Revenue and Income - Revenue for the three months ended May 31, 2025, was $121.7 million, a slight decrease of 1.4% compared to $123.4 million for the same period in 2024[21] - Operating income for the quarter was $2.0 million, a significant improvement from an operating loss of $12.9 million in the same quarter last year[21] - Net income for the three months ended May 31, 2025, was $1.9 million, compared to a net loss of $41.4 million in the same period of 2024[21] - The company reported a comprehensive income of $8.3 million for the quarter, compared to a comprehensive loss of $41.7 million in the prior year[23] - For the three months ended May 31, 2025, the net income from continuing operations was $1.9 million, compared to a net loss of $16.5 million for the same period in 2024[94] - The company achieved net income of $1.9 million in Q1 Fiscal 2026, a significant improvement of $43.3 million from a net loss of $41.4 million in Q1 Fiscal 2025[166] Cash and Assets - Cash and cash equivalents increased to $276.0 million as of May 31, 2025, up from $266.7 million at the end of February 2025[16] - Total assets decreased to $1,210.4 million as of May 31, 2025, down from $1,295.6 million as of February 28, 2025[16] - The company’s total shareholders' equity increased to $725.1 million as of May 31, 2025, compared to $719.9 million at the end of February 2025[18] - The company had cash, cash equivalents, and investments totaling $381.9 million as of May 31, 2025, including common shares of Arctic Wolf valued at $24.6 million[137] - The company had restricted cash and cash equivalents of $16.5 million as of May 31, 2025, up from $13.6 million as of February 28, 2025[62] Expenses and Costs - Research and development expenses were $25.0 million, down from $30.6 million in the same quarter last year, indicating a focus on cost management[21] - Operating expenses decreased by 14.6% to $88.3 million compared to $102.9 million in Q1 Fiscal 2025[166] - Total restructuring charges incurred for the three months ended May 31, 2025, were $2.9 million, down from $7.3 million for the same period in 2024[80] - The amortization expense related to intangible assets for the three months ended May 31, 2025, was $4.2 million, significantly lower than $11.0 million for the same period in 2024[72] - Sales and marketing expenses increased by $2.6 million to $13.3 million from $10.7 million year-over-year[213] Segment Performance - QNX segment revenue increased to $57.5 million in Q1 2025 from $53.2 million in Q1 2024, representing a growth of 4.5%[115] - Secure Communications segment revenue was $59.5 million for the three months ended May 31, 2025, compared to $64.2 million in the same period last year, reflecting a decline of 7.3%[115] - Licensing segment revenue decreased to $4.7 million in Q1 2025 from $6.0 million in Q1 2024, a decline of 21.7%[115] - Total segment revenue for the company was $121.7 million, down 1.7% from $123.4 million in the previous year[213] - Segment adjusted EBITDA for Q1 Fiscal 2026 was $26.1 million, up from $22.9 million in Q1 Fiscal 2025, indicating a 3.2 million increase[169] Financial Outlook and Projections - The Company expects total BlackBerry revenue to be in the range of $508 million to $538 million for fiscal 2026, an increase from previous expectations[205] - The Company expects Secure Communications revenue to be in the range of $234 million to $244 million for fiscal 2026, reflecting stronger than expected performance[200] - The company expects to recognize revenue from unsatisfied performance obligations over the next 12 months, although specific amounts are not disclosed[124] Accounting and Compliance - The company plans to adopt new accounting standards related to income tax disclosures effective after December 15, 2024, and is currently evaluating the impact on its disclosures[36] - The company is in the process of evaluating new accounting standards related to expense disaggregation disclosures, effective after December 15, 2026[37] - The company has not adopted any new accounting standards during fiscal 2026 to date[34] Shareholder Actions - The company repurchased 2.6 million common shares at a cost of $10 million during the three months ended May 31, 2025[91] - A share buyback program was announced for the repurchase of up to 27,855,153 common shares[164] Other Notable Points - The company recognized a gain on the sale of its Cylance endpoint security assets amounting to $10.4 million before taxes in Q4 fiscal 2025[39] - The company is owed a deferred cash payment of approximately $38.6 million from Arctic Wolf as part of the sale of its Cylance endpoint security assets[135] - The company believes its financial resources will be sufficient to meet current commitments and future operating expenditures based on current projections[138]

