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Strong SDP 8.0 design-win momentum and first Alloy Kore award drive 26% growth since fiscal year-end 2026

OTTAWA, ON / ACCESS Newswire / October 20, 2026 / BlackBerry Limited (NYSE:BB)(TSX:BB) today announced that its QNX division has exceeded $1.2 billion in royalty backlog, establishing a new record for the business and marking a significant milestone in QNX's growth.

The achievement represents an increase of more than $250 million, or more than 26%, from the approximately $950 million reported at the end of fiscal year 2026. The increase reflects strong customer adoption of QNX's trusted software, particularly QNX® Software Development Platform 8.0, together with the first design win of Alloy Kore™, QNX's foundational automotive OS.

Increasing adoption of SDP 8.0 is expanding QNX's opportunity within next-generation, high-performance compute architectures. As automakers consolidate vehicle functions onto increasingly powerful centralized and domain-based compute platforms, QNX can support multiple software domains and multiple instances within a single vehicle, creating opportunities for greater QNX software content and associated royalty value per vehicle. QNX is actively working with several major global automotive OEMs and Tier 1 suppliers as they evaluate and develop on the platform.
Alloy Kore further expands this opportunity by moving QNX beyond individual software components towards a broader, foundational automotive OS. Its first design win, valued at more than $100 million of estimated future royalties, is the largest design win in QNX's history. The award provides significant commercial validation for Alloy Kore and demonstrates its potential to materially broaden QNX's role within each vehicle and increase the royalty opportunity per program.

Beyond automotive, General Embedded Markets and Physical AI based systems also contributed to the 26% growth in QNX royalty backlog through a number of important design wins across robotics, industrial automation and medical devices. These wins underscore the growing demand for trusted foundational software in systems that must interact safely, securely and reliably with the physical world. QNX is encouraged by the momentum in these markets and the continued expansion of its opportunity pipeline, supported by strategic relationships with leading silicon providers that further strengthen its position in the development of next-generation intelligent systems.

Next-Generation Platforms Driving Growth

"Exceeding $1.2 billion in royalty backlog is an important milestone for BlackBerry and compelling evidence of the momentum we are building at QNX," said John Giamatteo, Chief Executive Officer, BlackBerry. "In just two quarters, our backlog has grown by more than $250 million from the approximately $950 million we previously reported, reflecting strong demand for our foundational software and the impact of our next generation of products. The growing adoption of SDP 8.0 and the commercial validation of Alloy Kore demonstrate that our strategy is working, expanding our opportunity and increasing the value of QNX software content within each vehicle."

QNX's business model begins well before customer production. Once QNX secures a design win and the associated future royalties can be reasonably estimated, those anticipated royalties are included in QNX royalty backlog. Royalty revenue is subsequently recognized as customer programs enter production and volumes ramp.

"The increase in our royalty backlog reflects an important evolution in both the breadth and value of QNX's customer relationships," said John Wall, President, QNX. "Customers are increasingly adopting SDP 8.0 for the high-performance compute architectures at the centre of Software-Defined Vehicles, while our first Alloy Kore design win demonstrates the potential to extend QNX's position further up the software stack. We are also applying our proven foundational software capabilities to General Embedded Markets and emerging Physical AI applications, where safety, security and reliability are critical. We believe the momentum across these growth opportunities creates a strong foundation for QNX's continued expansion."

About QNX Royalty Backlog

The Company defines QNX royalty backlog as estimated future revenue from variable forecasted royalties. The estimation is based on QNX royalty rates and projections of anticipated volumes based on historical experience and current customer projections that management believes are reasonable over the lifetime of a design.

QNX royalty backlog may not be indicative of actual future revenue. The revenue ultimately recognized is subject to several factors, including actual production volumes and potential terminations or modifications of customer contracts.

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About BlackBerry

BlackBerry (NYSE: BB)(TSX: BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.
Safe. Certified. Secure.

For more information visit BlackBerry.com and follow BlackBerry on LinkedIn

About QNX

QNX, a division of BlackBerry Limited (NYSE: BB; TSX: BB), provides the trusted foundation that software-defined and physical AI systems depend on to operate safely and predictably in the real world. For nearly half a century, QNX has powered safety-critical applications where failure is not an option. The business leads the way in delivering safe and secure operating systems, hypervisors, middleware, solutions, and development tools, along with the support and services delivered by trusted embedded software experts. Today, QNX technology underpins hundreds of millions of vehicles on the road and a wide range of mission-critical systems across industrial controls, robotics, medical devices, commercial transportation, rail, and aerospace and defense. QNX is headquartered in Ottawa, Canada. Learn more at qnx.software.

Trademarks, including but not limited to BLACKBERRY and EMBLEM Design, are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved. All other trademarks are the property of their respective owners. BlackBerry is not responsible for any third-party products or services.

Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
[email protected]

Media Contact:
BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

SOURCE: QNX

BlackBerry (BB - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this cybersecurity software and services company have returned +7.7% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Internet - Software industry, to which BlackBerry belongs, has gained 4.5% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, BlackBerry is expected to post earnings of $0.05 per share, indicating no change. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $0.21 for the current fiscal year indicates a year-over-year change of +31.3%. This estimate has changed +30.8% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $0.23 indicates a change of +9.5% from what BlackBerry is expected to report a year ago. Over the past month, the estimate has changed +1.5%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, BlackBerry is rated Zacks Rank #3 (Hold).

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For BlackBerry, the consensus sales estimate for the current quarter of $148.5 million indicates a year-over-year change of +4.7%. For the current and next fiscal years, $628.84 million and $682.59 million estimates indicate +14.5% and +8.5% changes, respectively.

Last Reported Results and Surprise HistoryBlackBerry reported revenues of $163.3 million in the last reported quarter, representing a year-over-year change of +26%. EPS of $0.07 for the same period compares with $0.04 a year ago.

Compared to the Zacks Consensus Estimate of $143 million, the reported revenues represent a surprise of +14.2%. The EPS surprise was +75%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

BlackBerry is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about BlackBerry. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Key Takeaways BB's QNX raised fiscal 2027 revenue guidance to $315-$325 million, with adjusted EBITDA of $95-$105 million.QNX's addressable automotive market could more than double in 5 years as centralized computing gains traction.Royalty growth, minimum volume commitments & Physical AI applications aid QNX's expansion in embedded markets.
BlackBerry Limited (BB - Free Report) QNX business is emerging as a potentially key growth driver as AI reshapes the automotive industry, industrial automation and robotics. Known for its real-time operating systems and safety-critical software, QNX is well-positioned to benefit from a broader shift toward software-defined vehicles, intelligent machines and autonomous systems. While AI and Physical AI offer promising opportunities, the pace of commercialization, competition and customer adoption will determine how much value QNX can ultimately unlock.

QNX’s growth strategy rests on three pillars: its core automotive business, moving up the software stack with Alloy Kore and expanding into adjacent embedded markets. Core automotive remains the primary growth driver, supported by the shift toward software-defined vehicles and centralized computing architectures. QNX’s addressable market could more than double over the next five years as high-performance centralized computing architectures expand from roughly one-third to three-quarters of annual global vehicle production. Growth will also come from higher software content per vehicle, multiple QNX deployments and the transition to its SDP 8 platform.

As existing design wins enter production, royalty revenue should increase. QNX is also securing minimum volume commitments to improve revenue visibility and cash flow, while China’s new safety requirements for assisted and automated driving systems create additional opportunities. QNX’s general embedded markets account for about 20% of revenue and offer long-term growth opportunities across physical AI, robotics, industrial automation, medical devices and aerospace and defense. Its real-time, safety-certified and reliable software is increasingly important as AI moves into physical systems, including robotaxis, humanoid robots, surgical robots, autonomous vehicles and drones. While many markets remain in the early stages, a growing customer pipeline and rising demand for safety-critical software could dramatically expand QNX’s addressable market.

The company raised its fiscal 2027 QNX revenue outlook to $315-$325 million and adjusted EBITDA guidance to $95-$105 million. For the third quarter, QNX revenue is expected to be between $82 million and $88 million, with adjusted EBITDA of $27-$32 million. Management cited strong core automotive momentum and conversion of the royalty backlog into production revenue.

Can Competition Hinder BB’s QNX From Reaching Its Potential?NVIDIA Corporation (NVDA - Free Report) continues to build a longer-duration opportunity in automotive, robotics and other physical AI applications. NVIDIA expanded its DRIVE Hyperion robotaxi-ready ecosystem through collaborations with Foxconn, VinFast, Uber and HUMAIN and introduced Alpamayo 2 Super for autonomous vehicle development. It also launched Cosmos 3, an open frontier model for physical AI, the Isaac GR00T reference humanoid robot and Halos for Robotics safety software. Management has positioned physical AI as one of the workloads supported by the same computing, model and software stack, which can extend platform adoption beyond Data Center deployments. In August, it unveiled NVIDIA Jetson Orin Nano 2, a new robotics computer for entry-level edge AI. 

Qualcomm Incorporated (QCOM - Free Report) automotive growth increasingly reflects higher compute content and broader platform wins. In the fiscal third quarter, automotive revenue reached $1.59 billion, up 61%. Qualcomm expanded its relationship with BMW to become the lead compute silicon provider for next-generation ADAS and digital cockpit programs extending into the next decade. Its collaboration with Stellantis also supports programs into the 2030s. Management said the fifth-generation Snapdragon Digital Chassis will ramp and is driving a step-up in silicon content per vehicle. It now expects an annualized automotive sales run rate of about $7 billion exiting fiscal 2026, providing a clearer bridge from design wins to sustained revenue growth.

BB Price Performance, Valuation & EstimatesShares of BlackBerry have surged 130.2% in the past six months compared with the Internet-Software industry’s growth of 28.6%.

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Regarding the price/book ratio, BB is trading at 6.61, higher than the industry’s multiple of 5.49.

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The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised upward over the past 60 days.

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BlackBerry currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways BB ended fiscal Q2 with $447 million in cash and investments, including nearly $247 million in net cash.BB generated $28 million in quarterly free cash flow and raised its fiscal 2027 operating cash flow outlook.BlackBerry is prioritizing QNX investments, disciplined share buybacks and selective M&A to support growth. BlackBerry Limited’s (BB - Free Report) improving profitability and cash generation have strengthened its balance sheet. The company ended the second quarter of fiscal 2027 with approximately $447 million in cash and investments, representing net cash of nearly $247 million.

A stronger balance sheet reduces financial pressure while giving BlackBerry options to support its growth initiatives.

Strong Cash Generation Bolsters Financial FlexibilityBlackBerry generated $29.3 million in operating cash flow in the fiscal second quarter, above management's guidance. For the first half of fiscal 2027, operating cash flow totaled $34 million, while cash usage was $14 million in the year-ago period. Free cash flow reached $28 million in the quarter and $30 million in the first half, supported by the company's capex-light operating model.

This improvement reflects stronger operating leverage and revenue growth. Fiscal second-quarter revenues of $163.3 million rose 26% and came in 14.2% above the Zacks Consensus Estimate. Adjusted gross margin improved to 78.2% from 75% a year earlier. Adjusted EBITDA increased 81% to $47 million and represented 29% of revenues.

Management also raised its fiscal 2027 operating cash flow outlook by $15 million to approximately $115 million, signaling confidence in sustained cash generation.

QNX, Buybacks and M&A in FocusBlackBerry has identified three capital allocation priorities: investing in QNX growth, disciplined share repurchases and selective M&A.

The company is prioritizing organic investments focused on QNX's core automotive business, the Alloy Kore platform and General Embedded Markets (“GEM”).

BlackBerry also retains significant capacity under its existing normal course issuer bid share repurchase program. However, management intends to evaluate buybacks against alternative investment opportunities and repurchase shares when attractive relative to other opportunities.

Meanwhile, BlackBerry is assessing potential acquisitions that could accelerate expansion into the GEM space.

Though improving cash position provides room to pursue multiple growth initiatives, the pace of acquisitions and repurchases will depend on available opportunities and management's disciplined capital allocation approach.

Cash Profile for PeersAptiv PLC (APTV - Free Report) is an automotive technology peer for BlackBerry's QNX business. At the end of the second quarter of 2026, Aptiv had $761 million in cash and cash equivalents. It generated $12 million in free cash flow during the quarter and expects full-year 2026 free cash flow of $625 million to $725 million.

Aptiv repurchased $250 million worth of shares in the quarter, bringing first-half buybacks to $325 million. On the last earnings call, management said that it intends to return approximately half of its free cash flow to shareholders through repurchases over the next few years. Meanwhile, smaller bolt-on acquisitions remain a priority to diversify operations.

Cybersecurity peer CrowdStrike Holdings (CRWD - Free Report) is also leveraging its financial strength to pursue strategic growth opportunities.

The company ended second-quarter fiscal 2027 with $5.01 billion in cash and cash equivalents. It generated operating cash flow of $530 million and free cash flow of $377 million in the quarter. CrowdStrike expects a free cash flow margin of at least 30% for fiscal 2027. Long-term debt was about $746.2 million as of July 31, 2026, leaving the company with ample financial flexibility. CrowdStrike’s capital deployment strategy includes acquiring XM Cyber's technology assets to strengthen exposure management capabilities. The transaction is expected to close in the second half of fiscal 2027.

BB Price Performance, Valuation & EstimatesBlackBerry’s shares have gained 14.5% in the past month compared with the Internet-Software industry’s 8.3% growth.

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The stock is trading at a forward 12-month price-to-earnings multiple of 38.84X, higher than the industry’s multiple of 30.61X.

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The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised upward over the past 60 days.

Image Source: Zacks Investment Research

BlackBerry currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways BlackBerry cut FY27 Secure Communications revenue guidance to $260-$270 million from $270-$280 million.About 80% of the business is backed by ARR, while larger government deals drive timing uncertainty.Secure Communications Q2 revenues rose 2% to $61 million, while ARR increased 4% to about $221 million. BlackBerry (BB - Free Report) entered the second half of fiscal 2027 with a cautious outlook for its Secure Communications business, despite maintaining a relatively stable recurring-revenue base and continuing to see customer activity across key government and regulated markets.

Following the first quarter, BlackBerry had projected fiscal 2027 Secure Communications revenues in the range of $270-$280 million. In its latest update, the company lowered that range to $260-$270 million, while guiding adjusted EBITDA to $50-$58 million.

Management said it was taking a cautious view on the timing of government opportunities amid broader geopolitical and trade uncertainty, including Canada-U.S. tensions. However, management added that BlackBerry has not seen “anything material arising from this issue” and has not observed a “slowdown in pipeline generation outside of North America”.

In the fiscal second quarter, Secure Communications revenues rose 2% year over year to $61 million. Segment adjusted gross margin fell 500 basis points to 61%, reflecting lower-margin Secusmart device revenues. Adjusted EBITDA was $8 million, down 18%, with a 13% margin. Annual recurring revenues reached approximately $221 million, up 4%, while dollar-based net retention was 91%.

