BlackBerry's $1,512.8 million valuation allowance is 1.2 times total assets
Fiscal 2027 second-quarter 10-Q: the allowance recorded in the income tax note is larger than total assets on the balance sheet, and the company placed the point at which its assessment could change within the current fiscal year
aiSwingX™ Editorial · Reviewed
Published
BlackBerry Limited Form 10-Q (fiscal 2027 second quarter, filed 2026-09-24, accession 0001070235-26-000115): consolidated statements of operations, consolidated balance sheets, consolidated statements of cash flows, Note 3 on balance sheet details, Note 5 on long-term notes, the income tax note, and the Income Taxes and Debt Financing and Other Funding Sources discussions in MD&A. Quarterly and year-to-date figures cross-checked against SEC XBRL Company Facts.
aiSwingX™ analyzes US filings and reports them as news investors can read.
BlackBerry (BB) discloses a deferred tax asset valuation allowance of $1,512.8 million in the income tax note of its fiscal 2027 second-quarter 10-Q. On the same date, the balance sheet shows total assets of $1,263.0 million and total equity of $791.6 million. The allowance is 119.8% of total assets and 191.1% of total equity.
In plain terms
BlackBerry makes software for cars and security software for governments and companies. Losses from its long unprofitable years left it with more than $1.5 billion of rights to pay less tax in future, but it has written those rights off the books because it is not certain they can be used. That amount is larger than everything the company owns. Profits have recently returned, and the company wrote that it is reassessing.
What happened
BlackBerry (BB) is a Canadian company that makes the QNX software used in vehicles and security software for governments and enterprises. Its fiscal 2027 second quarter ended on August 31, 2026, and the 10-Q was filed on September 24, 2026.
One amount from the income tax note, and three from the balance sheet on the same date.
Item
August 31, 2026
Deferred tax asset valuation allowance
$1,512.8 million
Total assets
$1,263.0 million
Total equity
$791.6 million
Accumulated deficit
−$2,121.9 million
Allowance / total assets
119.8%
The valuation allowance is not a figure in the asset column. It is the amount deducted from deferred tax assets. It is therefore not included in the $1,263.0 million of total assets. What the company has accumulated across Canada and the United States is larger than everything on its balance sheet.
The company placed the point at which its view could change within the current fiscal yearSubscribers
A ●● effective rate — ●● of tax on ●● of pre-tax incomeSubscribers
Why the diluted share count rose by ●● — a conversion window is openSubscribers
Of ●● in receivables, ●● is due after a yearSubscribers
●● of non-cash consideration, and a newly written accounting policySubscribers
Notes fair value of ●●, 2.3 times the carrying amountSubscribers
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FAQ
What is a valuation allowance?
It is the portion of deferred tax assets written down because the company does not expect to be able to use it. The company states the amount in the income tax note of the 10-Q, and the free table above places it beside total assets and total equity.
What happens if that amount comes back onto the books?
The company wrote that its assessment may change within the current fiscal year, and that a change would produce a non-cash income tax benefit. The original sentences are reproduced in the subscriber section. This article does not forecast the timing or the amount.
Why did the diluted share count jump?
A conversion condition on the company's convertible notes was met, opening a window during which holders may convert. The share count, conversion price, window dates and whether any holder had converted as of filing are in the subscriber section.
Is the entire receivable balance collectible within a year?
The receivable balance is split between amounts due within a year and amounts due after that. Both figures, and the ratio to quarterly revenue, are in the subscriber section.
Where can I verify this directly?
Open BlackBerry Limited's fiscal 2027 second-quarter Form 10-Q (accession 0001070235-26-000115) on SEC EDGAR and read the income tax note, the long-term notes note, and the balance sheet detail note.
How aiSwingX™ wrote this
We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
An editor reviews before publication; any later change is recorded in the revision history.
BlackBerry Limited Form 10-Q (fiscal 2027 second quarter, filed 2026-09-24, accession 0001070235-26-000115): consolidated statements of operations, consolidated balance sheets, consolidated statements of cash flows, Note 3 on balance sheet details, Note 5 on long-term notes, the income tax note, and the Income Taxes and Debt Financing and Other Funding Sources discussions in MD&A. Quarterly and year-to-date figures cross-checked against SEC XBRL Company Facts. · SEC EDGAR · This article is not investment advice. Disclaimer
Frequently asked questions
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aiSwingX™ analyzes US filings and reports them as news investors can read.
