BlackBerry Limited
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ITEM 1. BUSINESS
The Company: A heritage of innovation
Founded in 1984, the Company equips, leading automakers, governments and regulated industries with secure, reliable software that drives productivity, resilience and mission-critical performance. Based in Waterloo, Ontario, the Company has two core divisions, QNX and Secure Communications, each addressing large and growing market opportunities.
The Company’s QNX division develops safe, reliable software for embedded systems across technology-driven industries, including automotive, medical devices, robotics, and industrial automation. The world’s leading automotive OEMs and Tier 1 suppliers rely on QNX® technology, which enables more than 275 million vehicles.
The Company’s Secure Communications division delivers operational resiliency with a government-grade portfolio of secure, certified solutions for mobile fortification, critical communications and crisis management.
The Company was incorporated under the Business Corporations Act (Ontario) and has amalgamated with several of its wholly-owned subsidiaries, the last occurring through the filing of articles of amalgamation on November 4, 2013. The Company’s common shares trade under the ticker symbol “BB” on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”).
Intercorporate Relationships
The Company has four material subsidiaries, all of which are wholly-owned, directly or indirectly, by the Company in each case as at February 28, 2026.
| Name of Subsidiary | Jurisdiction of Incorporation or Organization | ||||||
| BlackBerry Corporation | Delaware, U.S.A. | ||||||
| BlackBerry UK Limited | England and Wales | ||||||
| Secusmart GmbH | Duesseldorf, Germany | ||||||
| BlackBerry Singapore Pte. Limited | Singapore | ||||||
Industry Background
QNX
At an increasing rate, people and systems are being intelligently connected at the edge. This evolution is driven by the proliferation of Internet‑connected devices, advances in compute power, and increasingly sophisticated software capable of enabling real‑time, contextual decision‑making directly on the device. A wide range of industries are undergoing profound transformation as intelligent edge systems unlock new levels of capability, autonomy, and operational efficiency. The Company believes the benefits of the intelligent edge, such as enhanced security, reduced latency, improved reliability, and greater efficiency, will make it a foundational pillar of the digital ecosystem for years to come.
This evolution is further accelerated by increasing connectivity, declining sensor and hardware costs, and continuous innovation in harnessing real‑time edge data. Organizations are increasingly deploying applications that depend on immediate insights to generate dynamic, responsive outputs. They also look to deploy secure, over‑the‑air updates to devices in the field, allowing them to scale, evolve, and adapt to changing customer needs and emerging regulatory requirements.
Among intelligent edge architectures, the automotive industry is the clear leader today, driven by the rapid rise of software‑defined vehicles (“SDVs”). As the most complex robots in wide use currently, SDVs illustrate the escalating intelligence, connectivity, and safety expectations placed on edge systems. Advancements such as the shift from microcontrollers to high‑performance microprocessors, the consolidation of distributed ECUs into centralized compute platforms, and the exponential growth of in‑vehicle data have made powerful, safety‑certified foundational software indispensable for OEMs and Tier 1 suppliers seeking to innovate and monetize vehicle capabilities throughout the product lifecycle.
Similar requirements are now taking hold across other verticals, including industrial automation, healthcare, robotics, and physical artificial intelligence (“AI”), where organizations increasingly demand SDV‑level capabilities. As these industries adopt more autonomous, data‑driven, and software‑defined operating models, the need for a safe, reliable, high‑performance platform is becoming highly relevant for them as well.
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The Company believes it is uniquely positioned to lead this cross‑industry shift toward software‑defined edge systems. Its QNX platform, proven over decades in demanding, mission‑critical environments, delivers the reliability, security, safety and real‑time performance these emerging architectures require. With a mature, scalable technology stack designed for mixed‑criticality workloads, the Company offers a strong foundation for customers building the next generation of intelligent, connected edge products across automotive and other rapidly advancing industries.
