{"success":true,"data":{"pressRelease":{"id":"151806","rtpr_id":"nACSHzNwTa-20260924","ticker":"BB","exchange":"NYSE","all_tickers":["BB"],"title":"BlackBerry Reports Second Quarter Fiscal Year 2027 Results","author":"ACCESSWIRE","published_at":"2026-09-24T10:58:00.861Z","article_body":"WATERLOO, ON / ACCESS Newswire (https://www.accessnewswire.com/) / September\n24, 2026 / BlackBerry Limited (https://pr.report/qpox) (NYSE:BB)(TSX:BB) today\nreported financial results for the three months ended August 31, 2026 (all\nfigures in U.S. dollars and U.S. GAAP, except where otherwise indicated).\n\n\"Our strong second quarter performance provides further evidence that\nBlackBerry's profitable growth model is working, with revenue, profitability,\nand cash flow generation all exceeding our expectations,\" said John J.\nGiamatteo, CEO, BlackBerry. \"QNX delivered record performance in the quarter,\ndriven by strength in our core automotive business. The first Alloy Kore\ndesign win, the largest design win in QNX history, marks an important\ncommercial milestone. We also continue to build momentum beyond automotive in\nthe General Embedded Markets and Physical AI. Secure Communications remained a\nstable and profitable contributor following a particularly strong first\nquarter. As we enter the second half of the year, we remain focused on\ndisciplined execution, investing behind our growth opportunities, and\nleveraging the strength of our balance sheet to create long-term value for our\nshareholders.\"\n\nSecond Quarter Fiscal 2027 Financial Highlights\n* Total company revenue of $163.3 million increased 26% year-over-year.\n* Total company adjusted gross margin improved 3 percentage points\nyear-over-year to 78.2%; GAAP gross margin improved by 3 percentage points\nyear-over-year to 77.8%.\n* Total company adjusted EBITDA increased by $21.1 million year-over-year to\n$47.0 million, 81%; GAAP operating income improved by $22.1 million\nyear-over-year to $33.6 million, or 192%.\n* QNX revenue increased 27% year-over-year to $80.3 million; QNX segment\nadjusted gross margin expanded by 4 percentage points year-over-year to 87%.\n* QNX segment adjusted EBITDA increased 41% year-over-year to $29.0 million,\nrepresenting a 36% margin.\n* Secure Communications revenue increased by 2% year-over-year to $60.9\nmillion; Secure Communications segment adjusted gross margin decreased by 5\npercentage points year-over-year to 61%.\n* Secure Communications segment adjusted EBITDA decreased 18% year-over-year\nto $8.0 million, representing a 13% margin.\n* Secure Communications ARR remained stable at $221 million and DBNRR was 91%.\n* Licensing revenue was $22.1 million; Licensing segment adjusted EBITDA was\n$20.0 million.\n* Adjusted net income increased 79% year-over-year to $43.2 million; GAAP net\nincome was positive for the sixth consecutive quarter at $33.9 million.\n* Adjusted basic earnings per share was $0.07; GAAP basic earnings per share\nwas $0.06.\n* Operating cash flow for the second quarter was $29.3 million, an improvement\nof $25.9 million from the $3.4 million cash provided in the prior-year\nquarter.\n* Ended the second quarter with $447.1 million in cash and investments.\n(1) The company defines the Rule of 40 metric as the sum of its GAAP revenue\nyear-over-year growth percentage and its non-GAAP adjusted EBITDA margin\npercentage. Where the sum equals or exceeds 40, then the Rule of 40 is\nconsidered to have been achieved.\n\nBusiness Highlights & Strategic Announcements\n* Coretura, the joint venture between Volvo Group and Daimler Truck, has\nchosen Alloy Kore for its next-generation commercial vehicle software\nplatform. This first Alloy Kore design win is the largest in QNX history and\nadds over $100 million to the QNX royalty backlog.\n* Momenta and XHEART selected QNX OS for Safety, built on SDP 8.0, as the\nfoundation for a production-ready Physical AI-defined autonomous-driving\nplatform certified to ISO 26262 ASIL D.\n* QNX added support for the Hailo-8 AI Accelerator on SDP 8.0, expanding its\nPhysical AI ecosystem; benchmark testing demonstrated higher throughput, lower\nlatency, low power consumption and heat, and significantly greater consistency\nthan the real-time Linux environment tested.\n* BlackBerry(®) SecuSUITE(®) renewed its NIAP Common Criteria certification,\nreinforcing its sovereign-grade security credentials and position in\ngovernment and mission-critical communications.\n* BlackBerry(®) AtHoc(®) added Microsoft Teams and Entra ID integrations,\nstrengthening mission-critical response and operational resilience for\nenterprise and government customers.\nFinancial Outlook\n\nBlackBerry is providing the following guidance for the third fiscal quarter\nending November 30, 2026 and the fiscal year ending February 28, 2027.\n\n Q3 FY27 FY27 \n Total BlackBerry revenue: $143 - $154 million $616- $636 million \n QNX revenue: $82 - $88 million $315 - $325 million \n Secure Communications revenue: $55 - $60 million $260 - $270 million \n Licensing revenue: Approximately $6 million Approximately $41 million \n Total Company adjusted EBITDA: $28 - $37 million $141 - $158 million \n QNX segment adjusted EBITDA: $27 - $32 million $95 - $105 million \n Secure Communications segment adjusted EBITDA: $6 - $10 million $50 - $58 million \n Licensing segment adjusted EBITDA: Approximately $5 million Approximately $36 million \n Adjusted basic EPS (2): $0.04 - $0.05 $0.19 - $0.22 \n Operating cash flow $20 - $30 million Approximately $115 million \n\n(2) EPS guidance does not include the effect of any potential future share\nrepurchases not yet completed as of the date of this release.\n\nUse of Non-GAAP Financial Measures\n\nThe tables at the end of this press release include a reconciliation of the\nnon-GAAP financial measures and non-GAAP financial ratios used by the Company\nto comparable U.S. GAAP measures and an explanation of why the Company uses\nthem. The Company does not provide a reconciliation of expected Adjusted\nEBITDA and expected Adjusted basic EPS for the third quarter and full fiscal\nyear 2027 to the most directly comparable expected GAAP measures because it is\nunable to predict with reasonable certainty, among other things, restructuring\ncharges and impairment charges and, accordingly, a reconciliation is not\navailable without unreasonable effort. These items are uncertain, depend on\nvarious factors, and could have a material impact on GAAP reported results for\nthe guidance period. For more information on the non-GAAP financial measures,\nplease refer to the tables at the end of this press release.\n\nConference Call and Webcast\nA conference call and live webcast will be held today beginning at 8:00 a.m.\nET, which can be accessed\n\nusing the following link (here (https://pr.report/qpoy)) or through the\nCompany's investor webpage (BlackBerry.com/Investors (https://pr.report/qpoz))\nor by dialing toll free +1 (877) 883-0383 and entering Entry Number 5340355.\n\nA replay of the conference call will be available at approximately one hour\nafter the event using the same webcast link (here (https://pr.report/qpp0)) or\nby dialing toll free +1 (855) 669-9658 and entering Replay Access Code\n2584952.\n\nAbout BlackBerry\nBlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the\nintelligent software and services that power the world around us. Based in\nWaterloo, Ontario, the company's high-performance foundational software\nenables major automakers and industrial giants alike to unlock transformative\napplications, drive new revenue streams and launch innovative business models,\nall without sacrificing safety, security, and reliability. With a deep\nheritage in Secure Communications, BlackBerry delivers operational resiliency\nwith a comprehensive, highly secure, and extensively certified portfolio for\nmobile fortification, mission-critical communications, and critical events\nmanagement.\n\nBlackBerry. Safe. Certified. Secure\n\nFor more information, visit BlackBerry.com (https://pr.report/qpp1) and follow\n@BlackBerry.\n\nTrademarks, including but not limited to BLACKBERRY and EMBLEM Design are the\ntrademarks or registered trademarks of BlackBerry Limited, and the exclusive\nrights to such trademarks are expressly reserved. All other trademarks are the\nproperty of their respective owners. BlackBerry is not responsible for any\nthird-party products or services.\n\nInvestor Contact:\nBlackBerry Investor Relations\n+1 (519) 888-7465\ninvestorrelations@blackberry.com\n\nMedia Contact:\nBlackBerry Media Relations\n+1 (519) 597-7273\nmediarelations@blackberry.com\n\n###\n\nThis news release contains forward-looking statements within the meaning of\ncertain securities laws, including under the U.S. Private Securities\nLitigation Reform Act of 1995 and applicable Canadian securities laws,\nincluding statements regarding BlackBerry's plans, strategies and objectives.