Core Insights - BlackBerry Limited reported a non-GAAP EPS of 4 cents for Q2 fiscal 2026, exceeding its breakeven estimate and last year's breakeven result [1][9] - Total revenues reached $129.6 million, surpassing guidance and reflecting a 3% year-over-year increase, driven by strong performance in the QNX and Secure Communications divisions [2][9] Financial Performance - QNX revenues totaled $63.1 million, exceeding guidance and showing a 15.4% year-over-year growth [5] - Secure Communications revenues declined 9.9% year over year to $59.9 million but beat guidance due to reduced customer churn [6][7] - Licensing revenues increased to $6.6 million from $5 million in the previous year, surpassing guidance [10] Margin and EBITDA - Adjusted gross margin improved to 75% from 70.7% year over year, with QNX maintaining a gross margin of 83% [11] - Adjusted EBITDA for the quarter was $25.9 million, up from $15.1 million in the prior year, with QNX and Secure Communications both exceeding expectations [12] Cash Flow and Liquidity - The company generated $3.4 million in net cash from operating activities, a significant improvement from cash used in the prior year [13] - As of August 31, BlackBerry had $290.5 million in cash and investments, down from $381.9 million, and returned $20 million to shareholders through buybacks [14] Future Guidance - For Q3 fiscal 2026, BlackBerry anticipates revenues between $132 million and $140 million, with adjusted EBITDA projected at $13 million to $17 million for QNX and $12 million to $16 million for Secure Communications [15][16]

Financial Data and Key Metrics Changes - Company revenue for Q2 fiscal year 2026 was $129.6 million, a 3% year-over-year increase [5] - Adjusted EBITDA reached 20% of revenue, with total company adjusted EBITDA growing 72% year-over-year to $25.9 million [5][16] - GAAP net income was positive at $13.3 million, marking a significant turnaround from a $19.7 million loss in the prior year [16] - Non-GAAP EPS was positive at $0.04, beating guidance [5][16] Business Line Data and Key Metrics Changes - QNX revenue was $63.1 million, representing a 15% year-over-year growth, with an adjusted EBITDA margin of 32% [5][17] - Secure Communications revenue was $59.9 million, with annual recurring revenue (ARR) growing by $4 million to $213 million [11][12] - Licensing division revenue was $6.6 million, exceeding expectations [14][18] Market Data and Key Metrics Changes - QNX design wins were ahead of plan in Q2, with a solid pipeline for the second half of the fiscal year [6][10] - The Secure Communications division saw reduced customer churn and improved dollar-based net retention rate (DVNRR) to 93% [11][13] Company Strategy and Development Direction - The company is focusing on growth in the QNX division, particularly in automotive and safety-critical software [10][25] - Strategic partnerships with companies like BMW and Qualcomm are being leveraged to enhance product offerings [6][9] - The introduction of a new recurring revenue business model through hosted services is expected to create a more predictable revenue profile for the SecuSmart business [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the fiscal year, citing a stronger than expected first half and reduced uncertainty in the market [20][23] - The company anticipates continued growth in QNX and Secure Communications, with raised full-year revenue and adjusted EBITDA guidance [21][22] Other Important Information - The company repurchased approximately $20 million worth of shares during the quarter, totaling 5 million shares at an average price of $3.97 [18][19] - The company expects to generate between $35 and $40 million in operating cash flow for the full fiscal year [23] Q&A Session Summary Question: Insights on QNX operating leverage and guidance - Management highlighted strong operating leverage in QNX, with expectations for improved gross margins as royalty mix increases [28] Question: Strategic approach to the China market - Management noted a shift in the China market towards safety-critical software, which aligns with the company's strengths [31][33] Question: Drivers of QNX's back-end loaded revenue outlook - Management indicated that the revenue pattern for QNX has historically been back-end loaded, driven by the timing of design work and development seat licenses [36][38] Question: Update on backlog and growth sustainability for QNX - Management confirmed a solid pipeline of opportunities for QNX, with optimism for maintaining double-digit growth [44][45]

