BlackBerry Reports First Quarter Fiscal Year 2026 Results
BlackBerry (NYSE:BB) reported strong Q1 FY2026 results, exceeding guidance across key metrics. Total revenue reached $121.7 million with a 74% gross margin. The company achieved GAAP profitability for the first time since Q4 FY22, with net income of $1.9 million.
Key highlights include QNX revenue growth of 8% YoY to $57.5 million and Secure Communications revenue of $59.5 million. The company returned $10 million to shareholders through share buybacks, repurchasing 2.57 million shares. BlackBerry maintains a strong balance sheet with $381.9 million in total cash and investments.
For FY2026, BlackBerry expects total revenue of $508-538 million and adjusted EBITDA of $72-87 million, with non-GAAP EPS guidance of $0.08-$0.10.
BlackBerry (NYSE:BB) ha annunciato risultati solidi per il primo trimestre dell'anno fiscale 2026, superando le previsioni su tutti i principali indicatori. Il fatturato totale ha raggiunto 121,7 milioni di dollari con un margine lordo del 74%. L'azienda ha registrato la profittabilità GAAP per la prima volta dal quarto trimestre dell'anno fiscale 2022, con un utile netto di 1,9 milioni di dollari.
I punti salienti includono una crescita del fatturato QNX dell'8% su base annua, arrivando a 57,5 milioni di dollari, e un fatturato delle Comunicazioni Sicure di 59,5 milioni di dollari. La società ha restituito 10 milioni di dollari agli azionisti tramite riacquisto di azioni, comprando 2,57 milioni di titoli. BlackBerry mantiene un bilancio solido con 381,9 milioni di dollari in liquidità e investimenti totali.
Per l'anno fiscale 2026, BlackBerry prevede un fatturato totale compreso tra 508 e 538 milioni di dollari e un EBITDA rettificato tra 72 e 87 milioni di dollari, con una guidance sull'utile per azione non GAAP tra 0,08 e 0,10 dollari.
BlackBerry (NYSE:BB) reportó sólidos resultados en el primer trimestre del año fiscal 2026, superando las expectativas en métricas clave. Los ingresos totales alcanzaron los 121,7 millones de dólares con un margen bruto del 74%. La compañía logró rentabilidad GAAP por primera vez desde el cuarto trimestre del año fiscal 2022, con un ingreso neto de 1,9 millones de dólares.
Los aspectos destacados incluyen un crecimiento del 8% interanual en los ingresos de QNX hasta 57,5 millones de dólares y unos ingresos de Comunicaciones Seguras de 59,5 millones de dólares. La empresa devolvió 10 millones de dólares a los accionistas mediante recompra de acciones, adquiriendo 2,57 millones de títulos. BlackBerry mantiene un balance sólido con 381,9 millones de dólares en efectivo e inversiones totales.
Para el año fiscal 2026, BlackBerry espera ingresos totales de 508 a 538 millones de dólares y un EBITDA ajustado de 72 a 87 millones de dólares, con una guía de BPA no GAAP de 0,08 a 0,10 dólares.
BlackBerry (NYSE:BB)는 2026 회계연도 1분기 실적에서 주요 지표 전반에 걸쳐 가이던스를 상회하는 강력한 성과를 보고했습니다. 총 매출은 1억 2,170만 달러에 달했으며, 총이익률은 74%였습니다. 회사는 2022 회계연도 4분기 이후 처음으로 GAAP 기준 흑자를 기록하며 순이익 190만 달러를 달성했습니다.
주요 내용으로는 QNX 매출이 전년 대비 8% 증가하여 5,750만 달러를 기록했고, 보안 통신 매출은 5,950만 달러였습니다. 회사는 자사주 257만 주를 재매입하며 주주들에게 1,000만 달러를 환원했습니다. BlackBerry는 총 현금 및 투자액 3억 8,190만 달러로 견고한 재무 상태를 유지하고 있습니다.
2026 회계연도에 대해 BlackBerry는 총 매출 5억 800만 달러에서 5억 3,800만 달러, 조정 EBITDA는 7,200만 달러에서 8,700만 달러를 예상하며, 비GAAP 기준 주당순이익은 0.08달러에서 0.10달러 사이로 전망하고 있습니다.
BlackBerry (NYSE:BB) a publié des résultats solides pour le premier trimestre de l'exercice 2026, dépassant les prévisions sur les principaux indicateurs. Le chiffre d'affaires total a atteint 121,7 millions de dollars avec une marge brute de 74 %. La société a atteint la rentabilité selon les normes GAAP pour la première fois depuis le quatrième trimestre de l'exercice 2022, avec un bénéfice net de 1,9 million de dollars.
