Blackberry (BB) investor relations material

Executive summary

• Achieved 3% year-over-year revenue growth to $129.6 million, exceeding guidance, with positive GAAP net income of $13.3 million for the second consecutive quarter and a $33 million year-over-year improvement.

• Adjusted EBITDA reached $25.9 million (20% of revenue), and non-GAAP EPS was $0.04, both above guidance.

• Returned $20 million to shareholders via share buybacks, repurchasing approximately 5 million shares.

• Maintained a strong cash and investment position exceeding $363.5 million, with positive operating cash flow of $3.4 million.

• All three divisions met or exceeded the top end of guidance, raising full-year outlooks.

Financial highlights

• Total company adjusted gross margin expanded 4 points year-over-year to 75%.

• Adjusted operating expenses down 5% year-over-year to $74.8 million.

• Adjusted net income was $24.2 million; GAAP net income improved by $33 million year-over-year.

• Free cash flow was $2.6 million; total cash and investments at $363.5 million.

• GAAP operating income was $11.5 million, up $9.3 million year-over-year.

Outlook and guidance

• Raised full-year revenue guidance to $519–$541 million and adjusted EBITDA to $82–$101 million; non-GAAP EPS for FY26 now expected between $0.11 and $0.15.

• Q3 revenue expected at $132–$140 million; adjusted EBITDA at $20–$28 million.

• QNX Q3 revenue guidance: $66–$70 million; Secure Communications Q3: $60–$64 million.

• Licensing revenue guidance: ~$6 million in Q3, ~$24 million for FY26.

• Operating cash flow for the year projected at $35–40 million.