\n\nThe words \"expect\", \"anticipate\", \"estimate\", \"may\", \"will\", \"should\",\n\"could\", \"intend\", \"believe\", \"target\", \"plan\" and similar expressions are\nintended to identify these forward-looking statements. Forward-looking\nstatements are based on estimates and assumptions made by BlackBerry in light\nof its experience and its perception of historical trends, current conditions\nand expected future developments, as well as other factors that BlackBerry\nbelieves are appropriate in the circumstances, including but not limited to,\nBlackBerry's expectations regarding its business, strategy, opportunities and\nprospects, the launch of new products and services, general economic\nconditions, competition, and BlackBerry's expectations regarding its financial\nperformance. Many factors could cause BlackBerry's actual results, performance\nor achievements to differ materially from those expressed or implied by the\nforward-looking statements, including, without limitation, risks related to\nthe following factors: BlackBerry's ability to maintain or expand its customer\nbase for its software and services offerings to grow revenue or achieve\nsustained profitability; the intense competition faced by BlackBerry;\nBlackBerry's ability to enhance, develop, introduce or monetize its products\nand services in a timely manner with competitive pricing, features and\nperformance; significant changes in government customer demand or procurement\nrequirements; BlackBerry's sales cycles and the time and expense of its sales\nefforts; the occurrence or perception of a breach of BlackBerry's network\ncybersecurity measures, or an inappropriate disclosure of confidential or\npersonal information; BlackBerry's use of artificial intelligence technology\nand tools in its operations and in product development; adverse macroeconomic\nand geopolitical conditions, including trade policies and national security\nconcerns; risks arising from a failure or perceived failure of the security\nfeatures or functionality of BlackBerry's solutions; litigation against\nBlackBerry; BlackBerry's continuing ability to attract new personnel, retain\nexisting key personnel and manage its staffing effectively; network\ndisruptions or other business interruptions; BlackBerry's ability to foster an\necosystem of third-party application developers; BlackBerry's dependence in\npart on its relationships with resellers and channel partners; BlackBerry's\nproducts and services being dependent upon interoperability with rapidly\nchanging systems provided by third parties; failure to protect BlackBerry's\nintellectual property and to earn expected revenues from intellectual property\nrights; BlackBerry's use of open source software and its ability to obtain\nrights to use third-party software; BlackBerry potentially being found to have\ninfringed on the intellectual property rights of others; BlackBerry's\nindebtedness, which could impact its operating flexibility and financial\ncondition; the asset risk faced by BlackBerry, including the potential for\ncharges related to its long-lived assets and goodwill; tax provision changes,\nthe adoption of new tax legislation or exposure to additional tax liabilities;\nthe use and management of user data and personal information; government\nregulations applicable to BlackBerry's products and services, including\nproducts containing encryption capabilities; environmental, social and\ngovernance expectations and standards; the failure of BlackBerry's suppliers,\nsubcontractors, channel partners and representatives to use acceptable ethical\nbusiness practices or comply with applicable laws; potential impacts of\nacquisitions, divestitures and other business initiatives; risks associated\nwith foreign operations, including fluctuations in foreign currencies;\nenvironmental events; the fluctuation of BlackBerry's quarterly revenue and\noperating results; and the volatility of the market price of BlackBerry's\ncommon shares.\n\nThese risk factors and others relating to BlackBerry are discussed in greater\ndetail in BlackBerry's Annual Report on Form 10-K and the \"Cautionary Note\nRegarding Forward-Looking Statements\" section of BlackBerry's MD&A (copies of\nwhich filings may be obtained at www.sedarplus.ca or www.sec.gov). All of\nthese factors should be considered carefully, and readers should not place\nundue reliance on BlackBerry's forward-looking statements. Any statements that\nare forward-looking statements are intended to enable BlackBerry's\nshareholders to view the anticipated performance and prospects of BlackBerry\nfrom management's perspective at the time such statements are made, and they\nare subject to the risks that are inherent in all forward-looking statements,\nas described above, as well as difficulties in forecasting BlackBerry's\nfinancial results and performance for future periods, particularly over longer\nperiods, given changes in technology and BlackBerry's business strategy,\nevolving industry standards, intense competition and short product life cycles\nthat characterize the industries in which BlackBerry operates. Any\nforward-looking statements are made only as of today and BlackBerry has no\nintention and undertakes no obligation to update or revise any of them, except\nas required by law.\n\nBlackBerry Limited\nIncorporated under the Laws of Ontario\n(United States dollars, in millions except share and per share amounts)\n\nConsolidated Statements of Operations\n\n Three Months Ended Six Months Ended \n August 31, 2026 May 31, 2026 August 31, 2025 August 31, 2026 August 31, 2025 \n Revenue $ 163.3 $ 152.9 $ 129.6 $ 316.2 $ 251.3 \n Cost of sales 36.2 33.2 33.0 69.4 64.4 \n Gross margin 127.1 119.7 96.6 246.8 186.9 \n Gross margin % 77.8 % 78.3 % 74.5 % 78.1 % 74.4 % \n Operating expenses \n Research and development 33.2 33.0 25.6 66.2 50.6 \n Sales and marketing 25.3 29.5 24.4 54.8 53.1 \n General and administrative 31.8 39.3 31.5 71.1 62.0 \n Amortization 2.5 2.5 3.1 5.0 7.1 \n Impairment of long-lived assets 0.7 0.1 0.5 0.8 0.6 \n 93.5 104.4 85.1 197.9 173.4 \n Operating income 33.6 15.3 11.5 48.9 13.5 \n Investment income, net 1.6 1.1 1.9 2.7 4.8 \n Income before income tax 35.2 16.4 13.4 51.6 18.3 \n Provision for income taxes 1.3 7.9 0.1 9.2 3.1 \n Net income $ 33.9 $ 8.5 $ 13.3 $ 42.4 $ 15.2 \n Earnings per share \n Basic $ 0.06 $ 0.01 $ 0.02 $ 0.07 $ 0.03 \n Diluted $ 0.05 $ 0.01 $ 0.02 $ 0.07 $ 0.03 \n \n Weighted-average number of common shares outstanding (000s) \n Basic 586,627 586,741 592,938 586,684 594,624 \n Diluted 649,655 593,193 597,369 647,541 598,697 \n Total common shares outstanding (000s) 587,032 586,061 590,361 587,032 590,361 \n\nBlackBerry Limited\nIncorporated under the Laws of Ontario\n(United States dollars, in millions)\n\nConsolidated Balance Sheets\n\n As at \n August 31, 2026 February 28, 2026 \n Assets \n Current \n Cash and cash equivalents $ 266.2 $ 274.7 \n Short-term investments 111.3 85.2 \n Accounts receivable, net of allowance of $1.3 and $1.0, respectively 141.0 156.0 \n Other receivables 4.5 7.5 \n Income taxes receivable 2.4 2.6 \n Other current assets 36.5 42.2 \n 561.9 568.2 \n Restricted cash equivalents 14.1 14.2 \n Long-term investments 55.5 58.3 \n Other long-term assets 73.8 56.3 \n Operating lease right-of-use assets, net 22.6 16.7 \n Property, plant and equipment, net 12.2 12.3 \n Intangible assets, net 44.9 40.1 \n Goodwill 478.0 479.1 \n $ 1,263.0 $ 1,245.2 \n Liabilities \n Current \n Accounts payable $ 8.6 $ 5.5 \n Accrued liabilities 101.5 111.7 \n Income taxes payable 9.8 12.4 \n Deferred revenue, current 116.6 138.5 \n 236.5 268.1 \n Deferred revenue, non-current 11.8 14.1 \n Operating lease liabilities 23.9 18.8 \n Other long-term liabilities 2.1 1.7 \n Long-term notes 197.1 196.5 \n 471.4 499.2 \n Shareholders' equity \n Capital stock and additional paid-in capital 2,926.8 2,924.4 \n Deficit (2,121.9 ) (2,167.2 ) \n Accumulated other comprehensive loss (13.3 ) (11.2 ) \n 791.6 746.0 \n $ 1,263.0 $ 1,245.2 \n\nBlackBerry Limited\nIncorporated under the Laws of Ontario\n(United States dollars, in millions)\n\nConsolidated Statements of Cash Flows\n\n Six Months Ended \n August 31, 2026 August 31, 2025 \n Cash flows from operating activities \n Net income $ 42.4 $ 15.2 \n Adjustments to reconcile net income to net cash provided by (used in) operating activities: \n Amortization 8.2 10.3 \n Stock-based compensation 14.0 11.6 \n Impairment of long-lived assets 0.8 0.6 \n Non-cash consideration received from contracts with customer (6.7 ) - \n Operating leases (0.8 ) (5.7 ) \n Other 2.4 (0.3 ) \n Net changes in working capital items \n Accounts receivable, net of allowance 15.0 48.7 \n Other receivables 5.3 (0.3 ) \n Income taxes receivable 0.2 (1.0 ) \n Other assets (13.1 ) 16.0 \n Accounts payable 3.8 (27.1 ) \n Accrued liabilities (10.8 ) (38.5 ) \n Income taxes payable (2.6 ) (11.7 ) \n Deferred revenue (24.2 ) (31.9 ) \n Net cash provided by (used in) operating activities 33.9 (14.1 ) \n Cash flows from investing activities \n Proceeds on sale, maturity or distribution from long-term investments - 0.1 \n Acquisition of property, plant and equipment (4.1 ) (1.7 ) \n Acquisition of intangible assets (3.0 ) (2.6 ) \n Acquisition of short-term investments (174.9 ) (34.7 ) \n Proceeds on sale or maturity of short-term investments 148.8 91.7 \n Net cash provided by (used in) investing activities (33.2 ) 52.8 \n Cash flows from financing activities \n Issuance of common shares 1.3 1.2 \n Common shares repurchased (10.0 ) (30.0 ) \n Net cash used in financing activities (8.7 ) (28.8 ) \n Effect of foreign exchange gain (loss) on cash, cash equivalents, and restricted cash equivalents (0.6 ) 0.4 \n Net increase (decrease) in cash, cash equivalents, and restricted cash equivalents during the period (8.6 ) 10.3 \n Cash, cash equivalents, and restricted cash equivalents, beginning of period 288.9 280.3 \n Cash, cash equivalents, and restricted cash equivalents, end of period $ 280.3 $ 290.6 \n\n \n As at August 31, 2026 February 28, 2026 \n Cash and cash equivalents $ 266.2 $ 274.7 \n Restricted cash equivalents 14.1 14.2 \n Short-term investments 111.3 85.2 \n Long-term investments 55.5 58.3 \n $ 447.1 $ 432.4 \n\nReconciliations of the Company's