Financial Data and Key Metrics Changes - Company revenue for Q2 was $129.6 million, growing 3% year-over-year, with adjusted EBITDA reaching 20% of revenue [5][17] - GAAP net income was positive at $13.3 million, marking a significant turnaround from a $19.7 million loss in the prior year [17][20] - Non-GAAP EPS was positive at $0.04, beating guidance [5][17] - Operating cash flow was $3.4 million, with free cash flow at $2.6 million [20] Business Line Data and Key Metrics Changes - QNX revenue was $63.1 million, representing a 15% year-over-year growth, with an adjusted EBITDA margin of 32% [6][18] - Secure Communications revenue was $59.9 million, with annual recurring revenue (ARR) growing by $4 million to $213 million [11][18] - Licensing division revenue was $6.6 million, with adjusted EBITDA at $5.6 million [19] Market Data and Key Metrics Changes - QNX design wins were ahead of plan in Q2, with a solid pipeline for the second half of the fiscal year [6][10] - The Secure Communications division saw reduced customer churn and secured significant contracts with government entities [14][15] Company Strategy and Development Direction - The company is focusing on growth in the QNX business, particularly in automotive and safety-critical software [10][22] - Strategic partnerships with companies like Qualcomm and NVIDIA are being leveraged to enhance product offerings [9][33] - The introduction of a new recurring revenue model through hosted services is expected to create a more predictable revenue profile for the Secusmart business [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the fiscal year, citing improved visibility and reduced uncertainty in the automotive market [22][40] - The company is raising full-year revenue and adjusted EBITDA guidance due to stronger-than-expected performance in the first half [21][23] Other Important Information - The company repurchased approximately $20 million worth of shares during the quarter, totaling 5 million shares [20] - The QNX division is expanding its developer community through educational initiatives, with over 4,000 students participating in QNX learning sessions [10] Q&A Session Summary Question: Operating leverage in QNX - Management indicated strong operating leverage in QNX, with expectations for improved gross margins as royalty mix increases [28][29] Question: Approach to the China market - Management highlighted a shift in the Chinese market towards safety-critical software, which aligns with the company's strengths [31][32] Question: Drivers of QNX growth in the back half of the year - Management noted that the revenue trend for QNX has historically been back-end loaded, driven by the start of programs and design work [36][37] Question: Backlog growth in QNX - Management stated that Q2 showed a recovery in backlog growth after a weaker Q1, with a solid pipeline for the second half [45][46] Question: Sustainability of QNX growth - Management expressed confidence in maintaining double-digit growth for QNX, supported by new programs and a strong pipeline [47][48]

Financial Highlights - BlackBerry's Q2 FY26 revenue reached $129.6 million[8] - The company achieved a 75% adjusted gross margin[8] - Non-GAAP earnings per share were $0.04[8] - GAAP net income was $13.3 million[8] - Adjusted EBITDA amounted to $25.9 million[8] - The company's total ending cash and investments stood at $363.5 million[8] - Operating cash flow was $3.4 million[8] - Adjusted OPEX totaled $74.8 million[8] QNX Segment Performance - QNX revenue reached $63.1 million, representing a 15% year-over-year growth[14] - QNX segment adjusted EBITDA margin was 32% of revenue[14]

Financial Highlights - Revenue for Q4 FY25 was $141.7 million[9] - Non-GAAP earnings per share for Q4 FY25 were $0.03[9] - Total ending cash and investments reached $410 million[9] - Non-GAAP operating expenses (OPEX) were $87.4 million[9] - Adjusted EBITDA was $21.1 million[9] - QNX Royalty Backlog was $865 million[9] - Non-GAAP Gross Margin was 74%[9] QNX Segment - QNX segment revenue for FY25 was $236.0 million[13] - QNX segment gross margin for FY25 was 84%[13] - QNX Adjusted EBITDA was $59.1 million, with a margin of 25%[13] Secure Communications Segment - Secure Communications revenue for FY25 was $272.6 million[24] - Secure Communications ARR grew 3% year-over-year to $208 million[15] - Secure Communications DBNRR was 93%[15] Licensing Segment - Licensing segment revenue for FY25 was $26.3 million[17] - Licensing segment gross margin was 77%[17] - Licensing Segment Adjusted EBITDA was $15.8 million[17] FY26 Outlook - The company projects total revenue between $504 million and $534 million for FY26[18] - The company projects total adjusted EBITDA between $69 million and $84 million for FY26[18]