Financial Data and Key Metrics Changes - Total company revenue for Q3 was $141.8 million, exceeding the high end of guidance [5][16] - Adjusted EBITDA was $28.7 million, representing a 20% margin, with GAAP net income improving to $13.7 million, up $24.2 million year over year [5][17] - Operating cash flow was $17.9 million, up over 200% year over year, reflecting strong execution and disciplined cost management [5][19] Business Line Data and Key Metrics Changes - QNX achieved record quarterly revenue of $68.7 million, a 10% year-over-year growth, driven by royalties and professional services [6][17] - Secure communications revenue was $67 million, exceeding guidance, with annual recurring revenue increasing to $216 million [10][11] - Licensing revenue was $6.1 million, in line with expectations, and adjusted EBITDA for the division was $5.3 million [14][18] Market Data and Key Metrics Changes - QNX is now powering over 275 million vehicles on the road, a 20 million increase year over year, indicating significant market presence [9] - The secure communications division demonstrated a dollar-based net retention rate of 92%, indicating strong customer retention [11] Company Strategy and Development Direction - The company is focusing on expanding its QNX business into automotive and general embedded markets, with strategic investments in go-to-market activities and partnerships [6][30] - The introduction of the QNX General Embedded Development Platform (GEDP) aims to accelerate time to market for developers, with positive feedback from customers [10] - The company is also targeting higher pricing per vehicle through a vehicle software platform co-developed with Vector, indicating a shift towards higher-value offerings [8][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of QNX, expecting revenue for Q4 to be in the range of $71-$77 million, setting another record [21][22] - The secure communications division is expected to see increased revenue in Q4, with guidance raised for the full fiscal year [22][23] - Management highlighted the importance of mission-critical software solutions during the U.S. government shutdown, indicating resilience in the business model [49] Other Important Information - The company repurchased $5 million worth of shares, totaling 8.8 million shares bought back this fiscal year, to offset potential dilution [20] - The company expects to generate over $80 million in cash in Q4, further strengthening its balance sheet [25] Q&A Session Summary Question: Investment needs in GEM opportunity for fiscal 2027 - Management indicated that investments will focus on go-to-market activities and partnerships to gain critical mass in key end markets [30] Question: Factors leading to luxury China EV win - Cost savings, weight savings, and superior software functionality were highlighted as key factors in winning the deal [32] Question: Progress towards vehicle platform award - Management noted significant focus on integrating QNX and middleware, with more updates expected at CES [34] Question: Trends in QNX growth rates - Management expressed optimism about double-digit growth and strong backlog conversion into revenue [40][42] Question: Future of Secusmart business - Management acknowledged a strong pipeline within Secure Communications and expressed confidence in converting it into solid performance [44][45] Question: Government shutdown impact - Management noted that mission-critical software solutions were less impacted by the shutdown than initially feared [49] Question: Robotics technology demand - Management indicated that QNX technology is well-suited for high-performance robotics applications, with more details to be shared in the future [51]

Financial Data and Key Metrics Changes - Total company revenue for Q3 was $141.8 million, exceeding the high end of guidance [5][16] - Adjusted EBITDA was $28.7 million, representing a 20% margin, with GAAP net income improving to $13.7 million, up $24.2 million year over year [5][17] - Operating cash flow was $17.9 million, up over 200% year over year [19] Business Line Data and Key Metrics Changes - QNX achieved record quarterly revenue of $68.7 million, a 10% year-over-year growth [6][17] - Secure Communications revenue was $67 million, also exceeding guidance, with annual recurring revenue increasing to $216 million [11][18] - Licensing revenue was $6.1 million, in line with expectations [14] Market Data and Key Metrics Changes - QNX is now powering over 275 million vehicles, a 20 million increase year over year [9] - The automotive sector saw significant design wins with major European and Asian OEMs for ADAS and cockpit domains [7][9] Company Strategy and Development Direction - The company is focusing on expanding its QNX business into automotive and general embedded markets, with a strong emphasis on partnerships and go-to-market strategies [30] - Investment in certifications like BSI for UEM and FedRAMP High for AtHoc is strengthening the portfolio's position in government secure communication strategies [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges posed by the U.S. government shutdown, indicating that mission-critical software solutions were less impacted [49] - The outlook for Q4 includes expected revenue for QNX in the range of $71-$77 million, with overall company revenue guidance raised to $531-$541 million for the full fiscal year [21][24] Other Important Information - The company repurchased $5 million worth of shares during the quarter, totaling 8.8 million shares bought back this fiscal year [20] - The company plans to showcase new developments at CES in January [62] Q&A Session Summary Question: Investment needs in GEM opportunity for fiscal 2027 - Management indicated that investments will focus on go-to-market activities and partnerships to accelerate market entry [30] Question: Factors leading to the luxury China EV win - Cost savings, weight savings, and product performance were highlighted as key factors [32] Question: Progress towards vehicle platform award - Management noted significant focus on technology integration with partners and expects updates at CES [34] Question: Trends in QNX growth rates - Management expressed optimism about double-digit growth and backlog conversion into revenue [40][42] Question: Future of Secusmart business - A strong pipeline was noted, with potential for growth driven by defense spending [43][45] Question: Government shutdown impact - Management indicated that mission-critical solutions were less affected than initially feared [49] Question: Robotics technology applications - Management discussed the suitability of QNX for high-performance robotics applications [51] Question: Pricing opportunities for vehicle software platform - Management explained that OEMs are seeking efficient software integration, which presents cost-saving opportunities [57] Question: Secure Comms business with Canadian government - Management highlighted ongoing discussions and a multi-year agreement with the Canadian government [59][60]