Parmi les points forts figurent une croissance de 8 % du chiffre d'affaires QNX en glissement annuel à 57,5 millions de dollars et un chiffre d'affaires des Communications Sécurisées de 59,5 millions de dollars. La société a reversé 10 millions de dollars aux actionnaires via des rachats d'actions, rachetant 2,57 millions d'actions. BlackBerry maintient un bilan solide avec 381,9 millions de dollars en liquidités et investissements totaux.
Pour l'exercice 2026, BlackBerry prévoit un chiffre d'affaires total compris entre 508 et 538 millions de dollars et un EBITDA ajusté de 72 à 87 millions de dollars, avec une prévision de BPA non GAAP de 0,08 à 0,10 dollar.
BlackBerry (NYSE:BB) meldete starke Ergebnisse für das erste Quartal des Geschäftsjahres 2026 und übertraf die Prognosen bei den wichtigsten Kennzahlen. Der Gesamtumsatz erreichte 121,7 Millionen US-Dollar bei einer Bruttomarge von 74 %. Das Unternehmen erzielte erstmals seit dem vierten Quartal des Geschäftsjahres 2022 GAAP-Gewinn mit einem Nettogewinn von 1,9 Millionen US-Dollar.
Zu den wichtigsten Highlights gehört ein Umsatzwachstum von QNX um 8 % im Jahresvergleich auf 57,5 Millionen US-Dollar sowie ein Umsatz von 59,5 Millionen US-Dollar im Bereich Sichere Kommunikation. Das Unternehmen gab 10 Millionen US-Dollar an die Aktionäre zurück durch Aktienrückkäufe und erwarb 2,57 Millionen Aktien. BlackBerry verfügt über eine starke Bilanz mit 381,9 Millionen US-Dollar an liquiden Mitteln und Investitionen.
Für das Geschäftsjahr 2026 erwartet BlackBerry einen Gesamtumsatz von 508 bis 538 Millionen US-Dollar und ein bereinigtes EBITDA von 72 bis 87 Millionen US-Dollar, mit einer Non-GAAP-Gewinnprognose von 0,08 bis 0,10 US-Dollar pro Aktie.
- First GAAP profitability since Q4 FY22 with net income of $1.9 million
- QNX revenue grew 8% year-over-year to $57.5 million
- Secure Communications adjusted gross margin increased by 6 percentage points sequentially
- Total company revenue of $121.7 million exceeded guidance
- Executed $10 million share buyback program
- Strong cash position of $381.9 million in total investments
- Operating cash usage of $18 million in Q1
- Total cash and investments decreased by $28.4 million sequentially
- Secure Communications DBNRR decreased by 1 percentage point to 92%
Insights
BlackBerry achieved profitability after exceeding all guidance metrics with strong performance across both core divisions.
BlackBerry has delivered a remarkably strong quarter to kick off their fiscal 2026, achieving GAAP profitability for the first time since Q4 FY22 with
Revenue came in at
Secure Communications generated
The balance sheet remains solid with
Looking ahead, BlackBerry provided encouraging full-year guidance with expected total revenue of
BlackBerry's business wins during the quarter, including WeRide's selection of QNX for its L2++ autonomous drive platform, Leapmotor choosing QNX for its intelligent digital cockpit, and a major DCLI deployment of BlackBerry Radar across 100,000 chassis, all validate the company's technology leadership in high-growth markets.
Exceeds top end of guidance range for revenue, adjusted EBITDA, adjusted EPS and operating cash flow for the total Company
Delivers revenue and adjusted EBITDA above guidance for QNX division
Beats revenue and adjusted EBITDA guidance for Secure Communications division, raising full year guidance
Returns
$10 million to shareholders as part of share buyback program
WATERLOO, ON / ACCESS Newswire / June 24, 2025 / BlackBerry Limited (NYSE:BB)(TSX:BB) today reported financial results for the three months ended May 31, 2025 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).
