BlackBerry Ltd Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Todd Coupland - CIBC Capital Markets - Analyst : Appreciate the additional disclosure. I was wondering if you could -- This is a small adjustment question. The EBITDA by segment and for the guide, is that ex corporate costs? That'd be the first question. And then my follow-up is just give us a bridge to what is very strong segmented EBITDA in Q3 and then the sequential step down on EBITDA with more or less flat revenue sequentially. Just talk us through that. Thanks a lot.

Question: Todd Coupland - CIBC Capital Markets - Analyst : Well, I was just going to say if you could just clean up these segmented results, at the Analyst Day you gave pre-corporate overhead EBITDA. Is this

Question: Todd Coupland - CIBC Capital Markets - Analyst : That does. Thanks a lot.

Question: Luke Junk - Robert W. Baird & Co., Inc. - Analyst : John, maybe if I could start just with a higher-level question and your preliminary thinking just with priorities. Assuming the Cylance deal closes, what you're going to do with that consideration? Just allocation between strengthening the balance sheet and investing back into the business, maybe leaning into some of the things that Tim mentioned relative to QNX especially. Thank you.

Question: Luke Junk - Robert W. Baird & Co., Inc. - Analyst : Thanks for that, John. That was really helpful. Maybe for my follow-up, just for Tim, you mentioned in the remarks that strength was predominantly driven in QNX by royalties this quarter, in terms of the margin flow-through, but also some seat license in there. Can you just level-set us on where mix in QNX is across the major revenue streams, kind of on a run rate basis right now? And maybe give us some high-level thoughts as to the moving parts into fiscal '26.

Question: Luke Junk - Robert W. Baird & Co., Inc. - Analyst : Got it. I'll leave it there. Thank you.

Question: Kingsley Crane - Canaccord Genuity - Analyst : 95% DBNR for secure comms. Can you talk about how you felt that segment performed in the quarter, now that that's an independent segment, like how that DBNR trended, and then where we should expect it's going to move forward?

Question: Kingsley Crane - Canaccord Genuity - Analyst : Thanks, John. That's really helpful. And then for AtHoc, that's in process for achieving (inaudible) I'm curious, do you think that's going to be meaningful unlock? And then how do you think about the timing of that being finished for potentially the next fiscal 3Q?

Question: Kingsley Crane - Canaccord Genuity - Analyst : That's helpful. Thank you.

Question: Paul Treiber - RBC Capital Markets - Analyst : A question on the Secure Comm's ARR growth in the quarter. I think I heard up 8%. It sounds like a good number. How has that been tracking over the last several quarters and has there been variability in that number from quarter to quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 19, 2024 / 10:30PM, BB.TO - Q3 2025 BlackBerry Ltd Earnings Call

Question: Paul Treiber - RBC Capital Markets - Analyst : That's helpful. And the follow-up is, just in regards to Q4 guidance for secure comms, how do we think about what it implies for the year-over-year growth in Q4? I mean, we see sequentially, but you do have that tough comp in Q3. Just trying to understand the year-over-year growth in that business.

Question: Paul Treiber - RBC Capital Markets - Analyst : Thanks for the color there. I'll pass the line.

Question: Daniel Chan - TD Cowen - Analyst : You mentioned that IoT strength this quarter was partly driven by higher royalties. How do we reconcile the royalty strength relative to the weak macro backdrop?

Question: Daniel Chan - TD Cowen - Analyst : That's helpful, thanks. And then on Cylance, you mentioned that you guys are keeping the tax losses there. How much tax losses do you get to keep and what's the opportunity to use those now that you're profitable?