Blackberry (BB) CIBC Technology & Innovation Conference 2026 summary

Business transformation and financial performance

• Transitioned from loss-making to solid profitability, with eight consecutive quarters of improving GAAP net income and $50 million in operating cash flow last year, expected to double to $100 million this year.

• Achieved cost reductions exceeding $150 million and divested Cylance to streamline operations.

• QNX division delivered 14% top-line growth, with company-wide modest single-digit growth and reinvestment of incremental EBITDA into QNX.

• Secure Communications and licensing businesses have returned to growth, supported by digital sovereignty and defense spending tailwinds.

• All three business units—QNX, Secure Communications, and Licensing—are now contributing to profitability and cash flow.

QNX business and growth drivers

• QNX provides foundational, mission-critical software for automotive and general embedded markets, focusing on safety and security.

• 80% of QNX revenue is automotive, but expansion into the GEM market is a major growth lever.

• Automotive market maturing, leading to more production programs and revenue realization as carmakers shift focus to applications.

• Backlog nearing $1 billion, with twice as much added as recognized last year, indicating strong future royalty revenue.

• QNX’s competitive position is strong, with high market share and sticky, long-term design wins.

Alloy Kore and future opportunities

• Alloy Kore is a foundational software layer for automotive ECUs, enabling faster time to market and hardware abstraction for OEMs.

• ASP for Alloy Kore is 2.5x to 5x higher than standard QNX OS, with pilot programs underway, including with Mercedes.

• Alloy Kore is expected to be relevant for most of the global vehicle market, with royalty revenue starting in model years 2029–2030.

• GEM market share is expected to grow but will need to keep pace with continued automotive growth.

• AI is used internally for efficiency, but human oversight remains essential for safety-critical software.