Executive Summary
BlackBerry’s QQ1 2026 results show a modest top-line decline alongside meaningful profitability and a robust balance sheet. Revenue of $121.7 million declined approximately 15% year over year and quarter over quarter, reflecting ongoing mix and market dynamics in a niche software security portfolio. Notwithstanding the revenue contraction, the company delivered a positive operating margin (operating income of $2.0 million, or 1.64%), a solid EBITDA of $13.5 million (11.1% of revenue), and a net income of $1.9 million (net margin ~1.56%). Gross margin remained high at 74.2%, underscoring the high-margin nature of BlackBerry’s software-centric model. The firm ended the quarter with a healthy cash balance of $292.5 million and a net cash position of approximately $266 million, supported by a favorable liquidity profile and selective investing activities. However, free cash flow remained negative at about -$18 million, driven by working capital movements and capital expenditures, implying near-term cash conversion challenges if revenue does not stabilize or accelerate. Over the longer term, BlackBerry’s trajectory hinges on scaling its software platforms (Cybersecurity, IoT, and Licensing/Other), continued profitability improvements, and the translation of strategic assets (e.g., Cylance AI, QNX, and government/security offerings) into recurring, higher-margin revenue streams.
Key Performance Indicators
QoQ: -15.43% | YoY:-15.46%
QoQ: 132.26% | YoY:107.15%
QoQ: 127.14% | YoY:104.53%
QoQ: 127.12% | YoY:104.49%
Key Insights
Revenue: $121.7M, YoY -15.46%, QoQ -15.43%; Gross Profit: $90.3M, YoY +7.53%, QoQ -14.73%; Operating Income: $2.0M, YoY +107.15%, QoQ +132.26%; Net Income: $1.9M, YoY +104.53%, QoQ +127.14%; EPS: $0.0032, YoY +104.49%, QoQ +127.12%; EBITDA: $13.5M (EBITDA Margin ~11.1%); Gross Margin: 74.2%; Operating Margin: 1.64%; Net Margin: 1.56%; Free Cash Flow: -$18.0M; Cash: $292.5M; Net Debt: -$266.2M (net cash position); Total Assets: $1.2104B; Total Liabilities: $485.3M; Shareholders’ Equity: $725.1M...
Financial Highlights
Revenue: $121.7M, YoY -15.46%, QoQ -15.43%; Gross Profit: $90.3M, YoY +7.53%, QoQ -14.73%; Operating Income: $2.0M, YoY +107.15%, QoQ +132.26%; Net Income: $1.9M, YoY +104.53%, QoQ +127.14%; EPS: $0.0032, YoY +104.49%, QoQ +127.12%; EBITDA: $13.5M (EBITDA Margin ~11.1%); Gross Margin: 74.2%; Operating Margin: 1.64%; Net Margin: 1.56%; Free Cash Flow: -$18.0M; Cash: $292.5M; Net Debt: -$266.2M (net cash position); Total Assets: $1.2104B; Total Liabilities: $485.3M; Shareholders’ Equity: $725.1M.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
121.70M |
-15.46% |
-15.43% |
| Gross Profit |
90.30M |
7.53% |
-14.73% |
| Operating Income |
2.00M |
107.15% |
132.26% |
| Net Income |
1.90M |
104.53% |
127.14% |
| EPS |
0.00 |
104.49% |
127.12% |
Management Commentary
No earnings call transcript data provided in the input. Management quotes and themes from the QQ1 2026 call are not available in this dataset.
Forward Guidance
No explicit forward guidance or targets were disclosed in the provided material. Given the revenue decline in QQ1 2026, investors should monitor (i) trajectory of cybersecurity and licensing ARR/recurring revenue, (ii) progression of Cylance AI integration and its impact on renewals and upsells, (iii) cost discipline and operating leverage, and (iv) free cash flow generation as the company scales its software platforms. Industry dynamics—including enterprise cybersecurity budget cycles, government spend, and IoT/security demand—will be key drivers of visibility into the next several quarters.