"BlackBerry made a strong start to the new fiscal year, building on the solid foundation we as a company have laid over the past year," said John J. Giamatteo, CEO, BlackBerry. "Both our QNX and Secure Communications divisions continue to execute effectively against their strategies, beating both top line and profitability expectations. BlackBerry's solid balance sheet and plan for continuing profitability and cash generation this fiscal year enable us to allocate capital efficiently, with
First Quarter Fiscal 2026 Financial Highlights
Total company revenue exceeded previously-provided guidance at
$121.7 million Total company gross margin was
74% and non-GAAP gross margin was75% QNX revenue beat guidance and delivered
8% year-over-year growth to$57.5 million ; QNX gross margin and adjusted gross margin was81% QNX adjusted EBITDA beat previously-provided guidance at
$12.7 million , or22% of revenueSecure Communications revenue exceeded previously-provided guidance at
$59.5 million ; Secure Communications adjusted gross margin increased by 6 percentage points sequentially and 4 percentage points year-over-year to70% Secure Communications ARR remained stable, relatively flat sequentially at
$209 million ; Secure Communications DBNRR decreased by 1 percentage point to92% Secure Communications adjusted EBITDA exceeded previously provided guidance at
$9.6 million Licensing revenue was
$4.7 million , and adjusted EBITDA was$3.8 million BlackBerry achieved GAAP profitability for first time since Q4 FY22, with net income of
$1.9 million and non-GAAP net income was$12.3 million Total company adjusted EBITDA exceeded previously-provided guidance at
$16.4 million GAAP basic earnings per share was breakeven and non-GAAP basic earnings per share was
$0.02 , beating the previously-provided guidanceOperating cash usage for the seasonally-low first quarter beat expectations at
$18 million $10 million was returned to shareholders by the repurchase of 2.57 million common shares during the quarterTotal cash, cash equivalents, short-term and long-term investments decreased by
$28.4 million sequentially to$381.9 million
Business Highlights & Strategic Announcements
BlackBerry announced a normal course issuer bid share buyback program
QNX launched QNX® Hypervisor 8.0, built on the next-generation SDP 8.0 architecture, facilitating high-performance virtualization of multiple operating systems on a single SoC
WeRide launched its next-generation ADAS platform for L2++ autonomous drive, built upon QNX® OS for Safety
Leapmotor selected QNX® technology as the foundation of its intelligent digital cockpit and autonomous drive domain controllers in its new B10 electric SUV
Direct ChassisLink Inc (DCLI) announced the deployment of BlackBerry® Radar® across 100,000 chassis
BlackBerry® AtHoc® became the first critical event management provider to achieve FedRAMP High authorization
Malaysia Cybersecurity Center of Excellence celebrated its first anniversary with new partnerships, scholarships and expanded education programs
Financial Outlook
BlackBerry is providing the following guidance for the second fiscal quarter (ending August 31, 2025) and the full fiscal year 2026 (ending February 28, 2026).
Q2 FY26 | Full fiscal year FY26 | |||
Total BlackBerry revenue: | ||||
QNX revenue: | ||||
Secure Communications revenue: | ||||
Licensing revenue: | Approximately | Approximately | ||
QNX segment adjusted EBITDA: | ||||
Secure Communications segment | ||||
Licensing segment adjusted EBITDA: | Approximately | Approximately | ||
Adjusted Corporate Costs1: | Approximately | Approximately | ||
Total Company adjusted EBITDA: | ||||
Non-GAAP basic EPS: | Breakeven - | |||
Operating cash flow (usage) | ( | Approximately |
1 Excluding amortization costs.
Use of Non-GAAP Financial Measures
The tables at the end of this press release include a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios used by the Company to comparable U.S. GAAP measures and an explanation of why the Company uses them. The Company does not provide a reconciliation of expected Adjusted EBITDA and expected Non-GAAP basic EPS for the second quarter of 2026 to the most directly comparable expected GAAP measures because it is unable to predict with reasonable certainty, among other things, restructuring charges and impairment charges and, accordingly, a reconciliation is not available without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For more information on the non-GAAP financial measures, please refer to the tables at the end of this press release.
Conference Call and Webcast
A conference call and live webcast will be held today beginning at 5:30 p.m. ET, which can be accessed using the following link (here) or through the Company's investor webpage (BlackBerry.com/Investors) or by dialing toll free +1 (844) 763-8275 and entering Elite Entry Number 52549.
A replay of the conference call will be available at approximately 8:30 p.m. ET today, using the same webcast link (here) or by dialing toll free +1 (877) 481-4010 and entering Replay Access Code 52549.
About BlackBerry
BlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.
For more information, visit BlackBerry.com and follow @BlackBerry.
Investor Contact:
BlackBerry Investor Relations
+1 (519) 888-7465
investorrelations@blackberry.com
Media Contact:
BlackBerry Media Relations
+1 (519) 597-7273
mediarelations@blackberry.com
###
This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry's plans, strategies and objectives.