Segment Results and Segment Adjusted EBITDA\nto the Consolidated Results\n\nThe following tables show information by operating segments for the three and\nsix months ended August 31, 2026 and August 31, 2025. The Company reports\nsegment information in accordance with U.S. GAAP, pursuant to the Financial\nAccounting Standards Board's Accounting Standard Codification Topic 280,\nSegment Reporting, based on the \"management\" approach. The management approach\ndesignates the internal reporting used by the Chief Operating Decision Maker\n(\"CODM\") for making decisions and assessing performance of the Company's\nreportable operating segments. The measure of segment profit or loss disclosed\nby the Company in the Consolidated Financial Statements under the \"management\"\napproach in reviewing the results of the Company's operating segments is\nsegment adjusted gross margin. Additionally, the following tables include the\nadditional measures of segment profit or loss used by the CODM which is\nsegment adjusted EBITDA, a non-GAAP financial measure, which excludes amounts\nrelated to investment income, taxes, amortization, restructuring charges,\nstock compensation expenses and long-lived asset impairment charge. For the\nthree and six months ended August 31, 2026, the Company presented segment\nadjusted EBITDA results excluding amortization in segment research and\ndevelopment, segment sales and marketing and segment general and\nadministrative to align to the operating expense presentation on the\nConsolidated Statement of Operations. For purposes of comparability, the\nCompany's segment adjusted EBITDA for the three and six months ended August\n31, 2025 has been updated to conform to the current year's presentation. See\nNote 10 to the Consolidated Financial Statements for a description of the\nCompany's operating segments.\n\n For the Three Months Ended \n (in millions) \n QNX Secure Communications Licensing \n August 31, Change August 31, Change August 31, Change \n 2026 2025 2026 2025 2026 2025 \n Segment revenue $ 80.3 $ 63.1 $ 17.2 $ 60.9 $ 59.9 $ 1.0 $ 22.1 $ 6.6 $ 15.5 \n Segment cost of sales 10.6 10.7 (0.1 ) 23.5 20.2 3.3 1.5 1.5 - \n Segment adjusted gross margin $ 69.7 $ 52.4 $ 17.3 $ 37.4 $ 39.7 $ (2.3 ) $ 20.6 $ 5.1 $ 15.5 \n Segment research and development 19.6 13.0 6.6 11.8 11.0 0.8 - - - \n Segment sales and marketing 12.4 10.7 1.7 11.1 12.1 (1.0 ) - - - \n Segment general and administrative 8.7 8.2 0.5 6.6 6.9 (0.3 ) 2.1 0.9 1.2 \n Less amortization included in segment cost of sales - - - 0.1 - 0.1 1.5 1.4 0.1 \n Segment adjusted EBITDA $ 29.0 $ 20.5 $ 8.5 $ 8.0 $ 9.7 $ (1.7 ) $ 20.0 $ 5.6 $ 14.4 \n \n For the Six Months Ended \n (in millions) \n QNX Secure Communications Licensing \n August 31, Change August 31, Change August 31, Change \n 2026 2025 2026 2025 2026 2025 \n Segment revenue $ 152.6 $ 120.6 $ 32.0 $ 134.5 $ 119.4 $ 15.1 $ 29.1 $ 11.3 $ 17.8 \n Segment cost of sales 21.0 21.9 (0.9 ) 44.3 38.3 6.0 3.0 3.1 (0.1 ) \n Segment adjusted gross margin $ 131.6 $ 98.7 $ 32.9 $ 90.2 $ 81.1 $ 9.1 $ 26.1 $ 8.2 $ 17.9 \n Segment research and development 38.5 25.3 13.2 24.4 22.2 2.2 - - - \n Segment sales and marketing 28.0 23.9 4.1 23.4 25.7 (2.3 ) - - - \n Segment general and administrative 16.8 16.3 0.5 14.4 14.0 0.4 2.9 1.8 1.1 \n Less amortization included in segment cost of sales - - - 0.2 0.1 0.1 3.0 3.0 - \n Segment adjusted EBITDA $ 48.3 $ 33.2 $ 15.1 $ 28.2 $ 19.3 $ 8.9 $ 26.2 $ 9.4 $ 16.8 \n\nReconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP\nMeasures\n\nIn the Company's internal reports, management evaluates the performance of the\nCompany's business on a non-GAAP basis by excluding the impact of certain\nitems from the Company's U.S. GAAP financial results. The Company believes\nthat these non-GAAP financial measures and non-GAAP ratios provide management,\nas well as readers of the Company's financial statements, with a consistent\nbasis for comparison across accounting periods and are useful in helping\nmanagement and readers understand the Company's operating results and\nunderlying operational trends. Beginning with the fiscal quarter ended May 31,\n2026, the Company has included deferred share units revaluation adjustment as\na non-GAAP adjustment and has applied this adjustment to comparative period.\n\nReaders are cautioned that adjusted gross margin, adjusted gross margin\npercentage, adjusted operating expenses, adjusted net income, adjusted basic\nearnings per share, adjusted research and development expense, adjusted sales\nand marketing expense, adjusted general and administrative expense, adjusted\namortization expense, adjusted operating income, adjusted EBITDA, segment\nadjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA\nmargin percentage and free cash flow (usage) and similar measures do not have\nany standardized meaning prescribed by U.S. GAAP and are therefore unlikely to\nbe comparable to similarly titled measures reported by other companies.\n\nReconciliation of non-GAAP based measures with most directly comparable U.S.\nGAAP based measures for the three months ended August 31, 2026 and August 31,\n2025\n\nA reconciliation of the most directly comparable U.S. GAAP gross margin and\ngross margin percentage for the three months ended August 31, 2026 and August\n31, 2025 to both adjusted gross margin and adjusted gross margin percentage is\nreflected in the table below:\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 \n Gross margin $ 127.1 $ 96.6 \n Stock compensation expenses 0.6 0.6 \n Adjusted gross margin $ 127.7 $ 97.2 \n \n Gross margin % 77.8 % 74.5 % \n Stock compensation expenses 0.4 % 0.5 % \n Adjusted gross margin % 78.2 % 75.0 % \n\nReconciliation of U.S. GAAP operating expenses for the three months ended\nAugust 31, 2026, and August 31, 2025 to adjusted operating expenses is\nreflected in the table below:\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 \n Operating expenses $ 93.5 $ 85.1 \n Restructuring charges 2.7 3.4 \n Stock compensation expenses 6.9 5.3 \n Acquired intangibles amortization - 1.1 \n LLA impairment charge 0.7 0.5 \n Deferred share units revaluation adjustment (1.6 ) - \n Adjusted operating expenses $ 84.8 $ 74.8 \n\nReconciliation of U.S. GAAP net income and U.S. GAAP basic earnings per share\nfor the three months ended August 31, 2026 and August 31, 2025 to adjusted net\nincome and adjusted basic earnings per share is reflected in the table below:\n\n For the Three Months Ended (in millions, except per share amounts) August 31, 2026 August 31, 2025 \n Basic Basic earnings per share \n earnings per share \n Net income $ 33.9 $ 0.06 $ 13.3 $ 0.02 \n Restructuring charges 2.7 3.4 \n Stock compensation expenses 7.5 5.9 \n Acquired intangibles amortization - 1.1 \n LLA impairment charge 0.7 0.5 \n Deferred share units revaluation adjustment (1.6 ) - \n Adjusted net income $ 43.2 $ 0.07 $ 24.2 $ 0.04 \n\nReconciliation of U.S. GAAP research and development, sales and marketing,\ngeneral and administrative, and amortization expense for the three months\nended August 31, 2026 and August 31, 2025 to adjusted research and\ndevelopment, sales and marketing, general and administrative, and amortization\nexpense is reflected in the table below:\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 \n Research and development $ 33.2 $ 25.6 \n Stock compensation expenses 1.6 1.4 \n Adjusted research and development expense $ 31.6 $ 24.2 \n \n Sales and marketing $ 25.3 $ 24.4 \n Stock compensation expenses 1.4 1.3 \n Adjusted sales and marketing expense $ 23.9 $ 23.1 \n \n General and administrative $ 31.8 $ 31.5 \n Restructuring charges 2.7 3.4 \n Stock compensation expenses 3.9 2.6 \n Deferred share units revaluation adjustment (1.6 ) - \n Adjusted general and administrative expense $ 26.8 $ 25.5 \n \n Amortization $ 2.5 $ 3.1 \n Acquired intangibles amortization - 1.1 \n Adjusted amortization expense $ 2.5 $ 2.0 \n\nReconciliation of U.S. GAAP operating income to adjusted operating income,\nadjusted EBITDA, adjusted operating income margin percentage and adjusted\nEBITDA margin percentage for the three months ended August 31, 2026 and August\n31, 2025 is reflected in the table below.\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 \n Operating income $ 33.6 $ 11.5 \n Non-GAAP adjustments to operating income \n Restructuring charges 2.7 3.4 \n Stock compensation expenses 7.5 5.9 \n Acquired intangibles amortization - 1.1 \n LLA impairment charge 0.7 0.5 \n Deferred share units revaluation adjustment (1.6 ) - \n Total non-GAAP adjustments to operating income 9.3 10.9 \n Adjusted operating income 42.9 22.4 \n Amortization 4.1 4.6 \n Acquired intangibles amortization - (1.1 ) \n Adjusted EBITDA $ 47.0 $ 25.9 \n \n Revenue $ 163.3 $ 129.6 \n Adjusted operating income margin % ((1)) 26 % 17 % \n Adjusted EBITDA margin % ((2)) 29 % 20 % \n\n((1)) Adjusted operating income margin % is calculated by dividing adjusted\noperating income by revenue.\n((2)) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by\nrevenue.\n\nThe CODM also uses segment adjusted EBITDA, which is a non-GAAP measure\nincluding segment expenses that exclude amounts related to investment income,\ntaxes, amortization, restructuring charges, stock compensation expenses and\nlong-lived asset impairment. The following table reconciles the U.S. GAAP\nmeasures of segment profit or loss disclosed by the Company in the\nConsolidated Financial Statements from segment adjusted gross margin to\nsegment adjusted EBITDA for the three months ended August 31, 2026 and August\n31, 2025.