BlackBerry Limited posted QQ2 2026 revenue of $129.6 million, down 10.6% year over year, but with notable sequential improvement of 6.49% quarter over quarter. The quarter delivered a robust gross margin of 74.54%, supported by a favorable product mix and ongoing contributions from high-margin software and licensing activities. Operating income of $11.5 million and net income of $13.3 million translated into earnings per share of $0.02, with YoY improvements in operating income (+154.8%), net income (+170%), and EPS (+162%). The company also generated positive cash flow with free cash flow of $4.8 million and operating cash flow of $3.9 million, backed by a durable balance sheet and a strong net cash position, despite modest revenue growth.
Management continues to emphasize a high-margin software and licensing-led mix across BlackBerry’s three pillars: Cybersecurity, IoT, and Licensing and Other. The balance sheet remains cash-rich, and the company is pursuing growth through Cylance-powered AI security solutions, BB Ivy, and other flagship platforms (QNX, AtHoc, SecuSuite for Government). While the revenue trajectory remains challenged on a year-over-year basis, the improving profitability profile and substantial cash position position BlackBerry for selective investments in product development, strategic partnerships, and government-related opportunities. In the near term, investors should monitor the trajectory of recurring revenue, pipeline strength in cybersecurity and IoT, and any potential scale-up in licensing and government contracts that could drive steadier FCF and broader multiple expansion.