v3.26.1
Revenue and Segment Disclosures
 3 Months Ended
May 31, 2026
Segment Reporting [Abstract]  
Revenue and Segment Disclosures 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 three months ended May 31, 2026 and May 31, 2025:
 For the Three Months Ended
QNXSecure CommunicationsLicensingSegment Totals
May 31,May 31,May 31,May 31,
20262025202620252026202520262025
Segment revenue$72.3 $57.5 $73.6 $59.5 $7.0 $4.7 $152.9 $121.7 
Segment cost of sales10.4 11.2 20.8 18.1 1.5 1.6 
Segment adjusted gross margin (1)
$61.9 $46.3 $52.8 $41.4 $5.5 $3.1 $120.2 $90.8 
______________________________
(1) A reconciliation of total segment adjusted gross margin to consolidated pre-tax income is set forth below.
QNX consists of BlackBerry® QNX®, BlackBerry Radar®, BlackBerry® Certicom®, and other QNX applications. QNX revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services and through royalties which are volume-based, but may also be fixed based upon customers committing to certain minimum volumes.
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 three months ended May 31, 2026 and May 31, 2025 to the Company’s consolidated totals:
 Three Months Ended
May 31, 2026May 31, 2025
Total segment adjusted gross margin$120.2 $90.8 
Adjustments (1):
Less: Stock compensation0.5 0.5 
Less:
Research & development33.0 25.0 
Sales and marketing29.5 28.7 
General and administrative39.3 30.5 
Amortization2.5 4.0 
Impairment of long-lived assets0.1 0.1 
Add:
Investment income, net1.1 2.9 
Consolidated income before income tax$16.4 $4.9 
______________________________
(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:
 Three Months Ended
 May 31, 2026May 31, 2025
North America (1)
$73.8 $54.8 
Europe, Middle East and Africa44.5 42.5 
Other regions34.6 24.4 
Total $152.9 $121.7 
North America (1)
48.3 %45.0 %
Europe, Middle East and Africa29.1 %34.9 %
Other regions22.6 %20.1 %
Total 100.0 %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:
 Three Months Ended
May 31, 2026May 31, 2025
Products and services transferred over time$56.7 $58.5 
Products and services transferred at a point in time96.2 63.2 
Total$152.9 $121.7 
Revenue contract balances
The following table sets forth the activity in the Company’s revenue contract balances for the three months ended May 31, 2026:
Accounts ReceivableDeferred RevenueDeferred Commissions
Opening balance as at February 28, 2026$202.6 $152.6 $14.3 
Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other135.1 121.9 5.0 
Decrease due to payment, fulfillment of performance obligations, or other(134.1)(140.6)(5.1)
Increase (decrease), net1.0 (18.7)(0.1)
Closing balance as at May 31, 2026$203.6 $133.9 $14.2 
Current portion$160.6 $121.5 $7.0 
Long-term portion43.0 12.4 7.2 
$203.6 $133.9 $14.2 
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 May 31, 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 May 31, 2026
Less than 12 Months12 to 24 MonthsThereafterTotal
Remaining performance obligations$121.5 $3.4 $9.0 $133.9 
Revenue recognized for performance obligations satisfied in prior periods
For the three months ended May 31, 2026, revenue of $0.6 million was recognized relating to performance obligations satisfied in a prior period (three months ended May 31, 2025 - nil).
Information About Major Customers
There was one customer that comprised 13% of the Company’s revenue in the three months ended May 31, 2026, (three months ended May 31, 2025 - one customer that comprised 13% of the Company’s revenue).