BLACKBERRY LtdBB
BLACKBERRY Ltd Segments Disclosure
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.
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.
Segment Disclosures
The Company is organized and managed as three operating segments: QNX, Secure Communications, and Licensing.
The following table shows information by reportable operating segment for the fiscal year ended February 28, 2026:
| For the Year Ended | |||||||||||||||||||||||||||||
| QNX | Secure Communications | Licensing | Segment Totals | ||||||||||||||||||||||||||
| Segment revenue | $ | 268.0 | $ | 258.9 | $ | 22.2 | $ | 549.1 | |||||||||||||||||||||
| Segment cost of sales | 45.4 | 77.2 | 6.1 | ||||||||||||||||||||||||||
Segment adjusted gross margin (1) | $ | 222.6 | $ | 181.7 | $ | 16.1 | $ | 420.4 | |||||||||||||||||||||
______________________________
(1) A reconciliation of total segment adjusted gross margin to consolidated pre-tax income from continuing operations is set forth below.
The following table shows information by reportable operating segment for the years ended February 28, 2025 and February 29, 2024:
| For the Years Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| QNX | Secure Communications | Licensing | Segment Totals | |||||||||||||||||||||||||||||||||||||||||||||||
| Feb 28 | Feb 29 | Feb 28 | Feb 29 | Feb 28 | Feb 29 | Feb 28 | Feb 29 | |||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||
| Segment revenue | $ | 236.0 | $ | 215.4 | $ | 272.6 | $ | 283.8 | $ | 26.3 | $ | 259.9 | $ | 534.9 | $ | 759.1 | ||||||||||||||||||||||||||||||||||
| Segment cost of sales | 38.8 | 33.8 | 92.7 | 80.7 | 6.1 | 150.9 | ||||||||||||||||||||||||||||||||||||||||||||
Segment adjusted gross margin (1) | $ | 197.2 | $ | 181.6 | $ | 179.9 | $ | 203.1 | $ | 20.2 | $ | 109.0 | $ | 397.3 | $ | 493.7 | ||||||||||||||||||||||||||||||||||
______________________________
(1) A reconciliation of total segment adjusted gross margin to consolidated pre-tax income (loss) from continuing operations is set forth below.
QNX consists of BlackBerry® QNX®, BlackBerry Radar®, BlackBerry® Certicom®, and other QNX applications. QNX revenue is generated predominantly through volume-based royalties and through software licenses, commonly bundled with support, maintenance and professional services.
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.
Licensing consists of the Company’s intellectual property arrangements and settlement awards.
The following table reconciles total segment adjusted gross margin for the fiscal year ended February 28, 2026, February 28, 2025 and February 29, 2024 to the Company’s consolidated totals:
| For the Years Ended | |||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 29, 2024 | |||||||||||||||
| Total segment adjusted gross margin | $ | 420.4 | $ | 397.3 | $ | 493.7 | |||||||||||
Adjustments (1): | |||||||||||||||||
| Less: Stock compensation | 2.2 | 2.4 | 3.0 | ||||||||||||||
| Less: | |||||||||||||||||
| Research & development | 113.6 | 108.8 | 127.1 | ||||||||||||||
| Sales and marketing | 114.0 | 95.5 | 104.0 | ||||||||||||||
| General and administrative | 128.8 | 159.7 | 187.2 | ||||||||||||||
| Amortization | 11.4 | 17.7 | 26.7 | ||||||||||||||
| Impairment of goodwill | — | — | 15.9 | ||||||||||||||
| Impairment of long-lived assets | 2.1 | 9.6 | 15.3 | ||||||||||||||
| Prior Debentures fair value adjustment | — | — | 3.5 | ||||||||||||||
| Litigation settlement | — | 2.8 | — | ||||||||||||||
| Add: | |||||||||||||||||
| Investment income, net | 10.7 | 7.7 | 18.8 | ||||||||||||||
| Consolidated income from continuing operations before income taxes | $ | 59.0 | $ | 8.5 | $ | 29.8 | |||||||||||
______________________________
(1) The CODM reviews segment adjusted gross margin information on an adjusted basis, which excludes Stock compensation expenses - a non-cash expense that is not included in the CODM’s measure of segment adjusted gross margin when evaluating performance and allocating resources to the segment.
