Consolidated Balance Sheets Details

3 Months Ended

May 31, 2026

Balance Sheet Related Disclosures [Abstract]

3. CONSOLIDATED BALANCE SHEET DETAILS

Accounts Receivable, Net of Allowance

The current estimated credit losses (“CECL”) for accounts receivable as at May 31, 2026 was $3.6 million (February 28, 2026 - $3.4 million).

The Company also has long-term accounts receivable included in Other long-term assets. The CECL for long-term accounts receivable is estimated using the probability of default method and the default exposure due to limited historical information. The exposure to default is represented by the assets’ amortized carrying amount at the reporting date.

The following table sets forth the activity in the Company’s allowance for credit losses:


	Carrying Amount

Beginning balance as of February 28, 2025	$	6.6
Prior period recovery of expected credit losses	(2.4)
Write-offs charged against the allowance	(0.8)
Ending balance of the allowance for credit loss as at February 28, 2026	3.4
Current period provision for expected credit losses	0.2


Ending balance of the allowance for credit loss as at May 31, 2026	$	3.6

The allowance for credit losses as at May 31, 2026 consists of $1.3 million (February 28, 2026 - $1.0 million) relating to CECL estimated based on days past due and region and $2.3 million (February 28, 2026 - $2.4 million) relating to specific customers that were evaluated separately.

There were two customers that comprised more than 10% of accounts receivable as at May 31, 2026 (February 28, 2026 - two customers comprised more than 10%).

Other Receivables

As at May 31, 2026 and February 28, 2026, other receivables included items such as claims filed by QNX with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund (“SIF”), among other items, none of which were greater than 5% of the current assets balance as at balance sheet dates.

Other Current Assets

As at May 31, 2026 and February 28, 2026, other current assets included items such as the current portion of deferred commissions and prepaid expenses, among other items, none of which were greater than 5% of the current assets balance as at the balance sheet dates.

Property, Plant and Equipment, Net

Property, plant and equipment comprised the following:


	As at
	May 31, 2026		February 28, 2026
Cost
BlackBerry operations and other information technology	$	79.2	$	78.0
Leasehold improvements and other	13.4		12.9
Furniture and fixtures	4.7		4.8
Manufacturing, repair and research and development equipment	2.7		2.5
	100.0		98.2
Accumulated amortization and impairment	86.9		85.9
Net book value	$	13.1	$	12.3

Intangible Assets, Net

Intangible assets comprised the following:


	As at May 31, 2026
	Cost		Accumulated Amortization and Impairment		Net Book Value
Acquired technology	$	29.8	$	29.8	$	—
Other acquired intangibles	40.4		40.4		—
Intellectual property	105.3		66.1		39.2
	$	175.5	$	136.3	$	39.2


	As at February 28, 2026
	Cost		Accumulated Amortization and Impairment		Net Book Value
Acquired technology	$	29.8	$	29.8	$	—
Other acquired intangibles	40.4		40.4		—
Intellectual property	105.3		65.2		40.1
	$	175.5	$	135.4	$	40.1

For the three months ended May 31, 2026, amortization expense related to intangible assets amounted to $2.2 million (three months ended May 31, 2025 - $4.2 million). For the three months ended May 31, 2026, the Company held acquired technology and other acquired intangibles that were fully amortized but still in use.

Total additions to intangible assets for the three months ended May 31, 2026 amounted to $1.5 million (three months ended May 31, 2025 - $1.2 million). During the three months ended May 31, 2026, additions to intangible assets primarily consisted of payments for intellectual property relating to patent maintenance and registration fees.

Based on the carrying value of the identified intangible assets as at May 31, 2026, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for the remainder of fiscal 2027 and each of the five succeeding years is expected to be as follows: fiscal 2027 - $6.1 million; fiscal 2028 - $6.3 million; fiscal 2029 - $5.1 million; fiscal 2030 - $4.4 million; fiscal 2031 - $3.6 million and fiscal 2032 - $2.9 million.

Goodwill

Changes to the carrying amount of goodwill during the three months ended May 31, 2026 were as follows:


	Carrying Amount
Carrying amount as at February 28, 2025	$	472.4

Effect of foreign exchange on non-U.S. dollar denominated goodwill	6.7
Carrying amount as at February 28, 2026	479.1


Effect of foreign exchange on non-U.S. dollar denominated goodwill	(0.7)
Carrying amount as at May 31, 2026	$	478.4

Other Long-term Assets

As at May 31, 2026 and February 28, 2026, other long-term assets included long-term receivables related to intellectual property sold, long-term receivables relating to minimum royalty commitments from QNX customers, and the long-term portion of deferred commissions, among other items, none of which were greater than 5% of the total assets balance.

Accrued Liabilities

Accrued liabilities is comprised of the following:


	As at
	May 31, 2026		February 28, 2026
Variable incentive accrual	$	8.8	$	36.5
Deferred share unit liability (1)	16.6		6.0



Other	73.6		69.2
	$	99.0	$	111.7

______________________________

(1) The Company has a Deferred Share Unit Plan under which each independent director is credited with Deferred Share Units (“DSUs”) in satisfaction of all or a portion of the cash fees otherwise payable to them for serving as a director of the Company. DSUs are accounted for as liability-classified awards and are awarded on a quarterly basis. These awards are measured at their fair value on the date of issuance and remeasured at each reporting period until settlement.

Other accrued liabilities include the accrued current portion of the operating lease liability, the current portion of the restructuring programs, accrued vendor liabilities, accrued director fees, and payroll withholding taxes, among other items, none of which were greater than 5% of the current liabilities balance in any of the periods presented.

Restructuring and Integration

Restructuring

During fiscal 2025 and fiscal 2024, the Company commenced restructuring programs with the objective of reducing its annual costs and expenses. Other charges and cash costs may occur as programs are implemented or changes are completed.

The following table sets forth the activity in the Company’s restructuring program liabilities:


	Employee Termination Benefits		Facilities and Other Charges		Total



Balance as at February 28, 2025	$	7.1	3.3		10.4
Charges incurred	11.9		3.8		15.7
Cash payments made	(12.7)		(5.1)		(17.8)
Balance as at February 28, 2026	6.3		2.0		8.3
Charges incurred (recovered)	0.8		(0.5)		0.3
Cash payments made	(3.5)		(0.4)		(3.9)
Balance as at May 31, 2026	$	3.6	$	1.1	$	4.7

Current portion	$	3.6	$	0.3	$	3.9
Long-term portion	—		0.8		0.8
	$	3.6	$	1.1	$	4.7

The long-term portion of the restructuring liabilities is recorded by measuring the remaining payments at present value using an effective interest rate of 5.3%, and the Company recorded interest expense over time to arrive at the total face value of the remaining payments.

The restructuring charges included employee termination benefits, facilities and other charges primarily associated with system transformation to streamline corporate functions into QNX and Secure Communications. Total charges incurred for the three months ended May 31, 2026 and May 31, 2025 were $0.3 million and $2.9 million, respectively, recorded within General and administrative on the Consolidated Statements of Operations.