Core Viewpoint - BlackBerry shares surged significantly after the company reported better-than-expected first-quarter financial results and raised its fiscal 2026 sales guidance [1][3]. Financial Performance - BlackBerry reported quarterly earnings of $0.02 per share, surpassing the analyst consensus estimate of $0.00 [1]. - Quarterly revenue reached $121.7 million, exceeding the Street estimate of $112.18 million [1]. - QNX revenue increased by 8% to $57.5 million, while Secure Communications revenue exceeded guidance at $59.5 million [2]. Fiscal Guidance - The company affirmed its fiscal 2026 adjusted EPS guidance of $0.08 to $0.10 [3]. - Fiscal 2026 revenue guidance was raised from $504 million-$534 million to $508 million-$538 million, compared to the $513.51 million estimate [3]. Analyst Reactions - RBC Capital analyst Paul Treiber maintained a Sector Perform rating and slightly increased his price forecast from $3.75 to $4, noting strong revenue from Secure Communications and QNX segments [4]. - Canaccord Genuity analyst Kingsley Crane maintained a Hold rating while modestly increasing the price forecast from $4.25 to $4.60, highlighting strong IoT results [5][6]. Market Outlook - Analysts noted that the raised fiscal 2026 guidance remains conservative due to uncertainties in the automotive sector and broader macroeconomic conditions [5][11]. - A backlog of approximately $865 million in QNX presents significant revenue opportunities, though clarity on timing for revenue recognition remains a concern [9][10]. Strategic Initiatives - The company is positioned for substantial expansion in the general embedded opportunity, which represents 43% of the overall pipeline for Software-Defined Vehicle 8.0 [12]. - Management's tone has improved, indicating a more optimistic outlook for the business compared to the previous year [11].

Group 1 - BlackBerry Limited reported better-than-expected first-quarter results, with earnings of $0.02 per share and revenue of $121.7 million, surpassing analyst estimates of $0.00 and $112.18 million respectively [1] - CEO John J. Giamatteo highlighted the strong performance of the QNX and Secure Communications divisions, which exceeded both revenue and profitability expectations [2] - The company affirmed its fiscal 2026 adjusted EPS guidance of $0.08 to $0.10 and raised its revenue guidance to a range of $508 million to $538 million, compared to the previous estimate of $504 million to $534 million [2] Group 2 - Following the earnings announcement, BlackBerry shares increased by 14.7%, trading at $4.9649 [3] - Analysts adjusted their price targets for BlackBerry, with Baird raising it from $4 to $5, Canaccord Genuity from $4.25 to $4.6, and RBC Capital from $3.75 to $4 [5]

After the bell on Tuesday, we received fiscal first quarter results from BlackBerry Limited (NYSE: BB ) for its May ending quarter. The stock has been one of the market's biggest winners over theI am a market enthusiast and part-time trader. I started writing for Seeking Alpha in 2011, and it has been a tremendous opportunity and learning experience. I have been interested in the markets since elementary school, and hope to pursue a career in the investment management industry. I have been active in the mar ...

Group 1 - BlackBerry Ltd's stock has increased by 20.6% to $5.22 following strong first-quarter results and an uplift in annual revenue forecast [1] - The stock has moved out of penny stock territory for the first time since reaching a two-year peak of $6.24 in February, with a year-to-date increase of 34% [2] - Call options trading has surged, with 64,000 calls exchanged compared to 7,609 puts, indicating strong bullish sentiment [3] Group 2 - Analysts are likely to revise their ratings, with four out of five brokerages currently holding "hold" ratings and a consensus 12-month price target of $4.45, which is an 11.1% discount to the current price [4] - Short interest has increased over the past month, now representing 5.9% of the stock's available float, suggesting that some of the recent price movement may be due to short covering [4]

