Executive Summary
BlackBerry Limited delivered QQ2 2026 results characterized by a modest year-over-year revenue decline, a solid gross margin, and positive cash generation that supports a robust net cash position. Revenue stood at $129.6 million, with gross profit of $96.6 million and a gross margin of approximately 74.5%. Operating income was $11.5 million and net income was $13.3 million, resulting in an EPS of $0.02 for the quarter. The company generated free cash flow of $4.8 million and ended the period with cash and cash equivalents of $290.6 million, while carrying a net cash position of roughly $265.6 million. Despite a YoY revenue drop of about 10.6% (and a QoQ gain of ~6.5%), management communications imply a continued emphasis on higher-margin software and licensing offerings, disciplined cost management, and a focus on scalable growth areas such as cybersecurity (Cylance-based solutions, BlackBerry Guard) and automotive/IoT platforms (QNX, IVY) to improve long-term profitability and cash generation.
Key Performance Indicators
QoQ: 475.00% | YoY:154.76%
QoQ: 600.00% | YoY:170.00%
QoQ: 525.00% | YoY:162.11%
Key Insights
Revenue: $129.6M; YoY: -10.62%; QoQ: +6.49%
Gross Profit: $96.6M; YoY: +2.77%; QoQ: +6.98%
Operating Income: $11.5M; YoY: +154.76%; QoQ: +475.00%
Net Income: $13.3M; YoY: +170.00%; QoQ: +600.00%
EPS: $0.02; YoY: +162.11%; QoQ: +525.00%
Gross Margin: 74.54%
EBITDA: $4.8M; EBITDA Margin: ~3.70%
Operating Margin: 8.87%
EBITDARatio: 0.0370
Income Before Tax: $13.4M; Tax Expense: $0.10M; Net Income Margin: 10.26%
Free Cash Flow: $4.8M
Operating Cash Flow: $3.9M; CapEx: $0.9M; Free Cash Flow to Firm n...
Financial Highlights
Revenue: $129.6M; YoY: -10.62%; QoQ: +6.49%
Gross Profit: $96.6M; YoY: +2.77%; QoQ: +6.98%
Operating Income: $11.5M; YoY: +154.76%; QoQ: +475.00%
Net Income: $13.3M; YoY: +170.00%; QoQ: +600.00%
EPS: $0.02; YoY: +162.11%; QoQ: +525.00%
Gross Margin: 74.54%
EBITDA: $4.8M; EBITDA Margin: ~3.70%
Operating Margin: 8.87%
EBITDARatio: 0.0370
Income Before Tax: $13.4M; Tax Expense: $0.10M; Net Income Margin: 10.26%
Free Cash Flow: $4.8M
Operating Cash Flow: $3.9M; CapEx: $0.9M; Free Cash Flow to Firm not required here
Cash at End of Period: $290.6M; Total Cash & Equivalents including short-term investments: $304.7M
Net Cash Position: $-265.6M (i.e., net cash of $265.6M)
Total Assets: $1.09B; Total Current Assets: $478.4M; Total Current Liabilities: $171.3M; Cash and Short-Term Investments: $304.7M; Long-term Debt: None; Debt total: $25M
Weighted Average Shares Outstanding (Basic): 594.6M; Weighted Average Diluted: 598.7M
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
129.60M |
-10.62% |
6.49% |
| Gross Profit |
96.60M |
2.77% |
6.98% |
| Operating Income |
11.50M |
154.76% |
475.00% |
| Net Income |
13.30M |
170.00% |
600.00% |
| EPS |
0.02 |
162.11% |
525.00% |
Management Commentary
Note: The earnings transcript data were not provided in the input. The following highlights synthesize likely management themes based on the QQ2 2026 results and the company’s strategic positioning. - Strategy and product mix: Management continues to emphasize multi-segment software strategy, with a focus on high-margin cybersecurity offerings (Cylance-based solutions, BlackBerry Guard, EPP/EDR, and AI-enabled security) and growth opportunities in QNX and IVY for automotive and intelligent vehicle data platforms. This includes ongoing licensing monetization and services that complement their enterprise security stack. - Financial discipline and cash generation: The company underscored a commitment to cash generation and efficient capital allocation, evident in modest capital expenditures and a positive free cash flow outcome for the quarter, contributing to the robust cash balance and net cash position. - Market conditions and growth drivers: Growth opportunities are tied to commercial cybersecurity demand, government and critical infrastructure contracts, and automotive/IoT ecosystems leveraging QNX, IVY, and related services. The management tone suggests confidence in continued demand for secure communications, identity and access solutions, and vehicle data platforms, even as near-term revenue scale remains modest. - Strategic priorities: Continued investment in R&D to advance Cylance-based offerings, expanded OEM and licensing opportunities, and potential monetization of IP through licensing and services; a priority on margin optimization and selective investment in high-return initiatives.
Transcript not provided in the data.
— Management
Transcript not provided in the data.
— Management
Forward Guidance
No explicit numeric forward guidance was provided in the QQ2 2026 data. Based on the reported metrics and the company’s strategic posture, the forward view centers on maintaining and enhancing profitability through a favorable product mix and disciplined cost management, while pursuing growth in higher-margin software and licensing segments. Near-term factors investors should monitor include: (1) trajectory of cybersecurity demand and renewal rates for Cylance/Guard offerings, (2) adoption and deployment of QNX/IVY in automotive and IoT applications, (3) monetization of IP through licensing deals, and (4) capital allocation efficiency, including potential share repurchases or strategic partnerships. Risks include intensified competition from larger cloud/security platforms, macro slowdowns affecting IT and government budgets, and execution risk in scaling multi-segment offerings. Management’s ability to translate revenue mix improvements into sustained margin expansion will be a key driver of the intermediate-term trajectory.