At a Glance

  • BlackBerry CFO Tim Foote said Tuesday at the Baird Global Consumer, Technology & Services Conference that the company has completed its transformation and is "now a growth company."
  • The Waterloo, Ontario-based company is focusing on growth, particularly in its QNX division, which provides the software platform that underpins "physical AI"software platform, covering areas such as robotics, automotive, and medical devices. In a Q&A session with John Wall, president of BlackBerry's QNX division, and Luke Junk, senior research analyst at Baird, Foote said the QNX software business "still has a lot of room for growth" and is currently "just getting started."
  • "We face a large number of new markets that are not yet fully penetrated or even completely unentered, and our products have strong appeal in these markets," Foote said in the conference transcript.

Deep Dive

BlackBerry's stock has surged 159% this year, driven mainly by its QNX software sales, prompting scrutiny from investors and long-time observers on whether fundamentals can support the stock's rise.

Similar to companies like GameStop, BlackBerry made headlines in 2022 as a popular "meme stock." Despite weak profits and cash flow, it was reported at the time that during its transition from personal devices to software business,the trading price remained at overvalued levels。

Foote said BlackBerry has "put in a lot of effort" over the past few years, including management changes since 2023appointing John Giamatteo as CEO.

Foote, who has been with the company for 10 years as it transitioned from personal devices to software, took over as BlackBerry's CFO in 2024 as part of a series ofexecutive leadership changes, including the appointments of a chief accounting officer and corporate controller, as CFO Dive reported at the time.

Before joining BlackBerry, Foote held various finance roles at mobile technology provider Good Technology for 10 years. That company was acquired by BlackBerry in 2015.

Among other moves, the company announced in 2024 plans tosell its cybersecurity business Cylanceto Arctic Wolf for $160 million, far below the $1.4 billion it paid to acquire the company in 2018, as TechCrunch reported at the time. "Through this sale, we cut a significant amount of operating costs," Foote said.

Since launching a restructuring plan in 2024—including splitting the business into cybersecurity and "Internet of Things" sub-segments—BlackBerry has shifted its focus from value creation and returning to profitability through cost cuts to "seeking operating leverage from growing revenue," Foote said.

"We have significant long-term tailwinds, especially driving the QNX business," Foote said Tuesday, noting "we believe these tailwinds will persist for a considerable period."

According to thefinancial resultsreleased on April 9, the company's QNX division met the "Rule of 40" in both the fourth quarter of fiscal 2025 and the full fiscal year.

A 2025 Boston Consulting Group article notes that the "Rule of 40" is often seen as a key milestone for financial strength in SaaS companies, referring to the point where the sum of a company's revenue growth rate and profit margin or EBITDA margin reaches or exceeds 40%.

The results showed that the QNX division achieved record quarterly revenue of $78.7 million, up 20% year-over-year.

BlackBerry also reported its eighth consecutive quarter of GAAP net profit for the quarter ended February 28—net profit of $24.3 million, compared to $13.7 million in the previous quarter and a net loss of $7.8 million in the same period last year.