# BlackBerry's $1,512.8 million valuation allowance is 1.2 times total assets

![BlackBerry's $1,512.8 million valuation allowance is 1.2 times total assets](https://aiswingx.com/static/covers/bb-fy27q2_cover.jpg?v=1790547375)

**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**

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.

- 종목: BB (BlackBerry Limited)
- 분기: FY2027Q2 · 10-Q
- 작성: 2026-09-27 22:16 UTC
- 원문: https://aiswingx.com/p/bb-fy27q2

## 숫자 하나
A deferred tax asset valuation allowance of $1,512.8 million, equal to 119.8% of total assets of $1,263.0 million and 191.1% of total equity of $791.6 million. Second-quarter pre-tax income of $35.2 million carried income tax of $1.3 million, an effective rate of 3.7%. The accumulated deficit stands at $2,121.9 million.

## 비유 하나
(구독자 전용)

## 출처 하나
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.

## 다음 분기에 볼 것
(구독자 전용)

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## 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.

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(End of free preview. What the numbers mean, why it matters, company context, the next-quarter checklist and the arithmetic are available to subscribers — https://aiswingx.com/pricing)

## FAQ

**Q. 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.

**Q. 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.

**Q. 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.

**Q. 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.

**Q. 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.