Financial Data and Key Metrics Changes - Total company revenue for Q3 2026 was $141.8 million, exceeding the high end of guidance, with adjusted EBITDA at $28.7 million, representing a 20% margin [5][16] - GAAP net income improved by $24.2 million year over year to $13.7 million, marking the third consecutive quarter of GAAP profitability [5][17] - Operating cash flow was $17.9 million, up over 200% year over year, reflecting strong execution and disciplined cost management [5][19] Business Line Data and Key Metrics Changes - QNX achieved record quarterly revenue of $68.7 million, a 10% year-over-year growth, driven by royalties and professional services [6][17] - Secure communications revenue was $67 million, exceeding guidance, with annual recurring revenue (ARR) increasing to $216 million [11][12] - Licensing revenue was $6.1 million, in line with expectations [15] Market Data and Key Metrics Changes - QNX is now powering over 275 million vehicles on the road, a 20 million increase year over year, indicating significant market presence [10] - The secure communications division demonstrated resilience during the U.S. government shutdown, achieving growth despite challenges [12][50] Company Strategy and Development Direction - The company is focusing on expanding its QNX business, particularly in the automotive sector and general embedded space, with strategic investments in go-to-market activities and partnerships [6][31] - There is an emphasis on enhancing safety solutions in the Chinese market, responding to increased demand for safety certifications [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of QNX, anticipating continued double-digit growth and strong profit margins [21][42] - The company is optimistic about the secure communications division, with a strong pipeline and potential for growth driven by defense spending [44][60] Other Important Information - The company is repurchasing shares as part of its strategy to enhance shareholder value, with $5 million allocated for buybacks in Q3 [20] - Guidance for Q4 revenue is set between $138 to $148 million, with adjusted EBITDA expected to be between $22 and $32 million [23] Q&A Session Summary Question: Investment in GEM opportunity for fiscal 2027 - Management indicated that investment will focus on go-to-market activities and partnerships to accelerate market entry [30] Question: Luxury China EV win details - The win was attributed to cost savings, weight savings, and superior software functionality, with potential for more success in China [32][33] Question: QNX growth trend and fiscal 2027 outlook - Management noted strong backlog and momentum, with guidance for fiscal 2027 to be provided in Q4 [40][42] Question: Secusmart business outlook - There is a strong pipeline within Secure Communications, and management is optimistic about converting this into solid performance in fiscal 2027 [44][45] Question: Government shutdown impact - Management navigated the shutdown effectively, with mission-critical solutions remaining a priority for government clients [50] Question: Robotics technology application - QNX technology is being utilized in various robotics applications, with a focus on high compute and performance needs [52]

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]

Group 1: Company Overview - BlackBerry Limited (NYSE:BB) is a Canadian cybersecurity and embedded software company, recognized for its QNX operating system used in advanced driver assistance systems and secure solutions for government and enterprise clients [1][2] Group 2: Financial Performance - As of September 2025, BlackBerry is preparing to release its Q2 fiscal 2026 results, with analysts expecting an EPS of $0.01 and revenues around $122 million, reflecting a 13.8% year-over-year decline due to macroeconomic pressures and challenges in the automotive sector [2] Group 3: Growth Drivers - Key growth drivers for BlackBerry include the expanding adoption of the QNX platform and the launch of QNX Hypervisor 8.0, which allows multiple guest operating systems to run alongside safety-critical workloads, essential for autonomous vehicle production [2] - The Secure Communications segment is gaining momentum through products like Secusmart and AtHoc, with AtHoc achieving FedRAMP High authorization for U.S. federal clients, supported by a strong deal pipeline and major government contracts [4] Group 4: Competitive Positioning - BlackBerry has achieved a significant milestone as the first mobile device management vendor certified by Germany's BSI for its BlackBerry Unified Endpoint Management (UEM) with Apple Indigo and Samsung Knox devices, enhancing its competitive edge in government and critical infrastructure markets [3][4] - The company has raised its full-year revenue guidance, further solidifying its position as a notable player in the cybersecurity and secure communications space [4]

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]

