxes	$	19	$	23	$	15	$	40

______________________________

(1) ~~See~~The ~~“Non-GAAP~~CODM ~~Financial~~reviews ~~Measures”~~segment ~~for~~information aon ~~reconciliation~~an ~~of selected U.S. GAAP-based measures to~~ adjusted ~~measures~~EBITDA ~~for~~basis, ~~the~~which ~~three~~excludes ~~and~~certain ~~nine~~amounts ~~months~~as ~~ended~~described ~~November 30, 2024 and November 30, 2023.~~below:

Stock compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company’s management.

Restructuring charges - Restructuring charges relate to employee termination benefits, facilities, streamlining many of the Company’s centralized corporate functions into Secure Communications and QNX specific teams, and other costs pursuant to programs to reduce the Company’s annual expenses amongst R&D, infrastructure and other functions and do not reflect expected future operating expenses, are not indicative of the Company’s core operating performance, and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

Financial Highlights

The Company had $~~266~~381.9 million in cash, cash equivalents and investments as of ~~November~~May 3031, ~~2024~~2025 (February 2928, ~~2024~~2025 - $~~298~~410.3 million).

In the ~~third~~first quarter of fiscal ~~2025~~2026, the Company recognized revenue ~~from continuing operations~~ of $~~143~~121.7 million and ~~incurred a~~ net ~~loss~~income of $111.9 million, or $0.0200 basic and diluted ~~loss~~earnings per share, on a U.S. GAAP basis (~~third~~first quarter of fiscal ~~2024~~2025 - revenue ~~from continuing operations~~ of $~~152~~123.4 million and net loss of $2141.4 million, or $0.0407 basic ~~loss per share~~ and ~~$0.05~~ diluted loss per share).

~~The~~35 Company recognized adjusted net income of $12 million, and adjusted earnings of $0.02 per share, on a non-GAAP basis in the third quarter of fiscal 2025 (third quarter of fiscal 2024 - adjusted net income of $3 million, and adjusted earnings of $0.01 per share). See “Non-GAAP Financial Measures” below.

The Company recognized adjusted net income of $12.3 million, and adjusted earnings of $0.02 per share, on a non-GAAP basis in the first quarter of fiscal 2026 (first quarter of fiscal 2025 - adjusted net loss of $14.3 million, and adjusted loss of 0.02 per share). See “Non-GAAP Financial Measures” below.

Non-GAAP Financial Measures

The Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, and information contained in this MD&A is presented on that basis. On ~~December~~June 1924, ~~2024~~2025, the Company announced financial results for the three ~~and nine~~ months ended ~~November~~May 3031, ~~2024~~2025, which included certain non-GAAP financial measures and non-GAAP ratios, including ~~revenue from continuing and discontinued operation, Cybersecurity revenue from continuing and discontinued operations,~~ adjusted gross margin, adjusted gross margin percentage, ~~Cybersecurity gross margin from continuing and discontinued operations,~~ adjusted ~~gross~~operating ~~margin from continuing and discontinued operations~~expense, adjusted ~~gross~~corporate ~~margin percentage from continuing and discontinued operations, adjusted~~ operating ~~expense~~costs, adjusted corporate operating ~~expense~~costs ~~from~~excluding ~~continuing and discontinued operations~~amortization, adjusted net income (loss), adjusted earnings (loss) per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income (loss), adjusted EBITDA, ~~from~~adjusted ~~continuing~~segment ~~and discontinued operations~~EBITDA, adjusted ~~Cybersecurity~~operating ~~EBITDA~~income ~~from~~(loss) ~~continuing~~margin ~~and~~percentage, ~~discontinued~~adjusted ~~operations~~EBITDA margin percentage and free cash flow (usage).

In the Company’s internal reports, management evaluates the performance of the Company’s business on a non-GAAP basis by excluding the impact of certain items below from the Company’s U.S. GAAP financial results. The Company believes that these non-GAAP financial measures and non-GAAP ratios provide management, as well as readers of the Company’s financial statements, with a consistent basis for comparison across accounting periods and are useful in helping management and readers understand the Company’s operating results and underlying operational trends. Non-GAAP financial measures and non-GAAP ratios exclude certain amounts as described below:

40•Restructuring charges. The Company believes that restructuring charges relating to employee termination benefits, facilities, streamlining many of the Company’s centralized corporate functions into Secure Communications and QNX specific teams, and other costs pursuant to programs to reduce the Company’s annual expenses amongst R&D, infrastructure and other functions do not reflect expected future operating expenses, are not indicative of the Company’s core operating performance, and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

understand the Company’s operating results and underlying operational trends. Non-GAAP financial measures and non-GAAP ratios exclude certain amounts as described below:

•Prior Debentures fair value adjustment. The Company elected to measure the Prior Debentures at fair value in accordance with the fair value option under U.S. GAAP. Each period, the fair value of the Prior Debentures were recalculated and the resulting non-cash income and charges from the change in fair value from non-credit components of the Prior Debentures were recognized in income. The amount varied each period depending on changes to the Company’s share price, share price volatility and credit indices. This was not indicative of the Company’s core operating performance, and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

•Restructuring charges. The Company believes that restructuring costs relating to employee termination benefits, facilities, streamlining many of the Company’s centralized corporate functions into Secure Communications (previously Cybersecurity) and IoT specific teams, and other costs pursuant to programs to reduce the Company’s annual expenses amongst R&D, infrastructure and other functions do not reflect expected future operating expenses, are not indicative of the Company’s core operating performance, and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

•Stock compensation expenses. Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company’s management.