Core Insights - BlackBerry Limited reported first-quarter fiscal 2026 non-GAAP earnings per share (EPS) of 2 cents, surpassing its own estimate of a loss of 1 cent to breakeven and the Zacks Consensus Estimate pegged at breakeven [1][10] - Total revenues for the quarter reached $121.7 million, exceeding guidance of $107-$115 million but reflecting a 1.4% year-over-year decline, primarily due to weaker sales in Secure Communications and Licensing units [2][10] Financial Performance - The QNX business generated revenues of $57.5 million, exceeding the high end of guidance ($51-$55 million) and showing an 8% year-over-year growth, driven by a 9% increase in royalties and a 23% rise in development seat license revenues [7] - Secure Communication revenues declined 7.3% year over year to $59.5 million but exceeded the top limit of guidance ($50-$54 million) due to strong sales in the German government sector [8] - Adjusted gross margin improved to 74.6%, up from 73.5% in the previous year, while QNX's gross margin fell to 81% due to adverse forex impacts [12] Guidance and Outlook - BlackBerry raised its full-year revenue guidance to $508–$538 million and adjusted EBITDA to $72–$87 million, reflecting a stronger outlook for Secure Communications revenues and EBITDA [5] - For fiscal second-quarter 2026, the company expects revenues in the range of $115-$125 million and non-GAAP EPS between breakeven and 1 cent [15] - The company continues to project Licensing & Other revenues to be around $24 million, with non-GAAP loss per share expected to be between 8 cents and 10 cents [4] Market Reaction - Following the better-than-anticipated performance, BlackBerry's shares gained 10% in pre-market trading on June 25, 2025, and have increased by 95.9% over the past year compared to the Zacks Internet-Software industry's growth of 37.6% [6]

Group 1 - The core viewpoint of the article is that BlackBerry's stock price surged over 20% following the announcement of first-quarter earnings that exceeded expectations [1] Group 2 - The increase in stock price indicates strong market confidence in BlackBerry's financial performance [1] - The positive earnings report may signal a potential turnaround for the company, which has faced challenges in recent years [1] - Investors are likely to view this performance as a sign of growth and recovery in the tech sector, particularly for companies like BlackBerry that are pivoting their business models [1]

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It seems like ages ago when BlackBerry (BB 0.23%) was the big name in tech and whose cellphones were in hot demand. But as more innovative technologies emerged and better phones captivated consumers, the company struggled. Today, it has pivoted to focusing on enterprise software and cybersecurity.The tech company whose phones were responsible for taking significant market share from BlackBerry was Apple (AAPL -0.51%). Its iPhones soared in popularity when they first became available, 18 years ago. Lately, h ...

Core Insights - BlackBerry reported quarterly earnings of two cents per share, surpassing the analyst consensus estimate of zero cents, with quarterly revenue of $121.7 million exceeding the Street estimate of $112.18 million [1][2] Financial Performance - The company achieved a non-GAAP gross margin of 75% [4] - QNX revenue grew by 8% year-over-year to $57.5 million, with an adjusted gross margin of 81% [4] - Secure Communications revenue reached $59.5 million, exceeding prior guidance, with an adjusted gross margin increase of 6 percentage points sequentially and 4 percentage points year-over-year to 70% [4] - Licensing revenue was reported at $4.7 million, and adjusted EBITDA stood at $3.8 million [4] Management Commentary - CEO John J. Giamatteo stated that BlackBerry made a strong start to the new fiscal year, building on a solid foundation laid over the past year, with both QNX and Secure Communications divisions effectively executing their strategies [2] Future Guidance - BlackBerry affirmed its fiscal 2026 adjusted EPS guidance in the range of eight cents to 10 cents [2] - The company raised its fiscal 2026 revenue guidance from a range of $504 million to $534 million to a new range of $508 million to $538 million, compared to the $513.51 million estimate [2] Stock Performance - Following the earnings report, BlackBerry stock increased by 4.16% to $4.51 in extended trading [3]