Reve ue i c eased 26% yea -ove -yea to $163 millio QNX delive ed eco d qua te ly eve ue a d secu ed its fi st Alloy Ko eTM desig wi , the la gest desig wi i QNX histo y Adjusted EBITDA g ew 81% yea -ove -yea , esulti g i the seco d co secutive Rule of 401 pe fo ma ce; GAAP ope ati g i come i c eased 192% yea -ove -yea Ge e ated $29 millio ope ati g cash flow; delive ed sixth co secutive qua te of positive GAAP et i come a d Adjusted EPS exceeded expectatio s Raised fiscal yea 2027 eve ue a d Adjusted EBITDA outlook followi g st o g fi st-half executio
“Ou st o g seco d qua te pe fo ma ce p ovides fu the evide ce that BlackBe y’s p ofitable g owth model is wo ki g, with eve ue, p ofitability, a d cash flow ge e atio all exceedi g ou expectatio s,” said Joh J. Giamatteo, CEO, BlackBe y. “QNX delive ed eco d pe fo ma ce i the qua te , d ive by st e gth i ou co e automotive busi ess. The fi st Alloy Ko e desig wi , the la gest desig wi i QNX histo y, ma ks a impo ta t comme cial milesto e. We also co ti ue to build mome tum beyo d automotive i the Ge e al Embedded Ma kets a d Physical AI. Secu e Commu icatio s emai ed a stable a d p ofitable co t ibuto followi g a pa ticula ly st o g fi st qua te . As we e te the seco d half of the yea , we emai focused o discipli ed executio , i vesti g behi d ou g owth oppo tu ities, a d leve agi g the st e gth of ou bala ce sheet to c eate lo g-te m value fo ou sha eholde s.”
- Total compa y eve ue of $163.3 millio i c eased 26% yea -ove -yea .
- Total compa y adjusted g oss ma gi imp oved 3 pe ce tage poi ts yea -ove -yea to 78.2%; GAAP g oss ma gi imp oved by 3 pe ce tage poi ts yea -ove -yea to 77.8%.
- Total compa y adjusted EBITDA i c eased by $21.1 millio yea -ove -yea to $47.0 millio , 81%; GAAP ope ati g i come imp oved by $22.1 millio yea -ove -yea to $33.6 millio , o 192%.
- QNX eve ue i c eased 27% yea -ove -yea to $80.3 millio ; QNX segme t adjusted g oss ma gi expa ded by 4 pe ce tage poi ts yea -ove -yea to 87%.
- QNX segme t adjusted EBITDA i c eased 41% yea -ove -yea to $29.0 millio , ep ese ti g a 36% ma gi .
- Secu e Commu icatio s eve ue i c eased by 2% yea -ove -yea to $60.9 millio ; Secu e Commu icatio s segme t adjusted g oss ma gi dec eased by 5 pe ce tage poi ts yea -ove -yea to 61%.
- Secu e Commu icatio s segme t adjusted EBITDA dec eased 18% yea -ove -yea to $8.0 millio , ep ese ti g a 13% ma gi .
- Secu e Commu icatio s ARR emai ed stable at $221 millio a d DBNRR was 91%.
- Lice si g eve ue was $22.1 millio ; Lice si g segme t adjusted EBITDA was $20.0 millio .
- Adjusted et i come i c eased 79% yea -ove -yea to $43.2 millio ; GAAP et i come was positive fo the sixth co secutive qua te at $33.9 millio .
- Adjusted basic ea i gs pe sha e was $0.07; GAAP basic ea i gs pe sha e was $0.06.
- Ope ati g cash flow fo the seco d qua te was $29.3 millio , a imp oveme t of $25.9 millio f om the $3.4 millio cash p ovided i the p io -yea qua te .
- E ded the seco d qua te with $447.1 millio i cash a d i vestme ts.