The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, financial performance, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, and competition. Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; BlackBerry's ability to enhance, develop, introduce or monetize its products and services in a timely manner with competitive pricing, features and performance; significant changes in government customer demand or procurement requirements; BlackBerry's sales cycles and the time and expense of its sales efforts; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; risks arising from a failure or perceived failure of the security features of BlackBerry's solutions; adverse macroeconomic and geopolitical conditions, including trade policies; litigation against BlackBerry; network disruptions or other business interruptions; BlackBerry's ability to foster an ecosystem of third-party application developers; BlackBerry's dependence in part on its relationships with resellers and channel partners; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; BlackBerry's use of artificial intelligence solutions; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry's use of open source software and its ability to obtain rights to use third-party software ; BlackBerry potentially being found to have infringed on the intellectual property rights of others; BlackBerry's indebtedness, which could impact its operating flexibility and financial condition; the asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; potential impacts of acquisitions, divestitures and other business initiatives; risks associated with foreign operations, including fluctuations in foreign currencies; environmental events; the fluctuation of BlackBerry's quarterly revenue and operating results; and the volatility of the market price of BlackBerry's common shares.
These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form 10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedarplus.ca or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and BlackBerry has no intention and undertakes no obligation to update or revise any of them, except as required by law.
###
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except share and per share amounts)
Consolidated Statements of Operations
Three Months Ended | ||||||||||||
May 31, 2025 | February 28, 2025 | May 31, 2024 | ||||||||||
Revenue | $ | 121.7 | $ | 141.7 | $ | 123.4 | ||||||
Cost of sales | 31.4 | 37.6 | 33.4 | |||||||||
Gross margin | 90.3 | 104.1 | 90.0 | |||||||||
Gross margin % | 74.2 | % | 73.5 | % | 72.9 | % | ||||||
Operating expenses | ||||||||||||
Research and development | 25.0 | 23.2 | 30.6 | |||||||||
Sales and marketing | 28.7 | 27.1 | 23.8 | |||||||||
General and administrative | 30.5 | 50.0 | 40.3 | |||||||||
Amortization | 4.0 | 4.1 | 4.7 | |||||||||
Impairment of long-lived assets | 0.1 | 4.9 | 3.5 | |||||||||
Litigation settlements | - | 2.8 | - | |||||||||
88.3 | 112.1 | 102.9 | ||||||||||
Operating income (loss) | 2.0 | (8.0 | ) | (12.9 | ) | |||||||
Investment income, net | 2.9 | 1.6 | 4.0 | |||||||||
Income (loss) before income taxes | 4.9 | (6.4 | ) | (8.9 | ) | |||||||
Provision for income taxes | 3.0 | 1.4 | 7.6 | |||||||||
Income (loss) from continuing operations | 1.9 | (7.8 | ) | (16.5 | ) | |||||||
Gain from disposal of discontinued operation, net of tax | - | 10.2 | - | |||||||||
Loss from discontinued operations, net of tax | - | (9.8 | ) | (24.9 | ) | |||||||
Net income (loss) | $ | 1.9 | $ | (7.4 | ) | $ | (41.4 | ) | ||||
Earnings (loss) per share | ||||||||||||
Basic earnings (loss) per share from continuing operations | $ | 0.00 | $ | (0.01 | ) | $ | (0.03 | ) | ||||
Total basic earnings (loss) per share | $ | 0.00 | $ | (0.01 | ) | $ | (0.07 | ) | ||||
Diluted earnings (loss) per share from continuing operations | $ | 0.00 | $ | (0.01 | ) | $ | (0.03 | ) | ||||
Total diluted earnings (loss) per share | $ | 0.00 | $ | (0.01 | ) | $ | (0.07 | ) | ||||
Weighted-average number of common shares outstanding (000s) | ||||||||||||
Basic | 596,300 | 594,267 | 589,821 | |||||||||
Diluted | 600,831 | 594,267 | 589,821 | |||||||||
Total common shares outstanding (000s) | 594,529 | 596,231 | 590,171 | |||||||||
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)
Consolidated Balance Sheets
As at | ||||||||
May 31, 2025 | February 28, 2025 | |||||||
Assets | ||||||||
Current | ||||||||
Cash and cash equivalents | $ | 276.0 | $ | 266.7 | ||||
Short-term investments | 30.6 | 71.1 | ||||||
Accounts receivable, net of allowance of | 129.9 | 173.7 | ||||||
Other receivables | 51.7 | 48.4 | ||||||
Income taxes receivable | 1.7 | 1.6 | ||||||