\n\n For the Three Months Ended \n (in millions) \n QNX Secure Communications Licensing \n August 31, August 31, August 31, \n 2026 2025 2026 2025 2026 2025 \n Segment adjusted gross margin $ 69.7 $ 52.4 $ 37.4 $ 39.7 $ 20.6 $ 5.1 \n Segment research and development 19.6 13.0 11.8 11.0 - - \n Segment sales and marketing 12.4 10.7 11.1 12.1 - - \n Segment general and administrative 8.7 8.2 6.6 6.9 2.1 0.9 \n Less amortization included in segment cost of sales - - 0.1 - 1.5 1.4 \n Segment adjusted EBITDA $ 29.0 $ 20.5 $ 8.0 $ 9.7 $ 20.0 $ 5.6 \n\nReconciliation of non-GAAP based measures with most directly comparable U.S.\nGAAP based measures for the six months ended August 31, 2026 and August 31,\n2025.\n\nA reconciliation of the most directly comparable U.S. GAAP gross margin and\ngross margin percentage for the six months ended August 31, 2026 and August\n31, 2025 to both adjusted gross margin and adjusted gross margin percentage is\nreflected in the table below:\n\n For the Six Months Ended (in millions) August 31, 2026 August 31, 2025 \n Gross margin $ 246.8 $ 186.9 \n Stock compensation expenses 1.1 1.1 \n Adjusted gross margin $ 247.9 $ 188.0 \n \n Gross margin % 78.1 % 74.4 % \n Stock compensation expenses 0.3 % 0.4 % \n Adjusted gross margin % 78.4 % 74.8 % \n\nReconciliation of U.S. GAAP operating expenses for the six months ended August\n31, 2026 and August 31, 2025 to adjusted operating expenses is reflected in\nthe table below:\n\n For the Six Months Ended (in millions) August 31, 2026 August 31, 2025 \n Operating expenses $ 197.9 $ 173.4 \n Restructuring charges 3.0 6.3 \n Stock compensation expenses 12.9 10.5 \n Acquired intangibles amortization - 2.8 \n LLA impairment charge 0.8 0.6 \n Deferred share units revaluation adjustment 8.4 (1.5 ) \n Adjusted operating expenses $ 172.8 $ 154.7 \n\nReconciliation of U.S. GAAP net income and U.S. GAAP basic earnings per share\nfor the six months ended August 31, 2026 and August 31, 2025 to adjusted net\nincome and adjusted basic earnings per share is reflected in the table below:\n\n For the Six Months Ended (in millions, except per share amounts) August 31, 2026 August 31, 2025 \n Basic earnings per share Basic earnings per share \n Net income $ 42.4 $ 0.07 $ 15.2 $ 0.03 \n Restructuring charges 3.0 6.3 \n Stock compensation expenses 14.0 11.6 \n Acquired intangibles amortization - 2.8 \n LLA impairment charge 0.8 0.6 \n Deferred share units revaluation adjustment 8.4 (1.5 ) \n Adjusted net income $ 68.6 $ 0.12 $ 35.0 $ 0.06 \n\nReconciliation of U.S. GAAP research and development, sales and marketing,\ngeneral and administrative, and amortization expense for the six months ended\nAugust 31, 2026 and August 31, 2025 to adjusted research and development,\nsales and marketing, general and administrative, and amortization expense is\nreflected in the table below:\n\n For the Six Months Ended (in millions) August 31, 2026 August 31, 2025 \n Research and development $ 66.2 $ 50.6 \n Stock compensation expenses 3.1 2.7 \n Adjusted research and development expense $ 63.1 $ 47.9 \n \n Sales and marketing $ 54.8 $ 53.1 \n Stock compensation expenses 2.5 2.7 \n Adjusted sales and marketing expense $ 52.3 $ 50.4 \n \n General and administrative $ 71.1 $ 62.0 \n Restructuring charges 3.0 6.3 \n Stock compensation expenses 7.3 5.1 \n Deferred share units revaluation adjustment 8.4 (1.5 ) \n Adjusted general and administrative expense $ 52.4 $ 52.1 \n \n Amortization $ 5.0 $ 7.1 \n Acquired intangibles amortization - 2.8 \n Adjusted amortization expense $ 5.0 $ 4.3 \n\nReconciliation of U.S. GAAP operating income to adjusted operating income,\nadjusted EBITDA, adjusted operating income margin percentage and adjusted\nEBITDA margin percentage for the six months ended August 31, 2026 and August\n31, 2025 are reflected in the table below.\n\n For the Six Months Ended (in millions) August 31, 2026 August 31, 2025 \n Operating income $ 48.9 $ 13.5 \n Non-GAAP adjustments to operating income \n Restructuring charges 3.0 6.3 \n Stock compensation expense 14.0 11.6 \n Acquired intangibles amortization - 2.8 \n LLA impairment charge 0.8 0.6 \n Deferred share units revaluation adjustment 8.4 (1.5 ) \n Total non-GAAP adjustments to operating income 26.2 19.8 \n Adjusted operating income 75.1 33.3 \n Amortization 8.2 10.3 \n Acquired intangibles amortization - (2.8 ) \n Adjusted EBITDA $ 83.3 $ 40.8 \n \n Revenue $ 316.2 $ 251.3 \n Adjusted operating income margin % ((1)) 24 % 13 % \n Adjusted EBITDA margin % ((2)) 26 % 16 % \n\n((1)) Adjusted operating income margin % is calculated by dividing adjusted\noperating income by revenue.\n((2)) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by\nrevenue.\n\nThe CODM also uses segment adjusted EBITDA, which is a non-GAAP measure\nincluding segment expenses that exclude amounts related to investment income,\ntaxes, amortization, restructuring charges, stock compensation expenses and\nlong-lived asset impairment. The following table reconciles the U.S. GAAP\nmeasures of segment profit or loss disclosed by the Company in the\nConsolidated Financial Statements from segment adjusted gross margin to\nsegment adjusted EBITDA for the six months ended August 31, 2026 and August\n31, 2025.\n\n For the Six Months Ended \n (in millions) \n QNX Secure Communications Licensing \n August 31, August 31, August 31, \n 2026 2025 2026 2025 2026 2025 \n Segment adjusted gross margin $ 131.6 $ 98.7 $ 90.2 $ 81.1 $ 26.1 $ 8.2 \n Segment research and development 38.5 25.3 24.4 22.2 - - \n Segment sales and marketing 28.0 23.9 23.4 25.7 - - \n Segment general and administrative 16.8 16.3 14.4 14.0 2.9 1.8 \n Less amortization included in segment cost of sales - - 0.2 0.1 3.0 3.0 \n Segment adjusted EBITDA $ 48.3 $ 33.2 $ 28.2 $ 19.3 $ 26.2 $ 9.4 \n\nFree cash flow (usage)\n\nThe Company uses free cash flow (usage) when assessing its sources of\nliquidity, capital resources, and quality of earnings. The Company believes\nthat free cash flow (usage) is helpful in understanding the Company's capital\nrequirements and provides an additional means to reflect the cash flow (usage)\ntrends in the Company's business.\n\nReconciliation of U.S. GAAP net cash provided by (used in) operating\nactivities for the three and six months ended August 31, 2026 and August 31,\n2025 to free cash flow (usage) is reflected in the table below:\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 \n Net cash provided by operating activities $ 29.3 $ 3.4 \n Acquisition of property, plant and equipment (1.2 ) (0.8 ) \n Free cash flow $ 28.1 $ 2.6 \n\n For the Six Months Ended (in millions) August 31, 2026 August 31, 2025 \n Net cash provided by (used in) operating activities $ 33.9 $ (14.1 ) \n Acquisition of property, plant and equipment (4.1 ) (1.7 ) \n Free cash flow (usage) $ 29.8 $ (15.8 ) \n\nKey Metrics\n\nThe Company regularly monitors a number of financial and operating metrics,\nincluding the following key metrics, in order to measure the Company's current\nperformance and estimated future performance. Readers are cautioned that\nSecure Communications annual recurring revenue (\"ARR\") and Secure\nCommunications dollar-based net retention rate (\"DBNRR\") do not have any\nstandardized meaning and are unlikely to be comparable to similarly titled\nmeasures reported by other companies.\n\nComparative breakdowns of certain key metrics for the three months ended or as\nat August 31, 2026 and August 31, 2025 are set forth below:\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 Change \n Secure Communications Annual Recurring Revenue $ 221 $ 213 $ 8 \n Secure Communications Dollar-Based Net Retention Rate 91 % 93 % (2 %) \n\nSOURCE: BlackBerry\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/computers-technology-and-internet/blackberry-reports-second-quarter-fiscal-year-2027-results-1226125)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nACSHzNwTa-20260924","title":"BlackBerry Reports Second Quarter Fiscal Year 2027 Results","author":"ACCESSWIRE","ticker":"BB","created":"2026-09-24T10:58:00.861Z","tickers":["BB"],"exchange":"NYSE","article_body":"WATERLOO, ON / ACCESS Newswire (https://www.accessnewswire.com/) / September\n24, 2026 / BlackBerry Limited (https://pr.report/qpox) (NYSE:BB)(TSX:BB) today\nreported financial results for the three months ended August 31, 2026 (all\nfigures in U.S. dollars and U.S. GAAP, except where otherwise indicated).\n\n\"Our strong second quarter performance provides further evidence that\nBlackBerry's profitable growth model is working, with revenue, profitability,\nand cash flow generation all exceeding our expectations,\" said John J.\nGiamatteo, CEO, BlackBerry. \"QNX delivered record performance in the quarter,\ndriven by strength in our core automotive business. The first Alloy Kore\ndesign win, the largest design win in QNX history, marks an important\ncommercial milestone. We also continue to build momentum beyond automotive in\nthe General Embedded Markets and Physical AI. Secure Communications remained a\nstable and profitable contributor following a particularly strong first\nquarter. As we enter the second half of the year, we remain focused on\ndisciplined execution, investing behind our growth opportunities, and\nleveraging the strength of our balance sheet to create long-term value for our\nshareholders.\"\n\nSecond Quarter Fiscal 2027 Financial Highlights\n* Total company revenue of $163.3 million increased 26% year-over-year.\n* Total company adjusted gross margin improved 3 percentage points\nyear-over-year to 78.2%; GAAP gross margin improved by 3 percentage points\nyear-over-year to 77.8%.