BlackBerry(US:BB)2025-06-24 21:14Financial Performance - Total company revenue for Q1 FY26 was $121.7 million, exceeding guidance[6] - BlackBerry achieved GAAP profitability for the first time since Q4 FY22, reporting a net income of $1.9 million[6] - Net income for the three months ended May 31, 2025, was $1.9 million, a significant improvement compared to a net loss of $41.4 million for the same period in 2024[25] - Total revenue for the three months ended May 31, 2025, was $121.7 million, a decrease from $123.4 million in the same period of 2024[34] - Adjusted EBITDA for the three months ended May 31, 2025, was $16.4 million, up from $10.5 million in 2024, resulting in an adjusted EBITDA margin of 13.5%[37] - The company reported a segment adjusted EBITDA of $26.1 million for the three months ended May 31, 2025, compared to $22.9 million for the same period in 2024, representing a year-over-year increase of 13.9%[27] Revenue Breakdown - QNX revenue grew 8% year-over-year to $57.5 million, with an adjusted EBITDA of $12.7 million, representing 22% of revenue[6] - Secure Communications revenue reached $59.5 million, with an adjusted gross margin increase of 6 percentage points sequentially to 70%[6] - Licensing revenue for Q1 FY26 was $4.7 million, with an adjusted EBITDA of $3.8 million[6] - Segment revenue for QNX Secure Communications was $57.5 million, while Licensing segment revenue was $64.2 million, leading to total segment revenue of $121.7 million, a decrease of 1.7% from $123.4 million in the previous year[27] - Secure Communications Annual Recurring Revenue (ARR) reached $209 million for the three months ended May 31, 2025[40] - The Dollar-Based Net Retention Rate (DBNRR) for Secure Communications was 92% for the three months ended May 31, 2025[40] Cash Flow and Assets - Operating cash flow usage for Q1 FY26 was better than expected at $18 million[10] - Cash flows from operating activities resulted in a net cash used of $18.0 million, compared to $15.1 million in the same quarter of the previous year[25] - Total cash, cash equivalents, and restricted cash increased to $292.5 million as of May 31, 2025, up from $159.7 million a year earlier, reflecting a net increase of $12.2 million during the period[25] - The company’s cash and cash equivalents increased from $266.7 million to $276.0 million during the same period, reflecting a positive cash flow trend[25] Shareholder Returns - The company returned $10 million to shareholders through share buybacks, repurchasing 2.57 million common shares[10] Guidance and Projections - For Q2 FY26, BlackBerry expects total revenue between $115 million and $125 million, with QNX revenue projected at $55 million to $60 million[9] - Secure Communications revenue guidance for FY26 is raised to between $234 million and $244 million[5] Expenses and Liabilities - Research and development expenses for the segment totaled $23.7 million, down from $28.7 million in the previous year, indicating a reduction of 17.4%[27] - Operating expenses for the three months ended May 31, 2025, were $88.3 million, down from $102.9 million in 2024[34] - The company incurred restructuring charges of $2.9 million for the three months ended May 31, 2025, compared to $7.3 million in 2024[35] - Total liabilities decreased to $485.3 million as of May 31, 2025, compared to $575.7 million as of February 28, 2025[23] Asset Management - The company’s total assets decreased to $1,210.4 million as of May 31, 2025, down from $1,295.6 million as of February 28, 2025[23] - The company’s capital stock and additional paid-in capital stood at $2,970.5 million, with a deficit of $2,232.6 million as of May 31, 2025[23]