Other current assets | 43.3 | 30.0 | ||||||
533.2 | 591.5 | |||||||
Restricted cash and cash equivalents | 16.5 | 13.6 | ||||||
Long-term investments | 58.8 | 58.9 | ||||||
Other long-term assets | 48.0 | 76.5 | ||||||
Operating lease right-of-use assets, net | 20.1 | 22.0 | ||||||
Property, plant and equipment, net | 12.7 | 13.4 | ||||||
Intangible assets, net | 44.2 | 47.3 | ||||||
Goodwill | 476.9 | 472.4 | ||||||
$ | 1,210.4 | $ | 1,295.6 | |||||
Liabilities | ||||||||
Current | ||||||||
Accounts payable | $ | 5.2 | $ | 31.1 | ||||
Accrued liabilities | 83.3 | 126.2 | ||||||
Income taxes payable | 28.6 | 25.5 | ||||||
Deferred revenue, current | 136.3 | 161.5 | ||||||
253.4 | 344.3 | |||||||
Deferred revenue, non-current | 8.8 | 5.6 | ||||||
Operating lease liabilities | 26.3 | 28.7 | ||||||
Other long-term liabilities | 1.2 | 1.8 | ||||||
Long-term notes | 195.6 | 195.3 | ||||||
485.3 | 575.7 | |||||||
Shareholders' equity | ||||||||
Capital stock and additional paid-in capital | 2,970.5 | 2,976.4 | ||||||
Deficit | (2,232.6 | ) | (2,237.3 | ) | ||||
Accumulated other comprehensive loss | (12.8 | ) | (19.2 | ) | ||||
725.1 | 719.9 | |||||||
$ | 1,210.4 | $ | 1,295.6 | |||||
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)
Consolidated Statements of Cash Flows
Three Months Ended | ||||||||
May 31, 2025 | May 31, 2024 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 1.9 | $ | (41.4 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Amortization | 5.7 | 13.2 | ||||||
Stock-based compensation | 5.7 | 7.7 | ||||||
Impairment of long-lived assets | 0.1 | 3.5 | ||||||
Operating leases | (1.6 | ) | (2.7 | ) | ||||
Other | (0.7 | ) | (2.9 | ) | ||||
Net changes in working capital items | ||||||||
Accounts receivable, net of allowance | 43.8 | 51.0 | ||||||
Other receivables | (3.3 | ) | 0.7 | |||||
Income taxes receivable | (0.1 | ) | 0.9 | |||||
Other assets | 17.0 | (11.6 | ) | |||||
Accounts payable | (25.9 | ) | (11.1 | ) | ||||
Accrued liabilities | (41.7 | ) | (6.5 | ) | ||||
Income taxes payable | 3.1 | 0.5 | ||||||
Deferred revenue | (22.0 | ) | (16.4 | ) | ||||
Net cash used in operating activities | (18.0 | ) | (15.1 | ) | ||||
Cash flows from investing activities | ||||||||
Proceeds on sale, maturity or distribution from long-term investments | 0.1 | - | ||||||
Acquisition of property, plant and equipment | (0.9 | ) | (1.4 | ) | ||||
Proceeds on sale of property, plant and equipment | - | 0.1 | ||||||
Acquisition of intangible assets | (1.2 | ) | (1.5 | ) | ||||
Acquisition of short-term investments | (21.7 | ) | (48.9 | ) | ||||
Proceeds on sale or maturity of short-term investments | 62.2 | 24.5 | ||||||
Net cash provided by (used in) investing activities | 38.5 | (27.2 | ) | |||||
Cash flows from financing activities | ||||||||
Issuance of common shares | 1.2 | 1.5 | ||||||
Common shares repurchased | (10.0 | ) | - | |||||
Net cash provided by (used in) financing activities | (8.8 | ) | 1.5 | |||||
Effect of foreign exchange gain on cash, cash equivalents, restricted cash, and restricted cash equivalents | 0.5 | - | ||||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period | 12.2 | (40.8 | ) | |||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 280.3 | 200.5 | ||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ | 292.5 | $ | 159.7 | ||||
As at | May 31, 2025 | February 28, 2025 | ||||||
Cash and cash equivalents | $ | 276.0 | $ | 266.7 | ||||
Restricted cash and cash equivalents | 16.5 | 13.6 | ||||||
Short-term investments | 30.6 | 71.1 | ||||||
Long-term investments | 58.8 | 58.9 | ||||||
$ | 381.9 | $ | 410.3 | |||||
Reconciliations of the Company's Segment Results and Segment Adjusted EBITDA to the Consolidated Results
The following tables show information by operating segment for the three months ended May 31, 2025 and May 31, 2024. The Company reports segment information in accordance with U.S. GAAP, pursuant to the Financial Standards Accounting Board's Accounting Standard Codification Topic 280, Segment Reporting, based on the "management" approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker ("CODM") for making decisions and assessing performance of the Company's reportable operating segments. The measure of segment profit or loss disclosed by the Company in the Consolidated Financial Statements under the "management" approach in reviewing the results of the Company's operating segments is segment adjusted gross margin. Additionally, the following tables include the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA, a non-GAAP financial measure. See Note 11 to the Consolidated Financial Statements for a description of the Company's operating segments.