\n* Total company adjusted EBITDA increased by $21.1 million year-over-year to\n$47.0 million, 81%; GAAP operating income improved by $22.1 million\nyear-over-year to $33.6 million, or 192%.\n* QNX revenue increased 27% year-over-year to $80.3 million; QNX segment\nadjusted gross margin expanded by 4 percentage points year-over-year to 87%.\n* QNX segment adjusted EBITDA increased 41% year-over-year to $29.0 million,\nrepresenting a 36% margin.\n* Secure Communications revenue increased by 2% year-over-year to $60.9\nmillion; Secure Communications segment adjusted gross margin decreased by 5\npercentage points year-over-year to 61%.\n* Secure Communications segment adjusted EBITDA decreased 18% year-over-year\nto $8.0 million, representing a 13% margin.\n* Secure Communications ARR remained stable at $221 million and DBNRR was 91%.\n* Licensing revenue was $22.1 million; Licensing segment adjusted EBITDA was\n$20.0 million.\n* Adjusted net income increased 79% year-over-year to $43.2 million; GAAP net\nincome was positive for the sixth consecutive quarter at $33.9 million.\n* Adjusted basic earnings per share was $0.07; GAAP basic earnings per share\nwas $0.06.\n* Operating cash flow for the second quarter was $29.3 million, an improvement\nof $25.9 million from the $3.4 million cash provided in the prior-year\nquarter.\n* Ended the second quarter with $447.1 million in cash and investments.\n(1) The company defines the Rule of 40 metric as the sum of its GAAP revenue\nyear-over-year growth percentage and its non-GAAP adjusted EBITDA margin\npercentage. Where the sum equals or exceeds 40, then the Rule of 40 is\nconsidered to have been achieved.\n\nBusiness Highlights & Strategic Announcements\n* Coretura, the joint venture between Volvo Group and Daimler Truck, has\nchosen Alloy Kore for its next-generation commercial vehicle software\nplatform. This first Alloy Kore design win is the largest in QNX history and\nadds over $100 million to the QNX royalty backlog.\n* Momenta and XHEART selected QNX OS for Safety, built on SDP 8.0, as the\nfoundation for a production-ready Physical AI-defined autonomous-driving\nplatform certified to ISO 26262 ASIL D.\n* QNX added support for the Hailo-8 AI Accelerator on SDP 8.0, expanding its\nPhysical AI ecosystem; benchmark testing demonstrated higher throughput, lower\nlatency, low power consumption and heat, and significantly greater consistency\nthan the real-time Linux environment tested.\n* BlackBerry(®) SecuSUITE(®) renewed its NIAP Common Criteria certification,\nreinforcing its sovereign-grade security credentials and position in\ngovernment and mission-critical communications.\n* BlackBerry(®) AtHoc(®) added Microsoft Teams and Entra ID integrations,\nstrengthening mission-critical response and operational resilience for\nenterprise and government customers.\nFinancial Outlook\n\nBlackBerry is providing the following guidance for the third fiscal quarter\nending November 30, 2026 and the fiscal year ending February 28, 2027.\n\n Q3 FY27 FY27 \n Total BlackBerry revenue: $143 - $154 million $616- $636 million \n QNX revenue: $82 - $88 million $315 - $325 million \n Secure Communications revenue: $55 - $60 million $260 - $270 million \n Licensing revenue: Approximately $6 million Approximately $41 million \n Total Company adjusted EBITDA: $28 - $37 million $141 - $158 million \n QNX segment adjusted EBITDA: $27 - $32 million $95 - $105 million \n Secure Communications segment adjusted EBITDA: $6 - $10 million $50 - $58 million \n Licensing segment adjusted EBITDA: Approximately $5 million Approximately $36 million \n Adjusted basic EPS (2): $0.04 - $0.05 $0.19 - $0.22 \n Operating cash flow $20 - $30 million Approximately $115 million \n\n(2) EPS guidance does not include the effect of any potential future share\nrepurchases not yet completed as of the date of this release.\n\nUse of Non-GAAP Financial Measures\n\nThe tables at the end of this press release include a reconciliation of the\nnon-GAAP financial measures and non-GAAP financial ratios used by the Company\nto comparable U.S. GAAP measures and an explanation of why the Company uses\nthem. The Company does not provide a reconciliation of expected Adjusted\nEBITDA and expected Adjusted basic EPS for the third quarter and full fiscal\nyear 2027 to the most directly comparable expected GAAP measures because it is\nunable to predict with reasonable certainty, among other things, restructuring\ncharges and impairment charges and, accordingly, a reconciliation is not\navailable without unreasonable effort. These items are uncertain, depend on\nvarious factors, and could have a material impact on GAAP reported results for\nthe guidance period. For more information on the non-GAAP financial measures,\nplease refer to the tables at the end of this press release.\n\nConference Call and Webcast\nA conference call and live webcast will be held today beginning at 8:00 a.m.\nET, which can be accessed\n\nusing the following link (here (https://pr.report/qpoy)) or through the\nCompany's investor webpage (BlackBerry.com/Investors (https://pr.report/qpoz))\nor by dialing toll free +1 (877) 883-0383 and entering Entry Number 5340355.\n\nA replay of the conference call will be available at approximately one hour\nafter the event using the same webcast link (here (https://pr.report/qpp0)) or\nby dialing toll free +1 (855) 669-9658 and entering Replay Access Code\n2584952.\n\nAbout BlackBerry\nBlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the\nintelligent software and services that power the world around us. Based in\nWaterloo, Ontario, the company's high-performance foundational software\nenables major automakers and industrial giants alike to unlock transformative\napplications, drive new revenue streams and launch innovative business models,\nall without sacrificing safety, security, and reliability. With a deep\nheritage in Secure Communications, BlackBerry delivers operational resiliency\nwith a comprehensive, highly secure, and extensively certified portfolio for\nmobile fortification, mission-critical communications, and critical events\nmanagement.\n\nBlackBerry. Safe. Certified. Secure\n\nFor more information, visit BlackBerry.com (https://pr.report/qpp1) and follow\n@BlackBerry.\n\nTrademarks, including but not limited to BLACKBERRY and EMBLEM Design are the\ntrademarks or registered trademarks of BlackBerry Limited, and the exclusive\nrights to such trademarks are expressly reserved. All other trademarks are the\nproperty of their respective owners. BlackBerry is not responsible for any\nthird-party products or services.\n\nInvestor Contact:\nBlackBerry Investor Relations\n+1 (519) 888-7465\ninvestorrelations@blackberry.com\n\nMedia Contact:\nBlackBerry Media Relations\n+1 (519) 597-7273\nmediarelations@blackberry.com\n\n###\n\nThis news release contains forward-looking statements within the meaning of\ncertain securities laws, including under the U.S. Private Securities\nLitigation Reform Act of 1995 and applicable Canadian securities laws,\nincluding statements regarding BlackBerry's plans, strategies and objectives.\n\nThe words \"expect\", \"anticipate\", \"estimate\", \"may\", \"will\", \"should\",\n\"could\", \"intend\", \"believe\", \"target\", \"plan\" and similar expressions are\nintended to identify these forward-looking statements. Forward-looking\nstatements are based on estimates and assumptions made by BlackBerry in light\nof its experience and its perception of historical trends, current conditions\nand expected future developments, as well as other factors that BlackBerry\nbelieves are appropriate in the circumstances, including but not limited to,\nBlackBerry's expectations regarding its business, strategy, opportunities and\nprospects, the launch of new products and services, general economic\nconditions, competition, and BlackBerry's expectations regarding its financial\nperformance. Many factors could cause BlackBerry's actual results, performance\nor achievements to differ materially from those expressed or implied by the\nforward-looking statements, including, without limitation, risks related to\nthe following factors: BlackBerry's ability to maintain or expand its customer\nbase for its software and services offerings to grow revenue or achieve\nsustained profitability; the intense competition faced by BlackBerry;\nBlackBerry's ability to enhance, develop, introduce or monetize its products\nand services in a timely manner with competitive pricing, features and\nperformance; significant changes in government customer demand or procurement\nrequirements; BlackBerry's sales cycles and the time and expense of its sales\nefforts; the occurrence or perception of a breach of BlackBerry's network\ncybersecurity measures, or an inappropriate disclosure of confidential or\npersonal information; BlackBerry's use of artificial intelligence technology\nand tools in its operations and in product development; adverse macroeconomic\nand geopolitical conditions, including trade policies and national security\nconcerns; risks arising from a failure or perceived failure of the security\nfeatures or functionality of BlackBerry's solutions; litigation against\nBlackBerry; BlackBerry's continuing ability to attract new personnel, retain\nexisting key personnel and manage its staffing effectively; network\ndisruptions or other business interruptions; BlackBerry's ability to foster an\necosystem of third-party application developers; BlackBerry's dependence in\npart on its relationships with resellers and channel partners; BlackBerry's\nproducts and services being dependent