First-half Secure Communications revenues rose 13% year over year, supported by renewals and expansions across the United States, Canada, Europe, Asia and the Middle East.

Management noted that about 80% of the business is supported by ARR. However, the key uncertainty lies in the roughly 20% of the revenue outlook tied to larger government deals. Management said larger government opportunities can create quarter-to-quarter variability as these have long sales cycles.

Let’s Look at BB’s PeersIn the broader cybersecurity market, BlackBerry operates alongside several leading names, including CrowdStrike Holdings (CRWD - Free Report) , Palo Alto Networks (PANW - Free Report) and Motorola Solutions (MSI - Free Report) .

While BlackBerry focuses on encrypted communications and sovereign-grade infrastructure, CrowdStrike is a leading pure-play cybersecurity vendor. Revenues for the second quarter of fiscal 2027 stood at $1.47 billion, increasing 26% year over year. CrowdStrike’s growth is being fueled by rising AI-security demand, Falcon Flex adoption and momentum across next-gen SIEM and AIDR adoption. For fiscal 2027, CrowdStrike’s revenues are now projected between $5.991 billion and $6.011 billion, with ARR of $6.603 billion to $6.612 billion.

Palo Alto Networks’ fiscal fourth-quarter revenues surged 34% to $3.41 billion, while remaining performance obligations reached $21.2 billion, up 34%. Performance was driven by broad-based strength across Network and AI Security, XSIAM momentum and contributions from CyberArk and Chronosphere acquisitions. Palo Alto Networks expects fiscal 2027 Network & AI Security revenues to grow in the low double digits. Cortex revenues is projected to rise about 30% and Idira revenues are expected to reach approximately $1.5 billion.

Motorola, through its Software and Services segment, offers a wide range of services and software to government, public safety and commercial communication networks. Services include offerings such as repair, technical support and maintenance, along with monitoring, software updates and cybersecurity services.  Motorola’s second-quarter revenues rose 13% year over year, while Software and Services revenues increased 10%. 

Production begins in 2027, with projected volumes of several million units within three years

SHANGHAI, CN / ACCESS Newswire / September 28, 2026 / QNX, a division of BlackBerry Limited (NYSE:BB)(TSX:BB), and neueHCT, the intelligent driving company jointly established by Horizon Robotics and AUMOVIO, are pleased to announce that a major German automaker has selected neueHCT's QNX-powered HCT Luna High-Performance Smart Camera Solution for a global passenger vehicle platform launching in China. The landmark program extends across Australia, New Zealand, Japan and South Korea, establishing a foundation for further global expansion.

The win marks the HCT Luna High-Performance Smart Camera Solution's first major global program powered by QNX and moves the product from individual vehicle applications to large-scale deployment across multiple platforms and models. Built on Horizon Robotics' Journey® 6B automotive compute platform and powered by QNX® OS for Safety 8.0, the HCT Luna High-Performance Smart Camera Solution will be deployed in vehicles sold in China and multiple international markets, including Australia, New Zealand,Japan and South Korea. Production is set to begin in 2027, with projected volumes of several million units within the first three years.

"Securing this win demonstrates that neueHCT's solution has met the technical standards required by global OEMs," said Simon Zhang, COO of neueHCT. "By combining our scalable intelligent driving architecture with Horizon Robotics' Journey 6B platform and QNX OS for Safety 8.0, we are providing automakers with a high-quality solution that meets market access requirements and user needs across diverse overseas markets and regions."

Designed to make advanced active safety and a front view smart camera available as standard equipment in mass-production vehicles, the HCT Luna High-Performance Smart Camera Solution supports capabilities including Automatic Emergency Braking, Lane Departure Warning and Traffic Light Recognition, while also providing support in frequently encountered scenarios such as vehicle cut-ins, sharp curves, construction zones and vehicle centering where lane markings are limited or unavailable.

The HCT Luna High-Performance Smart Camera Solution's platform-based, scalable algorithm architecture enables the solution to be efficiently adapted across different vehicle platforms, helping automakers shorten development and introduction cycles while supporting consistent functionality across multiple models, regional configurations and road environments. QNX OS for Safety 8.0 provides the trusted software foundation for this approach, delivering deterministic performance, fault isolation and real-time responsiveness while also being certified to ISO 26262 ASIL D, the automotive industry's highest functional safety integrity level, and assessed to ISO/SAE 21434 for automotive cybersecurity.

"Automakers need intelligent driving solutions that can deliver safety, predictable performance and flexibility across increasingly complex vehicle programs," said John Wall, President at QNX. "This program demonstrates the role QNX OS for Safety 8.0 can play in helping scale advanced driver assistance capabilities across platforms, models and markets. We are proud to provide the trusted, real-time software foundation for this important milestone and look forward to helping advance its rollout around the world."

QNX is trusted as the foundation for a software-driven future by most leading OEMs and Tier 1s worldwide, including BMW, Bosch, Continental, Geely, Honda, Mercedes-Benz, Toyota, Volkswagen, Volvo, and more. Its foundational software supports future-proof engineering design, from digital cockpits and advanced driver assistance systems (ADAS) to zonal and domain controllers, enabling automakers to bring innovation to market faster and at lower cost.

For more information on QNX, visit QNX.com and follow @QNX News.

About BlackBerry

BlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.

About QNX

QNX, a division of BlackBerry Limited (NYSE:BB)(TSX:BB), provides the trusted foundation that software-defined and physical AI systems depend on to operate safely and predictably in the real world. For nearly half a century, QNX has powered safety-critical applications where failure is not an option. The business leads the way in delivering safe and secure operating systems, hypervisors, middleware, solutions, and development tools, along with the support and services delivered by trusted embedded software experts. Today, QNX technology underpins hundreds of millions of vehicles on the road and a wide range of mission-critical systems across industrial controls, robotics, medical devices, commercial transportation, rail, and aerospace and defense. QNX is headquartered in Ottawa, Canada. Learn more at qnx.software.

©2026 BlackBerry Limited. Trademarks, including but not limited to BLACKBERRY and EMBLEM Design, QNX and the QNX logo design are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved. All other trademarks are the property of their respective owners. BlackBerry is not responsible for any third-party products or services.

About neueHCT
neueHCT is a joint venture established in 2022 by AUMOVIO and Horizon Robotics. neueHCT is dedicated to becoming a global leader in intelligent driving industry, with the mission of "To Make Every Journey Safer and Better". Guided by the vision of "To Bring Leading Intelligent Driving Product to the Corner of Every Continent", neueHCT always stays rooted in China while serving the whole world, adhering to the strategy of "Born for Global"

neueHCT specializes in providing comprehensive ADAS and intelligent driving solutions for global OEMs, covering fields such as passenger vehicle, two-wheeled mobility, and L4 autonomous driving logistics vehicles. Our products are fully adapted to global market regulations and safety benchmarks, and comply with Euro NCAP 5-star safety standards, providing OEMs with a one-stop technological backbone for their global expansion.

Leveraging localized technological expertise and a global service network, the company is accelerating the export of Chinese intelligent driving solutions worldwide, becoming a key enabler in the internationalization of the smart automotive industry.

Media Contacts:

BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

neueHCT Media Relations
[email protected]

SOURCE: QNX

The automotive industry is shifting toward software-defined vehicles, which require complex, safety-certified compute foundations. For investors, this transition presents an opportunity to identify early leaders in mission-critical embedded software. BlackBerry Limited NYSE: BB has spent years pivoting its core business toward automotive operating systems, and that shift is starting to pay off.

BlackBerry just secured a major contract with Coretura, a joint venture between Daimler Truck OTCMKTS: DTRUY and Volvo OTCMKTS: VLVLY, ahead of its second-quarter earnings report. The deal validates Alloy Kore, BlackBerry's high-margin software platform, and shows how a vehicle's core software can change the economics for major auto suppliers.

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The shift away from fragmented legacy software toward pre-integrated operating systems changes how capital is allocated across the supply chain, positioning key software providers to capture recurring revenue. The data reveals a compelling picture of how this technological pivot is unfolding.

Landing a High-Margin Auto ContractBlackBerry's recent agreement with Coretura is a key validation of its embedded Internet of Things division.

Coretura, founded by commercial-vehicle giants Daimler Truck and Volvo, builds software for next-generation commercial trucks. To help achieve this, Coretura selected Alloy Kore, a foundational software layer co-developed by BlackBerry's QNX division and Vector.

This contract is valued at over $100 million and stands as one of the largest design wins in the history of the QNX unit.

Modern commercial vehicles require hundreds of millions of lines of code to operate safely. Historically, manufacturers relied on fragmented development models, which led to high integration costs, delayed launch cycles, and inflated research budgets.

Alloy Kore addresses these inefficiencies by pairing a safety-certified operating system with core vehicle services already built in. With this standardized framework, automakers can direct their engineering capital toward the features that set their brands apart instead of rebuilding the basics. Coretura's decision to commit to this architecture before its general market release indicates a clear industry demand for production-ready, safety-certified compute foundations.

Accelerating BlackBerry's Unit EconomicsFrom a financial perspective, the Coretura integration fundamentally alters the unit economics of the QNX platform. Core software layers command higher pricing power than isolated infotainment or dashboard systems. Initial estimates indicate the Alloy Kore platform triples BlackBerry's revenue per vehicle, shifting the entire division's margin profile toward high-value recurring revenue.

The numbers reflect a market pricing in a structural turnaround. BlackBerry currently generates about $549 million in annual sales, operating with a price-to-sales multiple near 8.6. The trailing price-to-earnings ratio sits at approximately 89, which requires uninterrupted execution to justify. The anticipated expansion in recurring software margins is projected to compress the forward price-to-earnings ratio to around 64, driven by a forecasted 46% earnings growth rate.

Profitability ratios add context to this growth trajectory. BlackBerry maintains a net margin of around 10.31% and a return on equity near 11.66%. A low debt-to-equity ratio of 0.26 and a current ratio of 2.20 provide the necessary liquidity to fund ongoing research and development without heavily leveraging the balance sheet.

Across the broader automotive supply chain, capital allocation differs by sub-sector. BlackBerry's competitors, like Aptiv PLC NYSE: APTV, focus heavily on hardware and software integration, while Mobileye Global Inc. NASDAQ: MBLY targets advanced driver-assistance vision processing. BlackBerry operates as a pure-play software model, bypassing the capital-intensive manufacturing requirements of its peers and securing a zero-yield but highly scalable recurring revenue base.

Smart Money Parks Capital in BlackBerryThe timing of the Coretura announcement provides management with quantifiable leverage heading into the second-quarter earnings report on Sept. 24. BlackBerry shares have rallied over 120% since the beginning of the year and are currently trading near $8.40. This price action suggests the broader market is actively repricing the stock from a legacy mobile brand into a tier-one automotive software provider.

33rd Percentile

Hold

4.7% Upside

Bearish

N/A

0.75 Selling Shares

46.15%

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Institutional ownership trends offer additional insight into market sentiment. Recent filings indicate that quantitative hedge funds have accumulated shares, signaling confidence in the company's turnaround. These institutional inflows help stabilize the stock against corporate insider selling, which has occurred as executives liquidate shares into the year-to-date rally.

Short interest remains at healthy levels, indicating an absence of extreme bearish positioning that would artificially suppress the stock. The options market reflects speculative bets geared toward positive forward guidance, with call options dominating recent put volume. The nine-figure QNX royalty backlog addition provides the visibility institutional investors need to model long-term cash flows, making it easier for them to commit capital.

Mapping the Route for Software MarginsBlackBerry's shift to become a high-assurance vehicle software provider carries real execution risks. Its premium valuation necessitates consistent margin expansion and consecutive design wins to maintain current price levels. Any delay in deployment schedules or broader pressures affecting commercial vehicle production could affect BlackBerry's short-term revenue realization.

Despite these risks, the Coretura partnership demonstrates that BlackBerry's QNX architecture commands tangible engineering value. Transitioning from fragmented operating systems to a pre-integrated, mission-critical foundation creates a recurring revenue moat that is difficult for competitors to replicate. The shift in unit economics positions the embedded software division to capture a larger percentage of the value created by the software-defined vehicle movement.

Investors monitoring the automotive technology sector may want to add BlackBerry to their watchlist as the company demonstrates its capacity to secure tier-one commercial validation and expand its software margins.

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Revenue increased 26% year-over-year to $163 millionQNX delivered record quarterly revenue and secured its first Alloy KoreTM design win, the largest design win in QNX historyAdjusted EBITDA grew 81% year-over-year, resulting in the second consecutive Rule of 401 performance; GAAP operating income increased 192% year-over-yearGenerated $29 million operating cash flow; delivered sixth consecutive quarter of positive GAAP net income and Adjusted EPS exceeded expectationsRaised fiscal year 2027 revenue and Adjusted EBITDA outlook following strong first-half execution WATERLOO, ON / ACCESS Newswire / September 24, 2026 / BlackBerry Limited (NYSE:BB)(TSX:BB) today reported financial results for the three months ended August 31, 2026 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

"Our strong second quarter performance provides further evidence that BlackBerry's profitable growth model is working, with revenue, profitability, and cash flow generation all exceeding our expectations," said John J. Giamatteo, CEO, BlackBerry. "QNX delivered record performance in the quarter, driven by strength in our core automotive business. The first Alloy Kore design win, the largest design win in QNX history, marks an important commercial milestone. We also continue to build momentum beyond automotive in the General Embedded Markets and Physical AI. Secure Communications remained a stable and profitable contributor following a particularly strong first quarter. As we enter the second half of the year, we remain focused on disciplined execution, investing behind our growth opportunities, and leveraging the strength of our balance sheet to create long-term value for our shareholders."

Second Quarter Fiscal 2027 Financial Highlights

Total company revenue of $163.3 million increased 26% year-over-year.Total company adjusted gross margin improved 3 percentage points year-over-year to 78.2%; GAAP gross margin improved by 3 percentage points year-over-year to 77.8%.Total company adjusted EBITDA increased by $21.1 million year-over-year to $47.0 million, 81%; GAAP operating income improved by $22.1 million year-over-year to $33.6 million, or 192%.QNX revenue increased 27% year-over-year to $80.3 million; QNX segment adjusted gross margin expanded by 4 percentage points year-over-year to 87%.QNX segment adjusted EBITDA increased 41% year-over-year to $29.0 million, representing a 36% margin.Secure Communications revenue increased by 2% year-over-year to $60.9 million; Secure Communications segment adjusted gross margin decreased by 5 percentage points year-over-year to 61%.Secure Communications segment adjusted EBITDA decreased 18% year-over-year to $8.0 million, representing a 13% margin.Secure Communications ARR remained stable at $221 million and DBNRR was 91%.Licensing revenue was $22.1 million; Licensing segment adjusted EBITDA was $20.0 million.Adjusted net income increased 79% year-over-year to $43.2 million; GAAP net income was positive for the sixth consecutive quarter at $33.9 million.Adjusted basic earnings per share was $0.07; GAAP basic earnings per share was $0.06.Operating cash flow for the second quarter was $29.3 million, an improvement of $25.9 million from the $3.4 million cash provided in the prior-year quarter.Ended the second quarter with $447.1 million in cash and investments.1 The company defines the Rule of 40 metric as the sum of its GAAP revenue year-over-year growth percentage and its non-GAAP adjusted EBITDA margin percentage. Where the sum equals or exceeds 40, then the Rule of 40 is considered to have been achieved.

