BlackBerry Limited (BB) is a pure-play software company organized into three segments: QNX (embedded OS and automotive), Secure Communications (UEM/endpoint management), and Licensing (IP). The FY2026 10-K (period ended February 28, 2026) reports total assets of $1,245.2M against total liabilities of $499.2M, yielding book equity of approximately $746M. Under a liquidation lens, recovery to equity is negative and aligns with MFFAIS's reported CLV of -$208.7M and LLV/OLV of -$52.7M. The balance sheet is dominated by intangible assets and goodwill that carry zero liquidation value. Goodwill alone stands at $479.1M (38% of total assets); intangible assets net of accumulated amortization are $40.1M. PP&E net is only $12.3M. Together, these intangible/goodwill assets ($519M+ book) recover approximately $0 in liquidation. The primary liquid asset pool is cash, equivalents, and investments: $274.7M unrestricted cash and cash equivalents (100% recovery), $205.5M in available-for-sale debt securities maturing within one year (near-par), $58.3M in long-term investments (includes illiquid Arctic Wolf common shares received from the Cylance divestiture — filing explicitly flags these as illiquid with no public market, fair value $24.6M), and $14.2M in restricted cash supporting letters of credit. Total recoverable liquid pool is approximately $552M before haircuts. On the liability side, the $196.5M carrying value of the 3.00% convertible senior notes due February 2029 is held at face; fair value per filing is $241.7M but liquidation applies face/carrying value. Accrued liabilities current of $111.7M, deferred revenue current $138.5M (service obligations that survive windup and must be refunded or performed), and operating lease liabilities totaling $28.3M (undiscounted $31.9M) all remain at face. Deferred revenue noncurrent adds $14.1M. Total lease liability declined from $43.7M (Feb-25) to $28.3M (Feb-26), a meaningful reduction. No long-term debt other than the $196.5M notes. Accounts receivable (current $156M + noncurrent $46.6M = $202.6M) includes $46.6M of long-dated licensing receivables; at 90% haircut, both tranches yield approximately $182M. The large accumulated deficit of $2,167.2M and full valuation allowance of $1,512.8M against gross deferred tax assets confirm ongoing structural loss position. Net restructuring charges of $15.7M in FY2026 and $8.3M restructuring reserve outstanding reflect continued right-sizing. SIF government grant receivable of $28.6M (up from $20.5M) is recognized but partially repayable under certain conditions — filing does not separately XBRL-tag the contingent repayment, flagged here as a contingent liability disclosed only in MD&A narrative.
▼ Community Notes