| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 20.00 | 307 |
| Intrinsic value (DCF) | 2.20 | -55 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 2.10 | -57 |
BlackBerry Limited (LSE: 0R0P) is a Canadian technology company specializing in intelligent security software and services for enterprises and governments globally. Operating through three key segments—Cybersecurity, IoT, and Licensing—BlackBerry leverages AI and machine learning to deliver advanced solutions like BlackBerry Cyber Suite, BlackBerry QNX embedded systems, and BlackBerry IVY for intelligent vehicle data. With a strong patent portfolio of approximately 38,000 worldwide patents, the company has pivoted from its legacy smartphone business to focus on high-growth areas in cybersecurity and IoT. BlackBerry’s offerings include endpoint protection, secure communications, and critical event management, positioning it as a leader in enterprise security and embedded software. Headquartered in Waterloo, Canada, BlackBerry serves industries requiring robust, scalable security solutions, making it a key player in the evolving tech landscape.
BlackBerry presents a mixed investment case. On the positive side, its transition to cybersecurity and IoT has shown promise, with AI-driven solutions like Cylance and QNX gaining traction in enterprise and automotive markets. The company’s strong patent portfolio provides licensing revenue and defensive moats. However, BlackBerry remains unprofitable (net income of -$79M CAD in FY2025), and revenue growth has been sluggish ($534.9M CAD). While its cybersecurity segment competes in a crowded market, its IoT division, particularly QNX, holds a unique position in embedded automotive systems. The lack of dividends and inconsistent cash flow ($16.5M CAD operating cash flow) may deter conservative investors. High beta (1.055) suggests volatility, making it suitable for risk-tolerant investors betting on its niche strengths.
BlackBerry’s competitive advantage lies in its dual focus on cybersecurity and embedded IoT systems, particularly in automotive (QNX) and government sectors (SecuSUITE). Its Cylance AI-based cybersecurity suite differentiates through predictive threat prevention, while QNX’s reliability in safety-critical systems (e.g., automotive infotainment) creates high switching costs. However, the cybersecurity segment faces intense competition from larger players like CrowdStrike and Palo Alto Networks, which dominate cloud-native solutions. BlackBerry’s legacy in secure communications (BBM Enterprise, AtHoc) is niche but lacks scalability compared to modern collaboration tools. The IoT division’s reliance on automotive OEMs exposes it to cyclical demand. Financially, BlackBerry’s modest revenue and losses limit R&D scalability versus deep-pocketed rivals. Its patent portfolio is a key asset but monetization remains inconsistent. Overall, BlackBerry’s strengths are its specialized IoT footprint and AI-driven security, but it struggles to outexecute broader-platform competitors.