Business Highlights & Strategic Announcements

Coretura, the joint venture between Volvo Group and Daimler Truck, has chosen Alloy Kore for its next-generation commercial vehicle software platform. This first Alloy Kore design win is the largest in QNX history and adds over $100 million to the QNX royalty backlog.Momenta and XHEART selected QNX OS for Safety, built on SDP 8.0, as the foundation for a production-ready Physical AI-defined autonomous-driving platform certified to ISO 26262 ASIL D.QNX added support for the Hailo-8 AI Accelerator on SDP 8.0, expanding its Physical AI ecosystem; benchmark testing demonstrated higher throughput, lower latency, low power consumption and heat, and significantly greater consistency than the real-time Linux environment tested.BlackBerry® SecuSUITE® renewed its NIAP Common Criteria certification, reinforcing its sovereign-grade security credentials and position in government and mission-critical communications.BlackBerry® AtHoc® added Microsoft Teams and Entra ID integrations, strengthening mission-critical response and operational resilience for enterprise and government customers.Financial Outlook

BlackBerry is providing the following guidance for the third fiscal quarter ending November 30, 2026 and the fiscal year ending February 28, 2027.

Q3 FY27

FY27

Total BlackBerry revenue:

$143 - $154 million

$616- $636 million

QNX revenue:

$82 - $88 million

$315 - $325 million

Secure Communications revenue:

$55 - $60 million

$260 - $270 million

Licensing revenue:

Approximately $6 million

Approximately $41 million

Total Company adjusted EBITDA:

$28 - $37 million

$141 - $158 million

QNX segment adjusted EBITDA:

$27 - $32 million

$95 - $105 million

Secure Communications segment adjusted EBITDA:

$6 - $10 million

$50 - $58 million

Licensing segment adjusted EBITDA:

Approximately $5 million

Approximately $36 million

Adjusted basic EPS2:

$0.04 - $0.05

$0.19 - $0.22

Operating cash flow

$20 - $30 million

Approximately $115 million

2 EPS guidance does not include the effect of any potential future share repurchases not yet completed as of the date of this release.

Use of Non-GAAP Financial Measures

The tables at the end of this press release include a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios used by the Company to comparable U.S. GAAP measures and an explanation of why the Company uses them. The Company does not provide a reconciliation of expected Adjusted EBITDA and expected Adjusted basic EPS for the third quarter and full fiscal year 2027 to the most directly comparable expected GAAP measures because it is unable to predict with reasonable certainty, among other things, restructuring charges and impairment charges and, accordingly, a reconciliation is not available without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For more information on the non-GAAP financial measures, please refer to the tables at the end of this press release.

Conference Call and Webcast
A conference call and live webcast will be held today beginning at 8:00 a.m. ET, which can be accessed

using the following link (here) or through the Company's investor webpage (BlackBerry.com/Investors) or by dialing toll free +1 (877) 883-0383 and entering Entry Number 5340355.

A replay of the conference call will be available at approximately one hour after the event using the same webcast link (here) or by dialing toll free +1 (855) 669-9658 and entering Replay Access Code 2584952.

About BlackBerry
BlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.

BlackBerry. Safe. Certified. Secure

For more information, visit BlackBerry.com and follow @BlackBerry.

Trademarks, including but not limited to BLACKBERRY and EMBLEM Design are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved. All other trademarks are the property of their respective owners. BlackBerry is not responsible for any third-party products or services.

Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
[email protected]

Media Contact:
BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

###

This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry's plans, strategies and objectives.

The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, competition, and BlackBerry's expectations regarding its financial performance. Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; BlackBerry's ability to enhance, develop, introduce or monetize its products and services in a timely manner with competitive pricing, features and performance; significant changes in government customer demand or procurement requirements; BlackBerry's sales cycles and the time and expense of its sales efforts; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; BlackBerry's use of artificial intelligence technology and tools in its operations and in product development; adverse macroeconomic and geopolitical conditions, including trade policies and national security concerns; risks arising from a failure or perceived failure of the security features or functionality of BlackBerry's solutions; litigation against BlackBerry; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; network disruptions or other business interruptions; BlackBerry's ability to foster an ecosystem of third-party application developers; BlackBerry's dependence in part on its relationships with resellers and channel partners; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry's use of open source software and its ability to obtain rights to use third-party software; BlackBerry potentially being found to have infringed on the intellectual property rights of others; BlackBerry's indebtedness, which could impact its operating flexibility and financial condition; the asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; potential impacts of acquisitions, divestitures and other business initiatives; risks associated with foreign operations, including fluctuations in foreign currencies; environmental events; the fluctuation of BlackBerry's quarterly revenue and operating results; and the volatility of the market price of BlackBerry's common shares.

These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form 10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedarplus.ca or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and BlackBerry has no intention and undertakes no obligation to update or revise any of them, except as required by law.

BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except share and per share amounts)

Consolidated Statements of Operations

Three Months Ended Six Months Ended August 31, 2026 May 31, 2026 August 31, 2025 August 31, 2026 August 31, 2025 Revenue

$163.3 $152.9 $129.6 $316.2 $251.3 Cost of sales

36.2 33.2 33.0 69.4 64.4 Gross margin

127.1 119.7 96.6 246.8 186.9 Gross margin %

77.8% 78.3% 74.5% 78.1% 74.4%Operating expenses

Research and development

33.2 33.0 25.6 66.2 50.6 Sales and marketing

25.3 29.5 24.4 54.8 53.1 General and administrative

31.8 39.3 31.5 71.1 62.0 Amortization

2.5 2.5 3.1 5.0 7.1 Impairment of long-lived assets

0.7 0.1 0.5 0.8 0.6 93.5 104.4 85.1 197.9 173.4 Operating income

33.6 15.3 11.5 48.9 13.5 Investment income, net

1.6 1.1 1.9 2.7 4.8 Income before income tax

35.2 16.4 13.4 51.6 18.3 Provision for income taxes

1.3 7.9 0.1 9.2 3.1 Net income

$33.9 $8.5 $13.3 $42.4 $15.2 Earnings per share

Basic

$0.06 $0.01 $0.02 $0.07 $0.03 Diluted

$0.05 $0.01 $0.02 $0.07 $0.03 Weighted-average number of common shares outstanding (000s)

Basic

586,627 586,741 592,938 586,684 594,624 Diluted

649,655 593,193 597,369 647,541 598,697 Total common shares outstanding (000s)

587,032 586,061 590,361 587,032 590,361 BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)

Consolidated Balance Sheets

As at August 31, 2026 February 28, 2026 Assets

Current

Cash and cash equivalents

$266.2 $274.7 Short-term investments

111.3 85.2 Accounts receivable, net of allowance of $1.3 and $1.0, respectively

141.0 156.0 Other receivables

4.5 7.5 Income taxes receivable

2.4 2.6 Other current assets

36.5 42.2 561.9 568.2 Restricted cash equivalents

14.1 14.2 Long-term investments

55.5 58.3 Other long-term assets

73.8 56.3 Operating lease right-of-use assets, net

22.6 16.7 Property, plant and equipment, net

12.2 12.3 Intangible assets, net

44.9 40.1 Goodwill

478.0 479.1 $1,263.0 $1,245.2 Liabilities

Current

Accounts payable

$8.6 $5.5 Accrued liabilities

101.5 111.7 Income taxes payable

9.8 12.4 Deferred revenue, current

116.6 138.5 236.5 268.1 Deferred revenue, non-current

11.8 14.1 Operating lease liabilities

23.9 18.8 Other long-term liabilities

2.1 1.7 Long-term notes

197.1 196.5 471.4 499.2 Shareholders' equity

Capital stock and additional paid-in capital

2,926.8 2,924.4 Deficit

(2,121.9) (2,167.2)Accumulated other comprehensive loss

(13.3) (11.2) 791.6 746.0 $1,263.0 $1,245.2 BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)

Consolidated Statements of Cash Flows

Six Months Ended August 31, 2026 August 31, 2025 Cash flows from operating activities

Net income

$42.4 $15.2 Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Amortization

8.2 10.3 Stock-based compensation

14.0 11.6 Impairment of long-lived assets

0.8 0.6 Non-cash consideration received from contracts with customer

(6.7) - Operating leases

(0.8) (5.7)Other

2.4 (0.3)Net changes in working capital items

Accounts receivable, net of allowance

15.0 48.7 Other receivables

5.3 (0.3)Income taxes receivable

0.2 (1.0)Other assets

(13.1) 16.0 Accounts payable

3.8 (27.1)Accrued liabilities

(10.8) (38.5)Income taxes payable

(2.6) (11.7)Deferred revenue

(24.2) (31.9)Net cash provided by (used in) operating activities

33.9 (14.1)Cash flows from investing activities

Proceeds on sale, maturity or distribution from long-term investments

- 0.1 Acquisition of property, plant and equipment

(4.1) (1.7)Acquisition of intangible assets

(3.0) (2.6)Acquisition of short-term investments

(174.9) (34.7)Proceeds on sale or maturity of short-term investments

148.8 91.7 Net cash provided by (used in) investing activities

(33.2) 52.8 Cash flows from financing activities

Issuance of common shares

1.3 1.2 Common shares repurchased

(10.0) (30.0)Net cash used in financing activities

(8.7) (28.8)Effect of foreign exchange gain (loss) on cash, cash equivalents, and restricted cash equivalents

(0.6) 0.4 Net increase (decrease) in cash, cash equivalents, and restricted cash equivalents during the period

(8.6) 10.3 Cash, cash equivalents, and restricted cash equivalents, beginning of period

288.9 280.3 Cash, cash equivalents, and restricted cash equivalents, end of period

$280.3 $290.6 As at

August 31, 2026 February 28, 2026 Cash and cash equivalents

$266.2 $274.7 Restricted cash equivalents

14.1 14.2 Short-term investments

111.3 85.2 Long-term investments

55.5 58.3 $447.1 $432.4 Reconciliations of the Company's Segment Results and Segment Adjusted EBITDA to the Consolidated Results

The following tables show information by operating segments for the three and six months ended August 31, 2026 and August 31, 2025. The Company reports segment information in accordance with U.S. GAAP, pursuant to the Financial Accounting Standards Board's Accounting Standard Codification Topic 280, Segment Reporting, based on the "management" approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker ("CODM") for making decisions and assessing performance of the Company's reportable operating segments. The measure of segment profit or loss disclosed by the Company in the Consolidated Financial Statements under the "management" approach in reviewing the results of the Company's operating segments is segment adjusted gross margin. Additionally, the following tables include the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA, a non-GAAP financial measure, which excludes amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment charge. For the three and six months ended August 31, 2026, the Company presented segment adjusted EBITDA results excluding amortization in segment research and development, segment sales and marketing and segment general and administrative to align to the operating expense presentation on the Consolidated Statement of Operations. For purposes of comparability, the Company's segment adjusted EBITDA for the three and six months ended August 31, 2025 has been updated to conform to the current year's presentation. See Note 10 to the Consolidated Financial Statements for a description of the Company's operating segments.

For the Three Months Ended
(in millions)

QNX Secure Communications Licensing August 31, Change August 31, Change August 31, Change 2026 2025 2026 2025 2026 2025 Segment revenue

$80.3 $63.1 $17.2 $60.9 $59.9 $1.0 $22.1 $6.6 $15.5 Segment cost of sales

10.6 10.7 (0.1) 23.5 20.2 3.3 1.5 1.5 - Segment adjusted gross margin

$69.7 $52.4 $17.3 $37.4 $39.7 $(2.3)$20.6 $5.1 $15.5 Segment research and development

19.6 13.0 6.6 11.8 11.0 0.8 - - - Segment sales and marketing

12.4 10.7 1.7 11.1 12.1 (1.0) - - - Segment general and administrative

8.7 8.2 0.5 6.6 6.9 (0.3) 2.1 0.9 1.2 Less amortization included in segment cost of sales

- - - 0.1 - 0.1 1.5 1.4 0.1 Segment adjusted EBITDA

$29.0 $20.5 $8.5 $8.0 $9.7 $(1.7)$20.0 $5.6 $14.4 For the Six Months Ended (in millions) QNX Secure Communications Licensing August 31, Change August 31, Change August 31, Change 2026 2025 2026 2025 2026 2025 Segment revenue

$152.6 $120.6 $32.0 $134.5 $119.4 $15.1 $29.1 $11.3 $17.8 Segment cost of sales

21.0 21.9 (0.9) 44.3 38.3 6.0 3.0 3.1 (0.1)Segment adjusted gross margin

$131.6 $98.7 $32.9 $90.2 $81.1 $9.1 $26.1 $8.2 $17.9 Segment research and development

38.5 25.3 13.2 24.4 22.2 2.2 - - - Segment sales and marketing

28.0 23.9 4.1 23.4 25.7 (2.3) - - - Segment general and administrative

16.8 16.3 0.5 14.4 14.0 0.4 2.9 1.8 1.1 Less amortization included in segment cost of sales

- - - 0.2 0.1 0.1 3.0 3.0 - Segment adjusted EBITDA

$48.3 $33.2 $15.1 $28.2 $19.3 $8.9 $26.2 $9.4 $16.8 Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures

In the Company's internal reports, management evaluates the performance of the Company's business on a non-GAAP basis by excluding the impact of certain items from the Company's U.S. GAAP financial results. The Company believes that these non-GAAP financial measures and non-GAAP ratios provide management, as well as readers of the Company's financial statements, with a consistent basis for comparison across accounting periods and are useful in helping management and readers understand the Company's operating results and underlying operational trends. Beginning with the fiscal quarter ended May 31, 2026, the Company has included deferred share units revaluation adjustment as a non-GAAP adjustment and has applied this adjustment to comparative period.

Readers are cautioned that adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted net income, adjusted basic earnings per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income, adjusted EBITDA, segment adjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA margin percentage and free cash flow (usage) and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies.

Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the three months ended August 31, 2026 and August 31, 2025

A reconciliation of the most directly comparable U.S. GAAP gross margin and gross margin percentage for the three months ended August 31, 2026 and August 31, 2025 to both adjusted gross margin and adjusted gross margin percentage is reflected in the table below:

For the Three Months Ended (in millions)

August 31, 2026 August 31, 2025 Gross margin

$127.1 $96.6 Stock compensation expenses

0.6 0.6 Adjusted gross margin

$127.7 $97.2 Gross margin %

77.8% 74.5%Stock compensation expenses

0.4% 0.5%Adjusted gross margin %

78.2% 75.0%Reconciliation of U.S. GAAP operating expenses for the three months ended August 31, 2026, and August 31, 2025 to adjusted operating expenses is reflected in the table below:

For the Three Months Ended (in millions)

August 31, 2026 August 31, 2025 Operating expenses

$93.5 $85.1 Restructuring charges

2.7 3.4 Stock compensation expenses

6.9 5.3 Acquired intangibles amortization

- 1.1 LLA impairment charge

0.7 0.5 Deferred share units revaluation adjustment

(1.6) - Adjusted operating expenses

$84.8 $74.8 Reconciliation of U.S. GAAP net income and U.S. GAAP basic earnings per share for the three months ended August 31, 2026 and August 31, 2025 to adjusted net income and adjusted basic earnings per share is reflected in the table below:

For the Three Months Ended (in millions, except per share amounts)

August 31, 2026 August 31, 2025
Basic
earnings

per share

Basic
earnings
per share Net income

$33.9 $0.06 $13.3 $0.02 Restructuring charges

2.7 3.4 Stock compensation expenses

7.5 5.9 Acquired intangibles amortization

- 1.1 LLA impairment charge

0.7 0.5 Deferred share units revaluation adjustment

(1.6) - Adjusted net income

$43.2 $0.07 $24.2 $0.04 Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the three months ended August 31, 2026 and August 31, 2025 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:

For the Three Months Ended (in millions)

August 31, 2026 August 31, 2025 Research and development

$33.2 $25.6 Stock compensation expenses

1.6 1.4 Adjusted research and development expense

$31.6 $24.2 Sales and marketing

$25.3 $24.4 Stock compensation expenses

1.4 1.3 Adjusted sales and marketing expense

$23.9 $23.1 General and administrative

$31.8 $31.5 Restructuring charges

2.7 3.4 Stock compensation expenses

3.9 2.6 Deferred share units revaluation adjustment

(1.6) - Adjusted general and administrative expense

$26.8 $25.5 Amortization

$2.5 $3.1 Acquired intangibles amortization

- 1.1 Adjusted amortization expense

$2.5 $2.0 Reconciliation of U.S. GAAP operating income to adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the three months ended August 31, 2026 and August 31, 2025 is reflected in the table below.

For the Three Months Ended (in millions)

August 31, 2026 August 31, 2025 Operating income

$33.6 $11.5 Non-GAAP adjustments to operating income

Restructuring charges

2.7 3.4 Stock compensation expenses

7.5 5.9 Acquired intangibles amortization

- 1.1 LLA impairment charge

0.7 0.5 Deferred share units revaluation adjustment

(1.6) - Total non-GAAP adjustments to operating income

9.3 10.9 Adjusted operating income

42.9 22.4 Amortization

4.1 4.6 Acquired intangibles amortization

- (1.1)Adjusted EBITDA

$47.0 $25.9 Revenue

$163.3 $129.6 Adjusted operating income margin % (1)

26% 17%Adjusted EBITDA margin % (2)

29% 20%(1) Adjusted operating income margin % is calculated by dividing adjusted operating income by revenue.
(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue.

The CODM also uses segment adjusted EBITDA, which is a non-GAAP measure including segment expenses that exclude amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment. The following table reconciles the U.S. GAAP measures of segment profit or loss disclosed by the Company in the Consolidated Financial Statements from segment adjusted gross margin to segment adjusted EBITDA for the three months ended August 31, 2026 and August 31, 2025.

For the Three Months Ended (in millions) QNX Secure Communications Licensing August 31, August 31, August 31, 2026 2025 2026 2025 2026 2025 Segment adjusted gross margin

$69.7 $52.4 $37.4 $39.7 $20.6 $5.1 Segment research and development

19.6 13.0 11.8 11.0 - - Segment sales and marketing

12.4 10.7 11.1 12.1 - - Segment general and administrative

8.7 8.2 6.6 6.9 2.1 0.9 Less amortization included in segment cost of sales

- - 0.1 - 1.5 1.4 Segment adjusted EBITDA

$29.0 $20.5 $8.0 $9.7 $20.0 $5.6 Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the six months ended August 31, 2026 and August 31, 2025.

A reconciliation of the most directly comparable U.S. GAAP gross margin and gross margin percentage for the six months ended August 31, 2026 and August 31, 2025 to both adjusted gross margin and adjusted gross margin percentage is reflected in the table below:

For the Six Months Ended (in millions)

August 31, 2026 August 31, 2025 Gross margin

$246.8 $186.9 Stock compensation expenses

1.1 1.1 Adjusted gross margin

$247.9 $188.0 Gross margin %

78.1% 74.4%Stock compensation expenses

0.3% 0.4%Adjusted gross margin %

78.4% 74.8%Reconciliation of U.S. GAAP operating expenses for the six months ended August 31, 2026 and August 31, 2025 to adjusted operating expenses is reflected in the table below:

For the Six Months Ended (in millions)

August 31, 2026 August 31, 2025 Operating expenses

$197.9 $173.4 Restructuring charges

3.0 6.3 Stock compensation expenses

12.9 10.5 Acquired intangibles amortization

- 2.8 LLA impairment charge

0.8 0.6 Deferred share units revaluation adjustment

8.4 (1.5)Adjusted operating expenses

$172.8 $154.7 Reconciliation of U.S. GAAP net income and U.S. GAAP basic earnings per share for the six months ended August 31, 2026 and August 31, 2025 to adjusted net income and adjusted basic earnings per share is reflected in the table below:

For the Six Months Ended (in millions, except per share amounts)

August 31, 2026 August 31, 2025
Basic
earnings
per share
Basic
earnings
per share Net income

$42.4 $0.07 $15.2 $0.03 Restructuring charges

3.0 6.3 Stock compensation expenses

14.0 11.6 Acquired intangibles amortization

- 2.8 LLA impairment charge

0.8 0.6 Deferred share units revaluation adjustment

8.4 (1.5) Adjusted net income

$68.6 $0.12 $35.0 $0.06 Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the six months ended August 31, 2026 and August 31, 2025 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:

For the Six Months Ended (in millions)

August 31, 2026 August 31, 2025 Research and development

$66.2 $50.6 Stock compensation expenses

3.1 2.7 Adjusted research and development expense

$63.1 $47.9 Sales and marketing

$54.8 $53.1 Stock compensation expenses

2.5 2.7 Adjusted sales and marketing expense

$52.3 $50.4 General and administrative

$71.1 $62.0 Restructuring charges

3.0 6.3 Stock compensation expenses

7.3 5.1 Deferred share units revaluation adjustment

8.4 (1.5)Adjusted general and administrative expense

$52.4 $52.1 Amortization

$5.0 $7.1 Acquired intangibles amortization

- 2.8 Adjusted amortization expense

$5.0 $4.3 Reconciliation of U.S. GAAP operating income to adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the six months ended August 31, 2026 and August 31, 2025 are reflected in the table below.

For the Six Months Ended (in millions)

August 31, 2026 August 31, 2025 Operating income

$48.9 $13.5 Non-GAAP adjustments to operating income

Restructuring charges

3.0 6.3 Stock compensation expense

14.0 11.6 Acquired intangibles amortization

- 2.8 LLA impairment charge

0.8 0.6 Deferred share units revaluation adjustment

8.4 (1.5)Total non-GAAP adjustments to operating income

26.2 19.8 Adjusted operating income

75.1 33.3 Amortization

8.2 10.3 Acquired intangibles amortization

- (2.8)Adjusted EBITDA

$83.3 $40.8 Revenue

$316.2 $251.3 Adjusted operating income margin % (1)

24% 13%Adjusted EBITDA margin % (2)

26% 16%(1) Adjusted operating income margin % is calculated by dividing adjusted operating income by revenue.
(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue.

The CODM also uses segment adjusted EBITDA, which is a non-GAAP measure including segment expenses that exclude amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment. The following table reconciles the U.S. GAAP measures of segment profit or loss disclosed by the Company in the Consolidated Financial Statements from segment adjusted gross margin to segment adjusted EBITDA for the six months ended August 31, 2026 and August 31, 2025.

For the Six Months Ended (in millions) QNX Secure Communications Licensing August 31, August 31, August 31, 2026 2025 2026 2025 2026 2025 Segment adjusted gross margin

$131.6 $98.7 $90.2 $81.1 $26.1 $8.2 Segment research and development

38.5 25.3 24.4 22.2 - - Segment sales and marketing

28.0 23.9 23.4 25.7 - - Segment general and administrative

16.8 16.3 14.4 14.0 2.9 1.8 Less amortization included in segment cost of sales

- - 0.2 0.1 3.0 3.0 Segment adjusted EBITDA

$48.3 $33.2 $28.2 $19.3 $26.2 $9.4 Free cash flow (usage)

The Company uses free cash flow (usage) when assessing its sources of liquidity, capital resources, and quality of earnings. The Company believes that free cash flow (usage) is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow (usage) trends in the Company's business.

Reconciliation of U.S. GAAP net cash provided by (used in) operating activities for the three and six months ended August 31, 2026 and August 31, 2025 to free cash flow (usage) is reflected in the table below:

For the Three Months Ended (in millions)

August 31, 2026 August 31, 2025 Net cash provided by operating activities

$29.3 $3.4 Acquisition of property, plant and equipment

(1.2) (0.8)Free cash flow

$28.1 $2.6 For the Six Months Ended (in millions)

August 31, 2026 August 31, 2025 Net cash provided by (used in) operating activities

$33.9 $(14.1)Acquisition of property, plant and equipment

(4.1) (1.7)Free cash flow (usage)

$29.8 $(15.8)Key Metrics

The Company regularly monitors a number of financial and operating metrics, including the following key metrics, in order to measure the Company's current performance and estimated future performance. Readers are cautioned that Secure Communications annual recurring revenue ("ARR") and Secure Communications dollar-based net retention rate ("DBNRR") do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies.

Comparative breakdowns of certain key metrics for the three months ended or as at August 31, 2026 and August 31, 2025 are set forth below:

For the Three Months Ended (in millions)

August 31, 2026 August 31, 2025 Change Secure Communications Annual Recurring Revenue

$221 $213 $8 Secure Communications Dollar-Based Net Retention Rate

91% 93% (2%)SOURCE: BlackBerry

BlackBerry BB shares have been a major outperformer in 2026, but the options market believes it will rip higher following the earnings event on September 24.

Consensus is for the Canadian company to post about $144 million in revenue, representing about an 11% growth on a year-over-year basis.

Heading into the quarterly print, BlackBerry stock is trading at more than twice its price at the start of 2026, but down some 35% versus its year-to-date high.

According to Barchart, the put-to-call ratio on options contracts expiring in early October sits at 0.70 currently, indicating a dovish skew (a reading below 1.00 is typically interpreted as bearish).

Data also pegs the upper price on those contracts at $9.4 – signaling potential for a 12.62% rally in BB shares on the back of the quarterly print.

Investors should also note that technical momentum is currently in BlackBerry’s favor as well; the stock sits just under its 50-day and 100-day moving averages (MAs) – with an RSI in the mid-50s pointing to significant buying pressure.

If the release helps BB rip through these near-term resistances, algorithmic buying could accelerate the upward momentum in the days ahead.

BlackBerry’s anticipated strength in Q2 is largely anchored by resilient momentum across its core Internet of Things (IoT) and Cybersecurity segments.

The firm’s automotive-focused QNX platform remains a “pivotal growth engine”, boosted by new ecosystem integrations – such as adding support for Hailo-8 AI accelerators and growing physical AI/GEM robotics frameworks – which drive software development license sales and real-time telemetry.

Concurrently, demand for zero-trust cybersecurity is fueled by escalating AI-driven cyber threats and strict compliance mandates, compelling enterprise and government clients to adopt sovereign, end-to-end endpoint protection.

Coupled with ongoing cost optimizations aimed at margin expansion, these dual pillars position BlackBerry shares to capitalize on structural software tailwinds and deliver top-line upside relative to consensus expectations.

On the flip side, while institutional positioning and technical patterns favour a post-earnings rally, BB stock’s valuation metrics urge caution – at least for conservative investors.

Trading at a forward price-to-earnings (P/E) multiple of more than 60x, the company carries rather high expectations that leave virtually no room for operational slip-ups.

Unless management delivers a clear top-line beat alongside upward revisions to its full-year annual recurring revenue (ARR) outlook, any profit-taking or macroeconomic softness could result in a sharp pullback, making execution crucial for sustaining this year’s dramatic run.

Interestingly, though, Wall Street remains bullish as ever on BlackBerry for the remainder of 2026.

While the consensus rating on BB sits at Hold only, the mean price target of about $10.61 signals potential upside of another 25% from here.

Key Takeaways BlackBerry is sharpening Radar's focus on turning transportation asset data into actionable decisions.DCLI plans to deploy Radar across 100,000 DCL53 chassis, with GPS installation targeted for 2026.Macro uncertainty, supply chain concerns and tariffs are causing some OEMs to delay projects. BlackBerry Limited (BB - Free Report) is sharpening the focus of its BlackBerry Radar business, positioning the platform as more than a conventional asset-tracking solution. The company is increasingly presenting Radar as an Asset Intelligence Platform for Transportation, designed to help transportation operators convert equipment data into actionable decisions. Transportation companies already have plenty of location data. The real challenge is using it to identify assets that need attention, act at the right time and improve efficiency. BB’s partnership with DCLI offers a real-world example of this approach.

Radar collects data from assets in the field through purpose-built monitoring hardware and sends that information to BlackBerry's cloud platform. Operators can then use the resulting information to support decisions involving location, activity, condition, inspections and maintenance. This creates a potentially more valuable proposition than basic GPS tracking. Instead of displaying thousands of assets on a map, the platform can help teams determine which assets matter most right now. This could become more important as fleets grow and operators seek to cut costs while maintaining safety and service quality.

The opportunity becomes even more interesting when you consider the scale of DCLI's deployment. In 2025, DCLI announced plans to deploy BlackBerry Radar across 100,000 DCL53 domestic 53-foot chassis. DCLI expects to complete GPS installation across its entire DCL53 fleet by the end of 2026. As deployment expands, it expects Radar data to potentially reduce inspection lead times even further. For BlackBerry, a fleet of this size can also provide an important proof point. Successful deployments are therefore likely to generate recurring business while demonstrating the platform's capabilities to other fleet operators.

Nonetheless, macroeconomic uncertainty, particularly in the automotive sector, is weighing on customer buying decisions, with some OEMs delaying projects due to supply chain concerns and tariff-related disruptions.

