How did Blackberry's revenue and expenses trend in Q3 2025?

BlackBerry's revenue and expenses in Q3 2025 showed a positive trend with the company reporting its strongest quarterly performance in two years. The following highlights the key aspects of their financial performance:

1. **Revenue Growth**:
- IoT division revenue grew by 13% sequentially, reaching $62 million and exceeding guidance.
- Cybersecurity division revenue increased by 7% sequentially, reaching $93 million and also exceeding guidance.
- Licensing revenue exceeded expectations, coming in at $7 million, which drove $6 million of EBITDA.
2. **EBITDA Performance**:
- IoT division contributed $18 million of EBITDA, marking a 38% sequential increase.
- Cybersecurity, including Cylance, delivered positive EBITDA of $8 million, a significant $14 million improvement sequentially.
- Excluding Cylance, the Secure Communications division achieved $22 million of EBITDA, indicating a strong 30% margin.
3. **Gross Margin Improvements**:
- IoT gross margin improved by 3 percentage points, reaching 85%.
- Cybersecurity gross margin increased by 12 percentage points, reaching 67%.
- Secusmart software licenses and Secure Communications contributed to strong gross margins, with the latter achieving 73%.
4. **Profitability and Cash Flow**:
- BlackBerry reported a positive adjusted EBITDA of $23 million, surpassing the top end of their guidance range.
- Adjusted net income for Q3 was $12 million, and non-GAAP EPS beat expectations at $0.02.
- The company achieved positive operating and free cash flow, totaling $3 million, marking improvement of $34 million year-over-year.

In summary, Blackberry's Q3 2025 financial performance was marked by robust revenue growth, significant improvements in EBITDA, and enhanced gross margins, leading to profitability and positive cash flow.