Blackberry (BB) risk factors, FY2025 10-K

Risks Related to the Company’s Business

1. 01The Company may not be able to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability
2. 02The Company faces intense competition
3. 03margins. If the Company is unable to compete successfully, there could be a material adverse effect on the Company’s business, results of operations and financial condition
4. 04The Company may not be able to enhance, develop, introduce or monetize its products and services in a timely manner with competitive pricing, features and performance
5. 05Significant changes in government customer demand or procurement requirements could have an adverse effect on the Company’s business and results of operations
6. 06The Company’s sales cycles can be long and unpredictable and its sales efforts require considerable time and expense
7. 07The Company’s success depends on its continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively
8. 08A failure or perceived failure of the security features of the Company’s solutions could materially adversely affect the Company’s reputation, financial condition and results of operations
9. 09Adverse macroeconomic and geopolitical conditions, including trade policies, have had and may continue to have a material adverse effect on the Company’s business, results of operations and financial condition
10. 10Litigation against the Company may result in adverse outcomes
11. 11Network disruptions or other business interruptions could have a material adverse effect on the Company’s business and harm its reputation
12. 12The Company may not be successful in fostering an ecosystem of third-party application developers
13. 13The Company’s ability to maintain and expand its market reach depends in part on establishing, developing and maintaining relationships with third party resellers and channel partners, especially in its Secure Communications business
14. 14The Company’s products and services are dependent upon interoperability with rapidly changing systems provided by third parties
15. 15The Company uses artificial intelligence solutions, which may expose it to operational challenges, legal liability, reputational harm and regulatory concerns

Risks Related to Intellectual Property and Technology Licensing

1. 16Failure to protect the Company’s intellectual property could harm its ability to compete effectively and the Company may not earn the revenues it expects from intellectual property rights
2. 17The Company is subject to risks related to the use of open source software may not be able to obtain rights to use third-party software
3. 18The Company could be found to have infringed on the intellectual property rights of others
4. 19the Company in the future. The Company may be subject to these types of claims either directly or indirectly through indemnities that it provides to certain of its customers, partners and suppliers against these claims
5. 20In addition, any such claim may require the Company to enter into costly royalty agreements or obtain a license for the intellectual property rights of third parties. Such licenses may not be available or they may not be available on commercially reasonable terms

Risks Related to Assets, Indebtedness and Taxation

1. 21The Company has incurred indebtedness, which could adversely affect its operating flexibility and financial condition
2. 22The Company faces asset risk, including the potential for charges related to certain investments, long-lived assets and goodwill
3. 23Tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities could materially impact the Company’s financial condition

Risks Related to Regulation

1. 24The use and management of user data and personal information could give rise to liabilities as a result of legal, customer and other third-party requirements
2. 25User data and personal information is increasingly subject to new and amended legislation and regulations in numerous jurisdictions around the world that are intended to protect the privacy and security of personal information, as well as the collection, storage, transmission, use and disclosure of such information
3. 26Government regulations applicable to the Company’s products and services, including products containing encryption capabilities, could negatively impact the Company’s business
4. 27Environmental, social and governance (“ESG”) expectations and standards expose the Company to risks that could adversely affect the Company’s reputation and performance
5. 28Failure of the Company’s suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or to comply with applicable laws could negatively impact the Company’s business
6. 29Acquisitions, divestitures, investments and other business initiatives may negatively affect the Company’s results of operations
7. 30The Company’s business is subject to risks inherent in foreign operations, including fluctuations in foreign currencies
8. 31Environmental events may negatively affect the Company
9. 32The Company expects its quarterly revenue and operating results to fluctuate
10. 33The market price of the Company’s common shares is volatile