How Competitive is the Automotive Market for BBNVIDIA Corporation (NVDA - Free Report) continues to build a longer-duration opportunity in automotive, robotics and other physical AI applications. NVIDIA expanded its DRIVE Hyperion robotaxi-ready ecosystem through collaborations with Foxconn, VinFast, Uber and HUMAIN, and introduced Alpamayo 2 Super for autonomous vehicle development. The company also launched Cosmos 3, an open frontier model for physical AI, the Isaac GR00T reference humanoid robot and Halos for Robotics safety software. Management has positioned physical AI as one of the workloads supported by the same computing, model and software stack, which can extend platform adoption beyond Data Center deployments.

Qualcomm Incorporated (QCOM - Free Report) automotive growth increasingly reflects higher compute content and broader platform wins. In the fiscal third quarter, automotive revenue reached $1.59 billion, up 61%. Qualcomm expanded its relationship with BMW to become the lead compute silicon provider for next-generation ADAS and digital cockpit programs extending into the next decade. Its collaboration with Stellantis also supports programs into the 2030s. Management said the fifth-generation Snapdragon Digital Chassis will ramp in September 2026 and is driving a step-up in silicon content per vehicle. It now expects an annualized automotive sales run rate of about $7 billion exiting fiscal 2026, providing a clearer bridge from design wins to sustained revenue growth.

BB Price Performance, Valuation & EstimatesShares of BlackBerry have surged 132.4% in the past six months compared with the Internet-Software industry’s growth of 15.1%.

Image Source: Zacks Investment Research

Regarding the price/book ratio, BB is trading at 6, higher than the industry’s multiple of 4.95.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BB earnings for fiscal 2027 has remained unchanged over the past 60 days.

Image Source: Zacks Investment Research

BlackBerry currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This report is from this week's The Tech Download newsletter. Like what you see? You can subscribe here.

Who remembers the phrase "BBM me?"

In its heyday, BlackBerry was one of the biggest phone makers in the world. BlackBerry Messenger (BBM) was the instant messaging service that became a fixture of early smartphone culture. But while, BlackBerry remains an iconic brand, its business today looks vastly different from what it was nearly two decades ago.

While far off its 2008 highs, BlackBerry's share price has doubled this year as investors reward the company's strategy to focus on critical software for cars and secure communications. 

John Giamatteo, CEO of BlackBerry, joined me for the latest episode of "The Tech Download" to discuss how the company is positioning for a future in AI.

"While the products that we offer to our customers around the world can't necessarily be held in the palm of your hands like the old devices, those values of security, trust and innovation still shine through in the software and services and the other solutions that we deliver to the market today," Giamatteo said as he summed up the current business.

watch now

New look business modelTwo businesses drive the bulk of BlackBerry's revenue. 

The first is secure communications. BlackBerry sells encrypted and secure communications products to customers like governments.

The second is QNX, a business through which BlackBerry sells operating systems and other embedded software for cars to underpin features ranging from braking systems to some semi-autonomous driving functions.

QNX has become a strong player in safety-critical automotive software and is embedded in 275 million vehicles, according to BlackBerry.

But Giamatteo sees the QNX business as key to a future in AI, specifically, physical AI, a term that encompasses products like autonomous cars and robotics. BlackBerry has crafted its software to have high safety standards, a non-negotiable for cars and other moving objects. That could also work in areas like robotics.

"We think that could be even a faster-growing segment of the industry for things like robotics," Giamatteo said.

The CEO is not talking about humanoid robots, like the ones you've probably seen videos of in China recently. Instead, he is referring to robots in an industrial, factory or medical setting.

Robotics is one of the company's "fastest-growing businesses inside the QNX portfolio," the CEO told me.

BlackBerry is also now making money from the sector. The company has a backlog of orders for QNX worth $950 million and "a portion of that is robotics," Giamatteo said. He did not disclose specific numbers around the robotics orders.

After the launch of the iPhone in 2007 transformed the smartphone industry, BlackBerry fought hard to keep its consumer mobile division alive with new devices — but ultimately lost the battle. 

Its reinvention has been a remarkable one, and for now, investors seem to be embracing the new direction.

News editA San Francisco federal judge on Thursday ruled that the Pentagon's blacklisting of Anthropic earlier this year was illegal.

Anthropic has inked a roughly $45 billion cloud deal with Nscale, a U.K.-based AI infrastructure company, sources told CNBC.

Nvidia's near-monopoly over the most advanced AI chips is under "threat" as OpenAI's and other tech giants announce custom-built semiconductors, according to analysts.

OpenAI has rolled out ads on ChatGPT for select plans in India, one of its largest and most active markets, as the company looks to maximize its revenue ahead of its planned listing next year.

SK Hynix is bolstering its U.S. presence, with a new factory in Indiana that CEO Kwak Noh-Jung says will make the state a "key HBM production base in America" by 2030.

One more thing

Nvidia stock

Bucking the trend — Nvidia's stock boost on Thursday was a sharp change to its fortunes in the previous four earnings quarters. Despite meeting or beating estimates, shares dropped as investors remained unimpressed. Not so this time out.

watch now

Robotics is one of BlackBerry's fastest-growing businesses within its key software division, the CEO told CNBC, as the company positions itself for a future in physical AI.

BlackBerry, once one of the biggest mobile phone makers in the world with its iconic handsets that featured keyboards, has pivoted over the years to focus on other areas. One of its biggest businesses is QNX, which it calls "safety-critical" software that runs in cars.

QNX provides operating systems and other embedded software to underpin features ranging from braking systems to some semi-autonomous driving functions.

QNX has become a strong player in safety-critical automotive software and is embedded in 275 million vehicles, according to BlackBerry. CEO John Giamatteo said QNX is now being used in robotics.

"We think that could be even a faster-growing segment of the industry for things like robotics," Giamatteo told CNBC's "The Tech Download" podcast.

The focus won't be on humanoid robots like those that have gained attention in China recently. Instead, the CEO mentioned robots in industrial settings like warehouses, robotic forklifts, and those used in the medical space.

"As excited as we are about the dynamics of the automotive industry and where that's going, these other applications around robotics and medical instruments and industrial automation represent a tremendous growth opportunity. And one that I think BlackBerry and our QNX portfolio is really well positioned to address," Giamatteo said.

Robotics is one of the company's "fastest-growing businesses inside the QNX portfolio," the CEO said.

The company has a backlog of orders for QNX worth $950 million and "a portion of that is robotics," he added. The CEO did not disclose specific numbers around the robotics orders.

BlackBerry's stock has doubled this year amid improving margins and profitability. The company has positioned itself for future growth areas like robotics and autonomous cars, which are often dubbed examples of physical AI.

BlackBerry stock price year-to-date.

Newer generations of robots can combine specialized hardware with artificial intelligence models and other software. This is where BlackBerry sees its QNX software having an edge, given its experience in the automotive space.

In April, BlackBerry announced an expanded partnership with Nvidia to deploy its software alongside Nvidia's systems in robotics, medical technologies and industrial applications.

"Robotics is going to shift in a hardcore way ... and we couldn't be more excited about the opportunity in front of us," Giamatteo said.

SHANGHAI, CN / ACCESS Newswire / August 18, 2026 / Momenta, a leading Physical AI company, together with XHEART, has selected QNX® OS for Safety from QNX, a division of BlackBerry Limited (NYSE:BB)(TSX:BB), as the foundation for its Physical AI-defined autonomous driving platform.

Integrating Momenta's full-stack autonomous driving solution, XHEART X7 automotive-grade SoC, and QNX OS for Safety, built on QNX® SDP 8.0, the three collaborators are delivering a production-ready solution designed to help automakers accelerate deployment while meeting global functional safety standards.

Certified to ISO 26262 ASIL D, this solution enhances driving safety and intelligence, and gives OEMs a functionally safe foundation for vehicles destined for stringent markets, such as those requiring compliance with Europe's UN R171 (DCAS).

"The global scale for Physical AI demands safety first. Through our collaboration with QNX and XHEART we are proud to deliver a production-ready system built to one of the highest global safety benchmarks, empowering automakers to confidently introduce intelligent vehicles to markets everywhere," said Huan Sun, SVP of Momenta.

"Momenta and XHEART are helping enable the next generation of Physical AI technology, and QNX is proud to be the Safety-Certified Operating System underpinning that future," said Grant Courville, SVP of Products and Strategy at QNX. "This collaboration with Momenta and XHEART strengthens our position as a trusted foundational software provider for the world's leading autonomous driving systems."

"Building next-generation autonomous driving requires AI-native silicon," said TL Lee, CEO of XHEART. "The XHEART X7 SoC, paired with QNX's certified OS and Momenta's algorithms, gives OEMs the performance, safety and scalability required for global markets."

###

About Momenta

Momenta is a global leader in Physical AI, committed to creating a better life through breakthrough AI technologies.

From seeing the world to foreseeing it - built on the World Model, and guided by the technical insight behind its data flywheel, Momenta advances two tracks in parallel, Mass Production and Scalable Robo, bringing Physical AI into everyday life.

In collaboration with top global OEMs and mobility platforms, Momenta is accelerating mass production and expanding across markets and vehicle platforms - from passenger cars to Robovans, Robotrucks and Robotaxis.

About XHEART

XHEART is committed to defining the core computing foundation for the era of large models-providing a purpose-built hardware platform that enables intelligent systems to scale with exceptional performance. Through chips redefined from the ground up for large-model workloads, XHEART serves as the "core engine" driving Physical AI in autonomous driving, robotics, and beyond. We are charting the future with silicon.

About BlackBerry

BlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.

About QNX

QNX, a division of BlackBerry Limited (NYSE:BB)(TSX:BB), provides the trusted foundation that software-defined and Physical AI systems depend on to operate safely and predictably in the real world. For nearly half a century, QNX has powered safety-critical applications where failure is not an option. The business leads the way in delivering safe and secure operating systems, hypervisors, middleware, solutions, and development tools, along with the support and services delivered by trusted embedded software experts. Today, QNX technology underpins hundreds of millions of vehicles on the road and a wide range of mission-critical systems across industrial controls, robotics, medical devices, commercial transportation, rail, and aerospace and defense. QNX is headquartered in Ottawa, Canada. Learn more at qnx.software.

©2026 BlackBerry Limited. Trademarks, including but not limited to BLACKBERRY and EMBLEM Design, QNX and the QNX logo design are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved. All other trademarks are the property of their respective owners. BlackBerry is not responsible for any third-party products or services.

Media Contacts:

BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

SOURCE: QNX

Key Takeaways BB expects about $100 million in fiscal 2027 operating cash flow, boosting capital-allocation flexibility. BlackBerry bought back 2.6 million shares for about $10 million and authorized nearly 27 million more shares.QNX and Secure Communications momentum could strengthen BlackBerry's cash flows and support future buybacks. BlackBerry Limited (BB - Free Report) is experiencing an improving financial position, with stronger profitability and liquidity, offering greater flexibility to return capital to its shareholders.

With management expecting approximately $100 million of operating cash flow for fiscal 2027, the key question is whether stronger cash generation can pave the way for additional buybacks.

BB delivered strong first-quarter fiscal 2027 results, with quarterly revenues of $152.9 million, representing a 26% year-over-year increase. Adjusted EBITDA more than doubled to $36.3 million.

For the quarter ended on May 31, 2026, BlackBerry generated $4.6 million in operating cash flow, marking its first cash-positive fiscal first quarter in nine years (excluding special items related to patent sales) against usage of $18 million a year ago.

Free cash flow was $1.7 million for the quarter against an outflow of $18.9 million in the previous quarter. The company ended the quarter with $422.9 million in cash and investments.

This financial flexibility provides management with multiple options for capital allocation, including investments in growth opportunities, strategic initiatives and shareholder returns.

BlackBerry repurchased 2.6 million shares during the quarter for approximately $10 million. Since its launch in May last year, the company has bought back 18 million shares at an average price of $3.85 per share.

Encouraged by its financial position, management recently renewed and expanded the program, authorizing the repurchase of approximately 27 million additional shares.

With QNX benefiting from software-defined vehicle adoption, General Embedded Markets and Physical AI opportunities, and Secure Communications gaining momentum from government and digital sovereignty initiatives, BlackBerry appears positioned to generate stronger cash flows over time. If that trend continues, the company could have higher capacity to return capital to its shareholders through future buybacks while investing in long-term growth.

BlackBerry noted that 90% of incremental revenues are expected to flow through to adjusted EBITDA, highlighting the increasing operating leverage.

Let’s Look at Capital Allocation for CompetitorsWithin the cybersecurity space, BlackBerry competes with several giants, including CrowdStrike (CRWD - Free Report) . While BlackBerry’s focus remains on encrypted communications and sovereign-grade infrastructure, CRWD is a leading pure-play cybersecurity company. CrowdStrike is seeing strong adoption across cloud, identity and next-gen SIEM, with these newer categories exceeding $2 billion in ARR.

CrowdStrike generated $590.9 million in operating cash flow and $468.5 million in free cash flow in the fiscal first quarter. The company repurchased $176 million of shares and had approximately $1.3 billion remaining under its existing authorization. Management said the company would remain opportunistic in returning capital while continuing to invest in its growth opportunities. The company expects fiscal second quarter revenues to be between $1.436 billion and $1.442 billion.

Aptiv PLC (APTV - Free Report) is an automotive technology peer for BlackBerry's QNX business. The company repurchased $250 million worth of shares in the second quarter of 2026, bringing the year-to-date repurchases to $325 million. APTV intends to buy back a similar amount in the second half, which will bring the total repurchases for the year to more than $600 million.

2026 free cash flow is expected at $625-$725 million. Importantly, Aptiv added that it plans to use approximately 50% of expected free cash flow for regular share repurchases over the next few years, with 2026 repurchases expected to be materially above that level.

BB Price Performance, Valuation & EstimatesShares of BlackBerry have edged up 0.7% in the past month compared with the Internet-Software industry’s 5% growth.

Image Source: Zacks Investment Research

Regarding the price/book ratio, BB is trading at 6.95, higher than the industry’s multiple of 4.56.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised downward over the past 60 days.

Image Source: Zacks Investment Research

BlackBerry currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways BlackBerry's shares have surged 124.8% in 2026 as revenues, EBITDA and cash flow improved.QNX revenues rose 26% to $72 million, with new licenses and partnerships supporting long-term growth.BlackBerry raised its revenue outlook, though valuation, competition and execution risks remain. BlackBerry Limited (BB - Free Report) has staged an impressive comeback in 2026 with shares having rallied 124.8% year to date (“YTD”), outperforming the Internet Software industry (down 11.4%) and the S&P 500 composite (up 9.5%). The rally is underpinned by structural growth drivers and a strong business model.

Price Performance
Image Source: Zacks Investment Research

Yet, despite this strong run, the stock remains well below the 52-week high of $13.59, closing its last day at $8.52. This raises a key question for investors: has the easy money already been made, or does BlackBerry still offer meaningful upside?