1 The compa y defi es the Rule of 40 met ic as the sum of its GAAP eve ue yea -ove -yea g owth pe ce tage a d its o -GAAP adjusted EBITDA ma gi pe ce tage. Whe e the sum equals o exceeds 40, the the Rule of 40 is co side ed to have bee achieved.
- Co etu a, the joi t ve tu e betwee Volvo G oup a d Daimle T uck, has chose Alloy Ko e fo its ext-ge e atio comme cial vehicle softwa e platfo m. This fi st Alloy Ko e desig wi is the la gest i QNX histo y a d adds ove $100 millio to the QNX oyalty backlog.
- Mome ta a d XHEART selected QNX OS fo Safety, built o SDP 8.0, as the fou datio fo a p oductio – eady Physical AI-defi ed auto omous-d ivi g platfo m ce tified to ISO 26262 ASIL D.
- QNX added suppo t fo the Hailo-8 AI Accele ato o SDP 8.0, expa di g its Physical AI ecosystem; be chma k testi g demo st ated highe th oughput, lowe late cy, low powe co sumptio a d heat, a d sig ifica tly g eate co siste cy tha the eal-time Li ux e vi o me t tested.
- BlackBe y® SecuSUITE® e ewed its NIAP Commo C ite ia ce tificatio , ei fo ci g its sove eig -g ade secu ity c ede tials a d positio i gove me t a d missio -c itical commu icatio s.
- BlackBe y® AtHoc® added Mic osoft Teams a d E t a ID i teg atio s, st e gthe i g missio -c itical espo se a d ope atio al esilie ce fo e te p ise a d gove me t custome s.
BlackBe y is p ovidi g the followi g guida ce fo the thi d fiscal qua te e di g Novembe 30, 2026 a d the fiscal yea e di g Feb ua y 28, 2027.
2 EPS guida ce does ot i clude the effect of a y pote tial futu e sha e epu chases ot yet completed as of the date of this elease.
The tables at the e d of this p ess elease i clude a eco ciliatio of the o -GAAP fi a cial measu es a d o -GAAP fi a cial atios used by the Compa y to compa able U.S. GAAP measu es a d a expla atio of why the Compa y uses them. The Compa y does ot p ovide a eco ciliatio of expected Adjusted EBITDA a d expected Adjusted basic EPS fo the thi d qua te a d full fiscal yea 2027 to the most di ectly compa able expected GAAP measu es because it is u able to p edict with easo able ce tai ty, amo g othe thi gs, est uctu i g cha ges a d impai me t cha ges a d, acco di gly, a eco ciliatio is ot available without u easo able effo t. These items a e u ce tai , depe d o va ious facto s, a d could have a mate ial impact o GAAP epo ted esults fo the guida ce pe iod. Fo mo e i fo matio o the o -GAAP fi a cial measu es, please efe to the tables at the e d of this p ess elease.
usi g the followi g li k (he e) o th ough the Compa y’s i vesto webpage (BlackBe y.com/I vesto s) o by diali g toll f ee +1 (877) 883-0383 a d e te i g E t y Numbe 5340355.
A eplay of the co fe e ce call will be available at app oximately o e hou afte the eve t usi g the same webcast li k (he e) o by diali g toll f ee +1 (855) 669-9658 a d e te i g Replay Access Code 2584952.
BlackBe y. Safe. Ce tified. Secu e
Fo mo e i fo matio , visit BlackBe y.com a d follow @BlackBe y.
T adema ks, i cludi g but ot limited to BLACKBERRY a d EMBLEM Desig a e the t adema ks o egiste ed t adema ks of BlackBe y Limited, a d the exclusive ights to such t adema ks a e exp essly ese ved. All othe t adema ks a e the p ope ty of thei espective ow e s. BlackBe y is ot espo sible fo a y thi d-pa ty p oducts o se vices.
