BlackBerry Limited (BB) Q2 FY2027 earnings

Reported results

• Total company revenue of $163.3 million increased 26% year-over-year; QNX revenue increased 27% year-over-year to $80.3 million; Secure Communications revenue increased 2% year-over-year to $60.9 million; Licensing revenue was $22.1 million
• Total company adjusted gross margin improved 3 percentage points year-over-year to 78.2%; GAAP gross margin improved 3 percentage points year-over-year to 77.8%
• Total company adjusted EBITDA increased $21.1 million year-over-year to $47.0 million (81% increase); GAAP operating income improved $22.1 million year-over-year to $33.6 million (192% increase)
• QNX segment adjusted EBITDA increased 41% year-over-year to $29.0 million, representing a 36% margin; Secure Communications segment adjusted EBITDA decreased 18% year-over-year to $8.0 million, representing a 13% margin
• Adjusted net income increased 79% year-over-year to $43.2 million; GAAP net income was $33.9 million, positive for the sixth consecutive quarter; adjusted basic earnings per share was $0.07; GAAP basic earnings per share was $0.06
• Operating cash flow for the second quarter was $29.3 million, an improvement of $25.9 million from the $3.4 million cash provided in the prior-year quarter; ended the quarter with $447.1 million in cash and investments

Guidance

• Q3 FY27 total BlackBerry revenue: $143–$154 million
• FY27 total BlackBerry revenue: $616–$636 million
• Q3 FY27 QNX revenue: $82–$88 million
• FY27 QNX revenue: $315–$325 million
• Q3 FY27 Secure Communications revenue: $55–$60 million
• FY27 Secure Communications revenue: $260–$270 million
• Q3 FY27 Licensing revenue: approximately $6 million
• FY27 Licensing revenue: approximately $41 million
• Q3 FY27 total company adjusted EBITDA: $28–$37 million
• FY27 total company adjusted EBITDA: $141–$158 million
• Q3 FY27 QNX segment adjusted EBITDA: $27–$32 million
• FY27 QNX segment adjusted EBITDA: $95–$105 million
• Q3 FY27 Secure Communications segment adjusted EBITDA: $6–$10 million
• FY27 Secure Communications segment adjusted EBITDA: $50–$58 million
• Q3 FY27 Licensing segment adjusted EBITDA: approximately $5 million
• FY27 Licensing segment adjusted EBITDA: approximately $36 million
• Q3 FY27 adjusted basic EPS: $0.04–$0.05
• FY27 adjusted basic EPS: $0.19–$0.22
• Q3 FY27 operating cash flow: $20–$30 million
• FY27 operating cash flow: approximately $115 million

Notes

Beginning with the fiscal quarter ended May 31, 2026, the Company included deferred share units revaluation adjustment as a non-GAAP adjustment and applied this adjustment to comparative periods. The company defines the Rule of 40 metric as the sum of GAAP revenue year-over-year growth percentage and non-GAAP adjusted EBITDA margin percentage. QNX secured its first Alloy Kore design win, described as the largest design win in QNX history, adding over $100 million to the QNX royalty backlog. The company notes that EPS guidance does not include the effect of any potential future share repurchases not yet completed as of the release date.

Price and volatility reaction

The stock moved -1.4% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -14.6 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-09-24 (8-K, Item 2.02). Read the original filing on sec.gov.