BB: Continued Execution MomentumBlackBerry delivered a strong start to fiscal 2027 with first-quarter revenues marking a 26% year-over-year increase. Profitability was equally impressive, with adjusted EBITDA more than doubling to $36 million. BlackBerry also reported positive GAAP net income for the fifth consecutive quarter

Image Source: Zacks Investment Research

Management highlighted that both its core segments — QNX and Secure Communications — achieved “Rule of 40” performance, reflecting a combination of strong growth and profitability.

The company also generated positive free cash flow, even in a seasonally weaker quarter. 

The balance sheet remains strong, with $423 million in cash and investments and continued repurchases reinforce capital allocation discipline.

BlackBerry repurchased 2.6 million shares during the quarter for approximately $10 million. Since its launch in May last year, the company has bought back 18 million shares totaling $17 million. Last month, BlackBerry renewed and expanded its share repurchase program, authorizing the buyback of approximately 27 million additional shares.

QNX: The Core Growth EngineQNX remained the key catalyst, with revenues climbing 26% year over year to $72 million. The segment benefited from broad-based strength, particularly in development licenses, which hit their highest level in eight quarters. This metric serves as an early indicator of future royalty streams, reflecting customer investments in new software platforms that will take years to reach production.

Management emphasized that these tools are tied to new platforms, including its SDP 8 architecture, which positions the company for multi-year revenue visibility.
Management highlighted partnerships with major chipmakers such as NVIDIA and Qualcomm, underscoring QNX’s role as a foundational software layer in next-generation intelligent systems.

Beyond automotive, General Embedded Markets and Physical AI are emerging as a fast-growing opportunity, expanding QNX’s reach into industrial automation, robotics and medical devices.

Additionally, the company continues to advance Alloy Kore, a platform expected to significantly increase software content per vehicle, boost average selling price by multiples and drive backlog. While still early, management remains positive about securing a design win within the current fiscal year.

Secure Comms: Headwind to Growth ContributorSecure Communications also delivered a standout quarter, with revenues increasing 24% year over year to $74 million. The segment is witnessing improved performance anchored by government demand, recurring revenues and customer retention. Rising demand for digital sovereignty and cybersecurity modernization by governments across the globe is creating a powerful tailwind.

Underlying metrics such as annual recurring revenue (“ARR”) and customer retention indicate a steady base. ARR grew 5% to $220 million, with a healthy dollar-based net retention rate, or DBNRR came in at 92%. 

BB’s Strong OutlookEncouraged by the strong start, BlackBerry now expects total revenues between $594 million and $621 million compared with $584-$611 million projected earlier. Adjusted EBITDA is projected between $119 million and $139 million.

QNX revenues are expected in the range of $295-$312 million and adjusted EBITDA at $74-$86 million. It expects Secure Communications revenues of $270-$280 million and adjusted EBITDA of $57-$65 million. Licensing & Other revenues are expected to be roughly $29 million.

The strong start to fiscal 2027 and subsequent outlook revision reinforces that BlackBerry’s turnaround strategy is gaining traction.

However, the path is not without challenges. Secure Communications remains exposed to deal-timing variability and this could impact performance. In addition, some of BlackBerry’s most exciting opportunities, such as physical AI, robotics and the Alloy Kore platform, remain in the early stages, introducing execution risk. Heavy reliance on the automotive industry is a concern. The QNX platform remains heavily exposed to vehicle production cycles and OEM spending, which, in turn, are highly dependent on macro conditions. BlackBerry faces increasing competitive pressures in both QNX and cybersecurity businesses.

Within QNX, it faces Wind River (VxWorks) and Alphabet’s (GOOGL - Free Report) Android Automotive OS. The cybersecurity business is pitted against CrowdStrike (CRWD - Free Report) , Palo Alto Networks (PANW - Free Report) and a host of other cybersecurity companies.

Image Source: Zacks Investment Research

Given all this, the estimates for the current fiscal year have been revised downward over the past 60 days.

What to Make of BB’s Premium Valuation?After a sharp rally, valuation becomes a key consideration.

Image Source: Zacks Investment Research

In terms of the forward 12-month price/earnings ratio, BB is trading at 43.83X, way higher than the Internet-Software sector’s multiple of 27.32X. The premium appears somewhat justified given the company’s improving fundamentals and long-term growth prospects.  

In comparison, GOOGL trades at a forward 12-month P/E multiple of 21.86, while CRWD and PANW are trading at multiples of 144.45X and 91.99X, respectively.

Shares of GOOGL, CRWD and PANW have gained 19.3%, 72.8% and 88.4%, respectively, year to date.

Investment View: Here’s Why BB Is Still a BuyBB currently carries a Zacks Rank #2 (Buy).

Strong QNX momentum, emerging opportunities in the GEM space and a resurgent Secure Communications segment all point to meaningful long-term potential. With significant gains already, the buying opportunity may no longer be as attractive as earlier, but for investors with a long-term horizon, BlackBerry’s transformation suggests that the rally may not be over just yet.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BlackBerry stock price has pulled back in the past two weeks in New York and Toronto. It dropped to $8.83 on Monday, down by 35% from its highest point this year. Even so, it is one of the best-performing stocks as it jumped by over 130% this year as investors cheer its turnaround and its positioning in the AI and robotics market.

BlackBerry, a company that once played a big role in the smartphone industry, has done well in the past few months as the turnaround efforts by John Giamatteo continued paying off. 

This recovery has been helped by its QNX business, which provides a real-time operating system used in connected and autonomous vehicles. Its system is now embedded in over 275 million vehicles.

At the same time, investors believe that it is one of the top players in the AI and robotics market, especially after its partnerships with companies like Nvidia, Qualcomm, and Arm.

BlackBerry stock jumped after it reported upbeat first-quarter results, indicating its business was doing relatively well. Its revenue jumped by 26% to $152.9 million, with its gross margin growing by 4 percentage points.

The company’s growth was largely driven by its QNX segment, whose revenue rose by 26% to $72.3 million. QNX expanded its partnership with Nvidia to advance safety-critical AI across robotics, medical, and industrial systems.

Its secure communications revenue soared by 24% to $73.6 million. BlackBerry made $7 million from licensing.

The company reached several major milestones in the quarter, including achieving FedRAMP Class D recertification for the BlackBerry AtHoc solution.

This certification will strengthen its position for US government contracts.

Still, there are concerns about BlackBerry shares. One of the key concerns is whether it can sustain its organic growth.

Yahoo Finance data shows that its second-quarter revenue will come in at $145.53 million, up by 12.2% from the same period last year. This will mark a deceleration from the previous quarter.

For the year, the company’s revenue is expected to be $614 million, up by 12% YoY. It is then expected to hit $678 million next year, up by 10% YoY. 

Another concern, which may explain the recent pullback, is valuation. The stock has become expensive after this year's rally.

Data shows that the forward price-to-earnings ratio has moved to 78, much higher than most companies, including popular names like Nvidia and Micron. 

BB stock price chart | Source: TradingView

The weekly chart shows that the BB stock price has pulled back in the past few days, moving from a high of $13.57 to the current $8.83. 

This retreat is happening as investors book profits after the stock surged from last year’s low of $1.96 to a high of $13.57. It remains substantially above the 50 and 200 moving averages.

Therefore, there is a risk that mean reversion will pull it much lower in the near term. If this happens, the stock will drop towards the 50 EMA level of $5.9 as traders wait for its second quarter earnings report.

READ MORE: BlackBerry stock hits 52-week high: take profit or let it run?

Key Takeaways BlackBerry says QNX's GEM segment is expanding beyond automotive into safety-critical embedded markets.BB secured a royalty commitment and expanded a customer relationship through its latest SDP 8 platform.BlackBerry says its strongest robotics pipeline yet supports long-term Physical AI growth opportunities. BlackBerry Limited (BB - Free Report) continues to see growing opportunities for its QNX business across robotics and industrial automation through its General Embedded Market (GEM) strategy. The company stated that GEM remains the fastest-growing segment within QNX, expanding its long-term opportunity beyond automotive into robotics, industrial automation, medical devices and other safety-critical applications.

During first-quarter fiscal 2027, BlackBerry secured a significant royalty commitment from a leading semiconductor equipment manufacturer and expanded its relationship with Luminex through an upgrade to its latest SDP 8 platform. These wins reflect continued progress in expanding QNX adoption and deployment across embedded markets.

The company highlighted Physical AI as a key long-term growth driver. As intelligent machines become increasingly autonomous and operate around people, BlackBerry said that safety, security, reliability and real-time determinism become more important. QNX technology is deterministic and safety certified, making it suitable for systems where failure is not an option. BlackBerry noted that automotive has served as a proving ground for Physical AI, describing modern vehicles as robots on wheels and emphasizing QNX’s role in supporting advanced autonomous and safety-critical systems.

BlackBerry also stated that its experience in the automotive market positions it well for opportunities in robotics and industrial automation. The company believes the capabilities it developed for automotive applications, including real-time determinism, safety certification, security and reliability, translate well to these adjacent markets. Management identified robotics, industrial automation and medical instrumentation as the three primary GEM categories where QNX’s technology is well aligned with customer requirements.

On the last earnings call, the company stated that its pipeline across robotics and industrial automation is the strongest it has been, with encouraging opportunities developing in both markets. Management expects to report additional wins as they materialize and noted that GEM continues to be the fastest-growing segment within QNX.

Taking a Look at BB’s CompetitorsCrowdStrike (CRWD - Free Report) continues to strengthen its growth pipeline through product innovation, AI expansion and broader platform adoption. The company introduced Charlotte AI AgentWorks, a no-code platform developed with AWS, NVIDIA and OpenAI, along with Agentic MDR to automate security workflows. Falcon Data Security expanded protection across endpoints, cloud, SaaS and AI environments. Management highlighted a record second-quarter pipeline and increased partner engagement, supporting demand across enterprise and public sector customers. Falcon Flex also gained momentum, adding more than 300 accounts in the first quarter and reaching more than $1.9 billion in ending ARR, reflecting stronger customer commitments and expanding platform adoption.

Palo Alto Networks (PANW - Free Report) continues to benefit from higher cybersecurity priority as enterprises deploy AI and look to consolidate vendors onto fewer platforms. Platformization is translating into larger commitments, supported by expanding next-generation security ARR and RPO, and management guidance implies continued growth in the fourth quarter of fiscal 2026. Momentum in Network Security, SASE and Prisma AIRS, along with early execution on the CyberArk and Chronosphere integrations, supports the long-term revenue mix shift toward recurring software and free cash flow. For fiscal 2026, Palo Alto Networks now expects revenues in the range of $11.41 billion to $11.42 billion, suggesting year-over-year growth of 24%.

BB Price Performance, Valuation & EstimatesShares of BlackBerry have surged 25.6% in the past month compared with the Internet-Software industry’s growth of 5.3%.

Image Source: Zacks Investment Research

Regarding the price/book ratio, BB is trading at 8.67, higher than the industry’s multiple of 4.71.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised downward over the past 60 days.

Image Source: Zacks Investment Research

BlackBerry currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways BlackBerry posted stronger first-quarter results with higher margins, cash flow and raised guidance.BB continues expanding QNX across software-defined vehicles, embedded markets and Secure Communications.BlackBerry's richer valuation means future gains hinge on sustained execution and profitable growth. BlackBerry Limited (BB - Free Report) has been one of the market's biggest turnaround stories in 2026, with its shares surging as investors increasingly recognize the company's successful transformation into a software and cybersecurity business. Strong execution across QNX and Secure Communications, improving profitability and higher financial guidance have fundamentally changed sentiment surrounding the stock.

BB’s shares have gained 148.9% in the past year, significantly outpacing the Internet Software industry’s fall of 23.6%. The broader Zacks Computer & Technology sector and the S&P 500 composite have registered gains of 33.2% and 21.8%, respectively.

Image Source: Zacks Investment Research

However, after such a dramatic rally, the investment question has shifted. Rather than asking whether BlackBerry's business is improving, investors must determine whether those operational gains are sufficient to justify today's valuation. While the company continues to benefit from several long-term growth catalysts, expectations have also risen considerably, making execution increasingly important.

BlackBerry Delivers Better ResultsBlackBerry's latest quarterly results demonstrated that its turnaround is translating into stronger financial performance.

Fiscal first-quarter 2027 revenue increased 26% year over year to approximately $153 million, exceeding the high end of management's guidance. Adjusted earnings per share came in at 4 cents, while adjusted EBITDA more than doubled from the prior-year period to approximately $36 million, representing a 24% margin. Gross margin expanded four percentage points year over year to roughly 79%, highlighting improving operating leverage as higher-margin software revenue becomes a larger portion of the business.

Cash generation also improved meaningfully. BlackBerry produced approximately $5 million in operating cash flow during what management described as a seasonally weaker quarter and generated positive free cash flow while reporting its fifth consecutive quarter of positive GAAP net income. The company also raised its full-year operating cash flow expectation to approximately $100 million, reinforcing management's confidence that revenue growth is increasingly translating into sustainable profitability.

Image Source: Zacks Investment Research

Why BB Still Has Growth CatalystsDespite the stock's sharp advance, BlackBerry still has several long-term growth drivers.

QNX remains the company's primary growth engine as automakers continue adopting software-defined vehicle architectures that require increasingly sophisticated operating systems. Development license revenue reached its highest level in eight quarters, an encouraging indicator because these licenses are typically purchased years before production royalties begin. Management also continues to expand QNX's footprint across advanced driver assistance systems, centralized vehicle computing and commercial vehicles.

Beyond automotive, General Embedded Markets (GEM) represent another attractive opportunity. Robotics, industrial automation, medical devices and semiconductor equipment all require safety-certified embedded operating systems; while emerging Physical AI applications could significantly expand BlackBerry's addressable market over time. Alloy Core also offers the potential to increase software content per vehicle, raising average selling prices and expanding future royalty revenue if customer adoption accelerates.

Licensing has also improved, with fiscal first-quarter revenue exceeding expectations due to stronger licensing agreements and one-time deals. Meanwhile, Secure Communications continues benefiting from digital sovereignty initiatives, cybersecurity modernization and increasing government demand for encrypted communications. Stable recurring revenue, healthy customer retention and opportunities for additional large government contracts provide another avenue for long-term growth.

What Could Slow BlackBerryWhile the long-term outlook has improved, several risks remain.

Macroeconomic uncertainty continues to affect automotive customers, with some manufacturers delaying development programs because of supply chain challenges, tariff concerns and broader economic caution. Since QNX royalties ultimately depend on vehicle production, prolonged delays could slow revenue realization even if design wins remain healthy.

Secure Communications also faces inherent variability because government procurement cycles are unpredictable. Large contracts often require lengthy approval processes, meaning quarterly revenue can fluctuate significantly depending on the timing of major awards. Geopolitical changes across the United States, Canada, Germany and other key markets could also delay procurement decisions or alter government spending priorities.

