v3.26.1
Revenue and Segment Disclosure (Tables)
 12 Months Ended
Feb. 28, 2026
Segment Reporting [Abstract]  
Segment Reporting
The following table shows information by reportable operating segment for the fiscal year ended February 28, 2026:
 For the Year Ended
QNXSecure CommunicationsLicensingSegment Totals
Segment revenue$268.0 $258.9 $22.2 $549.1 
Segment cost of sales45.4 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
QNXSecure CommunicationsLicensingSegment Totals
Feb 28Feb 29Feb 28Feb 29Feb 28Feb 29Feb 28Feb 29
20252024202520242025202420252024
Segment revenue$236.0 $215.4 $272.6 $283.8 $26.3 $259.9 $534.9 $759.1 
Segment cost of sales38.8 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.
Segment Reporting, Reconciliation of Profit (Loss) by Segment to Consolidated
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, 2026February 28, 2025February 29, 2024
Total segment adjusted gross margin$420.4 $397.3 $493.7 
Adjustments (1):
Less: Stock compensation2.2 2.4 3.0 
Less:
Research & development113.6 108.8 127.1 
Sales and marketing114.0 95.5 104.0 
General and administrative128.8 159.7 187.2 
Amortization11.4 17.7 26.7 
Impairment of goodwill— — 15.9 
Impairment of long-lived assets2.1 9.6 15.3 
Prior Debentures fair value adjustment— — 3.5 
Litigation settlement— 2.8 — 
Add:
Investment income, net10.7 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.
Segment Reporting, Entity-Wide Information Not Provided as Part of Reportable Segment, Geographical Area, Revenue
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, 2026February 28, 2025February 29, 2024
North America (1)
$245.2 44.7 %$248.7 46.5 %$496.9 65.5 %
Europe, Middle East and Africa193.7 35.3 %188.6 35.3 %159.0 20.9 %
Other regions110.2 20.0 %97.6 18.2 %103.2 13.6 %
Total $549.1 100.0 %$534.9 100.0 %$759.1 100.0 %
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(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
Revenue, classified by timing of recognition, was as follows:
 For the Years Ended
February 28, 2026February 28, 2025February 29, 2024
Products and services transferred over time$248.4 $246.9 $210.0 
Products and services transferred at a point in time300.7 288.0 549.1 
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 ReceivableDeferred RevenueDeferred 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 other594.6 508.4 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 portion46.6 14.1 6.2 
$202.6 $152.6 $14.3 
Transaction Price Allocated to the Remaining Performance Obligation
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 Months12 to 24 MonthsThereafterTotal
Remaining performance obligations$138.5 $2.3 $11.8 $152.6 
Segment Reporting, Entity-Wide Information Not Provided as Part of Reportable Segment, Geographical Area, Revenue and Long-Lived Asset
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, 2026February 28, 2025
Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and GoodwillTotal AssetsProperty, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and GoodwillTotal Assets
Canada$57.9 $383.9 $68.2 $462.7 
United States462.3 746.9 459.4 731.3 
Other28.0 114.4 27.5 101.6 
$548.2 $1,245.2 $555.1 $1,295.6