TORONTO, July 3, 2026, 12:05 EDT
- BlackBerry NYSE:BB fell 10.2% to close at $11.51 on Thursday, trading 50.95 million shares. The stock exchange is closed Friday for Independence Day observed.
- Shares were up 48.6% in five sessions through July 2, Trefis said. The S&P 500 rose 1.7% in that time.
- BlackBerry disclosed in its 10-Q that $200 million of its 3% notes are open to conversion from July 1 to Sept. 30. If holders convert all of them, 51.5 million shares would be issued.
- BlackBerry said Q1 revenue climbed 26% to $152.9 million and bumped up its full-year fiscal 2027 revenue outlook to a range of $594 million to $621 million.
BlackBerry Limited (NYSE:BB; TSE:BB) heads into next week with its U.S. shares still well above the trigger for a $200 million convertible-note deal, an investor focus that stands out in the usual chatter on the stock. U.S. markets were closed Friday for Independence Day observance, while in Toronto the S&P/TSX composite added 1.0% to 35,333.96 as of 10:23 a.m. ET.
U.S.-listed shares changed hands Thursday at $11.51, down 10.2%. The stock swung from $11.21 to $13.00. Over on the TSX, Google Finance showed a Friday trading range of C$15.91 to C$16.34 and 956,880 shares moved.
| Market read | Latest figure | Investor read |
|---|---|---|
| NYSE-listed BlackBerry | $11.51, down 10.2%; 50.95 mln shares | Slide didn’t cancel out the note trade |
| TSX-listed BlackBerry | C$15.91-C$16.34 intraday range; 956,880 shares | Only in Canada was there an active stock quote Friday |
| BlackBerry five-day return | +48.6% | Beats the S&P 500’s +1.7% |
| BlackBerry 2026 return | +238.0% | Price gains pushed up valuation risk |
| S&P/TSX composite Friday morning | +1.0% to 35,333.96 | Local market was steady |
One detail shows up in BlackBerry’s latest quarterly filing. BlackBerry said holders of its 3% senior convertible unsecured notes can now convert, after certain conditions were met during the second calendar quarter. The notes are open to conversion by holders from July 1 to Sept. 30. BlackBerry can choose to settle the conversion with cash, stock, or both.
| Convertible-note item | Figure |
|---|---|
| Principal | $200.0 mln |
| Coupon | 3.00% |
| Maturity | Feb. 15, 2029 |
| Conversion price | $3.88 per share |
| Stock-price test tied to conversion window | 130% of conversion price, or about $5.04 |
| Shares issuable if fully converted | 51.5 mln |
| Voting shares outstanding on June 22 | 586.0 mln |
| Potential dilution | 8.8% of current shares; 8.1% pro forma |
| Fair value of notes at May 31 | $441.1 mln |
| Carrying value at May 31 | $196.8 mln |
| 2026 buyback authorization | 26.8 mln shares |
The $11.51 close on Thursday is significant since it’s more than double the $5.04 level set for note conversion. At that price, all 51.5 million shares from a full conversion would total about $593 million. BlackBerry reported $422.9 million in cash, cash equivalents, and investments as of May 31.
BlackBerry’s operating numbers picked up. The company reported fiscal Q1 revenue up 26% to $152.9 million. Adjusted EBITDA came in at $36.3 million. Operating cash flow was $4.6 million, which BlackBerry said is its first positive Q1 operating cash flow in nine years, excluding patent proceeds. Chief Executive John Giamatteo said BlackBerry outperformed on “revenue, profitability, and cash generation” and called the business “stronger than it has been in years.” Nasdaq
QNX is driving the stock here. The unit posted a 26% jump in revenue to $72.3 million. BlackBerry now sees fiscal 2027 QNX sales between $295 million and $312 million, up from the earlier $290 million to $307 million range, Reuters reported. Giamatteo told Reuters the business is seeing “really healthy demand” as QNX customers push more into software-defined vehicles. Reuters
Secure Communications annual recurring revenue hit $220 million as of May 31, up from $218 million at Feb. 28. Dollar-based net retention slipped to 92% from 94% over the same period. Days sales outstanding for accounts receivable increased to 95 days, up from 88.
The rally is already making some analysts uneasy. On Thursday, Benzinga said RBC held BlackBerry at Sector Perform and raised its price target to $9 after earnings. CIBC bumped its target to $13 with an Outperformer rating, and Canaccord increased its target to $10.30 while keeping a Hold. RBC’s Paul Treiber said before that a sustained rerating needs “evidence of accelerating top-line growth.” Benzinga
Focus this week is on what the open note window brings after U.S. markets are back. There isn’t an earnings event on the schedule. BlackBerry’s investor calendar puts the fiscal Q2 results around Sept. 24, though the company says that’s an estimate.