Competition remains another important consideration. BlackBerry operates in rapidly evolving markets where continuous investment in research and development is necessary to maintain technological leadership. The company competes against well-capitalized software and cybersecurity providers, including CrowdStrike (CRWD - Free Report) and Palo Alto Networks (PANW - Free Report) , requiring ongoing innovation to preserve its competitive position.

BB Trades at a Premium ValuationBlackBerry's improving fundamentals have been accompanied by a significantly richer valuation following the stock's powerful 2026 rally.

The stock currently trades at a forward 12-month P/E of 76.62, compared with the sub-industry average of 24.93. Those multiples represent a substantial premium compared with where the company traded before investors began pricing in its improving growth outlook.

Image Source: Zacks Investment Research

The current Zacks price target of $13 implies additional upside from recent trading levels but suggests a more measured return potential than earlier in the turnaround. While BlackBerry's operational progress clearly supports a higher valuation than in prior years, investors are now paying for anticipated future growth rather than simply a restructuring story.

As a result, future share appreciation will likely depend more on sustained execution across QNX, Secure Communications and cash generation than on multiple expansion alone.

How BB's Ratings Fit Investor DecisionsBlackBerry currently carries a Zacks Rank #2 (Buy), reflecting improving earnings expectations and constructive near-term sentiment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock also earns a Growth Score of A, supported by accelerating revenue growth, expanding margins and improving operating cash flow. However, its Value Score of F indicates that shares no longer appear inexpensive after the rally, while its Momentum Score of F suggests recent price action already reflects much of the improving outlook. Together, these produce an overall VGM Score of D.

Taken together, the ratings reinforce a balanced investment case. BlackBerry continues to benefit from strong execution, expanding QNX opportunities and improving financial performance that support a favorable near-term outlook. At the same time, richer valuation metrics mean investors should expect future returns to depend increasingly on the company's ability to sustain profitable growth rather than simply improving sentiment.

For investors with a long-term horizon, BlackBerry's transformation appears increasingly credible. However, after its massive 2026 rally, the stock now offers a more balanced risk-reward profile, where continued operational execution will be essential to justify further upside.

Revenue increased 26% year-over-year to approximately $153 million

Adjusted EBITDA grew 144% year-over-year; GAAP operating income increased year-over-year to approximately $15 million

Both QNX and Secure Communications achieved Rule of 401 performance, contributing to BlackBerry's fifth consecutive quarter of positive GAAP net income; Adjusted EPS exceeded expectations

First fiscal quarter of positive operating cash flow in nine years, excluding the patent sale in FY24

WATERLOO, ON / ACCESS Newswire / June 25, 2026 / BlackBerry Limited (NYSE:BB)(TSX:BB) today reported financial results for the three months ended May 31, 2026 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

"Our first quarter results demonstrate continued momentum following our transformation, as we advance our strategy to drive profitable growth. We exceeded expectations for revenue, profitability, and cash generation through solid performance by our world class QNX and Secure Communications teams," said John J. Giamatteo, CEO, BlackBerry. "We are particularly encouraged by the multi-year growth opportunities ahead in software-defined vehicles, including significant content expansion with the Alloy Kore platform, as well as broad opportunities in the general embedded market, especially physical AI. We believe these opportunities significantly enhance QNX's long-term potential. While we remain early in the fiscal year, the foundation of the business is stronger than it has been in years, and we continue to focus on disciplined execution and creating long-term value for our shareholders."

First Quarter Fiscal 2027 Financial Highlights

Total company revenue of $152.9 million increased 26% year-over-year.

Total company adjusted gross margin improved approximately 4 percentage points year-over-year to 78.6%; GAAP gross margin improved by approximately 4 percentage points year-over-year to 78.3%.

Total company adjusted EBITDA increased by 144% year-over-year to $36.3 million; GAAP operating income improved by $13.3 million year-over-year to $15.3 million.

QNX revenue increased 26% year-over-year to $72.3 million; QNX segment adjusted gross margin expanded by 5 percentage points year-over-year to 86%.

QNX segment adjusted EBITDA increased 52% year-over-year to $19.3 million, representing a 27% margin.

Secure Communications revenue increased by 24% year-over-year to $73.6 million; Secure Communications segment adjusted gross margin increased by 2 percentage points year-over-year to 72%.

Secure Communications segment adjusted EBITDA increased 110% year-over-year to $20.2 million, representing a 27% margin.

Secure Communications ARR remained stable at $220 million and DBNRR was 92%.

Licensing revenue was $7.0 million; Licensing segment adjusted EBITDA was $6.2 million.

Adjusted net income increased 135% year-over-year to $25.4 million; GAAP net income was positive for the fifth consecutive quarter at $8.5 million.

Adjusted basic earnings per share was $0.04; GAAP basic earnings per share was $0.01.

Operating cash flow was $4.6 million, marking BlackBerry's first cash positive fiscal first quarter in nine years, when allowing for the sale of the non-core patent portfolio to Malikie in fiscal year 2024.

Repurchased 2.6 million shares for $10.0 million during the quarter.

Ended the first quarter with $422.9 million in cash and investments.

1 The company defines the Rule of 40 metric as the sum of its GAAP revenue year-over-year growth percentage and its non-GAAP adjusted EBITDA margin percentage. Where the sum equals or exceeds 40, then the Rule of 40 is considered to have been achieved.

Business Highlights & Strategic Announcements

Expanded QNX's collaboration with NVIDIA to advance safety-critical edge AI across robotics, medical, and industrial systems through the integration of QNX OS for Safety 8.0 with NVIDIA IGX Thor and the NVIDIA Halos Safety Stack.

Released QNX Hypervisor 8.0 for Safety, further strengthening QNX's position as a foundational software platform for software-defined vehicles, robotics, medical devices, and other safety critical applications.

Leading Chinese electric vehicle company, Leapmotor, selected the QNX® Software Development Platform 8.0 and QNX® Hypervisor for Safety 8.0 to serve as the foundational software platform for its forthcoming premium electric SUV, the D19.

Announced a collaboration with TKMS, one of the world's leading naval defence companies, for strategic collaboration in support of Canada's submarine program. TKMS will adopt QNX's trusted foundational software across its next‑generation naval platforms.

Achieved FedRAMP Class D (High) re-certification for BlackBerry® AtHoc®.

Announced a strategic partnership between BlackBerry Secure Communications and The IP Company to bring highly secure, certified communications capabilities to naval and military environments worldwide.

Announced the renewal of its normal course issuer bid ("NCIB") share buyback program for up to 26.8 million common shares.

Financial Outlook

BlackBerry is providing the following guidance for the second fiscal quarter ending August 31, 2026 and the fiscal year ending February 28, 2027.

Q2 FY27

FY27

Total BlackBerry revenue:

$137 - $148 million

$594 - $621 million

QNX revenue:

$70 - $75 million

$295 - $312 million

Secure Communications revenue:

$57 - $63 million

$270 - $280 million

Licensing revenue:

Approximately $10 million

Approximately $29 million

Total Company adjusted EBITDA:

$20 - $30 million

$119 - $139 million

QNX segment adjusted EBITDA:

$16 - $21 million

$74 - $86 million

Secure Communications segment adjusted EBITDA:

$5 - $10 million

$57 - $65 million

Licensing segment adjusted EBITDA:

Approximately $9 million

Approximately $25 million

Non-GAAP basic EPS2:

$0.03 - $0.04

$0.16 - $0.20

Operating cash flow

Breakeven - $10 million

Approximately $100 million

2 EPS guidance does not include the effect of any potential future share repurchases not yet completed as of the date of this release.

Use of Non-GAAP Financial Measures

The tables at the end of this press release include a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios used by the Company to comparable U.S. GAAP measures and an explanation of why the Company uses them. The Company does not provide a reconciliation of expected Adjusted EBITDA and expected Non-GAAP basic EPS for the second quarter and full fiscal year 2027 to the most directly comparable expected GAAP measures because it is unable to predict with reasonable certainty, among other things, restructuring charges and impairment charges and, accordingly, a reconciliation is not available without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For more information on the non-GAAP financial measures, please refer to the tables at the end of this press release.

Conference Call and Webcast

A conference call and live webcast will be held today beginning at 8:00 a.m. ET, which can be accessed using the following link (here) or through the Company's investor webpage (BlackBerry.com/Investors) or by dialing toll free +1 (877) 883-0383 and entering Entry Number 1747488.

A replay of the conference call will be available at approximately one hour after the event using the same webcast link (here) or by dialing toll free +1 (855) 669-9658 and entering Replay Access Code 4857611.

About BlackBerry

BlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.

For more information, visit BlackBerry.com and follow @BlackBerry.

Investor Contact:

BlackBerry Investor Relations
+1 (519) 888-7465
[email protected]

Media Contact:

BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

###

This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry's plans, strategies and objectives.

The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, competition, and BlackBerry's expectations regarding its financial performance. Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; BlackBerry's ability to enhance, develop, introduce or monetize its products and services in a timely manner with competitive pricing, features and performance; significant changes in government customer demand or procurement requirements; BlackBerry's sales cycles and the time and expense of its sales efforts; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; BlackBerry's use of artificial intelligence technology and tools in its operations and in product development; adverse macroeconomic and geopolitical conditions, including trade policies and national security concerns; risks arising from a failure or perceived failure of the security features or functionality of BlackBerry's solutions; litigation against BlackBerry; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; network disruptions or other business interruptions; BlackBerry's ability to foster an ecosystem of third-party application developers; BlackBerry's dependence in part on its relationships with resellers and channel partners; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry's use of open source software and its ability to obtain rights to use third-party software; BlackBerry potentially being found to have infringed on the intellectual property rights of others; BlackBerry's indebtedness, which could impact its operating flexibility and financial condition; the asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; potential impacts of acquisitions, divestitures and other business initiatives; risks associated with foreign operations, including fluctuations in foreign currencies; environmental events; the fluctuation of BlackBerry's quarterly revenue and operating results; and the volatility of the market price of BlackBerry's common shares.

These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form 10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedarplus.ca or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and BlackBerry has no intention and undertakes no obligation to update or revise any of them, except as required by law.

BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except share and per share amounts)

Consolidated Statements of Operations

Three Months Ended

May 31, 2026

May 31, 2025

Revenue

$

152.9

$

121.7

Cost of sales

33.2

31.4

Gross margin

119.7

90.3

Gross margin %

78.3

%

74.2

%

Operating expenses

Research and development

33.0

25.0

Sales and marketing

29.5

28.7

General and administrative

39.3

30.5

Amortization

2.5

4.0

Impairment of long-lived assets

0.1

0.1

104.4

88.3

Operating income

15.3

2.0

Investment income, net

1.1

2.9

Income before income tax

16.4

4.9

Provision for income taxes

7.9

3.0

Net income

$

8.5

$

1.9

Earnings per share

Basic

$

0.01

$

0.00

Diluted

$

0.01

$

0.00

Weighted-average number of common shares outstanding (000s)

Basic

586,741

596,300

Diluted

593,193

600,831

Total common shares outstanding (000s)

586,061

594,529

BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)

Consolidated Balance Sheets

As at

May 31,
2026

February 28,
2026

Assets

Current

Cash and cash equivalents

$

256.8

$

274.7

Short-term investments

94.1

85.2

Accounts receivable, net of allowance of $3.6 and $3.4, respectively

160.6

156.0

Other receivables

5.5

7.5

Income taxes receivable

2.5

2.6

Other current assets

40.9

42.2

560.4

568.2

Restricted cash and cash equivalents

14.2

14.2

Long-term investments

57.8

58.3

Other long-term assets

53.8

56.3

Operating lease right-of-use assets, net

23.8

16.7

Property, plant and equipment, net

13.1

12.3

Intangible assets, net

39.2

40.1

Goodwill

478.4

479.1

$

1,240.7

$

1,245.2

Liabilities

Current

Accounts payable

$

16.3

$

5.5

Accrued liabilities

99.0

111.7

Income taxes payable

18.3

12.4

Deferred revenue, current

121.5

138.5

255.1

268.1

Deferred revenue, non-current

12.4

14.1

Operating lease liabilities

24.3

18.8

Other long-term liabilities

1.4

1.7

Long-term notes

196.8

196.5

490.0

499.2

Shareholders' equity

Capital stock and additional paid-in capital

2,919.3

2,924.4

Deficit

(2,155.8

)

(2,167.2

)

Accumulated other comprehensive loss

(12.8

)

(11.2

)

750.7

746.0

$

1,240.7

$

1,245.2

BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)

Consolidated Statements of Cash Flows

Three Months Ended

May 31, 2026

May 31, 2025

Cash flows from operating activities

Net income

$

8.5

$

1.9

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Amortization

4.1

5.7

Stock-based compensation

6.5

5.7

Operating leases

1.0

(1.6

)

Other

1.0

(0.6

)

Net changes in working capital items

Accounts receivable, net of allowance

(4.6

)

43.8

Other receivables

2.0

(3.3

)

Income taxes receivable

0.1

(0.1

)

Other assets

3.0

17.0

Accounts payable

11.0

(25.9

)

Accrued liabilities

(15.2

)

(41.7

)

Income taxes payable

5.9

3.1

Deferred revenue

(18.7

)

(22.0

)

Net cash provided by (used in) operating activities

4.6

(18.0

)

Cash flows from investing activities

Proceeds on sale, maturity or distribution from long-term investments

-

0.1

Acquisition of property, plant and equipment

(2.9

)

(0.9

)

Acquisition of intangible assets

(1.6

)

(1.2

)

Acquisition of short-term investments

(70.4

)

(21.7

)

Proceeds on sale or maturity of short-term investments

61.4

62.2

Net cash provided by (used in) investing activities

(13.5

)

38.5

Cash flows from financing activities

Issuance of common shares

1.3

1.2

Common shares repurchased

(10.0

)

(10.0

)

Net cash used in financing activities

(8.7

)

(8.8

)

Effect of foreign exchange gain (loss) on cash, cash equivalents, restricted cash, and restricted cash equivalents

(0.3

)

0.5

Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period

(17.9

)

12.2

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period

288.9

280.3

Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period

$

271.0

$

292.5

As at

May 31,
2026

February 28,
2026

Cash and cash equivalents

$

256.8

$

274.7

Restricted cash and cash equivalents

14.2

14.2

Short-term investments

94.1

85.2

Long-term investments

57.8

58.3

$

422.9

$

432.4

Reconciliations of the Company's Segment Results and Segment Adjusted EBITDA to the Consolidated Results

The following table shows information by operating segments for the three months ended May 31, 2026 and May 31, 2025. The Company reports segment information in accordance with U.S. GAAP, pursuant to the Financial Accounting Standards Board's Accounting Standard Codification Topic 280, Segment Reporting, based on the "management" approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker ("CODM") for making decisions and assessing performance of the Company's reportable operating segments. The measure of segment profit or loss disclosed by the Company in the Consolidated Financial Statements under the "management" approach in reviewing the results of the Company's operating segments is segment adjusted gross margin. Additionally, the following tables include the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA, a non-GAAP financial measure, which excludes amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment charge. For the three months ended May 31, 2026, the Company presented segment adjusted EBITDA results excluding amortization in segment research and development, segment sales and marketing and segment general and administrative to align to the operating expense presentation on the Consolidated Statement of Operations. For purposes of comparability, the Company's segment adjusted EBITDA for the three months ended May 31, 2025 has been updated to conform to the current year's presentation. See Note 10 to the Consolidated Financial Statements for a description of the Company's operating segments.

