Core Insights - BlackBerry is undergoing a significant transformation, positioning itself as a software company with a strong focus on automotive software solutions [2][3] - The company has a dominant position in foundational software for vehicles, particularly through its QNX platform, which is critical for the software-defined vehicle market [2][3] Revenue and Market Position - Approximately 50% of BlackBerry's revenue is derived from QNX, which is primarily focused on the automotive sector [3] - QNX is currently powering over 255 million vehicles globally, indicating a substantial market presence [3] - The company has established a strong competitive moat by focusing on safety-critical, highly reliable, and certified products, particularly in areas such as digital cockpit and Advanced Driver-Assistance Systems (ADAS) [3]

Blackberry (NYSE:BB) FY Conference November 19, 2025 03:50 PM ET Company ParticipantsTim Foote - CFOJustin Moon - VP of Product EngineeringGrant Corbitt - VP of Product StrategyModeratorVehicle. Very pleased to have with us Tim Foote, the company's CFO, Grant Corbitt in Product and Strategy, and Justin Moon in Product Engineering. Tim's going to go through a series of slides, and then we'll open up for questions. Great.Tim FooteSounds great. Hello, everyone. Thank you for joining today. Yeah, to Dan's point ...

Question-and-Answer SessionThe -- just to kick off, could you provide an overview of BlackBerry? I mean BlackBerry has obviously done a number of things over the years. Where is the company right now? Where do you see it in the next several years?John GiamatteoCEO & Director Yes. No, that's -- it's something we spend a lot of time on just kind of redefining what BlackBerry is today. And that's exactly, Paul -- basically, 2 years ago, we pivoted towards a focus around 2 fundamentally autonomous divisions ins ...

Summary of BlackBerry Conference Call Company Overview - BlackBerry has redefined its focus into two main divisions: QNX (embedded software) and secure communications, along with a significant IP portfolio [2][2][2] QNX Business Insights - QNX is a rapidly growing segment, powering over 255 million cars globally, with strong positions among the largest OEMs and EV makers [3][3][3] - The value proposition includes foundational software for safety, security, and high performance, particularly in applications like digital cockpit and ADAS [3][3][3] - BlackBerry is expanding its offerings by providing middleware solutions in collaboration with partners [4][4][4] Automaker Engagement - Many automakers initially attempted to develop their own software but often returned to BlackBerry due to challenges in integrating complex software systems [5][5][5] - BlackBerry is seeing increased demand for additional services from automakers, indicating a strong market position [6][6][6] Revenue Opportunities - The average selling price (ASP) per vehicle is expected to increase due to the launch of the next-generation operating system, SDP8, which supports high-performance chips [7][8][8] - BlackBerry has secured design wins that promise higher ASPs, with a focus on software integration to relieve OEMs of complex tasks [9][9][9] Economic Discussions with Automakers - The sales approach emphasizes value rather than just price increases, ensuring long-term partnerships with OEMs [11][11][11] - The ASP is anticipated to rise as BlackBerry provides more value through advanced software solutions [12][12][12] Market Conditions and Future Outlook - Despite macroeconomic uncertainties, there are positive signs of growth in the automotive sector, with OEMs increasing their project scopes and guidance [15][15][15] - BlackBerry's pipeline is reported to be the strongest in a long time, indicating optimism for future growth [15][15][15] GEMS Segment - BlackBerry is investing in the General Embedded Market (GEMS), focusing on safety-critical and high-performance applications, particularly in medical devices and industrial automation [22][22][22] - The company aims to diversify its revenue streams while maintaining a strong position in the automotive sector [23][23][23] Leadership Changes - John Wall has been appointed as President of the QNX division, bringing over 30 years of industry experience [27][27][27] Secure Communications Business - The secure communications segment has stabilized and is now a reliable source of revenue and profit, with a focus on mission-critical communications [28][28][28] - This segment complements the growth trajectory of QNX, providing a steady cash flow to support further investments [29][29][29] Financial Performance - BlackBerry reported a significant increase in cash flow, transitioning from a cash burn of $57 million to a positive cash flow of $60 million in recent quarters [38][38][38] - The company expects to generate over $70 million in cash this fiscal year, strengthening its balance sheet [38][38][38] Capital Allocation Strategy - The primary focus for cash allocation is on R&D investments for QNX and potential share buybacks, reflecting confidence in the company's valuation [39][39][39] - BlackBerry is open to strategic acquisitions that align with its growth story, although the criteria for such investments will be stringent [40][40][40]

WATERLOO, ONTARIO / ACCESS Newswire / November 17, 2025 / BlackBerry Limited (NYSE:BB)(TSX:BB) today announced the appointment of John Wall as President of its market-leading QNX division, effective immediately. Wall will report to BlackBerry CEO, John J. ...