•Amortization of acquired intangible assets. When the Company acquires intangible assets through business combinations, the assets are recorded as part of purchase accounting and contribute to revenue generation. Such acquired intangible assets depreciate over time and the related amortization will recur in future periods until the assets have been fully amortized. This is not indicative of the Company’s core operating performance, and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

•Long-lived asset impairment charge. The Company believes that long-lived asset impairment charges do not reflect expected future operating expenses, are not indicative of the Company’s core operating performance, and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

•Litigation settlements. The Company believes that litigation settlements do not reflect expected future operating expenses, are not indicative of the Company’s core operating performance, and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

On a U.S. GAAP basis, the impacts of these items are reflected in the Company’s income statement. However, the Company believes that the provision of supplemental non-GAAP measures allows investors to evaluate the financial performance of the Company’s business using the same evaluation measures that management uses, and is therefore a useful indication of the Company’s performance or expected performance of future operations and facilitates period-to-period comparison of operating performance. As a result, the Company considers it appropriate and reasonable to provide, in addition to U.S. GAAP measures, supplementary non-GAAP financial measures that exclude certain items from the presentation of its financial results.

4136

Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the three months ended ~~November~~May 3031, ~~2024~~2025 and ~~November~~May 3031, ~~2023~~2024

Readers are cautioned that ~~revenue from continuing and discontinued operation, Cybersecurity revenue from continuing and discontinued operations,~~ adjusted gross margin, adjusted gross margin percentage, ~~Cybersecurity gross margin from continuing and discontinued operations,~~ adjusted ~~gross~~operating ~~margin from continuing and discontinued operations~~expense, adjusted ~~gross~~corporate ~~margin percentage from continuing and discontinued operations, adjusted~~ operating ~~expense~~costs, adjusted corporate operating ~~expense~~costs ~~from~~excluding ~~continuing and discontinued operations~~amortization, adjusted net income (loss), adjusted earnings (loss) per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income (loss), adjusted EBITDA, ~~from~~adjusted ~~continuing~~segment ~~and discontinued operations~~EBITDA, adjusted ~~Cybersecurity~~operating ~~EBITDA~~income ~~from~~(loss) ~~continuing~~margin ~~and~~percentage, ~~discontinued~~adjusted ~~operations~~EBITDA margin percentage and free cash flow (usage) and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies. These non-GAAP financial measures should be considered in the context of the U.S. GAAP results, which are described in this MD&A and presented in the Consolidated Financial Statements.

A reconciliation of the most directly comparable U.S. GAAP financial measures for the three months ended ~~November~~May 3031, ~~2024~~2025 and ~~November~~May 3031, ~~2023~~2024 to adjusted financial measures is reflected in the table below:

For the Three Months Ended (in millions)	~~November~~May 3031, ~~2024~~2025			~~November~~May 3031, ~~2023~~2024
Revenue	$	143		$	152
Gross margin	$	90.3		$	90.0
Cylance revenue	19			23
Stock compensation expense	0.5			0.7
Revenue from continuing and discontinued operations	$	162		$	175
Adjusted gross margin	$	90.8		$	90.7
Secure Communication revenue	$	74		$	91
Gross margin %	74.2		%	72.9		%
Cylance revenue	19			23
Stock compensation expense	0.4		%	0.6		%
Cybersecurity revenue from continuing and discontinued operations	$	93		$	114
Adjusted gross margin %	74.6		%	73.5		%
Gross margin	$	112		$	119
Stock compensation expense	—			1
Adjusted gross margin	$	112		$	120
Gross margin %	78.3		%	78.3		%
Stock compensation expense	—		%	0.6		%
Adjusted gross margin %	78.3		%	78.9		%
Secure Communication gross margin	$	54		$	68
Cylance gross margin	8			10
Cybersecurity gross margin from continuing and discontinued operations	$	62		$	78
Gross margin	$	112		$	119
Cylance gross margin	8			10
Stock compensation expense	—			1
Adjusted gross margin from continuing and discontinued operations	$	120		$	130
Gross margin %	78.3		%	78.3		%
Cylance gross margin	(4.2)		%	(4.6)		%
Stock compensation expense	—		%	0.6		%
Adjusted gross margin % from continuing and discontinued operations	74.1		%	74.3		%

42Reconciliation of U.S. GAAP operating expense for the three months ended May 31, 2025, February 28, 2025 and May 31, 2024 to adjusted operating expense is reflected in the table below:

Reconciliation of U.S. GAAP operating expense for the three months ended November 30, 2024, August 31, 2024 and November 30, 2023 to adjusted operating expense and adjusted operating expense from continuing and discontinued operations is reflected in the table below:


For the Three Months Ended (in millions)	May 31, 2025		February 28, 2025		May 31, 2024
Operating expense	$	88.3	$	112.1	$	102.9
Restructuring charges	2.9		11.4		7.3
Stock compensation expense	5.2		3.9		5.5


Acquired intangibles amortization	1.7		1.7		1.8

LLA impairment charge	0.1		4.9		3.5

Litigation settlement	—		2.8		—
Adjusted operating expense	$	78.4	$	87.4	$	84.8

For the Three Months Ended (in millions)	November 30, 2024		August 31, 2024		November 30, 2023
Operating expense	$	93	$	85	$	101
Restructuring charges	7		1		9
Stock compensation expense	4		4		6
Prior Debentures fair value adjustment	—		—		(13)
Acquired intangibles amortization	2		3		2
LLA impairment charge	1		—		9
Adjusted operating expense	$	79	$	77	$	88
For the Three Months Ended (in millions)	November 30, 2024		August 31, 2024		November 30, 2023
Operating expense	$	93	$	85	$	101
Add:
Cylance operating expenses	31		31		39
Less:
Restructuring charges	7		1		9
Stock compensation expense	4		4		6
Prior Debentures fair value adjustment	—		—		(13)
Acquired intangibles amortization	2		3		2
LLA impairment charge	1		—		9
Cylance stock compensation expense	2		2		1
Cylance acquired intangible amortization	7		6		7
Cylance LLA impairment charge	—		—		2
Adjusted operating expense from continuing and discontinued operations	$	101	$	100	$	117

Reconciliation of U.S. GAAP corporate operating costs for the three months ended May 31, 2025 and May 31, 2024 to adjusted corporate operating costs excluding amortization is reflected in the table below:

Reconciliation of U.S. GAAP net loss and U.S. GAAP basic loss per share for the three months ended November 30, 2024 and November 30, 2023 to adjusted net income and adjusted basic earnings per share is reflected in the table below:


For the Three Months Ended (in millions)	May 31, 2025		May 31, 2024
Corporate operating costs	$	14.9	$	25.4
Restructuring charges	2.9		7.3
Stock compensation expense	1.9		1.3
LLA impairment charge	—		3.5
Adjusted corporate operating costs	10.1		13.3
Amortization	0.4		0.9
Adjusted corporate operating costs excluding amortization	$	9.7	$	12.4

For the Three Months Ended (in millions, except per share amounts)	November 30, 2024				November 30, 2023
			Basic earnings (loss)per share				Basic earnings (loss)per share
Net loss	$	(11)	$	(0.02)	$	(21)	$	(0.04)
Restructuring charges	7				9
Stock compensation expense	6				8
Prior Debentures fair value adjustment	—				(13)
Acquired intangibles amortization	9				9
LLA impairment charge	1				11
Adjusted net income	$	12	$	0.02	$	3	$	0.01

43Reconciliation of U.S. GAAP net income (loss) and U.S. GAAP basic earnings (loss) per share for the three months ended May 31, 2025 and May 31, 2024 to adjusted net income (loss) and adjusted basic earnings (loss) per share is reflected in the table below:

Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the three months ended November 30, 2024 and November 30, 2023 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:


For the Three Months Ended (in millions, except per share amounts)	May 31, 2025				May 31, 2024
			Basic earnings per share				Basic loss per share
















Net income (loss)	$	1.9	$	0.00	$	(41.4)	$	(0.07)







Restructuring charges	2.9				7.3
Stock compensation expense	5.7				7.7


Acquired intangibles amortization	1.7				8.6


LLA impairment charge	0.1				3.5
Adjusted net income (loss)	$	12.3	$	0.02	$	(14.3)	$	(0.02)

For the Three Months Ended (in millions)	November 30, 2024		November 30, 2023
Research and development	$	27	$	29
Stock compensation expense	1		2
Adjusted research and development expense	$	26	$	27
Sales and marketing	$	23	$	25
Stock compensation expense	1		—
Adjusted sales and marketing expense	$	22	$	25
General and administrative	$	38	$	45
Restructuring charges	7		9
Stock compensation expense	2		4
Adjusted general and administrative expense	$	29	$	32
Amortization	$	4	$	6
Acquired intangibles amortization	2		2
Adjusted amortization expense	$	2	$	4

Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the three months ended May 31, 2025 and May 31, 2024 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:


For the Three Months Ended (in millions)	May 31, 2025		May 31, 2024
Research and development	$	25.0	$	30.6

Stock compensation expense	1.3		1.8
Adjusted research and development expense	$	23.7	$	28.8

Sales and marketing	$	28.7	$	23.8
Stock compensation expense	1.4		0.8
Adjusted sales and marketing expense	$	27.3	$	23.0

General and administrative	$	30.5	$	40.3
Restructuring charges	2.9		7.3

Stock compensation expense	2.5		2.9

Adjusted general and administrative expense	$	25.1	$	30.1

Amortization	$	4.0	$	4.7
Acquired intangibles amortization	1.7		1.8
Adjusted amortization expense	$	2.3	$	2.9

~~Adjusted~~38 EBITDA from continuing and discontinued operations, and adjusted Cybersecurity EBITDA from continuing and discontinued operations for the three months ended November 30, 2024 and November 30, 2023 are reflected in the table below. These are non-GAAP financial measures and non-GAAP ratios that do not have any standardized meaning as prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures presented by other companies.

For the Three Months Ended (in millions)	November 30, 2024		November 30, 2023
Net loss	$	(11)	$	(21)
Non-GAAP adjustments to net loss
Restructuring charges	7		9
Stock compensation expense	6		8
Prior Debentures fair value adjustment	—		(13)
Acquired intangibles amortization	9		9
LLA impairment charge	1		11
Total non-GAAP adjustments to net loss	23		24
Amortization	13		14
Acquired intangibles amortization	(9)		(9)
Investment income, net	—		(5)
Provision for income taxes	7		15
Adjusted EBITDA from continuing and discontinued operations	$	23	$	18
For the Three Months Ended (in millions)	November 30, 2024		November 30, 2023
Net loss	$	(11)	$	(21)
Non-GAAP adjustments to net loss
Restructuring charges	7		9
Stock compensation expense	6		8
Prior Debentures fair value adjustment	—		(13)
Acquired intangibles amortization	9		9
LLA impairment charge	1		11
Total non-GAAP adjustments to net loss	23		24
Amortization	13		14
Acquired intangibles amortization	(9)		(9)
Investment income, net	—		(5)
Provision for income taxes	7		15
Less:
IoT Segment EBITDA	18		12
Licensing Segment EBITDA	6		2
Corporate general and administrative expense	(9)		(10)
Adjusted Cybersecurity EBITDA from continuing and discontinued operations	$	8	$	14

Adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the three months ended May 31, 2025 and May 31, 2024 are reflected in the table below. These are non-GAAP financial measures and non-GAAP ratios that do not have any standardized meaning as prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures presented by other companies.