For the Three Months Ended

(in millions)

QNX

Secure Communications

Licensing

May 31,

Change

May 31,

Change

May 31,

Change

2026

2025

2026

2025

2026

2025

Segment revenue

$

72.3

$

57.5

$

14.8

$

73.6

$

59.5

$

14.1

$

7.0

$

4.7

$

2.3

Segment cost of sales

10.4

11.2

(0.8

)

20.8

18.1

2.7

1.5

1.6

(0.1

)

Segment adjusted gross margin

$

61.9

$

46.3

$

15.6

$

52.8

$

41.4

$

11.4

$

5.5

$

3.1

$

2.4

Segment research and development

18.9

12.3

6.6

12.6

11.2

1.4

-

-

-

Segment sales and marketing

15.6

13.2

2.4

12.3

13.6

(1.3

)

-

-

-

Segment general and administrative

8.1

8.1

-

7.8

7.1

0.7

0.8

0.9

(0.1

)

Less amortization included in segment cost of sales

-

-

-

0.1

0.1

-

1.5

1.6

(0.1

)

Segment adjusted EBITDA

$

19.3

$

12.7

$

6.6

$

20.2

$

9.6

$

10.6

$

6.2

$

3.8

$

2.4

Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures

In the Company's internal reports, management evaluates the performance of the Company's business on a non-GAAP basis by excluding the impact of certain items from the Company's U.S. GAAP financial results. The Company believes that these non-GAAP financial measures and non-GAAP ratios provide management, as well as readers of the Company's financial statements, with a consistent basis for comparison across accounting periods and are useful in helping management and readers understand the Company's operating results and underlying operational trends. Beginning with the fiscal quarter ended May 31, 2026, the Company has included deferred share units revaluation adjustment as a non-GAAP adjustment and has applied this adjustment to comparative period.

Readers are cautioned that adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted net income, adjusted earnings per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income, adjusted EBITDA, segment adjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA margin percentage and free cash flow (usage) and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies.

Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the three months ended May 31, 2026 and May 31, 2025

A reconciliation of the most directly comparable U.S. GAAP gross margin and gross margin percentage for the three months ended May 31, 2026 and May 31, 2025 to both adjusted gross margin and adjusted gross margin percentage are reflected in the table below:

For the Three Months Ended (in millions)

May 31, 2026

May 31, 2025

Gross margin

$

119.7

$

90.3

Stock compensation expense

0.5

0.5

Adjusted gross margin

$

120.2

$

90.8

Gross margin %

78.3

%

74.2

%

Stock compensation expense

0.3

%

0.4

%

Adjusted gross margin %

78.6

%

74.6

%

Reconciliation of U.S. GAAP operating expenses for the three months ended May 31, 2026, and May 31, 2025 to adjusted operating expenses is reflected in the table below:

For the Three Months Ended (in millions)

May 31, 2026

May 31, 2025

Operating expenses

$

104.4

$

88.3

Restructuring charges

0.3

2.9

Stock compensation expense

6.0

5.2

Acquired intangibles amortization

-

1.7

LLA impairment charge

0.1

0.1

Deferred share units revaluation adjustment

10.0

(1.5

)

Adjusted operating expenses

$

88.0

$

79.9

Reconciliation of U.S. GAAP net income and U.S. GAAP basic earnings per share for the three months ended May 31, 2026 and May 31, 2025 to adjusted net income and adjusted basic earnings per share is reflected in the table below:

For the Three Months Ended (in millions, except per share amounts)

May 31, 2026

May 31, 2025

Basic earnings

per share

Basic earnings per share

Net income

$

8.5

$

0.01

$

1.9

$

0.00

Restructuring charges

0.3

2.9

Stock compensation expense

6.5

5.7

Acquired intangibles amortization

-

1.7

LLA impairment charge

0.1

0.1

Deferred share units revaluation adjustment

10.0

(1.5

)

Adjusted net income

$

25.4

$

0.04

$

10.8

$

0.02

Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the three months ended May 31, 2026 and May 31, 2025 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:

For the Three Months Ended (in millions)

May 31, 2026

May 31, 2025

Research and development

$

33.0

$

25.0

Stock compensation expense

1.5

1.3

Adjusted research and development expense

$

31.5

$

23.7

Sales and marketing

$

29.5

$

28.7

Stock compensation expense

1.1

1.4

Adjusted sales and marketing expense

$

28.4

$

27.3

General and administrative

$

39.3

$

30.5

Restructuring charges

0.3

2.9

Stock compensation expense

3.4

2.5

Deferred share units revaluation adjustment

10.0

(1.5

)

Adjusted general and administrative expense

$

25.6

$

26.6

Amortization

$

2.5

$

4.0

Acquired intangibles amortization

-

1.7

Adjusted amortization expense

$

2.5

$

2.3

Reconciliation of U.S GAAP operating income to adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the three months ended May 31, 2026 and May 31, 2025 is reflected in the table below.

For the Three Months Ended (in millions)

May 31, 2026

May 31, 2025

Operating income

$

15.3

$

2.0

Non-GAAP adjustments to operating income

Restructuring charges

0.3

2.9

Stock compensation expense

6.5

5.7

Acquired intangibles amortization

-

1.7

LLA impairment charge

0.1

0.1

Deferred share units revaluation adjustment

10.0

(1.5

)

Total non-GAAP adjustments to operating income

16.9

8.9

Adjusted operating income

32.2

10.9

Amortization

4.1

5.7

Acquired intangibles amortization

-

(1.7

)

Adjusted EBITDA

$

36.3

$

14.9

Revenue

$

152.9

$

121.7

Adjusted operating income margin % (1)

21

%

9

%

Adjusted EBITDA margin % (2)

24

%

12

%

______________________________

(1) Adjusted operating income margin % is calculated by dividing adjusted operating income by revenue.

(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue.

The CODM also uses the segment metric of segment adjusted EBITDA, which is a non-GAAP measure including segment expenses that exclude amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment. The following table reconciles the U.S. GAAP measures of segment profit or loss disclosed by the Company in the Consolidated Financial Statements from segment adjusted gross margin to segment adjusted EBITDA for the three months ended May 31, 2026 and May 31, 2025.

For the Three Months Ended

(in millions)

QNX

Secure Communications

Licensing

May 31,

May 31,

May 31,

2026

2025

2026

2025

2026

2025

Segment adjusted gross margin

$

61.9

$

46.3

$

52.8

$

41.4

$

5.5

$

3.1

Segment research and development

18.9

12.3

12.6

11.2

-

-

Segment sales and marketing

15.6

13.2

12.3

13.6

-

-

Segment general and administrative

8.1

8.1

7.8

7.1

0.8

0.9

Less amortization included in segment cost of sales

-

-

0.1

0.1

1.5

1.6

Segment adjusted EBITDA

$

19.3

$

12.7

$

20.2

$

9.6

$

6.2

$

3.8

Free cash flow (usage)

The Company uses free cash flow (usage) when assessing its sources of liquidity, capital resources, and quality of earnings. The Company believes that free cash flow (usage) is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow (usage) trends in the Company's business.

Reconciliation of U.S. GAAP net cash provided by (used in) operating activities for the three months ended May 31, 2026 and May 31, 2025 to free cash flow (usage) is reflected in the table below:

For the Three Months Ended (in millions)

May 31, 2026

May 31, 2025

Net cash provided by (used in) operating activities

$

4.6

$

(18.0

)

Acquisition of property, plant and equipment

(2.9

)

(0.9

)

Free cash flow (usage)

$

1.7

$

(18.9

)

Key Metrics

The Company regularly monitors a number of financial and operating metrics, including the following key metrics, in order to measure the Company's current performance and estimated future performance. Readers are cautioned that Secure Communications annual recurring revenue ("ARR") and Secure Communications dollar-based net retention rate ("DBNRR") do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies.

Comparative breakdowns of certain key metrics for the three months ended or as at May 31, 2026 and May 31, 2025 are set forth below:

For the Three Months Ended (in millions)

May 31, 2026

May 31, 2025

Change

Secure Communications Annual Recurring Revenue

$

220

$

209

$

11

Secure Communications Dollar-Based Net Retention Rate

92

%

92

%

-

%

SOURCE: BlackBerry

Key Takeaways BlackBerry's QNX royalty backlog reached about $950M, supporting durable multi-year growth visibility.BB expects QNX revenue of $60-$64M and Secure Comms revenue of $66-$70M for fiscal Q1.BlackBerry sees positive operating cash flow for the first time in three years despite risks. BlackBerry Limited (BB - Free Report) is set to report first-quarter fiscal 2027 results on June 25.

The Zacks Consensus Estimate for the bottom line is currently pegged at 3 cents and has remained unchanged over the past 60 days. The company expects non-GAAP EPS to be in the range of 2-3 cents.

The company expects fiscal first-quarter revenues to be in the $132-$140 million range.

BlackBerry’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, while meeting once, with the average beat being 115%.

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What Our Model Unveils for BBOur proven model does not conclusively predict an earnings beat for BlackBerry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

BB has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Catalysts for BB’s Q1 EarningsBlackBerry enters this earnings season from a position of improving operational strength along with growing momentum across its QNX and Secure Communications divisions. QNX's royalty backlog has expanded to approximately $950 million, with new additions significantly exceeding recognized revenue, providing strong visibility into durable multi-year growth. The continued expansion of backlog highlights a business that is compounding rather than slowing, supported by its leadership in automotive and growing opportunities in physical AI, robotics, industrial, medical and other emerging markets.

While quarterly results can be uneven due to the timing of design wins and development tool purchases, the long-term growth outlook remains strong. Most revenue from new design wins is realized only after products enter production, typically two to three years later. After delivering 14% growth in fiscal 2026 despite a softer first quarter, management expects a similar pattern in fiscal 2027 and believes QNX will remain a Rule of 40 business. QNX is evolving into a high-quality, scalable and profitable growth engine. Beyond automotive, it is gaining traction in industrial automation, medical devices and robotics, with a growing pipeline increasingly converting into signed deals. Higher ASPs in these markets are supporting margin expansion, and GEM now represents nearly half of the SDP 8.0 pipeline, highlighting greater diversification.

Non-automotive markets account for about 20% of QNX revenue and may ultimately present a larger opportunity than automotive. Robotics, driven by the rise of physical AI, is a promising long-term growth area, backed by QNX’s expertise in autonomous systems. BlackBerry’s durable growth is anchored in a strong, multi-layered moat across QNX and Secure Communications. At scale, QNX also benefits from a cost advantage that in-house solutions struggle to replicate. Similarly, Secure Comm operates in mission-critical settings where certifications and long-standing relationships create high barriers to entry. Rather than a threat, BB sees AI as a tailwind, enhancing productivity, accelerating development and reinforcing its position in safety-critical and physical AI applications.

The Secure Comms business is benefiting from the growing demand for digital sovereignty, as governments and enterprises seek secure communication platforms that protect sensitive data from foreign access. A key validation of this trend was the Government of Canada's expanded adoption of BlackBerry's SecuSUITE platform, which is expected to contribute meaningfully to fiscal 2027 revenue. The segment nearly achieved the Rule of 40 in the fiscal fourth quarter, led by rising NATO and global defense spending. Expanded support for iOS alongside Android has strengthened the pipeline, while investments in Secusmart iOS support, FedRAMP High certification for AtHoc and UEM BSI certification are helping stabilize UEM and drive growth in AtHoc and Secusmart.

For the Secure Comm unit, revenues are estimated to be in the band of $66-$70 million. For the QNX business, revenues are expected to be in the range of $60-$64 million for the fiscal first quarter. Licensing & Other revenues are expected to be roughly $6 million. Adjusted EBITDA is expected to be between $14 million and $22 million. QNX segment adjusted EBITDA is estimated at $4-$8 million, while Secure Comm segment adjusted EBITDA is projected at $14-$18 million.

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BlackBerry is driving shareholder returns by prudently allocating capital across its three profitable divisions—QNX, Secure Communications and Licensing—all of which contribute positive adjusted EBITDA. The fiscal first quarter is expected to be a seasonal low for cash flow due to billing and payment timing, but for the first time in three years, BlackBerry anticipates positive operating cash flow of breakeven to $10 million.

Despite the improving trajectory, BB is facing multiple challenges. QNX revenue is still partially tied to automotive manufacturing cycles. Macroeconomic uncertainty, particularly in the automotive sector, is adversely impacting customer buying decisions, with some OEMs delaying projects due to supply chain concerns and tariff-related disruptions. Global production slowdowns or weaker electric vehicle demand could affect licensing revenue. Dependence on government procurement cycles and broader macroeconomic volatility continues to pose risks, especially within the Secure Comm.

Moreover, BB competes with much larger cybersecurity firms, such as CrowdStrike Holdings, Inc. (CRWD - Free Report) and Palo Alto Networks (PANW - Free Report) , that invest billions annually in R&D. To address the constant risk of technological obsolescence, BB needs to invest heavily in R&D, thereby depleting margins.

BB Stock vs. IndustryBB’s shares have gained 109.5% in the past six months, significantly outpacing the Internet Software industry’s fall of 15.7%. The broader Zacks Computer & Technology sector and the S&P 500 composite have registered declines of 18.4% and 8.7%, respectively.

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Blackberry has outperformed its peers (within the cybersecurity space). PANW has gained 52.9%, while CrowdStrike is up 43% over the same time frame.

Valuation After Recent GainsRegarding the price/book ratio, BB is trading at 6.58, higher than the industry’s multiple of 4.39.

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PANW and CrowdStrike are trading at a 12-month price/book multiple of 8.48X and 37.29X, respectively, compared with the Security industry’s multiple of 26.02X.

Investment Outlook: Buy, Hold, or Wait?For long-term investors, BlackBerry appears increasingly attractive. The company now boasts improving profitability, positive cash generation, strong exposure to automotive software, growing cybersecurity demand and expansion into AI-enabled industrial markets. These factors support a stronger long-term investment thesis.

The upcoming fiscal first-quarter earnings report will be an important test of whether BlackBerry's turnaround is sustainable. Strong execution, continued QNX growth and solid guidance could further boost investor confidence. For current shareholders, holding through earnings may be worthwhile if they believe in the company's long-term growth story. For new investors, the report could provide clearer evidence on whether BlackBerry's recent momentum reflects a lasting recovery rather than a short-term rebound.