Core Insights - BlackBerry Limited is expanding its SecuSUITE platform to include Windows laptops and workstations, enhancing its secure communications capabilities for governments and critical enterprises globally [1][10] Product Expansion - The new Windows version of SecuSUITE will be generally available in November 2025, providing secure voice, messaging, and file sharing across desktop and laptop environments [2][10] - This expansion allows users to collaborate securely from various devices, ensuring seamless integration of communication methods while maintaining security [3][5] Security Features - The addition of Windows devices extends SecuSUITE's independently certified architecture, safeguarding against threats such as eavesdropping and identity spoofing [4][5] - Organizations can deploy the solution on-premises, in private clouds, or hosted environments, ensuring full control over their data [4] Financial Performance - BlackBerry's Secure Communications business reported revenues of $59.9 million in Q2 fiscal 2026, exceeding guidance due to lower customer churn and improved performance from SecuSUITE [6][7] - Annual recurring revenues increased by $4 million to $213 million, with a net retention rate of 93%, driven by strong sales, including a significant agreement with a government agency [7] Future Outlook - For Q3 fiscal 2026, the company anticipates revenues between $132 million and $140 million, with Secure Communications revenues projected at $60-$64 million [9] - The global pipeline for SecuSUITE is expanding, particularly in defense sectors, as governments seek secure alternatives to consumer-grade platforms [8]

Core Insights - BlackBerry Limited (NYSE:BB) experienced a significant share price increase of 17.8% week-on-week, driven by strong earnings performance in Q2 of fiscal year 2026 [1] Financial Performance - BlackBerry reported a net income of $13.3 million, a turnaround from a net loss of $19.7 million in the same quarter last year [2] - Revenues increased by 2.7% year-on-year, reaching $129.6 million compared to $126.2 million [2] - The company raised its full fiscal year revenue growth forecast to a range of $519 million to $541 million, up from the previous forecast of $508 million to $538 million [2] Segment Performance - The QNX segment is projected to generate revenues between $256 million and $270 million, exceeding the previous lower-end target of $250 million [3] Strategic Execution - Both the QNX and Secure Communications divisions have effectively executed their strategies, surpassing expectations in both revenue and profitability [4] - BlackBerry's solid balance sheet and ongoing profitability plans allow for efficient capital allocation, including $10 million in share buybacks executed in the last quarter [4]

BlackBerry Summary - BlackBerry reported an adjusted earnings of four cents US per share for the quarter, compared to zero cents US per share a year earlier [1] - The company's revenue for the latest quarter totaled US$129.6 million, an increase from US$126.2 million a year earlier. The QNX segment revenue rose to US$63.1 million from US$54.7 million, while secure communications revenue fell to US$59.9 million from US$66.5 million. Licensing revenue increased to US$6.6 million from US$5.0 million [2] - For the full year, BlackBerry expects revenue between US$519 million and US$541 million, up from previous guidance of US$508 million to US$538 million. The adjusted earnings per share guidance was raised to between 11 cents US and 15 cents US, from earlier expectations of eight cents US to 10 cents US [3] Air Canada Summary - Air Canada lowered its full-year guidance due to an estimated $375 million hit from a flight attendant strike [6] - The airline now expects adjusted EBITDA for the full year to be between $2.9 billion and $3.1 billion, down from previous guidance of $3.2 billion to $3.6 billion [7][11] - For the third quarter, Air Canada anticipates a 2% decline in operating capacity compared to the same period last year, with an expected operating income between $250 million and $300 million [8] - The financial impact of the strike included an estimated $430 million revenue hit from refunds and lower travel bookings, $90 million in incremental costs, but a savings of $145 million due to lower fuel costs [9] - The strike lasted three days and ended on August 19, with ongoing negotiations regarding wage offers [10]

Core Insights - BlackBerry Limited has successfully transitioned from a mobile communications leader to a cybersecurity-focused company, competing with firms like Palo Alto Networks and CrowdStrike [1] Financial Performance - For the second quarter of fiscal year 2026, BlackBerry reported earnings per share of $0.04, exceeding the estimated $0.01, and revenue of approximately $131.1 million, surpassing the estimated $122 million [2][6] - The company experienced year-over-year revenue growth and expanded adjusted EBITDA margins, with its QNX division achieving a "Rule of 40" quarter, prompting an increase in full-year guidance [3] Financial Ratios - BlackBerry maintains a healthy current ratio of about 2.15, indicating sufficient current assets to cover current liabilities [4][6] - The price-to-sales ratio stands at approximately 4.80, suggesting investors are willing to pay $4.80 for every dollar of sales [4] - The enterprise value to sales ratio is around 4.31, while the enterprise value to operating cash flow ratio is notably high at approximately 176.92, indicating relatively low cash flow compared to its enterprise value [5]

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]