Core Insights - BlackBerry Limited is set to release its earnings on September 25, 2025, with an expected EPS of $0.01 and projected revenue of $122 million [1][6] - The anticipated revenue for Q2 fiscal 2026 is between $115 million and $125 million, reflecting a 13.8% decline year-over-year due to challenges in the macroeconomic and automotive sectors [2][6] Financial Performance - BlackBerry has a history of impressive earnings surprises, averaging a 116.67% beat over the last four quarters, although the current model does not predict a beat for this quarter [4] - The Zacks Consensus Estimate for BlackBerry's earnings remains at 1 cent, unchanged over the past 60 days [4] - Financial metrics indicate challenges, with a negative P/E ratio of approximately -74.75 and a price-to-sales ratio of about 4.73 [5][6] - Despite these challenges, BlackBerry maintains a healthy current ratio of about 2.15, indicating sufficient current assets to cover liabilities [5][6] Business Segments - The performance of BlackBerry's Q2 results is expected to depend on the momentum of its QNX platform, expansion in the GEM market, and securing government deals [3] - Demand for QNX in the automotive and GEM markets, along with the introduction of Hypervisor 8.0, is anticipated to bolster division revenues [3] - The Secure Communications segment is gaining traction through Secusmart and AtHoc solutions, supported by significant government contracts [3]

Core Insights - BlackBerry Limited (BB) is scheduled to report its second-quarter fiscal 2026 results on September 25, with a consensus estimate for earnings at 1 cent and revenues expected to be between $115 million and $125 million, reflecting a 13.8% year-over-year decline [1][9]. Financial Performance - BlackBerry has a strong earnings surprise history, having outperformed the Zacks Consensus Estimate in the last four quarters with an average beat of 116.67% [2]. - The company currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [4]. Revenue Drivers - The QNX segment is anticipated to drive performance, particularly due to demand in advanced driver assistance systems and digital cockpit markets [5]. - BlackBerry is expanding into general embedded markets (GEM), with GEM now constituting 43% of the total SDP 8.0 pipeline, which grew by 55% in the last quarter [6][7]. - QNX revenue is projected to be between $55 million and $60 million, with adjusted EBITDA expected to be between $10 million and $13 million [10]. Secure Communications Division - The Secure Communications division is likely to benefit from strong uptake of Secusmart and AtHoc solutions, bolstered by key government contracts [11]. - Secusmart has performed well due to large deals with the German government, and the global pipeline is expanding, particularly in defense [12]. - BlackBerry has raised its full-year revenue guidance by $4 million to a range of $234 million to $244 million, with second-quarter revenue expectations of $54 million to $59 million [13]. Market Position and Valuation - BlackBerry's shares have declined by 5.2% over the past six months, underperforming the Internet Software industry's growth of 25% [15]. - The stock is trading at a forward 12-month price/sales multiple of 4.54X, which is lower than the Internet Software industry's multiple of 6.01X [22]. Investment Considerations - Strength in QNX and expanding traction in GEMs provide long-term growth visibility, while momentum in Secure Communications adds stability [24]. - Despite macroeconomic headwinds and rising competition in cybersecurity, the company's earnings surprise history and improving fundamentals are positive indicators [24].

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]

Core Viewpoint - BlackBerry Limited's shares have increased by 21.3% in the past month, outperforming the Computer Software industry and the S&P 500 composite, which grew by 18.7% and 8% respectively [1] Price Performance - BlackBerry's stock closed at $3.92, which is down 37.2% from its 52-week high of $6.24 [4] QNX Business Development - BlackBerry has shifted focus to its QNX platform, having sold its Cylance unit for $80 million in cash and 5.5 million shares, while retaining its AI/ML patent assets and tax losses [5] - The QNX business is experiencing growth, particularly in the automotive sector, with strong demand in advanced driver assistance systems (ADAS) and digital cockpit solutions [6] - QNX revenues reached $65.8 million, exceeding guidance of $60-$65 million, driven by design wins in digital cockpit and ADAS [7] Revenue Guidance and Market Conditions - BlackBerry maintains a revenue guidance of $260-$270 million, with QNX revenues expected between $250 million and $270 million, amid uncertainties from recent tariff changes [9] Secure Communication Division - The Secure Communication division reported fiscal fourth-quarter revenues of $67.3 million, surpassing the forecast of $62-$66 million, driven by strong performance in the AtHoc platform [10] - The division is seeing healthy momentum from government agencies and top banks, with a notable expansion of a deal with the Malaysian government [11] Financial Performance - BlackBerry's adjusted EBITDA for fiscal 2025 was $39.3 million, reflecting a $54 million improvement from the previous year, aided by cost-cutting measures [13] - Cash and investments increased by $144 million, supported by strong operating cash flow of $42 million and the initial payment from the Cylance deal [14] Analyst Sentiment and Valuation - Analysts have revised EPS estimates for the current fiscal year upward to 10 cents from 7 cents over the past 60 days, indicating bullish sentiment [17] - BB stock is trading at a trailing 12-month price/book multiple of 3.25, compared to the industry average of 5.87, suggesting it is undervalued [18] Investment Opportunity - The pivot towards the QNX business, improving financials, and strong estimate revisions present a compelling buying opportunity for BlackBerry stock [19]