upon interoperability with rapidly\nchanging systems provided by third parties; failure to protect BlackBerry's\nintellectual property and to earn expected revenues from intellectual property\nrights; BlackBerry's use of open source software and its ability to obtain\nrights to use third-party software; BlackBerry potentially being found to have\ninfringed on the intellectual property rights of others; BlackBerry's\nindebtedness, which could impact its operating flexibility and financial\ncondition; the asset risk faced by BlackBerry, including the potential for\ncharges related to its long-lived assets and goodwill; tax provision changes,\nthe adoption of new tax legislation or exposure to additional tax liabilities;\nthe use and management of user data and personal information; government\nregulations applicable to BlackBerry's products and services, including\nproducts containing encryption capabilities; environmental, social and\ngovernance expectations and standards; the failure of BlackBerry's suppliers,\nsubcontractors, channel partners and representatives to use acceptable ethical\nbusiness practices or comply with applicable laws; potential impacts of\nacquisitions, divestitures and other business initiatives; risks associated\nwith foreign operations, including fluctuations in foreign currencies;\nenvironmental events; the fluctuation of BlackBerry's quarterly revenue and\noperating results; and the volatility of the market price of BlackBerry's\ncommon shares.\n\nThese risk factors and others relating to BlackBerry are discussed in greater\ndetail in BlackBerry's Annual Report on Form 10-K and the \"Cautionary Note\nRegarding Forward-Looking Statements\" section of BlackBerry's MD&A (copies of\nwhich filings may be obtained at www.sedarplus.ca or www.sec.gov). All of\nthese factors should be considered carefully, and readers should not place\nundue reliance on BlackBerry's forward-looking statements. Any statements that\nare forward-looking statements are intended to enable BlackBerry's\nshareholders to view the anticipated performance and prospects of BlackBerry\nfrom management's perspective at the time such statements are made, and they\nare subject to the risks that are inherent in all forward-looking statements,\nas described above, as well as difficulties in forecasting BlackBerry's\nfinancial results and performance for future periods, particularly over longer\nperiods, given changes in technology and BlackBerry's business strategy,\nevolving industry standards, intense competition and short product life cycles\nthat characterize the industries in which BlackBerry operates. Any\nforward-looking statements are made only as of today and BlackBerry has no\nintention and undertakes no obligation to update or revise any of them, except\nas required by law.\n\nBlackBerry Limited\nIncorporated under the Laws of Ontario\n(United States dollars, in millions except share and per share amounts)\n\nConsolidated Statements of Operations\n\n Three Months Ended Six Months Ended \n August 31, 2026 May 31, 2026 August 31, 2025 August 31, 2026 August 31, 2025 \n Revenue $ 163.3 $ 152.9 $ 129.6 $ 316.2 $ 251.3 \n Cost of sales 36.2 33.2 33.0 69.4 64.4 \n Gross margin 127.1 119.7 96.6 246.8 186.9 \n Gross margin % 77.8 % 78.3 % 74.5 % 78.1 % 74.4 % \n Operating expenses \n Research and development 33.2 33.0 25.6 66.2 50.6 \n Sales and marketing 25.3 29.5 24.4 54.8 53.1 \n General and administrative 31.8 39.3 31.5 71.1 62.0 \n Amortization 2.5 2.5 3.1 5.0 7.1 \n Impairment of long-lived assets 0.7 0.1 0.5 0.8 0.6 \n 93.5 104.4 85.1 197.9 173.4 \n Operating income 33.6 15.3 11.5 48.9 13.5 \n Investment income, net 1.6 1.1 1.9 2.7 4.8 \n Income before income tax 35.2 16.4 13.4 51.6 18.3 \n Provision for income taxes 1.3 7.9 0.1 9.2 3.1 \n Net income $ 33.9 $ 8.5 $ 13.3 $ 42.4 $ 15.2 \n Earnings per share \n Basic $ 0.06 $ 0.01 $ 0.02 $ 0.07 $ 0.03 \n Diluted $ 0.05 $ 0.01 $ 0.02 $ 0.07 $ 0.03 \n \n Weighted-average number of common shares outstanding (000s) \n Basic 586,627 586,741 592,938 586,684 594,624 \n Diluted 649,655 593,193 597,369 647,541 598,697 \n Total common shares outstanding (000s) 587,032 586,061 590,361 587,032 590,361 \n\nBlackBerry Limited\nIncorporated under the Laws of Ontario\n(United States dollars, in millions)\n\nConsolidated Balance Sheets\n\n As at \n August 31, 2026 February 28, 2026 \n Assets \n Current \n Cash and cash equivalents $ 266.2 $ 274.7 \n Short-term investments 111.3 85.2 \n Accounts receivable, net of allowance of $1.3 and $1.0, respectively 141.0 156.0 \n Other receivables 4.5 7.5 \n Income taxes receivable 2.4 2.6 \n Other current assets 36.5 42.2 \n 561.9 568.2 \n Restricted cash equivalents 14.1 14.2 \n Long-term investments 55.5 58.3 \n Other long-term assets 73.8 56.3 \n Operating lease right-of-use assets, net 22.6 16.7 \n Property, plant and equipment, net 12.2 12.3 \n Intangible assets, net 44.9 40.1 \n Goodwill 478.0 479.1 \n $ 1,263.0 $ 1,245.2 \n Liabilities \n Current \n Accounts payable $ 8.6 $ 5.5 \n Accrued liabilities 101.5 111.7 \n Income taxes payable 9.8 12.4 \n Deferred revenue, current 116.6 138.5 \n 236.5 268.1 \n Deferred revenue, non-current 11.8 14.1 \n Operating lease liabilities 23.9 18.8 \n Other long-term liabilities 2.1 1.7 \n Long-term notes 197.1 196.5 \n 471.4 499.2 \n Shareholders' equity \n Capital stock and additional paid-in capital 2,926.8 2,924.4 \n Deficit (2,121.9 ) (2,167.2 ) \n Accumulated other comprehensive loss (13.3 ) (11.2 ) \n 791.6 746.0 \n $ 1,263.0 $ 1,245.2 \n\nBlackBerry Limited\nIncorporated under the Laws of Ontario\n(United States dollars, in millions)\n\nConsolidated Statements of Cash Flows\n\n Six Months Ended \n August 31, 2026 August 31, 2025 \n Cash flows from operating activities \n Net income $ 42.4 $ 15.2 \n Adjustments to reconcile net income to net cash provided by (used in) operating activities: \n Amortization 8.2 10.3 \n Stock-based compensation 14.0 11.6 \n Impairment of long-lived assets 0.8 0.6 \n Non-cash consideration received from contracts with customer (6.7 ) - \n Operating leases (0.8 ) (5.7 ) \n Other 2.4 (0.3 ) \n Net changes in working capital items \n Accounts receivable, net of allowance 15.0 48.7 \n Other receivables 5.3 (0.3 ) \n Income taxes receivable 0.2 (1.0 ) \n Other assets (13.1 ) 16.0 \n Accounts payable 3.8 (27.1 ) \n Accrued liabilities (10.8 ) (38.5 ) \n Income taxes payable (2.6 ) (11.7 ) \n Deferred revenue (24.2 ) (31.9 ) \n Net cash provided by (used in) operating activities 33.9 (14.1 ) \n Cash flows from investing activities \n Proceeds on sale, maturity or distribution from long-term investments - 0.1 \n Acquisition of property, plant and equipment (4.1 ) (1.7 ) \n Acquisition of intangible assets (3.0 ) (2.6 ) \n Acquisition of short-term investments (174.9 ) (34.7 ) \n Proceeds on sale or maturity of short-term investments 148.8 91.7 \n Net cash provided by (used in) investing activities (33.2 ) 52.8 \n Cash flows from financing activities \n Issuance of common shares 1.3 1.2 \n Common shares repurchased (10.0 ) (30.0 ) \n Net cash used in financing activities (8.7 ) (28.8 ) \n Effect of foreign exchange gain (loss) on cash, cash equivalents, and restricted cash equivalents (0.6 ) 0.4 \n Net increase (decrease) in cash, cash equivalents, and restricted cash equivalents during the period (8.6 ) 10.3 \n Cash, cash equivalents, and restricted cash equivalents, beginning of period 288.9 280.3 \n Cash, cash equivalents, and restricted cash equivalents, end of period $ 280.3 $ 290.6 \n\n \n As at August 31, 2026 February 28, 2026 \n Cash and cash equivalents $ 266.2 $ 274.7 \n Restricted cash equivalents 14.1 14.2 \n Short-term investments 111.3 85.2 \n Long-term investments 55.5 58.3 \n $ 447.1 $ 432.4 \n\nReconciliations of the Company's Segment Results and Segment Adjusted EBITDA\nto the Consolidated Results\n\nThe following tables show information by operating segments for the three and\nsix months ended August 31, 2026 and August 31, 2025. The Company reports\nsegment information in accordance with U.S. GAAP, pursuant to the Financial\nAccounting Standards Board's Accounting Standard Codification Topic 280,\nSegment Reporting, based on the \"management\" approach. The management approach\ndesignates the internal reporting used by the Chief Operating Decision Maker\n(\"CODM\") for making decisions and assessing performance of the Company's\nreportable operating segments. The measure of segment profit or loss disclosed\nby the Company in the Consolidated Financial Statements under the \"management\"\napproach in reviewing the results of the Company's operating segments is\nsegment adjusted gross margin. Additionally, the following tables include the\nadditional measures of segment profit or loss used by the CODM which is\nsegment adjusted EBITDA, a non-GAAP financial measure, which excludes amounts\nrelated to investment income, taxes, amortization, restructuring charges,\nstock compensation expenses and long-lived asset impairment charge. For the\nthree and six months ended August 31, 2026, the Company presented segment\nadjusted EBITDA results excluding amortization in segment research and\ndevelopment, segment sales and marketing and segment general and\nadministrative to align to the operating expense presentation on the\nConsolidated Statement of Operations. For purposes of comparability, the\nCompany's segment adjusted EBITDA for the three and six months ended August\n31, 2025 has been updated to conform to the current year's presentation. See\nNote 10 to the Consolidated Financial Statements for a description of the\nCompany's operating segments.