For the Three Months Ended (in millions) | ||||||||||||||||||||||||||||||||||||||||
QNX | Secure Communications | Licensing | Segment Totals | |||||||||||||||||||||||||||||||||||||
May 31, | May 31, | May 31, | May 31, | |||||||||||||||||||||||||||||||||||||
Change | Change | Change | Change | |||||||||||||||||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||||
Segment revenue | $ | 57.5 | $ | 53.2 | $ | 4.3 | $ | 59.5 | $ | 64.2 | $ | (4.7 | ) | $ | 4.7 | $ | 6.0 | $ | (1.3 | ) | $ | 121.7 | $ | 123.4 | $ | (1.7 | ) | |||||||||||||
Segment cost of sales | 11.2 | 9.5 | 1.7 | 18.1 | 21.8 | (3.7 | ) | 1.6 | 1.4 | 0.2 | 30.9 | 32.7 | (1.8 | ) | ||||||||||||||||||||||||||
Segment adjusted gross margin | $ | 46.3 | $ | 43.7 | $ | 2.6 | $ | 41.4 | $ | 42.4 | $ | (1.0 | ) | $ | 3.1 | $ | 4.6 | $ | (1.5 | ) | $ | 90.8 | $ | 90.7 | $ | 0.1 | ||||||||||||||
Segment research and development | 12.4 | 16.4 | (4.0 | ) | 11.3 | 12.3 | (1.0 | ) | - | - | - | 23.7 | 28.7 | (5.0 | ) | |||||||||||||||||||||||||
Segment sales and marketing | 13.3 | 10.7 | 2.6 | 13.6 | 12.2 | 1.4 | - | - | - | 26.9 | 22.9 | 4.0 | ||||||||||||||||||||||||||||
Segment general and administrative | 8.6 | 8.2 | 0.4 | 7.5 | 9.6 | (2.1 | ) | 1.6 | 2.1 | (0.5 | ) | 17.7 | 19.9 | (2.2 | ) | |||||||||||||||||||||||||
Less amortization included in the above | 0.7 | 0.5 | 0.2 | 0.6 | 1.0 | (0.4 | ) | 2.3 | 2.2 | 0.1 | 3.6 | 3.7 | (0.1 | ) | ||||||||||||||||||||||||||
Segment adjusted EBITDA | $ | 12.7 | $ | 8.9 | $ | 3.8 | $ | 9.6 | $ | 9.3 | $ | 0.3 | $ | 3.8 | $ | 4.7 | $ | (0.9 | ) | $ | 26.1 | $ | 22.9 | $ | 3.2 | |||||||||||||||
The following tables reconcile the Company's segment adjusted gross margin results for the three months ended May 31, 2025 to consolidated U.S. GAAP results:
For the Three Months Ended May 31, 2025 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
QNX | Secure Communications | Licensing | Segment | Reconciling | Consolidated | |||||||||||||||||||
Revenue | $ | 57.5 | $ | 59.5 | $ | 4.7 | $ | 121.7 | $ | - | $ | 121.7 | ||||||||||||
Cost of sales | 11.2 | 18.1 | 1.6 | 30.9 | 0.5 | 31.4 | ||||||||||||||||||
Gross margin (1) | $ | 46.3 | $ | 41.4 | $ | 3.1 | $ | 90.8 | $ | (0.5 | ) | $ | 90.3 | |||||||||||
Operating expenses | 88.3 | 88.3 | ||||||||||||||||||||||
Investment income, net | 2.9 | 2.9 | ||||||||||||||||||||||
Income before income taxes | $ | 4.9 | ||||||||||||||||||||||
For the Three Months Ended May 31, 2024 | ||||||||||||||||||||||||
(in millions) (unaudited) | ||||||||||||||||||||||||
QNX | Secure Communications | Licensing | Segment | Reconciling | Consolidated U.S. GAAP | |||||||||||||||||||
Revenue | $ | 53.2 | $ | 64.2 | $ | 6.0 | $ | 123.4 | $ | - | $ | 123.4 | ||||||||||||
Cost of sales | 9.5 | 21.8 | 1.4 | 32.7 | 0.7 | 33.4 | ||||||||||||||||||
Gross margin (1) | $ | 43.7 | $ | 42.4 | $ | 4.6 | $ | 90.7 | $ | (0.7 | ) | $ | 90.0 | |||||||||||
Operating expenses | 102.9 | 102.9 | ||||||||||||||||||||||
Investment income, net | 4.0 | 4.0 | ||||||||||||||||||||||
Loss before income taxes | $ | (8.9 | ) | |||||||||||||||||||||
(1) See "Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures" for a reconciliation of selected U.S. GAAP-based measures to adjusted measures for the three months ended May 31, 2025 and May 31, 2024.