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This ews elease co tai s fo wa d-looki g stateme ts withi the mea i g of ce tai secu ities laws, i cludi g u de the U.S. P ivate Secu ities Litigatio Refo m Act of 1995 a d applicable Ca adia secu ities laws, i cludi g stateme ts ega di g BlackBe y’s pla s, st ategies a d objectives.
The wo ds “expect”, “a ticipate”, “estimate”, “may”, “will”, “should”, “could”, “i te d”, “believe”, “ta get”, “pla ” a d simila exp essio s a e i te ded to ide tify these fo wa d-looki g stateme ts. Fo wa d-looki g stateme ts a e based o estimates a d assumptio s made by BlackBe y i light of its expe ie ce a d its pe ceptio of histo ical t e ds, cu e t co ditio s a d expected futu e developme ts, as well as othe facto s that BlackBe y believes a e app op iate i the ci cumsta ces, i cludi g but ot limited to, BlackBe y’s expectatio s ega di g its busi ess, st ategy, oppo tu ities a d p ospects, the lau ch of ew p oducts a d se vices, ge e al eco omic co ditio s, competitio , a d BlackBe y’s expectatio s ega di g its fi a cial pe fo ma ce. Ma y facto s could cause BlackBe y’s actual esults, pe fo ma ce o achieveme ts to diffe mate ially f om those exp essed o implied by the fo wa d-looki g stateme ts, i cludi g, without limitatio , isks elated to the followi g facto s: BlackBe y’s ability to mai tai o expa d its custome base fo its softwa e a d se vices offe i gs to g ow eve ue o achieve sustai ed p ofitability; the i te se competitio faced by BlackBe y; BlackBe y’s ability to e ha ce, develop, i t oduce o mo etize its p oducts a d se vices i a timely ma e with competitive p ici g, featu es a d pe fo ma ce; sig ifica t cha ges i gove me t custome dema d o p ocu eme t equi eme ts; BlackBe y’s sales cycles a d the time a d expe se of its sales effo ts; the occu e ce o pe ceptio of a b each of BlackBe y’s etwo k cybe secu ity measu es, o a i app op iate disclosu e of co fide tial o pe so al i fo matio ; BlackBe y’s use of a tificial i tellige ce tech ology a d tools i its ope atio s a d i p oduct developme t; adve se mac oeco omic a d geopolitical co ditio s, i cludi g t ade policies a d atio al secu ity co ce s; isks a isi g f om a failu e o pe ceived failu e of the secu ity featu es o fu ctio ality of BlackBe y’s solutio s; litigatio agai st BlackBe y; BlackBe y’s co ti ui g ability to att act ew pe so el, etai existi g key pe so el a d ma age its staffi g effectively; etwo k dis uptio s o othe busi ess i te uptio s; BlackBe y’s ability to foste a ecosystem of thi d-pa ty applicatio develope s; BlackBe y’s depe de ce i pa t o its elatio ships with eselle s a d cha el pa t e s; BlackBe y’s p oducts a d se vices bei g depe de t upo i te ope ability with apidly cha gi g systems p ovided by thi d pa ties; failu e to p otect BlackBe y’s i tellectual p ope ty a d to ea expected eve ues f om i tellectual p ope ty ights; BlackBe y’s use of ope sou ce softwa e a d its ability to obtai ights to use thi d-pa ty softwa e; BlackBe y pote tially bei g fou d to have i f i ged o the i tellectual p ope ty ights of othe s; BlackBe y’s i debted ess, which could impact its ope ati g flexibility a d fi a cial co ditio ; the asset isk faced by BlackBe y, i cludi g the pote tial fo cha ges elated to its lo g-lived assets a d goodwill; tax p ovisio cha ges, the adoptio of ew tax legislatio o exposu e to additio al tax liabilities; the use a d ma ageme t of use data a d pe so al i fo matio ; gove me t egulatio s applicable to BlackBe y’s p oducts a d se vices, i cludi g p oducts co tai i g e c yptio capabilities; e vi o me tal, social a d gove a ce expectatio s a d sta da ds; the failu e of BlackBe y’s supplie s, subco t acto s, cha el pa t e s a d ep ese tatives to use acceptable ethical busi ess p actices o comply with applicable laws; pote tial impacts of acquisitio s, divestitu es a d othe busi ess i itiatives; isks associated with fo eig ope atio s, i cludi g fluctuatio s i fo eig cu e cies; e vi o me tal eve ts; the fluctuatio of BlackBe y’s qua te ly eve ue a d ope ati g esults; a d the volatility of the ma ket p ice of BlackBe y’s commo sha es.
