BlackBerry Reports Third Quarter Fiscal Year 2026 Results
Executive Summary
- BlackBerry reported Q3 FY 2026 revenue of $141.8 M, beating the top end of guidance and delivering its strongest GAAP profitability in almost four years.
- Adjusted EBITDA reached $28.7 M (20% of revenue) and operating cash flow turned positive at $17.9 M, exceeding prior‑year levels.
- Both core segments posted record or top‑end results: QNX revenue $68.7 M (+10% YoY) and Secure Communications revenue $67.0 M, with ARR rising to $216 M.
Key Details
- Revenue & Profitability
- Total company revenue: $141.8 M (up $12.2 M sequentially; –$1.8 M YoY).
- GAAP net income: $13.7 M; Adjusted net income: $26.8 M.
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GAAP basic EPS: $0.02 (beat top‑end guidance); Non‑GAAP basic EPS: $0.05.
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Segment Performance
- QNX: Revenue $68.7 M (top of guidance, +10% YoY); Adjusted EBITDA $16.4 M (24% of revenue).
- Secure Communications: Revenue $67.0 M (beat guidance); ARR $216 M; DBNRR 92%; Adjusted EBITDA $17.3 M (26% of revenue).
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Licensing: Revenue $6.1 M, adjusted EBITDA $5.3 M.
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Margins & Operating Metrics
- Company‑wide GAAP gross margin: 78% (down 1 pt YoY).
- Adjusted operating income: $25.0 M; Adjusted EBITDA margin: 20%.
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Operating cash flow: $17.9 M (sequential and YoY increase).
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Balance Sheet & Cash
- Total cash, equivalents & investments increased to $378 M (+$14 M sequentially).
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Share repurchase program returned $5 M to shareholders (≈1.2 M shares).
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Guidance FY 2026
- Full‑year revenue forecast: $531–$541 M.
- QNX FY revenue: $260–$266 M; Secure Communications FY revenue: $247–$251 M.
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Adjusted EBITDA FY range: $94–$104 M; Non‑GAAP EPS FY: $0.14–$0.16.
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Strategic & Operational Highlights
- John Wall appointed President of QNX division.
- Over 275 million vehicles now powered by QNX technology.
- Chinese automaker selected QNX® Sound for luxury EV lineup.
- Expansion of BlackBerry SecuSUITE™ to Windows devices.
- New partnership with Universiti Kebangsaan Malaysia to develop cyber‑defenders and embedded software talent.
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Malaysia deployed BlackBerry Secure Communications software for the 46th & 47th ASEAN Summits.
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Conference Call
- Live webcast held on release day; replay available later (details provided in original release).
Notable Quotes
“BlackBerry delivered revenue above the top end of the previously‑provided guidance … helped the company achieve its strongest quarter of GAAP profitability in almost 4 years, along with increased operating cash flow.” – John J. Giamatteo, CEO
Materiality: Material – Positive (earnings beat, record segment revenue, upgraded cash‑flow outlook).