Secure Communications
The secure communications industry is a critical component of the broader security software market, encompassing a wide range of solutions designed to safeguard sensitive voice, messaging, and data transmissions from unauthorized interference. The escalating frequency and sophistication of cyberattacks, highlighted by high‑profile incidents such as those attributed to the Salt Typhoon group, continue to expose weaknesses in traditional communication networks and reinforce the demand for hardened, security‑led communication platforms.
At the same time, accelerating digital transformation, the rise of mobile and decentralized workforces, and the global expansion of privacy and data protection regulations are driving organizations to reevaluate how and where their sensitive communications are handled. As concerns over data sovereignty intensify, many industries are shifting back toward on‑premise and sovereign‑controlled deployment models to ensure that critical information remains within their jurisdictional and regulatory boundaries. This trend is further increasing the reliance on secure communications solutions that can deliver strong encryption, controlled data residency, and guaranteed operational resilience, without compromising performance or usability.
Secure Voice, Messaging and Conferencing
Governments, militaries, and enterprises operate in dynamic environments where the confidentiality, integrity, and availability of communications are crucial. Secure voice, messaging, and conferencing systems ensure that sensitive information is transmitted and received without unauthorized interception or access. For governments and militaries, this is vital for national security, operational integrity, and the protection of classified information. For enterprises, secure communications are relied upon to safeguard intellectual property, financial data, and personal information of employees and partners. By implementing secure voice, messaging, and conferencing solutions, these entities can foster trust, ensure compliance with regulatory requirements, and maintain the privacy of their strategic communications.
Critical Events Management
Critical events management solutions enable organizations to prepare for, respond to, and recover from a wide range of emergencies and crises. These solutions are essential for maintaining operational continuity, ensuring community safety, and minimizing the impact of unexpected events through networked mass communications in real time.
In an era of growing concern over severe climate-related events, escalating geopolitical tensions, and supply chain insecurity, governments and other large organizations are investing in solutions to elevate preparedness and heighten proactive engagement.
Unified Endpoint Management
Unified endpoint management (UEM) solutions have become integral to modern enterprise mobility and security strategies. UEM platforms offer a centralized approach to managing and securing a diverse fleet of devices, applications, and content. They enable organizations to protect data, enforce security policies, and provide secure access to corporate resources from any location.
Demand for UEM solutions is driven by the challenges of managing a growing fleet of endpoints while ensuring data security and compliance with regulations. Key trends include the integration of artificial intelligence and machine learning to enhance device management capabilities, the adoption of Bring Your Own Device policies to improve employee productivity, and the shift towards cloud-based UEM solutions for greater scalability and flexibility.
Products and Services: Addressing market needs and opportunities
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 divisions: QNX, Secure Communications and Licensing.
QNX
The QNX division consists of QNX®, BlackBerry Radar® and BlackBerry® Certicom®.
With 45 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 models, all without sacrificing safety, security and reliability. QNX is a trusted supplier of operating systems, hypervisors, middleware and development tools that help reduce hardware
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dependency while enabling new possibilities in high-performance computing, standards-based virtualization technologies, and cloud enablement.
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 (RTOS), 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 to reduce time to market and developer friction.
QNX and Vector Informatik GmbH recently introduced Alloy Kore™, a foundational vehicle software platform designed to simplify and accelerate the development of software-defined vehicles. Alloy Kore integrates QNX’s safety-certified RTOS and virtualization capabilities and Vector’s safe middleware modules to deliver a lightweight, scalable foundation for deploying applications across vehicle domains.
QNX is also a preferred supplier of embedded systems for companies building medical devices, robotics, physical AI solutions, rail systems, industrial automation solutions, aerospace and defence systems, and other mission-critical applications. QNX solutions offer the performance, determinism, and trust necessary to enable physical AI systems, being autonomous systems that engage with and act in the real world, powering them to run safely, predictably and at scale. QNX collaborates closely with customers to understand their specific requirements and more quickly and effectively develop solutions to meet their evolving needs. Approximately 20% of QNX revenue is derived from non-automotive embedded systems as of Fiscal 2026.
