BlackBerry Limited
BB
$4.32 1.65%
Exchange: NYSE | Sector: Technology | Industry: Software Infrastructure
Q2 2026
Published: Sep 25, 2025

Earnings Highlights

  • Revenue of $129.60M down 10.6% year-over-year
  • EPS of $0.02 increased by 162.1% from previous year
  • Gross margin of 74.5%
  • Net income of 13.30M
  • ""QNX delivered a rule of 40 quarter with 15% revenue growth and a 32% adjusted EBITDA margin."" - John Giamatteo
BB
Company BB

Executive Summary

BlackBerry reported a solid Q2 2026 with 3% year-over-year revenue growth to $129.6 million, accompanied by meaningful profitability expansion. Total company adjusted EBITDA reached $25.9 million, or 20% of revenue, while GAAP net income was positive at $13.3 million, marking a continued return to GAAP profitability after a prior-year loss. The quarter highlighted the strength of the QNX segment, which posted $63.1 million in revenue (+15% YoY) and a 32% adjusted EBITDA margin, supported by a robust pipeline and notable design wins. Secure Communications delivered $59.9 million in revenue, with ARR expanding to $213 million and DVNRR improving to 93%, aided by higher recurring services adoption and government deployments. Licensing generated $6.6 million in revenue, contributing to a broader profitability margin profile. Management raised full-year 2026 guidance across the three segments, increasing total revenue to $519–$541 million and adjusted EBITDA to $82–$101 million, with non-GAAP EPS of $0.11–$0.15. The company also generated positive operating cash flow of $3.4 million in the quarter and ended the period with a substantial net cash position (net debt of approximately negative $265.6 million) due to a disciplined capital-allocation strategy including share repurchases. Notably, the tax headwinds from prior years ($19 million) weighed on GAAP results, but the company remains focused on sustaining cash generation, investing in growth initiatives (QNX GEM expansion, vehicle software platform, cybersecurity ecosystem development), and delivering a more predictable revenue mix through higher software content. Looking ahead, BlackBerry emphasized a back-half cadence of automotive programs, ongoing government wins, and expanding software content in vehicles as the core drivers of profitability and cash flow in FY2026.

Key Performance Indicators

Revenue
Decreasing
129.60M
QoQ: 6.49% | YoY: -10.62%
Gross Profit
Increasing
96.60M
74.54% margin
QoQ: 6.98% | YoY: 2.77%
Operating Income
Increasing
11.50M
QoQ: 475.00% | YoY: 154.76%
Net Income
Increasing
13.30M
QoQ: 600.00% | YoY: 170.00%
EPS
Increasing
0.02
QoQ: 525.00% | YoY: 162.11%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2026 129.60 0.02 -10.6% View
Q1 2026 121.70 0.00 -15.5% View
Q4 2025 143.90 -0.01 -16.0% View
Q3 2025 143.00 -0.02 -18.3% View
Q2 2025 145.00 -0.03 +9.9% View