\n\n For the Three Months Ended \n (in millions) \n QNX Secure Communications Licensing \n August 31, Change August 31, Change August 31, Change \n 2026 2025 2026 2025 2026 2025 \n Segment revenue $ 80.3 $ 63.1 $ 17.2 $ 60.9 $ 59.9 $ 1.0 $ 22.1 $ 6.6 $ 15.5 \n Segment cost of sales 10.6 10.7 (0.1 ) 23.5 20.2 3.3 1.5 1.5 - \n Segment adjusted gross margin $ 69.7 $ 52.4 $ 17.3 $ 37.4 $ 39.7 $ (2.3 ) $ 20.6 $ 5.1 $ 15.5 \n Segment research and development 19.6 13.0 6.6 11.8 11.0 0.8 - - - \n Segment sales and marketing 12.4 10.7 1.7 11.1 12.1 (1.0 ) - - - \n Segment general and administrative 8.7 8.2 0.5 6.6 6.9 (0.3 ) 2.1 0.9 1.2 \n Less amortization included in segment cost of sales - - - 0.1 - 0.1 1.5 1.4 0.1 \n Segment adjusted EBITDA $ 29.0 $ 20.5 $ 8.5 $ 8.0 $ 9.7 $ (1.7 ) $ 20.0 $ 5.6 $ 14.4 \n \n For the Six Months Ended \n (in millions) \n QNX Secure Communications Licensing \n August 31, Change August 31, Change August 31, Change \n 2026 2025 2026 2025 2026 2025 \n Segment revenue $ 152.6 $ 120.6 $ 32.0 $ 134.5 $ 119.4 $ 15.1 $ 29.1 $ 11.3 $ 17.8 \n Segment cost of sales 21.0 21.9 (0.9 ) 44.3 38.3 6.0 3.0 3.1 (0.1 ) \n Segment adjusted gross margin $ 131.6 $ 98.7 $ 32.9 $ 90.2 $ 81.1 $ 9.1 $ 26.1 $ 8.2 $ 17.9 \n Segment research and development 38.5 25.3 13.2 24.4 22.2 2.2 - - - \n Segment sales and marketing 28.0 23.9 4.1 23.4 25.7 (2.3 ) - - - \n Segment general and administrative 16.8 16.3 0.5 14.4 14.0 0.4 2.9 1.8 1.1 \n Less amortization included in segment cost of sales - - - 0.2 0.1 0.1 3.0 3.0 - \n Segment adjusted EBITDA $ 48.3 $ 33.2 $ 15.1 $ 28.2 $ 19.3 $ 8.9 $ 26.2 $ 9.4 $ 16.8 \n\nReconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP\nMeasures\n\nIn the Company's internal reports, management evaluates the performance of the\nCompany's business on a non-GAAP basis by excluding the impact of certain\nitems from the Company's U.S. GAAP financial results. The Company believes\nthat these non-GAAP financial measures and non-GAAP ratios provide management,\nas well as readers of the Company's financial statements, with a consistent\nbasis for comparison across accounting periods and are useful in helping\nmanagement and readers understand the Company's operating results and\nunderlying operational trends. Beginning with the fiscal quarter ended May 31,\n2026, the Company has included deferred share units revaluation adjustment as\na non-GAAP adjustment and has applied this adjustment to comparative period.\n\nReaders are cautioned that adjusted gross margin, adjusted gross margin\npercentage, adjusted operating expenses, adjusted net income, adjusted basic\nearnings per share, adjusted research and development expense, adjusted sales\nand marketing expense, adjusted general and administrative expense, adjusted\namortization expense, adjusted operating income, adjusted EBITDA, segment\nadjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA\nmargin percentage and free cash flow (usage) and similar measures do not have\nany standardized meaning prescribed by U.S. GAAP and are therefore unlikely to\nbe comparable to similarly titled measures reported by other companies.\n\nReconciliation of non-GAAP based measures with most directly comparable U.S.\nGAAP based measures for the three months ended August 31, 2026 and August 31,\n2025\n\nA reconciliation of the most directly comparable U.S. GAAP gross margin and\ngross margin percentage for the three months ended August 31, 2026 and August\n31, 2025 to both adjusted gross margin and adjusted gross margin percentage is\nreflected in the table below:\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 \n Gross margin $ 127.1 $ 96.6 \n Stock compensation expenses 0.6 0.6 \n Adjusted gross margin $ 127.7 $ 97.2 \n \n Gross margin % 77.8 % 74.5 % \n Stock compensation expenses 0.4 % 0.5 % \n Adjusted gross margin % 78.2 % 75.0 % \n\nReconciliation of U.S. GAAP operating expenses for the three months ended\nAugust 31, 2026, and August 31, 2025 to adjusted operating expenses is\nreflected in the table below:\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 \n Operating expenses $ 93.5 $ 85.1 \n Restructuring charges 2.7 3.4 \n Stock compensation expenses 6.9 5.3 \n Acquired intangibles amortization - 1.1 \n LLA impairment charge 0.7 0.5 \n Deferred share units revaluation adjustment (1.6 ) - \n Adjusted operating expenses $ 84.8 $ 74.8 \n\nReconciliation of U.S. GAAP net income and U.S. GAAP basic earnings per share\nfor the three months ended August 31, 2026 and August 31, 2025 to adjusted net\nincome and adjusted basic earnings per share is reflected in the table below:\n\n For the Three Months Ended (in millions, except per share amounts) August 31, 2026 August 31, 2025 \n Basic Basic earnings per share \n earnings per share \n Net income $ 33.9 $ 0.06 $ 13.3 $ 0.02 \n Restructuring charges 2.7 3.4 \n Stock compensation expenses 7.5 5.9 \n Acquired intangibles amortization - 1.1 \n LLA impairment charge 0.7 0.5 \n Deferred share units revaluation adjustment (1.6 ) - \n Adjusted net income $ 43.2 $ 0.07 $ 24.2 $ 0.04 \n\nReconciliation of U.S. GAAP research and development, sales and marketing,\ngeneral and administrative, and amortization expense for the three months\nended August 31, 2026 and August 31, 2025 to adjusted research and\ndevelopment, sales and marketing, general and administrative, and amortization\nexpense is reflected in the table below:\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 \n Research and development $ 33.2 $ 25.6 \n Stock compensation expenses 1.6 1.4 \n Adjusted research and development expense $ 31.6 $ 24.2 \n \n Sales and marketing $ 25.3 $ 24.4 \n Stock compensation expenses 1.4 1.3 \n Adjusted sales and marketing expense $ 23.9 $ 23.1 \n \n General and administrative $ 31.8 $ 31.5 \n Restructuring charges 2.7 3.4 \n Stock compensation expenses 3.9 2.6 \n Deferred share units revaluation adjustment (1.6 ) - \n Adjusted general and administrative expense $ 26.8 $ 25.5 \n \n Amortization $ 2.5 $ 3.1 \n Acquired intangibles amortization - 1.1 \n Adjusted amortization expense $ 2.5 $ 2.0 \n\nReconciliation of U.S. GAAP operating income to adjusted operating income,\nadjusted EBITDA, adjusted operating income margin percentage and adjusted\nEBITDA margin percentage for the three months ended August 31, 2026 and August\n31, 2025 is reflected in the table below.\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 \n Operating income $ 33.6 $ 11.5 \n Non-GAAP adjustments to operating income \n Restructuring charges 2.7 3.4 \n Stock compensation expenses 7.5 5.9 \n Acquired intangibles amortization - 1.1 \n LLA impairment charge 0.7 0.5 \n Deferred share units revaluation adjustment (1.6 ) - \n Total non-GAAP adjustments to operating income 9.3 10.9 \n Adjusted operating income 42.9 22.4 \n Amortization 4.1 4.6 \n Acquired intangibles amortization - (1.1 ) \n Adjusted EBITDA $ 47.0 $ 25.9 \n \n Revenue $ 163.3 $ 129.6 \n Adjusted operating income margin % ((1)) 26 % 17 % \n Adjusted EBITDA margin % ((2)) 29 % 20 % \n\n((1)) Adjusted operating income margin % is calculated by dividing adjusted\noperating income by revenue.\n((2)) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by\nrevenue.\n\nThe CODM also uses segment adjusted EBITDA, which is a non-GAAP measure\nincluding segment expenses that exclude amounts related to investment income,\ntaxes, amortization, restructuring charges, stock compensation expenses and\nlong-lived asset impairment. The following table reconciles the U.S. GAAP\nmeasures of segment profit or loss disclosed by the Company in the\nConsolidated Financial Statements from segment adjusted gross margin to\nsegment adjusted EBITDA for the three months ended August 31, 2026 and August\n31, 2025.\n\n For the Three Months Ended \n (in millions) \n QNX Secure Communications Licensing \n August 31, August 31, August 31, \n 2026 2025 2026 2025 2026 2025 \n Segment adjusted gross margin $ 69.7 $ 52.4 $ 37.4 $ 39.7 $ 20.6 $ 5.1 \n Segment research and development 19.6 13.0 11.8 11.0 - - \n Segment sales and marketing 12.4 10.7 11.1 12.1 - - \n Segment general and administrative 8.7 8.2 6.6 6.9 2.1 0.9 \n Less amortization included in segment cost of sales - - 0.1 - 1.5 1.4 \n Segment adjusted EBITDA $ 29.0 $ 20.5 $ 8.0 $ 9.7 $ 20.0 $ 5.6 \n\nReconciliation of non-GAAP based measures with most directly comparable U.S.\nGAAP based measures for the six months ended August 31, 2026 and August 31,\n2025.