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 deliver end-to-end security with managed public key infrastructure, code signing, and other applied cryptography and key management solutions.
The QNX division also provides engineering consulting services, including services to assist OEM customers to bring their products to market on time, as well as services to ensure compliance with relevant functional safety standards.
Secure Communications
The Secure Communications division consists of BlackBerry SecuSUITE, BlackBerry UEM and BlackBerry AtHoc.
BlackBerry SecuSUITE is a certified, multi-OS voice, messaging and file-sharing solution with advanced encryption, anti-eavesdropping and continuous authentication capabilities, providing a maximum level of security on conventional mobile devices for classified and restricted government use.
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 AtHoc is a secure, networked crisis communications platform that enables people, devices and organizations to exchange information in real time during business continuity and emergency operations, promoting public safety and protecting critical infrastructure. The platform securely connects with a diverse set of endpoints to distribute mass notifications, improve personnel accountability and facilitate the bidirectional collection and sharing of data within and between organizations.
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.
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Licensing
The Licensing division is responsible for the management and monetization of the Company’s global patent portfolio. 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 portfolio provides a competitive advantage in the Company’s core product areas and generates revenue through patent licensing, sales and enforcement activities. As of February 28, 2026, the Company owned approximately 6,100 worldwide patents and applications.
Go to Market
The Company generates revenue primarily from the licensing of enterprise software and the sale of associated services, including QNX embedded software platforms, Secure Communications solutions, and technology licensing. The Company’s go‑to‑market strategy supports both perpetual and subscription‑based business models, providing commercial flexibility while supporting recurring and usage‑based revenue streams.
The Company focuses on regulated industries with vertical‑specific use cases, including automotive, government, financial services, transportation, and healthcare, as well as adjacent markets requiring high‑performance embedded software platforms, such as robotics, medical devices, and industrial automation (the “General Embedded Market” or “GEM”).
QNX
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read together with the consolidated financial statements and the accompanying notes (the “Consolidated Financial Statements”) of BlackBerry Limited, for the fiscal year ended February 28, 2026. The Consolidated Financial Statements are presented in U.S. dollars and have been prepared in accordance with U.S. GAAP. All financial information in this MD&A is presented in U.S. dollars, unless otherwise indicated.
Readers should carefully review Part I, Item 1A “Risk Factors” and other documents filed by the Company from time to time with the Securities and Exchange Commission (“SEC”) and other securities regulators. A number of factors may materially affect our business, financial condition, operating results and prospects. These factors include but are not limited to those set forth in Part I, Item 1A “Risk Factors” and elsewhere in this Annual Report on Form 10-K. Any one of these factors, and other factors that we are unaware of, or currently deem immaterial, may cause our actual results to differ materially from recent results or from our anticipated future results. Please refer to our MD&A included in our Annual Report on 10-K for the fiscal year ended February 28, 2025 for a comparative discussion of our fiscal 2025 financial results as compared to our fiscal 2024 financial results, which is incorporated herein by reference. Additional information about the Company can be found on SEDAR+ at www.sedarplus.ca and on the SEC’s website at www.sec.gov.
Cylance Sale
On February 3, 2025, the Company completed the sale of its Cylance endpoint security assets and related liabilities to Arctic Wolf Networks, Inc. (“Arctic Wolf”) for $160.0 million of cash, subject to certain adjustments of approximately $42.1 million, and 5.5 million common shares of Arctic Wolf. As a result of the Cylance sale, it is no longer reported alongside UEM, SecuSUITE and AtHoc as the Cybersecurity segment. Effective from the fiscal year ended February 28, 2025, those three businesses are reported separately from Cylance as the Secure Communications segment. The financial results of Cylance are presented as discontinued operations and are included in “loss from discontinued operations, net of tax” in the Consolidated Statements of Operations. For a discussion on “loss from discontinued operations, net of tax” for the fiscal year ended February 28, 2025 compared to our fiscal 2024 financial results, please refer to our MD&A included in our Annual Report on 10-K for the fiscal year ended February 28, 2025, which is incorporated herein by reference.