Revenue
The Company disaggregates revenue from contracts with customers based on geographical regions, timing of revenue recognition, and segment revenue, 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:
| For the Years Ended | |||||||||||||||||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 29, 2024 | |||||||||||||||||||||||||||||||||
North America (1) | $ | 245.2 | 44.7 | % | $ | 248.7 | 46.5 | % | $ | 496.9 | 65.5 | % | |||||||||||||||||||||||
| Europe, Middle East and Africa | 193.7 | 35.3 | % | 188.6 | 35.3 | % | 159.0 | 20.9 | % | ||||||||||||||||||||||||||
| Other regions | 110.2 | 20.0 | % | 97.6 | 18.2 | % | 103.2 | 13.6 | % | ||||||||||||||||||||||||||
| Total | $ | 549.1 | 100.0 | % | $ | 534.9 | 100.0 | % | $ | 759.1 | 100.0 | % | |||||||||||||||||||||||
______________________________
(1) North America includes all revenue from Licensing, due to the global applicability of the patent portfolio and licensing arrangements thereof.
Revenue, classified by timing of recognition, was as follows:
| For the Years Ended | |||||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 29, 2024 | |||||||||||||||||||||
| Products and services transferred over time | $ | 248.4 | $ | 246.9 | $ | 210.0 | |||||||||||||||||
| Products and services transferred at a point in time | 300.7 | 288.0 | 549.1 | ||||||||||||||||||||
| Total | $ | 549.1 | $ | 534.9 | $ | 759.1 | |||||||||||||||||
Revenue contract balances
The following table sets forth the activity in the Company’s revenue contract balances for the fiscal year ended February 28, 2026:
| Accounts Receivable | Deferred Revenue | Deferred Commissions | |||||||||||||||
| 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 | 594.6 | 508.4 | 17.7 | ||||||||||||||
| Decrease due to payment, fulfillment of performance obligations, or other | (632.0) | (522.9) | (18.0) | ||||||||||||||
| Decrease, net | (37.4) | (14.5) | (0.3) | ||||||||||||||
| Closing balance as at February 28, 2026 | $ | 202.6 | $ | 152.6 | $ | 14.3 | |||||||||||
| Current portion | $ | 156.0 | $ | 138.5 | $ | 8.1 | |||||||||||
| Long-term portion | 46.6 | 14.1 | 6.2 | ||||||||||||||
| $ | 202.6 | $ | 152.6 | $ | 14.3 | ||||||||||||
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 February 28, 2026 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 February 28, 2026 | |||||||||||||||||||||||
| Less than 12 Months | 12 to 24 Months | Thereafter | Total | ||||||||||||||||||||
| Remaining performance obligations | $ | 138.5 | $ | 2.3 | $ | 11.8 | $ | 152.6 | |||||||||||||||
Revenue recognized for performance obligations satisfied in prior periods
For the fiscal year ended February 28, 2026, $2.3 million in revenue was recognized relating to performance obligations satisfied in a prior period (fiscal year ended February 28, 2025 - $2.4 million; fiscal year ended February 29, 2024 - $12.2 million).
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 | |||||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | ||||||||||||||||||||||
| 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 | $ | 57.9 | $ | 383.9 | $ | 68.2 | $ | 462.7 | |||||||||||||||
| United States | 462.3 | 746.9 | 459.4 | 731.3 | |||||||||||||||||||
| Other | 28.0 | 114.4 | 27.5 | 101.6 | |||||||||||||||||||
| $ | 548.2 | $ | 1,245.2 | $ | 555.1 | $ | 1,295.6 | ||||||||||||||||
Information About Major Customers
There was one customer that comprised 12% of the Company’s revenue in fiscal 2026 (fiscal 2025 - one customer that comprised 14%; fiscal 2024 - one customer that comprised 27%)Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Apr 9, 2026 | Showing above |
| 2025 | Apr 2, 2025 | |
| 2024 | Apr 4, 2024 | |
| 2023 | Mar 31, 2023 | |
| 2022 | Apr 1, 2022 | |
| 2021 | Mar 31, 2021 | |
| 2020 | Apr 7, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.