\n\nA reconciliation of the most directly comparable U.S. GAAP gross margin and\ngross margin percentage for the six months ended August 31, 2026 and August\n31, 2025 to both adjusted gross margin and adjusted gross margin percentage is\nreflected in the table below:\n\n For the Six Months Ended (in millions) August 31, 2026 August 31, 2025 \n Gross margin $ 246.8 $ 186.9 \n Stock compensation expenses 1.1 1.1 \n Adjusted gross margin $ 247.9 $ 188.0 \n \n Gross margin % 78.1 % 74.4 % \n Stock compensation expenses 0.3 % 0.4 % \n Adjusted gross margin % 78.4 % 74.8 % \n\nReconciliation of U.S. GAAP operating expenses for the six months ended August\n31, 2026 and August 31, 2025 to adjusted operating expenses is reflected in\nthe table below:\n\n For the Six Months Ended (in millions) August 31, 2026 August 31, 2025 \n Operating expenses $ 197.9 $ 173.4 \n Restructuring charges 3.0 6.3 \n Stock compensation expenses 12.9 10.5 \n Acquired intangibles amortization - 2.8 \n LLA impairment charge 0.8 0.6 \n Deferred share units revaluation adjustment 8.4 (1.5 ) \n Adjusted operating expenses $ 172.8 $ 154.7 \n\nReconciliation of U.S. GAAP net income and U.S. GAAP basic earnings per share\nfor the six months ended August 31, 2026 and August 31, 2025 to adjusted net\nincome and adjusted basic earnings per share is reflected in the table below:\n\n For the Six Months Ended (in millions, except per share amounts) August 31, 2026 August 31, 2025 \n Basic earnings per share Basic earnings per share \n Net income $ 42.4 $ 0.07 $ 15.2 $ 0.03 \n Restructuring charges 3.0 6.3 \n Stock compensation expenses 14.0 11.6 \n Acquired intangibles amortization - 2.8 \n LLA impairment charge 0.8 0.6 \n Deferred share units revaluation adjustment 8.4 (1.5 ) \n Adjusted net income $ 68.6 $ 0.12 $ 35.0 $ 0.06 \n\nReconciliation of U.S. GAAP research and development, sales and marketing,\ngeneral and administrative, and amortization expense for the six months ended\nAugust 31, 2026 and August 31, 2025 to adjusted research and development,\nsales and marketing, general and administrative, and amortization expense is\nreflected in the table below:\n\n For the Six Months Ended (in millions) August 31, 2026 August 31, 2025 \n Research and development $ 66.2 $ 50.6 \n Stock compensation expenses 3.1 2.7 \n Adjusted research and development expense $ 63.1 $ 47.9 \n \n Sales and marketing $ 54.8 $ 53.1 \n Stock compensation expenses 2.5 2.7 \n Adjusted sales and marketing expense $ 52.3 $ 50.4 \n \n General and administrative $ 71.1 $ 62.0 \n Restructuring charges 3.0 6.3 \n Stock compensation expenses 7.3 5.1 \n Deferred share units revaluation adjustment 8.4 (1.5 ) \n Adjusted general and administrative expense $ 52.4 $ 52.1 \n \n Amortization $ 5.0 $ 7.1 \n Acquired intangibles amortization - 2.8 \n Adjusted amortization expense $ 5.0 $ 4.3 \n\nReconciliation of U.S. GAAP operating income to adjusted operating income,\nadjusted EBITDA, adjusted operating income margin percentage and adjusted\nEBITDA margin percentage for the six months ended August 31, 2026 and August\n31, 2025 are reflected in the table below.\n\n For the Six Months Ended (in millions) August 31, 2026 August 31, 2025 \n Operating income $ 48.9 $ 13.5 \n Non-GAAP adjustments to operating income \n Restructuring charges 3.0 6.3 \n Stock compensation expense 14.0 11.6 \n Acquired intangibles amortization - 2.8 \n LLA impairment charge 0.8 0.6 \n Deferred share units revaluation adjustment 8.4 (1.5 ) \n Total non-GAAP adjustments to operating income 26.2 19.8 \n Adjusted operating income 75.1 33.3 \n Amortization 8.2 10.3 \n Acquired intangibles amortization - (2.8 ) \n Adjusted EBITDA $ 83.3 $ 40.8 \n \n Revenue $ 316.2 $ 251.3 \n Adjusted operating income margin % ((1)) 24 % 13 % \n Adjusted EBITDA margin % ((2)) 26 % 16 % \n\n((1)) Adjusted operating income margin % is calculated by dividing adjusted\noperating income by revenue.\n((2)) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by\nrevenue.\n\nThe CODM also uses segment adjusted EBITDA, which is a non-GAAP measure\nincluding segment expenses that exclude amounts related to investment income,\ntaxes, amortization, restructuring charges, stock compensation expenses and\nlong-lived asset impairment. The following table reconciles the U.S. GAAP\nmeasures of segment profit or loss disclosed by the Company in the\nConsolidated Financial Statements from segment adjusted gross margin to\nsegment adjusted EBITDA for the six months ended August 31, 2026 and August\n31, 2025.\n\n For the Six Months Ended \n (in millions) \n QNX Secure Communications Licensing \n August 31, August 31, August 31, \n 2026 2025 2026 2025 2026 2025 \n Segment adjusted gross margin $ 131.6 $ 98.7 $ 90.2 $ 81.1 $ 26.1 $ 8.2 \n Segment research and development 38.5 25.3 24.4 22.2 - - \n Segment sales and marketing 28.0 23.9 23.4 25.7 - - \n Segment general and administrative 16.8 16.3 14.4 14.0 2.9 1.8 \n Less amortization included in segment cost of sales - - 0.2 0.1 3.0 3.0 \n Segment adjusted EBITDA $ 48.3 $ 33.2 $ 28.2 $ 19.3 $ 26.2 $ 9.4 \n\nFree cash flow (usage)\n\nThe Company uses free cash flow (usage) when assessing its sources of\nliquidity, capital resources, and quality of earnings. The Company believes\nthat free cash flow (usage) is helpful in understanding the Company's capital\nrequirements and provides an additional means to reflect the cash flow (usage)\ntrends in the Company's business.\n\nReconciliation of U.S. GAAP net cash provided by (used in) operating\nactivities for the three and six months ended August 31, 2026 and August 31,\n2025 to free cash flow (usage) is reflected in the table below:\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 \n Net cash provided by operating activities $ 29.3 $ 3.4 \n Acquisition of property, plant and equipment (1.2 ) (0.8 ) \n Free cash flow $ 28.1 $ 2.6 \n\n For the Six Months Ended (in millions) August 31, 2026 August 31, 2025 \n Net cash provided by (used in) operating activities $ 33.9 $ (14.1 ) \n Acquisition of property, plant and equipment (4.1 ) (1.7 ) \n Free cash flow (usage) $ 29.8 $ (15.8 ) \n\nKey Metrics\n\nThe Company regularly monitors a number of financial and operating metrics,\nincluding the following key metrics, in order to measure the Company's current\nperformance and estimated future performance. Readers are cautioned that\nSecure Communications annual recurring revenue (\"ARR\") and Secure\nCommunications dollar-based net retention rate (\"DBNRR\") do not have any\nstandardized meaning and are unlikely to be comparable to similarly titled\nmeasures reported by other companies.\n\nComparative breakdowns of certain key metrics for the three months ended or as\nat August 31, 2026 and August 31, 2025 are set forth below:\n\n For the Three Months Ended (in millions) August 31, 2026 August 31, 2025 Change \n Secure Communications Annual Recurring Revenue $ 221 $ 213 $ 8 \n Secure Communications Dollar-Based Net Retention Rate 91 % 93 % (2 %) \n\nSOURCE: BlackBerry\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/computers-technology-and-internet/blackberry-reports-second-quarter-fiscal-year-2027-results-1226125)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved."},"type":"article","timestamp":"2026-09-24T10:58:00.932634972Z","server_sent_at_ms":1790247480932},"received_at":"2026-09-24T10:58:01.180Z","source_url":"https://www.accessnewswire.com/newsroom/en/computers-technology-and-internet/blackberry-reports-second-quarter-fiscal-year-2027-results-1226125"},"analysis":{"id":"140608","press_release_id":"151806","analysis_json":{"industry":{"label":"Software","sector":"Information Technology"},"redFlags":["Secure Communications DBNRR declined to 91% from 93%","Secure Communications segment adjusted EBITDA fell 18% YoY","Q3 guidance implies sequential revenue decline from Q2's $163.3M to $143-$154M"],"eventType":"earnings","narrative":"BlackBerry reported Q2 FY27 revenue of $163.3 million, up 26% year-over-year, with adjusted EBITDA rising $21.1 million to $47.0 million and GAAP net income positive for the sixth straight quarter at $33.9 million.\n\nQNX delivered record results with revenue up 27% to $80.3 million and segment adjusted EBITDA up 41% to $29.0 million; Coretura (the Volvo Group/Daimler Truck JV) chose Alloy Kore in the largest design win in QNX history, adding over $100 million to the royalty backlog.\n\nSecure Communications grew 2% to $60.9 million with ARR stable at $221 million, though DBNRR slipped to 91% and segment adjusted EBITDA fell 18%. The company ended the quarter with $447.1 million in cash and investments and guided FY27 revenue to $616-$636 million with adjusted EBITDA of $141-$158 million.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"QNX inflection confirmed -- record quarter plus largest-ever design win with $100M+ backlog add as profitability compounds."},"keyFigures":{"eps":0.06,"revenue":163.3,"guidance":"Q3 FY27 revenue $143-$154M; FY27 revenue $616-$636M; FY27 adjusted EBITDA $141-$158M; FY27 adjusted basic EPS $0.19-$0.22; FY27 operating cash flow ~$115M","revenueYoy":"26%","customDimensions":{"dbnrr":"91%","qnx_revenue":80.3,"adjusted_eps":0.07,"free_cash_flow":28.1,"adjusted_ebitda":47,"gaap_net_income":33.9,"qnx_revenue_yoy":"27%","secure_comms_arr":221,"licensing_revenue":22.1,"adjusted_net_income":43.2,"operating_cash_flow":29.3,"cash_and_investments":447.1,"secure_comms_revenue":60.9,"gaap_operating_income":33.6,"adjusted_ebitda_margin":"29%","qnx_segment_adjusted_ebitda":29}},"quotedText":"QNX delivered record performance in the quarter, driven by strength in our core automotive business. The first Alloy Kore design win, the largest design win in QNX history, marks an important commercial milestone.","namedEntities":{"people":[{"name":"John J. 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The company ended the quarter with $447.1 million in cash and investments and guided FY27 revenue to $616-$636 million with adjusted EBITDA of $141-$158 million.","key_figures":{"eps":0.06,"revenue":163.3,"guidance":"Q3 FY27 revenue $143-$154M; FY27 revenue $616-$636M; FY27 adjusted EBITDA $141-$158M; FY27 adjusted basic EPS $0.19-$0.22; FY27 operating cash flow ~$115M","revenueYoy":"26%","customDimensions":{"dbnrr":"91%","qnx_revenue":80.3,"adjusted_eps":0.07,"free_cash_flow":28.1,"adjusted_ebitda":47,"gaap_net_income":33.9,"qnx_revenue_yoy":"27%","secure_comms_arr":221,"licensing_revenue":22.1,"adjusted_net_income":43.2,"operating_cash_flow":29.3,"cash_and_investments":447.1,"secure_comms_revenue":60.9,"gaap_operating_income":33.6,"adjusted_ebitda_margin":"29%","qnx_segment_adjusted_ebitda":29}},"named_entities":{"people":[{"name":"John J. 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