These isk facto s a d othe s elati g to BlackBe y a e discussed i g eate detail i BlackBe y’s A ual Repo t o Fo m 10-K a d the “Cautio a y Note Rega di g Fo wa d-Looki g Stateme ts” sectio of BlackBe y’s MD&A (copies of which fili gs may be obtai ed at www.seda plus.ca o www.sec.gov). All of these facto s should be co side ed ca efully, a d eade s should ot place u due elia ce o BlackBe y’s fo wa d-looki g stateme ts. A y stateme ts that a e fo wa d-looki g stateme ts a e i te ded to e able BlackBe y’s sha eholde s to view the a ticipated pe fo ma ce a d p ospects of BlackBe y f om ma ageme t’s pe spective at the time such stateme ts a e made, a d they a e subject to the isks that a e i he e t i all fo wa d-looki g stateme ts, as desc ibed above, as well as difficulties i fo ecasti g BlackBe y’s fi a cial esults a d pe fo ma ce fo futu e pe iods, pa ticula ly ove lo ge pe iods, give cha ges i tech ology a d BlackBe y’s busi ess st ategy, evolvi g i dust y sta da ds, i te se competitio a d sho t p oduct life cycles that cha acte ize the i dust ies i which BlackBe y ope ates. A y fo wa d-looki g stateme ts a e made o ly as of today a d BlackBe y has o i te tio a d u de takes o obligatio to update o evise a y of them, except as equi ed by law.
The followi g tables show i fo matio by ope ati g segme ts fo the th ee a d six mo ths e ded August 31, 2026 a d August 31, 2025. The Compa y epo ts segme t i fo matio i acco da ce with U.S. GAAP, pu sua t to the Fi a cial Accou ti g Sta da ds Boa d’s Accou ti g Sta da d Codificatio Topic 280, Segme t Repo ti g, based o the “ma ageme t” app oach. The ma ageme t app oach desig ates the i te al epo ti g used by the Chief Ope ati g Decisio Make (“CODM”) fo maki g decisio s a d assessi g pe fo ma ce of the Compa y’s epo table ope ati g segme ts. The measu e of segme t p ofit o loss disclosed by the Compa y i the Co solidated Fi a cial Stateme ts u de the “ma ageme t” app oach i eviewi g the esults of the Compa y’s ope ati g segme ts is segme t adjusted g oss ma gi . Additio ally, the followi g tables i clude the additio al measu es of segme t p ofit o loss used by the CODM which is segme t adjusted EBITDA, a o -GAAP fi a cial measu e, which excludes amou ts elated to i vestme t i come, taxes, amo tizatio , est uctu i g cha ges, stock compe satio expe ses a d lo g-lived asset impai me t cha ge. Fo the th ee a d six mo ths e ded August 31, 2026, the Compa y p ese ted segme t adjusted EBITDA esults excludi g amo tizatio i segme t esea ch a d developme t, segme t sales a d ma keti g a d segme t ge e al a d admi ist ative to alig to the ope ati g expe se p ese tatio o the Co solidated Stateme t of Ope atio s. Fo pu poses of compa ability, the Compa y’s segme t adjusted EBITDA fo the th ee a d six mo ths e ded August 31, 2025 has bee updated to co fo m to the cu e t yea ‘s p ese tatio . See Note 10 to the Co solidated Fi a cial Stateme ts fo a desc iptio of the Compa y’s ope ati g segme ts.
