BlackBerry (TSX:BB) has been on a remarkable run lately, surging nearly 80% over the past four months. This performance has far outpaced the broader TSX Composite Index, which gained a more modest 5.5% over the same period. As one of the top-performing stocks in my portfolio right now, BlackBerry’s resurgence is more than just a lucky streak as it’s mainly backed by a combination of strong catalysts, improving fundamentals, and promising growth prospects in high-demand business segments like cybersecurity and Internet of Things (IoT).
In this article, I’ll dive into BlackBerry’s key recent developments, including its recent agreement to sell Cylance assets and explain why I believe this stock has even more room to run in 2025.
A quick look at the recent shift in BlackBerry’s focus
BlackBerry recently announced intentions to sell its Cylance endpoint security business to Arctic Wolf. This deal worth US$160 million in cash and Arctic Wolf shares has caught the market’s attention for all the right reasons.
The sale is part of BlackBerry’s broader plan to refocus on its high-margin, high-growth, secure communications business while benefiting from reselling Cylance solutions to its existing portfolio of government and enterprise clients.
As this move not only unlocks value from non-core assets but is also likely to streamline its operations and strengthen its position in its core segments, I see it as a smart strategic decision.
Deeper dive into financials
BlackBerry’s financial results for its fiscal third quarter of 2025 (ended in November 2024) reflect continued progress in its path to profitability. From its continuing operations, the company generated US$143 million in revenue, with a healthy gross margin of 78.3%. Last quarter, its IoT segment led the way with US$62 million in revenue, up 13% sequentially, and a solid gross margin of 85%. The cybersecurity segment wasn’t far behind, contributing US$74 million in revenue and improving its gross margin to 67% from 55% in the previous quarter.
Another noteworthy thing from its latest results is BlackBerry’s return to profitability in its continuing operations. The company delivered an adjusted quarterly net profit of US$12 million and a positive adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) of US$23 million, exceeding expectations. Similarly, it achieved positive operating cash flow ahead of schedule, further strengthening its balance sheet.
Another strategic move to drive future growth
Beyond the numbers, BlackBerry is continuing to lay the foundation for sustained long-term growth. The sale of its Cylance assets to Arctic Wolf is expected to help it simplify operations and refocus on high-growth areas.
On January 2, the company took another bold step by relaunching its QNX brand, reflecting its renewed focus on expanding its presence in the automotive and embedded software segments. The company’s IoT segment, especially its QNX platform, has seen increased adoption among large global automakers. And I expect BlackBerry’s expanding partnerships in the automotive sector to provide a steady revenue stream in the coming years.
Why BlackBerry stock could keep climbing
The recent surge in BB stock price reflects growing investor confidence, and with continued execution, it could unlock even greater value going forward. With its sharpened focus, robust financial performance, and a clear strategy for growth, BlackBerry stock has the potential to maintain its upward trajectory in 2025 and beyond, making it a top TSX stock to consider today.
