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Investing.com - BlackBerry Limited (NYSE:BB)(TSX:BB) reported better-than-expected fourth-quarter results but saw its shares fall 12.6% in after-hours trading due to weak forward guidance.
The Canadian software company posted adjusted earnings per share of $0.03 for the quarter ended February 28, 2025, surpassing analyst estimates of $0.02. Revenue came in at $141.7 million, beating the consensus forecast of $132.2 million and marking a significant improvement from the same quarter last year.
BlackBerry’s CEO John J. Giamatteo commented, "BlackBerry closed out this transformational fiscal year with another quarter of strong financial performance from all three divisions: QNX, Secure Communications and Licensing."
However, the company’s outlook for the upcoming fiscal year fell short of expectations. BlackBerry projected first-quarter revenue between $107 million and $115 million, below the analyst consensus of $128.4 million.
For the full fiscal year 2026, the company expects revenue in the range of $504 million to $534 million, also below the Street’s estimate of $550.6 million.
The company reported strong performance across its business segments. QNX revenue grew 6% sequentially to $65.8 million, while Secure Communications revenue exceeded guidance at $67.3 million. Licensing revenue also beat expectations at $8.6 million.
BlackBerry’s cash position improved significantly, with total cash and investments increasing by $144 million sequentially to $410 million. This boost was partly due to improved operating cash flow and approximately $80 million received from the first tranche of cash from the sale of Cylance to Arctic Wolf.
Despite the positive quarterly results, investors appeared to focus on the weaker-than-expected guidance, leading to the slight decline in share price following the earnings release.
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