For the Three Months Ended (in millions)	May 31, 2025		May 31, 2024

Operating income (loss)	$	2.0	$	(12.9)
Non-GAAP adjustments to operating income (loss)

Restructuring charges	2.9		7.3
Stock compensation expense	5.7		6.2


Acquired intangibles amortization	1.7		1.8


LLA impairment charge	0.1		3.5


Total non-GAAP adjustments to operating income (loss)	10.4		18.8
Adjusted operating income	12.4		5.9
Amortization	5.7		6.4
Acquired intangibles amortization	(1.7)		(1.8)
Adjusted EBITDA	$	16.4	$	10.5

Revenue	$	121.7	$	123.4
Adjusted operating income margin % (1)	10.2%		4.8%
Adjusted EBITDA margin % (2)	13.5%		8.5%

~~Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the nine months ended November 30, 2024 and November 30, 2023.~~______________________________

For the Nine Months Ended (in millions)	November 30, 2024			November 30, 2023
Gross margin	$	289		$	367
Stock compensation expense	2			3
Adjusted gross margin	$	291		$	370
Gross margin %	73.9		%	60.6		%
Stock compensation expense	0.5		%	0.5		%
Adjusted gross margin %	74.4		%	61.1		%

(1) Adjusted operating income margin % is calculated by dividing adjusted operating income by revenue.

~~Reconciliation~~(2) ofAdjusted ~~U.S.~~EBITDA ~~GAAP~~margin ~~operating~~% ~~expense~~is ~~for~~calculated ~~the~~by ~~nine~~dividing ~~months ended November 30, 2024 and November 30, 2023 to~~ adjusted ~~operating~~EBITDA ~~expense~~by ~~is reflected in the table below:~~revenue.

For the Nine Months Ended (in millions)	November 30, 2024		November 30, 2023
Operating expense	$	282	$	342
Restructuring charges	16		17
Stock compensation expense	14		22
Prior Debentures fair value adjustment	—		3
Acquired intangibles amortization	6		9
LLA impairment charge	4		9
Adjusted operating expense	$	242	$	282

Reconciliation of U.S. GAAP net loss and U.S. GAAP basic loss per share for the nine months ended November 30, 2024 and November 30, 2023 to the adjusted net income (loss) and adjusted basic earnings (loss) per share is reflected in the table below:

For the Nine Months Ended (in millions, except per share amounts)	November 30, 2024				November 30, 2023
			Basic loss per share				Basic earnings (loss) per share
Net loss	$	(72)	$	(0.12)	$	(74)	$	(0.13)
Restructuring charges	16				17
Stock compensation expense	21				28
Prior Debentures fair value adjustment	—				3
Acquired intangibles amortization	26				29
LLA impairment charge	4				11
Adjusted net income (loss)	$	(5)	$	(0.01)	$	14	$	0.02

Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the nine months ended November 30, 2024 and November 30, 2023 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:

For the Nine Months Ended (in millions)	November 30, 2024		November 30, 2023
Research and development	$	85	$	98
Stock compensation expense	4		6
Adjusted research and development expense	$	81	$	92
Sales and marketing	$	68	$	77
Stock compensation expense	2		2
Adjusted sales and marketing expense	$	66	$	75
General and administrative	$	111	$	133
Restructuring charges	16		17
Stock compensation expense	8		14
Adjusted general and administrative expense	$	87	$	102
Amortization	$	14	$	22
Acquired intangibles amortization	6		9
Adjusted amortization expense	$	8	$	13

Adjusted EBITDA from continuing and discontinued operations for the nine months ended November 30, 2024 and November 30, 2023 are reflected in the table below. These are non-GAAP financial measures and non-GAAP ratios that do not have any standardized meaning as prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures presented by other companies.

For the Nine Months Ended (in millions)	November 30, 2024		November 30, 2023
Net loss	$	(72)	$	(74)
Non-GAAP adjustments to operating loss
Restructuring charges	16		17
Stock compensation expense	21		28
Prior Debentures fair value adjustment	—		3
Acquired intangibles amortization	26		29
LLA impairment charge	4		11
Total non-GAAP adjustments to net loss	67		88
Amortization	39		46
Acquired intangibles amortization	(26)		(29)
Investment income, net	(8)		(15)
Provision for income taxes	16		20
Adjusted EBITDA from continuing and discontinued operations	$	16	$	36

The Company uses free cash flow (usage) when assessing its sources of liquidity, capital resources, and quality of earnings. The Company believes that free cash flow (usage) is helpful in understanding the Company’s capital requirements and provides an additional means to reflect the cash flow trends in the Company’s business.

Reconciliation of U.S. GAAP net cash used in operating activities for the three months ended ~~November~~May 3031, ~~2024~~2025 and ~~November~~May 3031, ~~2023~~2024 to free cash flow (usage) is reflected in the table below:

For the Three Months Ended (in millions)	~~November~~May 3031, ~~2024~~2025		~~November~~May 3031, ~~2023~~2024
Net cash provided by (used in) operating activities	$	3	$	(31)
Net cash used in operating activities	$	(18.0)	$	(15.1)
Acquisition of property, plant and equipment	—(0.9)		(21.4)
Free cash flow (usage)	$	3	$	(33)
Free cash usage	$	(18.9)	$	(16.5)

Key Metrics

The Company regularly monitors a number of financial and operating metrics, including the following key metrics, in order to measure the Company’s current performance and estimated future performance. Readers are cautioned that Secure Communications annual recurring revenue (“ARR”), and Secure Communications dollar-based net retention rate (“DBNRR”), ~~and recurring revenue percentage~~ do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies. ~~Each of Cybersecurity ARR, DBNRR, and recurring revenue percentage includes both continuing operations and discontinued operations.~~

Comparative breakdowns of certain key metrics for the three months ended or as at ~~November~~May 3031, ~~2024~~2025 and ~~November~~May 3031, ~~2023~~2024 are set forth below.

For the Three Months Ended (in millions)	~~November~~May 3031, ~~2024~~2025			~~November~~May 3031, ~~2023~~2024			Change
Cybersecurity Annual Recurring Revenue	$	281		$	273		$	8
Secure Communications Annual Recurring Revenue	$	209		$	211		$	(2)
Secure Communications Annual Recurring Revenue	$	215		$	199		$	16
Secure Communications Dollar-Based Net Retention Rate	92		%	93		%	(1		%)
Cybersecurity Dollar-Based Net Retention Rate	90		%	82		%	8		%
Secure Communications Dollar-Based Net Retention Rate	95		%	91		%	4		%
Recurring Software Product Revenue Percentage	80		%	~ 70 %			10		%

~~Annual~~39 ~~Recurring Revenue~~

~~The~~Secure ~~Company~~Communications ~~defines~~Annual ~~ARR~~Recurring asRevenue the annualized value of all subscription, term, maintenance, services, and royalty contracts that generate recurring revenue as of the end of the reporting period. The Company previously used ARR as an indicator of business momentum for the Cybersecurity business and currently uses ARR as an indicator of business momentum for the Secure Communications business.

~~Cybersecurity~~The Company defines ARR ~~was~~as ~~approximately~~the ~~$281 million~~annualized asvalue atof ~~November~~all 30subscription, ~~2024~~term, maintenance, services, and ~~increased~~royalty ~~compared~~contracts tothat ~~$279 million~~generate recurring revenue as atof ~~August~~the ~~31,~~end ~~2024~~of ~~and~~the ~~increased~~reporting ~~compared~~period. toThe ~~$273~~Company ~~million~~uses ARR as atan ~~November~~indicator ~~30,~~of ~~2023.~~business momentum for the Secure Communications business.

Secure Communications ARR was approximately $~~215~~ 209 million as at ~~November~~May 3031, ~~2024~~2025 and increased compared to $~~209~~208 million as at ~~August~~February 3128, ~~2024~~2025 and ~~increased~~decreased compared to $~~199~~211 million as at ~~November~~May 3031, ~~2023~~2024.

Secure Communications Dollar-Based Net Retention Rate

The Company calculates the ~~Cybersecurity and~~ Secure Communications DBNRR as of period end by first calculating the ~~Cybersecurity ARR and~~ Secure Communications ARR, ~~respectively,~~ from the customer base as at 12 months prior to the current period end (“Prior Period ARR”). The Company then calculates the ~~Cybersecurity and~~ Secure Communications ARR for the same cohort of customers as at the current period end (“Current Period ARR”). The Company then divides the Current Period ARR by the Prior Period ARR to calculate the DBNRR.

~~Cybersecurity~~Secure Communications DBNRR was 9092% as at ~~November~~May 3031, ~~2024~~2025 and ~~increased~~decreased compared to 8893% as at ~~August~~February 3128, ~~2024~~2025 and ~~increased compared to 82~~93% as at ~~November~~May 3031, ~~2023~~2024.

~~Secure~~Results ~~Communications~~of ~~DBNRR~~Operations ~~was~~- ~~95%~~Three asmonths atended ~~November~~May 3031, ~~2024~~2025 ~~and increased~~ compared to ~~93%~~the asthree atmonths ~~August~~ended May 31, 2024 ~~and increased compared to 91% as at November 30, 2023.~~

Recurring Software Product Revenue Percentage

The Company defines recurring software product revenue percentage as recurring software product revenue divided by total software and services revenue. Recurring software product revenue is comprised of subscription and term licenses, maintenance arrangements, royalty arrangements and perpetual licenses recognized ratably under ASC 606. Total software and services revenue is comprised of recurring product revenue, non-recurring product revenue and professional services. The Company uses recurring software product revenue percentage to provide visibility into the revenue expected to be recognized in the current and future periods.

Total software and services product revenue, excluding professional services, was approximately 80% recurring for the three months ended November 30, 2024 and was consistent with approximately 80% recurring for the three months ended August 31, 2024 and increased from approximately 70% for the three months ended November 30, 2023 due to product mix.

Results of Operations - Three months ended November 30, 2024 compared to the three months ended November 30, 2023

Revenue

Revenue by Segment

Comparative breakdowns of revenue by segment are set forth below.

	For the Three Months Ended(in millions)
	November 30, 2024			November 30, 2023			Change
	May 31, 2025			May 31, 2024			Change
Revenue by Segment
Secure Communications	$	74		$	91		$	(17)
QNX	$	57.5		$	53.2		$	4.3
IoT	62			55			7
Secure Communications	59.5			64.2			(4.7)
Licensing	4.7			6.0			(1.3)
	$	~~143~~121.7		$	~~152~~123.4		$	(91.7)
% Revenue by Segment
Secure Communications	51.7		%	59.9		%
QNX	47.2		%	43.1		%
IoT	43.4		%	36.2		%
Secure Communications	48.9		%	52.0		%
Licensing	43.9		%	34.9		%
	100.0		%	100.0		%

QNX

The increase in QNX revenue of $4.3 million was primarily due to an increase of $3.4 million in development seat revenue, an increase of $1.7 million in royalty revenue and an increase of $1.2 million in BlackBerry Radar revenue, partially offset by a decrease of $2.0 million in professional services.

The Company previously stated that it expected QNX revenue to be in the range of $51 million to $55 million in the first quarter of fiscal 2026. QNX revenue in the first quarter of fiscal 2026 was $57.5 million due to better than expected development seat revenue.

The Company expects QNX revenue to be in the range of $55 million to $60 million in the second quarter of fiscal 2026.

Secure Communications

The decrease in Secure Communications revenue of $174.7 million was primarily due to a decrease of $173.0 million in Secusmart product revenue inand ~~Secusmart,~~ a decrease of $12.7 million ofin BlackBerry UEM ~~licenses~~product revenue, ~~and~~partially aoffset ~~decrease~~by an increase of $1.0 million in ~~BlackBerry~~professional ~~AtHoc,~~services ~~partially~~and ~~offset by~~ an increase of $20.5 million in ~~professional~~BlackBerry ~~services~~AtHoc.

The Company previously stated that it expected ~~Cybersecurity~~Secure Communications revenue to be in the range of $8650 million to $9054 million in the ~~third~~first quarter of fiscal ~~2025~~2026. ~~Cybersecurity revenue (consisting of~~ Secure Communications ~~plus~~revenue ~~Cylance) was $93 million~~ in the ~~third~~first quarter of fiscal ~~2025,~~2026 ~~higher~~was ~~than~~$59.5 ~~expected~~million primarily due to ~~strong~~a stronger than expected Secusmart product revenue.

~~The~~40 ~~Company expects Secure Communications revenue to be in the range of $62 million to $66 million in the fourth quarter of fiscal 2025.~~

The Company previously stated that it expected ~~Cybersecurity~~Secure Communications revenue to be in the range of $~~345~~230 million to $~~365~~240 million in ~~each~~fiscal of2026. The ~~fiscal~~Company ~~years~~now ~~2026~~expects ~~and~~Secure ~~2027.~~Communications ~~Due~~revenue to be in the ~~reporting~~range of ~~the~~$234 ~~Cylance~~million ~~business~~to as$244 amillion ~~discontinued~~in ~~operation,~~fiscal 2026 due to stronger than expected performance in the ~~Company~~first isquarter ~~retracting~~of ~~this~~the ~~guidance.~~fiscal year and an increase in the pipeline of opportunities.

~~IoT~~The Company expects Secure Communications revenue to be in the range of $54 million to $59 million in the second quarter of fiscal 2026.

The increase in IoT revenue of $7 million was primarily due to an increase of $5 million in BlackBerry QNX royalty revenue, an increase of $2 million in BlackBerry QNX development seat revenue, and an increase of $1 million in BlackBerry Radar, partially offset by a decrease of $2 million in professional services revenue.

The Company previously stated that it expected IoT revenue to be in the range of $56 million to $60 million in the third quarter of fiscal 2025. IoT revenue was $62 million due to stronger than expected BlackBerry QNX royalty revenue.

The Company expects IoT revenue to be in the range of $60 million to $65 million in the fourth quarter of fiscal 2025.

The Company previously stated that it expected IoT revenue to be in the range of $225 million to $235 million in fiscal 2025. The Company now expects IoT revenue to be in the range of $230 million to $235 million in fiscal 2025 due to stronger than expected BlackBerry QNX revenue in the first nine months of fiscal 2025.

The Company expects IoT revenue to be in the range of $260 million to $270 million in fiscal 2026 and to be in the range of $295 million to $305 million in fiscal 2027.

Licensing

The ~~increase~~decrease in Licensing revenue ~~was~~of $1.3 million was primarily due to a decrease in revenue from the Company’s existing intellectual property licensing arrangements.

The Company previously stated that it expected Licensing revenue ~~from intellectual property licensing~~ to be approximately $46 million in each of the four quarters of fiscal ~~2025~~2026. ~~Intellectual~~Licensing ~~property~~revenue ~~licensing~~in ~~revenue~~the first quarter of fiscal 2026 was $4.7 million indue to the ~~third~~reason ~~quarter~~stated ~~of fiscal 2025~~above.

The Company ~~expects~~continues to expect Licensing revenue of $166 million in ~~each~~the ofsecond ~~fiscal~~quarter ~~2026~~of ~~and~~ fiscal ~~2027~~2026.

Total BlackBerry Revenue

The Company previously stated that it expected total BlackBerry revenue to be inapproximately ~~the range of~~ $~~146~~107 million to $~~154~~115 million in the ~~third~~first quarter of fiscal ~~2025~~2026. Total BlackBerry revenue ~~from both continuing and discontinued operations~~ was $~~162~~121.7 million in the ~~third~~first quarter of fiscal ~~2025~~2026, better than expected due to the reasons noted above in “Revenue by Segment”.

The Company expects total BlackBerry revenue ~~from continuing operations~~ to be in the range of $~~126~~115 million to $~~135~~125 million in the ~~fourth~~second quarter of fiscal 2025. The Company previously stated that it expected total BlackBerry revenue to be in the range of $591 million to $616 million in fiscal 2025, to be in the range of $620 million to $650 million in fiscal 2026 ~~and to be in the range of $655 million to $685 million in fiscal 2027~~. Due to the reporting of the Cylance business as a discontinued operation, the Company is retracting this guidance, and expects total BlackBerry revenue from continuing operations to be in the range of $517 million and $526 million for fiscal 2025 as a whole.

The Company previously stated that it expected total BlackBerry revenue to be in the range of $504 million to $534 million in fiscal 2026. The Company now expects total BlackBerry revenue to be in the range of $508 million to $538 million in fiscal 2026 due to the change in expectation for Secure Communications revenue stated above.

Revenue by Geography

Comparative breakdowns of the geographic regions are set forth in the following table:

	For the Three Months Ended(in millions)
	November 30, 2024			November 30, 2023			Change
	May 31, 2025			May 31, 2024			Change
Revenue by Geography
North America	$	6354.8		$	6256.2		$	(1.4)
Europe, Middle East and Africa	5342.5			4743.7			6(1.2)
Other regions	2724.4			4323.5			~~(16)~~0.9
	$	~~143~~121.7		$	~~152~~123.4		$	(91.7)
% Revenue by Geography
North America	4445.10		%	4045.85		%
Europe, Middle East and Africa	3734.09		%	3035.94		%
Other regions	1820.91		%	2819.31		%
	100.0		%	100.0		%

North America Revenue

The ~~increase~~decrease in North America revenue of $1.4 million was primarily due to ana ~~increase~~decrease of $2.2 million in QNX royalty revenue, a decrease of $2.1 million in BlackBerry ~~Radar~~UEM product revenue and a decrease of $0.7 million in professional services, partially offset by aan ~~decrease~~increase of $2.9 million in QNX development seat revenue and an increase of $1.0 million in BlackBerry ~~AtHoc~~Radar.

Europe, Middle East and Africa Revenue

The ~~increase~~decrease in Europe, Middle East and Africa revenue of $61.2 million was primarily due to ana ~~increase~~decrease of $2.9 million relating to Secusmart product revenue, a decrease of $0.5 million in ~~Secusmart~~professional services and a decrease of $0.3 million in BlackBerry UEM product revenue, partially offset by aan ~~decrease~~increase of $2.0 million in ~~BlackBerry~~ QNX royalty revenue, and aan ~~decrease~~increase of $10.7 million in ~~BlackBerry~~QNX ~~UEM~~development ~~license~~seat revenue.

5041

Other Regions Revenue

The ~~decrease~~increase in Other regions revenue of $160.9 million was primarily due to aan ~~decrease~~increase of $251.9 million ~~relating to revenue from the Company’s agreement with the Government of Malaysia~~ in ~~the~~QNX ~~third~~royalty ~~quarter of fiscal 2024 that did not recur~~revenue, partially offset by ana ~~increase~~decrease of $40.5 million in ~~QNX~~BlackBerry ~~royalty~~UEM product revenue, ~~an increase of $2 million in professional services~~ and ana ~~increase~~decrease of $20.3 million in ~~BlackBerry~~professional ~~QNX development seat revenue~~services.

Gross Margin

Consolidated Gross Margin

Consolidated gross margin ~~decreased~~increased by $70.3 million to ~~approximately~~ $~~112~~90.3 million in the ~~third~~first quarter of fiscal ~~2025~~2026 (~~third~~first quarter of fiscal ~~2024~~2025 - $~~119~~90.0 million). The ~~decrease~~increase was primarily due to ~~a decrease in revenue from Secusmart, partially offset by~~ an increase in revenue from ~~BlackBerry UEM and BlackBerry~~ QNX due to the reasons discussed above in “Revenue by Segment”, partially offset by a decrease in revenue from Secure Communications and Licensing revenue, as the cost of sales for most software and services products does not significantly fluctuate based on business volume.

Consolidated Gross Margin Percentage

Consolidated gross margin percentage ~~was~~increased ~~consistent~~by ~~at 78~~1.3% ofto ~~consolidated~~74.2% ~~revenue~~ in the ~~third~~first quarter of fiscal ~~2025~~2026 (~~third~~(first quarter of fiscal ~~2024~~2025 - 7872.39%). The increase was primarily due to a change in mix specifically a higher gross margin contribution from QNX.

~~The~~Gross ~~Company~~Margin ~~previously stated that it expected consolidated gross margin percentage to be 71% in fiscal 2025, 73% in fiscal 2026~~ and ~~74%~~Adjusted inEBITDA ~~fiscal~~by ~~2027. Due to the reporting of the Cylance business as a discontinued operation, the Company is retracting this guidance.~~Segment

~~Gross~~See ~~Margin~~“First Quarter Fiscal 2026 Summary Results of Operations” for information about the Company’s operating segments and ~~EBITDA~~the bybasis ~~Segment~~of operating segment results.

See “Third Quarter Fiscal 2025 Summary Results of Operations” for information about the Company’s operating segments and the basis of operating segment results.


	For the Three Months Ended (in millions)
	QNX									Secure Communications									Licensing									Segment Totals
	May 31,						Change			May 31,						Change			May 31,						Change			May 31,						Change
	2025			2024						2025			2024						2025			2024						2025			2024
Segment revenue	$	57.5		$	53.2		$	4.3		$	59.5		$	64.2		$	(4.7)		$	4.7		$	6.0		$	(1.3)		$	121.7		$	123.4		$	(1.7)
Segment cost of sales	11.2			9.5			1.7			18.1			21.8			(3.7)			1.6			1.4			0.2			30.9			32.7			(1.8)
Segment gross margin	$	46.3		$	43.7		$	2.6		$	41.4		$	42.4		$	(1.0)		$	3.1		$	4.6		$	(1.5)		$	90.8		$	90.7		$	0.1
Segment gross margin %	81		%	82		%	(1		%)	70		%	66		%	4		%	66		%	77		%	(11		%)	75		%	74		%	1		%
Segment research and development	12.4			16.4			(4.0)			11.3			12.3			(1.0)			—			—			—			23.7			28.7			(5.0)
Segment sales and marketing	13.3			10.7			2.6			13.6			12.2			1.4			—			—			—			26.9			22.9			4.0
Segment general and administrative	8.6			8.2			0.4			7.5			9.6			(2.1)			1.6			2.1			(0.5)			17.7			19.9			(2.2)
Less amortization included in the above	0.7			0.5			0.2			0.6			1.0			(0.4)			2.3			2.2			0.1			3.6			3.7			(0.1)
Segment adjusted EBITDA	$	12.7		$	8.9		$	3.8		$	9.6		$	9.3		$	0.3		$	3.8		$	4.7		$	(0.9)		$	26.1		$	22.9		$	3.2

	For the Three Months Ended(in millions)
	Secure Communications									IoT									Licensing									Segment Totals
	November 30,						Change			November 30,						Change			November 30,						Change			November 30,						Change
	2024			2023						2024			2023						2024			2023						2024			2023
Segment revenue	$	74		$	91		$	(17)		$	62		$	55		$	7		$	7		$	6		$	1		$	143		$	152		$	(9)
Segment cost of sales	20			23			(3)			9			8			1			2			1			1			31			32			(1)
Segment gross margin	$	54		$	68		$	(14)		$	53		$	47		$	6		$	5		$	5		$	—		$	112		$	120		$	(8)
Segment gross margin %	73		%	75		%	(2		%)	85		%	85		%	—		%	71		%	83		%	(12		%)	78		%	79		%	(1		%)
Segment research and development	11			12			(1)			16			15			1			—			—			—			27			27			—
Segment sales and marketing	12			15			(3)			11			10			1			—			—			—			23			25			(2)
Segment general and administrative	10			9			1			9			10			(1)			1			6			(5)			20			25			(5)
Less amortization included in the above	1			1			—			1			—			1			2			3			(1)			4			4			—
Segment EBITDA	$	22		$	33		$	(11)		$	18		$	12		$	6		$	6		$	2		$	4		$	46		$	47		$	(1)

QNX

The increase in QNX gross margin of $2.6 million was primarily due to the reasons discussed above in “Revenue by Segment”.

The decrease in QNX gross margin percentage of 1% was primarily due to an increase in cost of sales related to BlackBerry Radar hardware devices.

The increase in QNX adjusted EBITDA of $3.8 million was primarily due to the reasons discussed above in “Revenue by Segment” and a benefit from claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund (“SIF”) program’s investment in QNX.

The Company previously stated that it expected QNX adjusted EBITDA to be in the range of $2 million to $6 million in the first quarter of fiscal 2026. QNX adjusted EBITDA was $12.7 million in the first quarter of fiscal 2026 due to the reasons discussed above.

The Company expects QNX adjusted EBITDA to be in the range of $10 million to $13 million in the second quarter of fiscal 2026.

Secure Communications

The decrease in Secure Communications gross margin of $141.0 million was primarily due to the reasons discussed above in “Revenue by Segment”.

The ~~decrease~~increase in Secure Communications gross margin percentage of 24% was primarily due to a ~~decrease~~change in ~~revenue from Secusmart~~mix, ~~which~~specifically ~~had~~an aincreased ~~higher~~ gross margin ~~percentage~~contribution infrom ~~the~~Secusmart ~~third~~software ~~quarter of fiscal 2024 due to revenue recognized on the Company’s agreement with the Government of Malaysia that did not recur~~licenses.

The ~~decrease~~increase in Secure Communications adjusted EBITDA of $110.3 million was primarily due to ~~the~~a ~~reasons~~decrease ~~discussed above~~ in ~~“Revenue~~salaries byand ~~Segment”~~benefits expense, partially offset by ~~the~~a ~~decreases~~decrease in ~~salaries~~revenue ~~and~~due ~~benefits~~to ~~expense~~the inreasons ~~research~~discussed ~~and~~above ~~development~~in ~~and~~“Revenue ~~sales~~by ~~and marketing~~Segment”.

51The Company previously stated that it expected Secure Communications adjusted EBITDA to be in the range of $3 million to $6 million in the first quarter of fiscal 2026. Secure Communications adjusted EBITDA was $9.6 million in the first quarter of fiscal 2026 due to revenue exceeding the top end of the Company’s expected range.

~~Cybersecurity~~The ~~gross~~Company ~~margin~~previously ~~(consisting~~stated that it expected Secure Communications adjusted EBITDA to be in the range of $34 million to $44 million in fiscal 2026. The Company now expects Secure Communications ~~plus~~adjusted ~~Cylance)~~EBITDA ~~was~~to ~~67%~~be in the ~~third~~range of $37 million to $47 million in fiscal 2026 due to stronger than expected performance in the first quarter of the fiscal ~~2025~~year and an increase in the pipeline of opportunities.

The Company expects Secure Communications adjusted EBITDA to be ~~approximately~~in the range of $523 million ~~for~~to ~~fiscal~~$6 ~~2025~~million asin athe ~~whole.~~second quarter of fiscal 2026.

The Company previously stated that Cybersecurity segment EBITDA was expected to be $0 in fiscal 2025 as a whole, in the range of $25 million to $35 million in fiscal 2026 and in the range of $30 million to $40 million in fiscal 2027. Due to the reporting of the Cylance business as a discontinued operation, the Company is retracting this guidance.

The Company previously stated that Cybersecurity segment gross margin was expected to be 62% in fiscal 2025, 65% in fiscal 2026 and 66% in fiscal 2027. Due to the reporting of the Cylance business as a discontinued operation, the Company is retracting this guidance.

IoT

The increase in IoT gross margin of $6 million was primarily due to the reasons discussed above in “Revenue by Segment”.

IoT gross margin percentage of 85% was consistent with the third quarter of fiscal 2024.

The increase in IoT EBITDA of $6 million was primarily due to the reasons discussed above in “Revenue by Segment”.

The Company expects IoT EBITDA to be in the range of $40 million to $45 million in fiscal 2025, $55 million to $65 million in fiscal 2026, and $75 million to $80 million in fiscal 2027.

The Company expects IoT EBITDA margin percentage to be approximately 18% in fiscal 2025, 22% in fiscal 2026 and 26% in fiscal 2027.

Licensing

The decrease in Licensing gross margin of $1.5 million was ~~consistent~~primarily ~~with~~due to the ~~third~~reasons ~~quarter~~discussed ofabove ~~fiscal~~in ~~2024~~“Revenue by Segment”.

The decrease in Licensing gross margin percentage of 1211% was due to anthe ~~increase~~same inreason ~~patent~~discussed ~~amortization expense included in cost of sales~~above.

The ~~increase~~decrease in Licensing adjusted EBITDA of $40.9 million was primarily due to the reasons discussed above in “Revenue by Segment”, partially offset by a decrease in legal expense.

The Company ~~expects~~previously stated that it expected Licensing adjusted EBITDA ~~margin~~to ~~percentage~~be approximately $20 million in fiscal 2026 and to be approximately ~~65%~~$5 million in each of ~~fiscal~~the ~~2025,~~four quarters of fiscal 2026. ~~and~~Licensing adjusted EBITDA was $3.8 million in the first quarter of fiscal ~~2027~~2026.

52The Company expects Licensing adjusted EBITDA to be approximately $5 million in the second quarter of fiscal 2026.

Operating Expenses

The table below presents a comparison of research and development, sales and marketing, general and administrative, and amortization expenses for the quarter ended ~~November~~May 3031, ~~2024~~2025, compared to the quarter ended ~~August~~February 3128, ~~2024~~2025 and the quarter ended ~~November~~May 3031, ~~2023~~2024. The Company believes it is meaningful to provide a sequential comparison between the ~~third~~first quarter of fiscal ~~2025~~2026 and the ~~second~~fourth quarter of fiscal 2025.

For the Three Months Ended(in millions)

November 30, 2024

August 31, 2024

November 30, 2023

May 31, 2025

February 28, 2025

May 31, 2024

Revenue

~~143~~121.7

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