Blackberry (BB) Q1 2027 earnings summary

Executive summary

• Revenue rose 26% year-over-year to $152.9 million, with both QNX and Secure Communications segments achieving strong growth and Rule of 40 performance.

• Adjusted EBITDA surged 144% year-over-year to $36.3 million, and GAAP net income was $8.5 million, marking the fifth consecutive quarter of positive GAAP net income.

• Adjusted EPS was $0.04, exceeding expectations, and adjusted net income increased to $25.4 million.

• Achieved first positive operating cash flow in a fiscal Q1 in nine years, excluding prior patent sale.

• Repurchased 2.6 million shares for $10 million; ended quarter with $422.9 million in cash and investments.

Financial highlights

• Total revenue reached $153 million, up 26% year-over-year and above guidance.

• Adjusted gross margin improved by 4 percentage points year-over-year to 78.6%; GAAP gross margin at 78.3%.

• Adjusted EBITDA was $36.3 million (24% of revenue), more than doubling year-over-year.

• Adjusted net income: $25.4 million; GAAP net income: $8.5 million.

• Operating cash flow was $4.6 million, first positive Q1 cash flow in nine years (excluding patent sale in FY24).

Outlook and guidance

• Full-year FY27 revenue guidance raised to $594–$621 million; Q2 FY27 revenue expected at $137–$148 million.

• QNX revenue guidance for FY27: $295–$312 million; Secure Communications: $270–$280 million.

• Adjusted EBITDA guidance for FY27: $119–$139 million; Q2 FY27 adjusted EBITDA: $20–$30 million.

• FY27 non-GAAP basic EPS guidance: $0.16–$0.20.

• FY27 operating cash flow expected at approximately $100 million.