Cautionary Note Regarding Forward-Looking Statements
This Annual Report on Form 10-K 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 patent new innovations;
•the Company’s expectations with respect to its total and segment revenue and adjusted EBITDA, adjusted Corporate operating costs, non-GAAP EPS and operating cash flow in the first quarter of fiscal 2027 and for fiscal 2027 as a whole;
•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 Annual Report on Form 10-K, including in the sections in Part I, Item 1 “Business” entitled “The Company: A heritage of innovation”, “Industry Background - QNX”, “Competition and Competitive Strengths - QNX”, “Intellectual Property” and “Human Capital”, and in the sections of this MD&A entitled, “Results of Operations - Fiscal year ended February 28, 2026 compared to fiscal year ended February 28, 2025 - Revenue - Revenue by Segment”, “Results of Operations - Fiscal year ended February 28, 2026 compared to fiscal year ended February 28, 2025 - Gross Margin and Adjusted EBITDA by Segment”, “Results of Operations - Fiscal year ended February 28, 2026 compared to fiscal year ended February 28, 2025 - Operating Expenses - General and Administrative Expenses”, “Results of Operations - Fiscal year ended February 28, 2026 compared to fiscal year ended February 28, 2025 - Net Income (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 this Annual Report on Form 10-K.
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
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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 this Annual Report on Form 10-K.
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.
Business Overview
The Company provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the Company’s high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, the Company delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management. The Company’s common shares trade under the ticker symbol “BB” on the New York Stock Exchange and the Toronto Stock Exchange. The Company was incorporated under the Business Corporations Act (Ontario) on March 7, 1984.
The Company has continued to execute on its strategy in fiscal 2026 and announced the following significant achievements:
Products and Innovation:
•QNX announced that more than 275 million vehicles on the road are being powered by QNX’s embedded technology;
•QNX launched QNX Hypervisor 8.0, built on the next-generation SDP 8.0 architecture, facilitating high-performance virtualization of multiple operating systems on a single system-on-a-chip;
•QNX launched its foundational, safety-certified QNX OS for Safety 8.0 to streamline the development and certification of safety- and security-critical embedded systems;
•QNX SDP 8.0 was updated to add support for AMD Ryzen Embedded x86 processors;
•BlackBerry became the first Mobile Device Management (MDM) vendor to achieve BSI certification for BlackBerry UEM deployment with Apple Indigo and Samsung Knox;
•BlackBerry AtHoc became the first critical event management provider to achieve FedRAMP High authorization; and
•BlackBerry announced the expansion of BlackBerry SecuSUITE to Windows devices, extending sovereign-grade protection across the digital workplace.
Customers and Partners:
•Mercedes-Benz among automakers trialing early access version of QNX and Vector’s Alloy Kore platform;
•QNX technology to be integrated in BMW Group's next-generation ‘Neue Klasse’ software-defined vehicle architecture;
•QNX and NVIDIA announced general availability of NVIDIA DRIVE AGX Thor development kit, integrated with QNX OS for Safety 8 to enable developers to accelerate development of next-generation autonomous drive systems;
•QNX and Haleytek were chosen to enable software-defined audio using QNX Sound for the Volvo EX60 electric SUV;
•Leapmotor selected QNX technology as the foundation of its intelligent digital cockpit and autonomous drive domain controllers in its new B10 electric SUV;
•WeRide launched its next-generation ADAS platform for L2++ autonomous drive, built upon QNX OS for Safety;
•QNX announced that a leading Chinese automaker selected QNX Sound for their luxury EV lineup;
•Direct ChassisLink Inc (DCLI) announced the deployment of BlackBerry Radar across 100,000 chassis;
•BlackBerry, Global Affairs Canada, and Toronto Metropolitan University’s Rogers Cybersecure Catalyst expanded cybersecurity training in Malaysia;
•BlackBerry and Universiti Kebangsaan Malaysia announced a strategic partnership to advance Malaysia's future cyber-defenders and embedded software talent; and
•Malaysia expanded the deployment of BlackBerry Secure Communications software for the 46th and 47th ASEAN Summits.
