Executive Summary
BlackBerry achieved QQ1 2026 revenue of $121.7 million with a gross margin of 74.2%, reflecting a favorable software-centric mix within Cybersecurity, IoT, and Licensing. Despite the topline modestly contracting YoY (-1.38%) and sequentially (-15.43%), the company reported a positive operating margin (1.64%) and a net income of $1.9 million, supported by an EBITDA of $13.5 million. The period showcases improved operating leverage on a lean cost base, yet profitability remains modest as management continues to invest in growth initiatives and platform enhancements._cash flow remained pressured, with negative operating cash flow of $18.0 million and negative free cash flow of $18.0 million, driven largely by working capital dynamics and modest capital investment. The balance sheet remains solid, with a net cash position of approximately $266 million (cash of $292.5 million vs. total debt of $26.3 million), enabling financial flexibility while the company pursues AI-driven security offerings and key technology adjacencies._
Key Performance Indicators
QoQ: -15.43% | YoY:-1.38%
QoQ: 132.26% | YoY:115.50%
QoQ: 127.14% | YoY:104.59%
QoQ: 127.12% | YoY:104.56%
Key Insights
Revenue: $121.7M; YoY: -1.38%, QoQ: -15.43% | Gross Profit: $90.3M; Gross Margin: 74.20%; YoY: +0.33%, QoQ: -14.73% | Operating Income: $2.0M; Operating Margin: 1.64%; YoY: +115.50%, QoQ: +132.26% | Net Income: $1.9M; Net Margin: 1.56%; YoY: +104.59%, QoQ: +127.14% | EBITDA: $13.5M; EBITDA Margin: 11.09% | EPS: $0.0032; Diluted EPS: $0.0032; Weighted avg shares: 596.3M | Cash Flow: Operating CF: -$18.0M; Capex: -$0.9M; FCF: -$18.0M | Working Capital Impact: -$29.8M | Free Cash Flow Yield: Negati...
Financial Highlights
Revenue: $121.7M; YoY: -1.38%, QoQ: -15.43% | Gross Profit: $90.3M; Gross Margin: 74.20%; YoY: +0.33%, QoQ: -14.73% | Operating Income: $2.0M; Operating Margin: 1.64%; YoY: +115.50%, QoQ: +132.26% | Net Income: $1.9M; Net Margin: 1.56%; YoY: +104.59%, QoQ: +127.14% | EBITDA: $13.5M; EBITDA Margin: 11.09% | EPS: $0.0032; Diluted EPS: $0.0032; Weighted avg shares: 596.3M | Cash Flow: Operating CF: -$18.0M; Capex: -$0.9M; FCF: -$18.0M | Working Capital Impact: -$29.8M | Free Cash Flow Yield: Negative | Cash and Equivalents: $292.5M | Total Assets: $1.210B | Total Liabilities: $485.3M | Total Stockholders' Equity: $725.1M | Net Debt: -$266.2M | Capital Allocation: Common stock issued $1.2M; Shares repurchased $10.0M | Current Ratio: 2.15 | D/E: 0.00 (very low leverage); P/S: 19.40 | EV/Revenue and related multiples reflect a small-cap software/security niche
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
121.70M |
-1.38% |
-15.43% |
| Gross Profit |
90.30M |
0.33% |
-14.73% |
| Operating Income |
2.00M |
115.50% |
132.26% |
| Net Income |
1.90M |
104.59% |
127.14% |
| EPS |
0.00 |
104.56% |
127.12% |
Key Financial Ratios
operatingProfitMargin
1.64%
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.03
Management Commentary
No QQ1 2026 earnings call transcript excerpts were provided in the dataset. As a result, key quotes or management commentary cannot be cited here. If a transcript is supplied, relevant themes would include strategy execution, product cycle updates for Cylance AI cybersecurity, QNX/IoT opportunities, and government/commercial market traction.
Forward Guidance
Management did not publish explicit QQ2 2026 targets within the supplied data. Given the revenue base and profitability profile, the near-term guidance would likely hinge on pipeline-to-revenue conversion in Cybersecurity (Cylance AI-enabled solutions), IoT and QNX monetization, and respectful operating expense discipline. Investors should monitor: (1) trajectory of security software ARR/customer wins, (2) contribution from AI-based security offerings and managed services, (3) progression of licensing and IP monetization, and (4) cadence of working capital needs and capex. Qualitatively, a stabilization or modest growth in revenue with improving operating leverage would be favorable, but execution risk and competitive intensity in enterprise security remain key watchpoints.