The following table reconciles total segment adjusted EBITDA for the three months ended May 31, 2025 and May 31, 2024 to the Company's consolidated totals:
Three Months Ended | ||||||||
May 31, 2025 | May 31, 2024 | |||||||
Total Segment Adjusted EBITDA | $ | 26.1 | $ | 22.9 | ||||
Adjustments (1): | ||||||||
Stock compensation expense | 5.7 | 6.2 | ||||||
Restructuring charges | 2.9 | 7.3 | ||||||
Less: | ||||||||
Corporate general and administrative expense | 9.7 | 12.4 | ||||||
Amortization | 5.7 | 6.4 | ||||||
Impairment of long-lived assets | 0.1 | 3.5 | ||||||
Investment income | (2.9 | ) | (4.0 | ) | ||||
Consolidated income (loss) from continuing operations before income taxes | $ | 4.9 | $ | (8.9 | ) | |||
(1) The CODM reviews segment information on an adjusted EBITDA basis, which excludes certain amounts as described below:
Stock compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company's management.
Restructuring charges - Restructuring charges relate to employee termination benefits, facilities, streamlining many of the Company's centralized corporate functions into Secure Communications and QNX specific teams, and other costs pursuant to programs to reduce the Company's annual expenses amongst R&D, infrastructure and other functions and do not reflect expected future operating expenses, are not indicative of the Company's core operating performance, and may not be meaningful when comparing the Company's operating performance against that of prior periods.
Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures
In the Company's internal reports, management evaluates the performance of the Company's business on a non-GAAP basis by excluding the impact of certain items from the Company's U.S. GAAP financial results. The Company believes that these non-GAAP financial measures and non-GAAP ratios provide management, as well as readers of the Company's financial statements, with a consistent basis for comparison across accounting periods and are useful in helping management and readers understand the Company's operating results and underlying operational trends.
Readers are cautioned that adjusted gross margin, adjusted gross margin percentage, adjusted operating expense, adjusted corporate operating costs, adjusted corporate operating costs excluding amortization, adjusted net income (loss), adjusted earnings (loss) per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income (loss), adjusted EBITDA, adjusted segment EBITDA, adjusted operating income (loss) margin percentage, adjusted EBITDA margin percentage and free cash flow (usage) and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies.
Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the three months ended May 31, 2025 and May 31, 2024
A reconciliation of the most directly comparable U.S. GAAP financial measures for the three months ended May 31, 2025 and May 31, 2024 to adjusted financial measures is reflected in the table below:
For the Three Months Ended (in millions) | May 31, 2025 | May 31, 2024 | ||||||
Gross margin | $ | 90.3 | $ | 90.0 | ||||
Stock compensation expense | 0.5 | 0.7 | ||||||
Adjusted gross margin | $ | 90.8 | $ | 90.7 | ||||
Gross margin % | 74.2 | % | 72.9 | % | ||||
Stock compensation expense | 0.4 | % | 0.6 | % | ||||
Adjusted gross margin % | 74.6 | % | 73.5 | % | ||||
Reconciliation of U.S. GAAP operating expense for the three months ended May 31, 2025, and May 31, 2024 to adjusted operating expense is reflected in the table below:
For the Three Months Ended (in millions) | May 31, 2025 | May 31, 2024 | ||||||
Operating expense | $ | 88.3 | $ | 102.9 | ||||
Restructuring charges | 2.9 | 7.3 | ||||||
Stock compensation expense | 5.2 | 5.5 | ||||||
Acquired intangibles amortization | 1.7 | 1.8 | ||||||
LLA impairment charge | 0.1 | 3.5 | ||||||
Adjusted operating expense | $ | 78.4 | $ | 84.8 | ||||
Reconciliation of U.S. GAAP corporate operating costs for the three months ended May 31, 2025 and May 31, 2024 to adjusted corporate operating costs excluding amortization is reflected in the table below:
For the Three Months Ended (in millions) | May 31, 2025 | May 31, 2024 | ||||||
Corporate operating costs | $ | 14.9 | $ | 25.4 | ||||
Restructuring charges | 2.9 | 7.3 | ||||||
Stock compensation expense | 1.9 | 1.3 | ||||||
LLA impairment charge | - | 3.5 | ||||||
Adjusted corporate operating costs | 10.1 | 13.3 | ||||||
Amortization | 0.4 | 0.9 | ||||||