Fo the Th ee Mo ths E ded |
I the Compa y’s i te al epo ts, ma ageme t evaluates the pe fo ma ce of the Compa y’s busi ess o a o -GAAP basis by excludi g the impact of ce tai items f om the Compa y’s U.S. GAAP fi a cial esults. The Compa y believes that these o -GAAP fi a cial measu es a d o -GAAP atios p ovide ma ageme t, as well as eade s of the Compa y’s fi a cial stateme ts, with a co siste t basis fo compa iso ac oss accou ti g pe iods a d a e useful i helpi g ma ageme t a d eade s u de sta d the Compa y’s ope ati g esults a d u de lyi g ope atio al t e ds. Begi i g with the fiscal qua te e ded May 31, 2026, the Compa y has i cluded defe ed sha e u its evaluatio adjustme t as a o -GAAP adjustme t a d has applied this adjustme t to compa ative pe iod.
Reade s a e cautio ed that adjusted g oss ma gi , adjusted g oss ma gi pe ce tage, adjusted ope ati g expe ses, adjusted et i come, adjusted basic ea i gs pe sha e, adjusted esea ch a d developme t expe se, adjusted sales a d ma keti g expe se, adjusted ge e al a d admi ist ative expe se, adjusted amo tizatio expe se, adjusted ope ati g i come, adjusted EBITDA, segme t adjusted EBITDA, adjusted ope ati g i come ma gi pe ce tage, adjusted EBITDA ma gi pe ce tage a d f ee cash flow (usage) a d simila measu es do ot have a y sta da dized mea i g p esc ibed by U.S. GAAP a d a e the efo e u likely to be compa able to simila ly titled measu es epo ted by othe compa ies.
A eco ciliatio of the most di ectly compa able U.S. GAAP g oss ma gi a d g oss ma gi pe ce tage fo the th ee mo ths e ded August 31, 2026 a d August 31, 2025 to both adjusted g oss ma gi a d adjusted g oss ma gi pe ce tage is eflected i the table below:
| 78.2 | 75.0 |
Reco ciliatio of U.S. GAAP ope ati g expe ses fo the th ee mo ths e ded August 31, 2026, a d August 31, 2025 to adjusted ope ati g expe ses is eflected i the table below:
Reco ciliatio of U.S. GAAP et i come a d U.S. GAAP basic ea i gs pe sha e fo the th ee mo ths e ded August 31, 2026 a d August 31, 2025 to adjusted et i come a d adjusted basic ea i gs pe sha e is eflected i the table below:
Reco ciliatio of U.S. GAAP esea ch a d developme t, sales a d ma keti g, ge e al a d admi ist ative, a d amo tizatio expe se fo the th ee mo ths e ded August 31, 2026 a d August 31, 2025 to adjusted esea ch a d developme t, sales a d ma keti g, ge e al a d admi ist ative, a d amo tizatio expe se is eflected i the table below:
Reco ciliatio of U.S. GAAP ope ati g i come to adjusted ope ati g i come, adjusted EBITDA, adjusted ope ati g i come ma gi pe ce tage a d adjusted EBITDA ma gi pe ce tage fo the th ee mo ths e ded August 31, 2026 a d August 31, 2025 is eflected i the table below.
(1) Adjusted ope ati g i come ma gi % is calculated by dividi g adjusted ope ati g i come by eve ue.(2) Adjusted EBITDA ma gi % is calculated by dividi g adjusted EBITDA by eve ue.