Strategy and Governance:
•BlackBerry appointed Barry Mainz to its Board of Directors;
•BlackBerry appointed John Wall as President of QNX Division; and
•BlackBerry announced a share buyback program for the repurchase of up to 27,855,153 of its common shares.
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Fiscal 2026 Summary Results of Operations
The following table sets forth certain consolidated statements of operations data for the fiscal years ended February 28, 2026, February 28, 2025 and February 29, 2024:
As at and for the Fiscal Years Ended (in millions, except for share and per share amounts) | |||||||||||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | Change | February 29, 2024 | Change | |||||||||||||||||||||||||
| Revenue | $ | 549.1 | $ | 534.9 | $ | 14.2 | $ | 759.1 | $ | (224.2) | |||||||||||||||||||
| Gross margin | 418.2 | 394.9 | 23.3 | 490.7 | (95.8) | ||||||||||||||||||||||||
| Operating expenses | 369.9 | 394.1 | (24.2) | 479.7 | (85.6) | ||||||||||||||||||||||||
| Investment income, net | 10.7 | 7.7 | 3.0 | 18.8 | (11.1) | ||||||||||||||||||||||||
| Income before income taxes | 59.0 | 8.5 | 50.5 | 29.8 | (21.3) | ||||||||||||||||||||||||
| Provision for income taxes | 5.8 | 17.0 | (11.2) | 24.2 | (7.2) | ||||||||||||||||||||||||
| Income (loss) from continuing operations | 53.2 | (8.5) | 61.7 | 5.6 | (14.1) | ||||||||||||||||||||||||
Loss from discontinued operations (1) | — | (70.5) | 70.5 | (135.8) | 65.3 | ||||||||||||||||||||||||
| Net income (loss) | $ | 53.2 | $ | (79.0) | $ | 132.2 | $ | (130.2) | $ | 51.2 | |||||||||||||||||||
| Earnings (loss) per share - reported | |||||||||||||||||||||||||||||
| Basic | $ | 0.09 | $ | (0.13) | $ | (0.22) | |||||||||||||||||||||||
| Diluted | $ | 0.09 | $ | (0.13) | $ | (0.22) | |||||||||||||||||||||||
| Weighted-average number of shares outstanding (000’s) | |||||||||||||||||||||||||||||
| Basic | 592,251 | 591,470 | 584,543 | ||||||||||||||||||||||||||
Diluted (2) | 597,585 | 591,470 | 592,497 | ||||||||||||||||||||||||||
______________________________
(1)As a result of the Cylance sale, it is no longer reported alongside UEM, SecuSUITE and AtHoc as the Cybersecurity segment. Effective from the fiscal year ended February 28, 2025, those three businesses are reported separately from Cylance as the Secure Communications segment. The financial results of Cylance are presented as “loss from discontinued operations, net of tax” in the Consolidated Statements of Operations.
(2)Diluted earnings (loss) per share on a U.S. GAAP basis for fiscal 2026, 2025 and 2024 do not include the dilutive effect of the Debentures (as defined below in “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 fiscal 2025 does not include the dilutive effect of stock-based compensation as to do so would be anti-dilutive. See Note 9 to the Consolidated Financial Statements for the fiscal year ended February 28, 2026 for calculation of the dilutive weighted average number of shares outstanding.
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The following section sets forth certain consolidated statements of operations data for the three months ended February 28, 2026, February 28, 2025 and February 29, 2024:
For the Three Months Ended (in millions, except for share and per share amounts) | |||||||||||||||||||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | Change | February 29, 2024 | Change | |||||||||||||||||||||||||||||||||
| Revenue | $ | 156.0 | $ | 141.7 | $ | 14.3 | $ | 152.9 | $ | (11.2) | |||||||||||||||||||||||||||
| Gross margin | 121.4 | 104.1 | 17.3 | 122.2 | (18.1) | ||||||||||||||||||||||||||||||||
| Operating expenses | 98.5 | 112.1 | (13.6) | 134.7 | (22.6) | ||||||||||||||||||||||||||||||||
| Investment income, net | 3.0 | 1.6 | 1.4 | 4.0 | (2.4) | ||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 25.9 | (6.4) | 32.3 | (8.5) | 2.1 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 1.6 | 1.4 | 0.2 | 3.9 | (2.5) | ||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | 24.3 | (7.8) | 32.1 | (12.4) | 4.6 | ||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations (1) | — | 0.4 | (0.4) | (43.8) | 44.2 | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 24.3 | $ | (7.4) | $ | 31.7 | $ | (56.2) | $ | 48.8 | |||||||||||||||||||||||||||
| Earnings (loss) per share - reported | |||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.04 | $ | (0.01) | $ | 0.05 | $ | (0.10) | $ | 0.09 | |||||||||||||||||||||||||||
Diluted (2) | $ | 0.04 | $ | (0.01) | $ | 0.05 | $ | (0.10) | $ | 0.09 | |||||||||||||||||||||||||||
| Weighted-average number of shares outstanding (000’s) | |||||||||||||||||||||||||||||||||||||
| Basic | 588,783 | 594,267 | 587,523 | ||||||||||||||||||||||||||||||||||
Diluted (2) | 643,613 | 594,267 | 587,523 | ||||||||||||||||||||||||||||||||||
______________________________
(1)As a result of the Cylance sale, it is no longer reported alongside UEM, SecuSUITE and AtHoc as the Cybersecurity segment. Effective from the fiscal year ended February 28, 2025, those three businesses are reported separately from Cylance as the Secure Communications segment. The financial results of Cylance are presented as “loss from discontinued operations, net of tax” in the Consolidated Statements of Operations.
(2)Diluted loss per share on a U.S. GAAP basis in the fourth quarters of 2025 and 2024 do not include the dilutive effect of the Debentures as to do so would be anti-dilutive. Diluted loss per share on a U.S. GAAP basis in the fourth quarters of 2025 and 2024 do not include the dilutive effect of stock-based compensation as to do so would be anti-dilutive.
The following tables show information by operating segments for the three months and years ended February 28, 2026 and February 28, 2025. The Company reports segment information in accordance with U.S. GAAP, pursuant to the Financial Accounting Standards 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 tables include the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA, a non-GAAP financial measure, which excludes amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment charge. For the three months and year ended February 28, 2026, the Company presented segment adjusted EBITDA results excluding amortization in segment research and development, segment sales and marketing and segment general and administrative to align to the operating expense presentation on the Consolidated Statement of Operations. For purposes of comparability, the Company’s segment adjusted EBITDA for the three months and years ended February 28, 2025 and February 29, 2024 have been updated to conform to the current year’s presentation.
See Note 13 to the Consolidated Financial Statements for a description of the Company’s operating segments.
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For the Three Months Ended (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QNX | Secure Communications | Licensing | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| February 28, | Change | February 28, | Change | February 28, | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment revenue | $ | 78.7 | $ | 65.8 | $ | 12.9 | $ | 72.5 | $ | 67.3 | $ | 5.2 | $ | 4.8 | $ | 8.6 | $ | (3.8) | |||||||||||||||||||||||||||||||||||||||||||
| Segment cost of sales | 12.2 | 11.1 | 1.1 | 20.3 | 24.5 | (4.2) | 1.5 | 1.6 | (0.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment adjusted gross margin | $ | 66.5 | $ | 54.7 | $ | 11.8 | $ | 52.2 | $ | 42.8 | $ | 9.4 | $ | 3.3 | $ | 7.0 | $ | (3.7) | |||||||||||||||||||||||||||||||||||||||||||
| Segment research and development | 19.6 | 12.9 | 6.7 | 12.3 | 9.0 | 3.3 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment sales and marketing | 17.0 | 14.4 | 2.6 | 12.9 | 12.0 | 0.9 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment general and administrative | 8.5 | 8.2 | 0.3 | 7.5 | 9.2 | (1.7) | (1.5) | 7.1 | (8.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less amortization included in segment cost of sales | — | — | — | — | — | — | 1.5 | 1.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment adjusted EBITDA (1) | $ | 21.4 | $ | 19.2 | $ | 2.2 | $ | 19.5 | $ | 12.6 | $ | 6.9 | $ | 6.3 | $ | 1.4 | $ | 4.9 | |||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QNX | Secure Communications | Licensing | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Feb 28 | Feb 29 | Change | Feb 28 | Feb 29 | Change | Feb 28 | Feb 29 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment revenue | $ | 65.8 | $ | 65.9 | $ | (0.1) | $ | 67.3 | $ | 71.6 | $ | (4.3) | $ | 8.6 | $ | 15.4 | $ | (6.8) | |||||||||||||||||||||||||||||||||||||||||||
| Segment cost of sales | 11.1 | 9.7 | 1.4 | 24.5 | 18.9 | 5.6 | 1.6 | 1.4 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment adjusted gross margin | $ | 54.7 | $ | 56.2 | $ | (1.5) | $ | 42.8 | $ | 52.7 | $ | (9.9) | $ | 7.0 | $ | 14.0 | $ | (7.0) | |||||||||||||||||||||||||||||||||||||||||||
| Segment research and development | 12.9 | 15.8 | (2.9) | 9.0 | 11.5 | (2.5) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment sales and marketing | 14.4 | 12.3 | 2.1 | 12.0 | 13.4 | (1.4) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment general and administrative | 8.2 | 10.4 | (2.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-04-02 | GIAMATTEO JOHN JOSEPH | CEO & President, Secure Comm. | Sell | -27,066 | $3.56 | -$96,355 |
| 2026-04-02 | Foote Tim | Chief Financial Officer | Sell | -2,468 | $3.56 | -$8,786 |
| 2026-04-04 | Foote Tim | Chief Financial Officer | Sell | -6,762 | $3.56 | -$24,073 |
| 2026-04-02 | Armstrong-Owen Jennifer | Sr VP & Chief People Officer | Sell | -2,888 | $3.56 | -$10,281 |
| 2026-04-04 | Armstrong-Owen Jennifer | Sr VP & Chief People Officer | Sell | -29,908 | $3.56 | -$106,472 |
| 2026-04-02 | Kurtz Philip S. | CLO & Corp. Secretary | Sell | -4,079 | $3.56 | -$14,521 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-09-24 10-Q expected by 2026-10-09 (in 91 days)
- ~2026-12-18 10-Q expected by 2027-01-02 (in 176 days)
- ~2027-04-09 10-K expected by 2027-05-06 (in 288 days)
- ~2027-06-24 10-Q expected by 2027-07-09 (in 364 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-04-09 10-K Annual Report
- 2026-04-09 8-K Earnings Release; Financial Statements and Exhibits
- 2025-12-19 10-Q Quarterly Report
- 2025-12-18 8-K Earnings Release; Financial Statements and Exhibits
- 2025-11-18 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-09-25 10-Q Quarterly Report
- 2025-09-25 8-K Earnings Release; Financial Statements and Exhibits
- 2025-08-27 8-K Officer/Director Change; Regulation FD Disclosure
- 2025-06-25 10-Q Quarterly Report
- 2025-06-24 8-K Earnings Release; Financial Statements and Exhibits
- 2025-04-07 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-04-02 10-K Annual Report
- 2025-04-02 8-K Earnings Release; Financial Statements and Exhibits
- 2025-03-06 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-02-03 8-K Completion of Acquisition/Disposition; Other Events; Financial Statements and Exhibits