BlackBerry delivered a solid start to fiscal year 2026 (QQ1 2026), surpassing guidance across multiple dimensions. Total quarterly revenue of $121.7 million topped expectations, with adjusted EBITDA of $16.4 million and non-GAAP EPS of $0.02, while GAAP net income was positive at $1.9 million. The quarter showcased robust momentum in QNX, SecuSmart, and UEM, supported by a diversified mix that includes royalties, development seats, and professional services. Importantly, BlackBerry announced a $100 million share buyback program, signaling capital allocation optionality and confidence in long-term cash generation, alongside an initial $10 million repurchase during the quarter.
From a segment perspective, QNX achieved $57.5 million in revenue, up 8% YoY, driven by royalties and development seats. Secure communications posted $59.5 million in revenue, with ARR of $209 million and a DBNRR of ~92%, underpinned by secular strength in SecuSmart and regulatory milestones (FedRAMP High for AtHoc). Licensing contributed $4.7 million in revenue but slightly lagged top-end expectations. The quarter also featured ongoing macro uncertainty (tariffs, sequencing of OEM production), which informed conservative Q2 guidance and the full-year outlook. Management remains positive about medium-to-long-term growth prospects, particularly through QNX SDP8.0, GEM expansion beyond automotive, and middleware-driven vehicle platforms, while maintaining an eye on near-term cash flow dynamics.
Looking ahead, BlackBerry guided to stronger second-half execution and reaffirmed full-year targets: total revenue in the $508–$538 million range and adjusted EBITDA of $72–$87 million for FY2026, with Q2 revenue of $115–$125 million and EBITDA of $8–$14 million. The company also signaled a focus on cash flow generation for the year, projecting roughly $35 million of operating cash flow for FY2026, aided by the Arctic Wolf/Cylance monetization and disciplined cost controls.