BlackBerry renews share buyback plan for 26.8 million

BlackBerry has renewed its normal course issuer bid share buyback programme after the Toronto Stock Exchange accepted the plan.

Under the programme, the software company can repurchase up to 26,785,714 common shares, equal to about 4.58% of its public float at the close of business on 30 April. Any shares bought under the plan will be cancelled.

BlackBerry may buy shares through the Toronto Stock Exchange, the New York Stock Exchange, other Canadian exchanges, and alternative trading systems in Canada and the United States. Subject to regulatory approval, it may also make purchases through private agreements or share repurchase programmes under issuer bid exemption orders from securities regulators.

At the close of business on 30 April, BlackBerry had 586,061,407 common shares outstanding and a public float of 584,830,432 shares. Average daily trading volume on the Toronto Stock Exchange over the previous six months was 2,255,303 shares.

Daily purchases through the Toronto Stock Exchange will be capped at 563,825 shares, except for block purchases. The renewed bid will run from 12 May until the earliest of 11 May next year, the date BlackBerry ends it, or the point at which it reaches the maximum number of shares allowed under the programme.

Prior buybacks

The renewal follows a previous buyback plan that allowed BlackBerry to repurchase up to 27,855,153 common shares. Under that programme, which began on 12 May last year and expires on 11 May, it had bought back 18,136,158 common shares at a weighted average price of USD $3.85 each.

Those purchases were made through the Toronto Stock Exchange, the New York Stock Exchange, and alternative trading systems. Shares acquired under the renewed bid will be bought at the market price at the time of purchase.

For shares bought under issuer bid exemption orders, the price will be negotiated with arm's length third parties and is expected to be at or below market price. BlackBerry did not say how many shares it expects to repurchase under those arrangements.

Cash position

BlackBerry said it strengthened its balance sheet in fiscal 2026 and expects to generate positive operating cash flow in fiscal 2027. The buyback gives it flexibility to cancel shares when that aligns with its investment and capital allocation plans.

The company said it believes its share price may at times not reflect the underlying value of the business and its prospects. Using a portion of excess cash for repurchases could provide an attractive return on capital and help offset dilution from shares issued under its equity incentive plan.

BlackBerry added that using cash for buybacks is not expected to affect its long-term strategy. The number of shares repurchased, and the timing of any purchases, will remain subject to stock exchange limits and securities laws in Canada and the United States.

The renewal gives BlackBerry a new mandate to continue repurchasing shares after the current programme expires, while preserving its discretion over whether to buy any shares at all. Based on the latest disclosed figures, it had used about two-thirds of the authorisation under the existing plan, repurchasing 18.1 million shares out of an approved maximum of 27.9 million.

That earlier activity offers a reference point for the potential scale of future repurchases. At a weighted average price of USD $3.85 a share, the 18,136,158 shares bought back under the existing programme imply spending of about USD $69.8 million.

Share buyback programmes can serve several purposes for listed companies, including reducing the number of shares outstanding, supporting earnings per share, and offsetting dilution from employee share awards. In BlackBerry's case, it explicitly linked the programme to capital allocation flexibility and the impact of its equity incentive plan.

For investors, the renewal signals that BlackBerry intends to keep the option of repurchasing stock in the market over the coming year, though it has not committed to buying the full authorised amount. It said there can be no assurance how many common shares, if any, will ultimately be purchased under the programme.