Adjusted corporate operating costs excluding amortization | $ | 9.7 | $ | 12.4 | ||||
Reconciliation of U.S. GAAP net income (loss) and U.S. GAAP basic earnings (loss) per share for the three months ended May 31, 2025 and May 31, 2024 to adjusted net income (loss) and adjusted basic earnings (loss) per share is reflected in the table below:
For the Three Months Ended (in millions, except per share amounts) | May 31, 2025 | May 31, 2024 | ||||||||||||||
Basic earnings per share | Basic loss per share | |||||||||||||||
Net income (loss) | $ | 1.9 | $ | 0.00 | $ | (41.4 | ) | $ | (0.07 | ) | ||||||
Restructuring charges | 2.9 | 7.3 | ||||||||||||||
Stock compensation expense | 5.7 | 7.7 | ||||||||||||||
Acquired intangibles amortization | 1.7 | 8.6 | ||||||||||||||
LLA impairment charge | 0.1 | 3.5 | ||||||||||||||
Adjusted net income (loss) | $ | 12.3 | $ | 0.02 | $ | (14.3 | ) | $ | (0.02 | ) | ||||||
Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the three months ended May 31, 2025 and May 31, 2024 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below:
For the Three Months Ended (in millions) | May 31, 2025 | May 31, 2024 | ||||||
Research and development | $ | 25.0 | $ | 30.6 | ||||
Stock compensation expense | 1.3 | 1.8 | ||||||
Adjusted research and development expense | $ | 23.7 | $ | 28.8 | ||||
Sales and marketing | $ | 28.7 | $ | 23.8 | ||||
Stock compensation expense | 1.4 | 0.8 | ||||||
Adjusted sales and marketing expense | $ | 27.3 | $ | 23.0 | ||||
General and administrative | $ | 30.5 | $ | 40.3 | ||||
Restructuring charges | 2.9 | 7.3 | ||||||
Stock compensation expense | 2.5 | 2.9 | ||||||
Adjusted general and administrative expense | $ | 25.1 | $ | 30.1 | ||||
Amortization | $ | 4.0 | $ | 4.7 | ||||
Acquired intangibles amortization | 1.7 | 1.8 | ||||||
Adjusted amortization expense | $ | 2.3 | $ | 2.9 | ||||
Adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the three months ended May 31, 2025 and May 31, 2024 are reflected in the table below.
For the Three Months Ended (in millions) | May 31, 2025 | May 31, 2024 | ||||||
Operating income (loss) | $ | 2.0 | $ | (12.9 | ) | |||
Non-GAAP adjustments to operating income (loss) | ||||||||
Restructuring charges | 2.9 | 7.3 | ||||||
Stock compensation expense | 5.7 | 6.2 | ||||||
Acquired intangibles amortization | 1.7 | 1.8 | ||||||
LLA impairment charge | 0.1 | 3.5 | ||||||
Total non-GAAP adjustments to operating income (loss) | 10.4 | 18.8 | ||||||
Adjusted operating income | 12.4 | 5.9 | ||||||
Amortization | 5.7 | 6.4 | ||||||
Acquired intangibles amortization | (1.7 | ) | (1.8 | ) | ||||
Adjusted EBITDA | $ | 16.4 | $ | 10.5 | ||||
Revenue | $ | 121.7 | $ | 123.4 | ||||
Adjusted operating income margin % (1) | 10.2 | % | 4.8 | % | ||||
Adjusted EBITDA margin % (2) | 13.5 | % | 8.5 | % | ||||
(1) Adjusted operating income margin % is calculated by dividing adjusted operating income by revenue.
(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue.
The Company uses free cash flow (usage) when assessing its sources of liquidity, capital resources, and quality of earnings. The Company believes that free cash flow (usage) is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow trends in the Company's business.
Reconciliation of U.S. GAAP net cash used in operating activities for the three months ended May 31, 2025 and May 31, 2024 to free cash flow (usage) is reflected in the table below:
For the Three Months Ended (in millions) | May 31, 2025 | May 31, 2024 | ||||||
Net cash used in operating activities | $ | (18.0 | ) | $ | (15.1 | ) | ||
Acquisition of property, plant and equipment | (0.9 | ) | (1.4 | ) | ||||
Free cash usage | $ | (18.9 | ) | $ | (16.5 | ) | ||
Key Metrics
The Company regularly monitors a number of financial and operating metrics, including the following key metrics, in order to measure the Company's current performance and estimated future performance. Readers are cautioned that Secure Communications annual recurring revenue ("ARR") and Secure Communications dollar-based net retention rate ("DBNRR") do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies.
For the Three Months Ended (in millions) | May 31, 2025 | |||
Secure Communications Annual Recurring Revenue | $ | 209 | ||
Secure Communications Dollar-Based Net Retention Rate | 92 | % | ||
SOURCE: BlackBerry
View the original press release on ACCESS Newswire
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