The CODM also uses segme t adjusted EBITDA, which is a o -GAAP measu e i cludi g segme t expe ses that exclude amou ts elated to i vestme t i come, taxes, amo tizatio , est uctu i g cha ges, stock compe satio expe ses a d lo g-lived asset impai me t. The followi g table eco ciles the U.S. GAAP measu es of segme t p ofit o loss disclosed by the Compa y i the Co solidated Fi a cial Stateme ts f om segme t adjusted g oss ma gi to segme t adjusted EBITDA fo the th ee mo ths e ded August 31, 2026 a d August 31, 2025.
A eco ciliatio of the most di ectly compa able U.S. GAAP g oss ma gi a d g oss ma gi pe ce tage fo the six mo ths e ded August 31, 2026 a d August 31, 2025 to both adjusted g oss ma gi a d adjusted g oss ma gi pe ce tage is eflected i the table below:
Reco ciliatio of U.S. GAAP ope ati g expe ses fo the six mo ths e ded August 31, 2026 a d August 31, 2025 to adjusted ope ati g expe ses is eflected i the table below:
Reco ciliatio of U.S. GAAP et i come a d U.S. GAAP basic ea i gs pe sha e fo the six mo ths e ded August 31, 2026 a d August 31, 2025 to adjusted et i come a d adjusted basic ea i gs pe sha e is eflected i the table below:
Reco ciliatio of U.S. GAAP esea ch a d developme t, sales a d ma keti g, ge e al a d admi ist ative, a d amo tizatio expe se fo the six mo ths e ded August 31, 2026 a d August 31, 2025 to adjusted esea ch a d developme t, sales a d ma keti g, ge e al a d admi ist ative, a d amo tizatio expe se is eflected i the table below:
Reco ciliatio of U.S. GAAP ope ati g i come to adjusted ope ati g i come, adjusted EBITDA, adjusted ope ati g i come ma gi pe ce tage a d adjusted EBITDA ma gi pe ce tage fo the six mo ths e ded August 31, 2026 a d August 31, 2025 a e eflected i the table below.
(1) Adjusted ope ati g i come ma gi % is calculated by dividi g adjusted ope ati g i come by eve ue.(2) Adjusted EBITDA ma gi % is calculated by dividi g adjusted EBITDA by eve ue.
The CODM also uses segme t adjusted EBITDA, which is a o -GAAP measu e i cludi g segme t expe ses that exclude amou ts elated to i vestme t i come, taxes, amo tizatio , est uctu i g cha ges, stock compe satio expe ses a d lo g-lived asset impai me t. The followi g table eco ciles the U.S. GAAP measu es of segme t p ofit o loss disclosed by the Compa y i the Co solidated Fi a cial Stateme ts f om segme t adjusted g oss ma gi to segme t adjusted EBITDA fo the six mo ths e ded August 31, 2026 a d August 31, 2025.
The Compa y uses f ee cash flow (usage) whe assessi g its sou ces of liquidity, capital esou ces, a d quality of ea i gs. The Compa y believes that f ee cash flow (usage) is helpful i u de sta di g the Compa y’s capital equi eme ts a d p ovides a additio al mea s to eflect the cash flow (usage) t e ds i the Compa y’s busi ess.
Reco ciliatio of U.S. GAAP et cash p ovided by (used i ) ope ati g activities fo the th ee a d six mo ths e ded August 31, 2026 a d August 31, 2025 to f ee cash flow (usage) is eflected i the table below:
The Compa y egula ly mo ito s a umbe of fi a cial a d ope ati g met ics, i cludi g the followi g key met ics, i o de to measu e the Compa y’s cu e t pe fo ma ce a d estimated futu e pe fo ma ce. Reade s a e cautio ed that Secu e Commu icatio s a ual ecu i g eve ue (“ARR”) a d Secu e Commu icatio s dolla -based et ete tio ate (“DBNRR”) do ot have a y sta da dized mea i g a d a e u likely to be compa able to simila ly titled measu es epo ted by othe compa ies.
Compa ative b eakdow s of ce tai key met ics fo the th ee mo ths e ded o as at August 31, 2026 a d August 31, 2025 a e set fo th below:
