Executive Summary
BlackBerry Limited delivered a USD-denominated Q2 2026 performance characterized by a modest revenue base with solid profitability and a strong cash position. Revenue came in at USD 129.6 million, down 10.6% year-over-year but up 6.49% sequentially, reflecting a continuation of the company’s transition toward high-margin software and licensing. Gross margin remained robust at approximately 74.5%, supporting an operating income of USD 11.5 million and a net income of USD 13.3 million, resulting in an EPS of USD 0.02. EBITDA stood at USD 4.8 million with an EBITDA margin of about 3.7%, underscoring the business’s leverage on licensing-based, recurring software revenue. The company maintained a favorable balance sheet with USD 290.6 million in cash and equivalents and a net debt position of USD -265.6 million, aided by cash flow from operations and a light capital expenditure profile.
Cash flow and liquidity remained healthy, with operating cash flow of USD 3.9 million and free cash flow reported at USD 4.8 million, despite financing activities that included modest share repurchases and debt-related considerations. The quarterly results align with BlackBerry’s long-term strategic positioning in cybersecurity software, IoT and embedded systems (notably QNX), and enterprise-grade communications solutions, supported by a large IP portfolio and a diversified product suite. Absent formal forward guidance in the provided data, the key near-term drivers appear to be expanding AI-enabled security offerings, continued licensing momentum, and growth opportunities in automotive software platforms and government/security markets.
Key Performance Indicators
QoQ: 475.00% | YoY:154.76%
QoQ: 600.00% | YoY:170.00%
QoQ: 525.00% | YoY:162.11%
Key Insights
Revenue: USD 129,600,000 | YoY: -10.62% | QoQ: +6.49%
Gross Profit: USD 96,600,000 | Gross Margin: 74.54%
Operating Income: USD 11,500,000 | Operating Margin: 8.87%
EBITDA: USD 4,800,000 | EBITDA Margin: 3.70%
Net Income: USD 13,300,000 | Net Margin: 10.26%
EPS (Basic/Diluted): USD 0.02 | Weighted Avg Shares (Diluted): 598,697,000
Balance Sheet Highlights: Cash & Cash Equivalents USD 290.6M; Cash & Short-Term Investments USD 304.7M; Net Debt: USD -265.6M; Total Assets USD 1.09B; Goodwill...
Financial Highlights
Revenue: USD 129,600,000 | YoY: -10.62% | QoQ: +6.49%
Gross Profit: USD 96,600,000 | Gross Margin: 74.54%
Operating Income: USD 11,500,000 | Operating Margin: 8.87%
EBITDA: USD 4,800,000 | EBITDA Margin: 3.70%
Net Income: USD 13,300,000 | Net Margin: 10.26%
EPS (Basic/Diluted): USD 0.02 | Weighted Avg Shares (Diluted): 598,697,000
Balance Sheet Highlights: Cash & Cash Equivalents USD 290.6M; Cash & Short-Term Investments USD 304.7M; Net Debt: USD -265.6M; Total Assets USD 1.09B; Goodwill USD 478.5M; Intangible Assets USD 42.0M; Deferred Revenue USD 128.5M; Total Current Liabilities USD 171.3M
Cash Flow: CFO USD 3.9M; CapEx USD 0.9M; Free Cash Flow USD 4.8M; Net Change in Cash USD -1.9M; Cash at End of Period USD 290.6M
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
No transcript data provided for this quarter. Management commentary and verbatim quotes from the QQ2 2026 earnings call are not included in the supplied data. Key takeaways can be inferred from the reported metrics, notably the resilience of profitability (high gross margin) and the balance sheet strength (net cash position) amid a modest revenue base.
Forward Guidance
No formal forward guidance was disclosed within the provided data. Qualitatively, the outlook for BlackBerry hinges on sustaining high-margin software licensing and expanding AI-enabled cybersecurity offerings (Cylance AI, BlackBerry Guard, and related solutions) while leveraging QNX and automotive platforms (IVY, CAR) to capture growth in embedded systems and autonomous/connected vehicle ecosystems. Investors should monitor: (i) ARR/contract renewals for cybersecurity licenses, (ii) contribution from AI-driven security solutions and managed services, (iii) trajectory of QNX-based automotive platforms and partnerships, and (iv) monetization of government and enterprise security deployments. Achievability will depend on continued execution in product integration, customer retention, and the ability to scale recurring revenue streams in a competitive software infrastructure market.