Executive Summary
BlackBerry reported a solid Q2 2026 with 3% year-over-year revenue growth to $129.6 million, accompanied by meaningful profitability expansion. Total company adjusted EBITDA reached $25.9 million, or 20% of revenue, while GAAP net income was positive at $13.3 million, marking a continued return to GAAP profitability after a prior-year loss. The quarter highlighted the strength of the QNX segment, which posted $63.1 million in revenue (+15% YoY) and a 32% adjusted EBITDA margin, supported by a robust pipeline and notable design wins. Secure Communications delivered $59.9 million in revenue, with ARR expanding to $213 million and DVNRR improving to 93%, aided by higher recurring services adoption and government deployments. Licensing generated $6.6 million in revenue, contributing to a broader profitability margin profile. Management raised full-year 2026 guidance across the three segments, increasing total revenue to $519–$541 million and adjusted EBITDA to $82–$101 million, with non-GAAP EPS of $0.11–$0.15. The company also generated positive operating cash flow of $3.4 million in the quarter and ended the period with a substantial net cash position (net debt of approximately negative $265.6 million) due to a disciplined capital-allocation strategy including share repurchases. Notably, the tax headwinds from prior years ($19 million) weighed on GAAP results, but the company remains focused on sustaining cash generation, investing in growth initiatives (QNX GEM expansion, vehicle software platform, cybersecurity ecosystem development), and delivering a more predictable revenue mix through higher software content. Looking ahead, BlackBerry emphasized a back-half cadence of automotive programs, ongoing government wins, and expanding software content in vehicles as the core drivers of profitability and cash flow in FY2026.
Key Performance Indicators
QoQ: 475.00% | YoY:154.76%
QoQ: 600.00% | YoY:170.00%
QoQ: 525.00% | YoY:162.11%
Key Insights
Revenue: $129.6 million, up 3% YoY; Gross margin: 75.0% (up 4 percentage points YoY); Operating margin: 8.9%; Adjusted EBITDA: $25.9 million, 20.0% of revenue (YoY +72%); Net income (GAAP): $13.3 million; EPS (GAAP): $0.02; EPS (Non-GAAP): $0.04; Weighted average shares (GAAP): 594.6 million; QNX revenue: $63.1 million, +15% YoY; QNX adjusted EBITDA: $20.5 million, 32% margin; QNX gross margin: 83%; Secure Communications revenue: $59.9 million; ARR: $213 million; DVNRR: 93%; Licensing revenue: $...
Financial Highlights
Revenue: $129.6 million, up 3% YoY; Gross margin: 75.0% (up 4 percentage points YoY); Operating margin: 8.9%; Adjusted EBITDA: $25.9 million, 20.0% of revenue (YoY +72%); Net income (GAAP): $13.3 million; EPS (GAAP): $0.02; EPS (Non-GAAP): $0.04; Weighted average shares (GAAP): 594.6 million; QNX revenue: $63.1 million, +15% YoY; QNX adjusted EBITDA: $20.5 million, 32% margin; QNX gross margin: 83%; Secure Communications revenue: $59.9 million; ARR: $213 million; DVNRR: 93%; Licensing revenue: $6.6 million; Licensing EBITDA: $5.6 million; Operating cash flow: $3.4 million; Free cash flow: $2.6 million; Cash and investments: $363.5 million (per call), Net cash position: approximately $265.6 million (net debt); Cash balance (end of period per balance sheet): $290.6 million; Share repurchases: roughly 5 million shares ($20 million) completed in the quarter; Guidance: Q3 revenue $132–$140 million; Q3 Adjusted EBITDA $20–$28 million; Full-year 2026 revenue guidance raised to $519–$541 million; Full-year Adjusted EBITDA guidance raised to $82–$101 million; Non-GAAP EPS for FY2026: $0.11–$0.15; Q3 non-GAAP EPS: $0.02–$0.04; Positive operating cash flow expected in Q3: $10–$20 million; FY2026 expected operating cash flow: $35–$40 million; Cyclical note: $38 million cash from Cylance sale to Arctic Wolf expected in Q4.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
129.60M |
-10.62% |
6.49% |
| Gross Profit |
96.60M |
2.77% |
6.98% |
| Operating Income |
11.50M |
154.76% |
475.00% |
| Net Income |
13.30M |
170.00% |
600.00% |
| EPS |
0.02 |
162.11% |
525.00% |
Management Commentary
Key management insights from the QQ2 2026 earnings call:
"QNX delivered a rule of 40 quarter with 15% revenue growth and a 32% adjusted EBITDA margin."
— John Giamatteo
"I see a lot of leverage in the QNX model. We're already at gross margins of 83%, and over time, we should see that improve."
— Tim Foote
Forward Guidance
Management raised full-year guidance driven by stronger than expected performance in QNX and Secure Communications. For Q3, revenue guidance is $132–$140 million with Adjusted EBITDA of $20–$28 million. Full-year 2026 revenue is guided to $519–$541 million with Adjusted EBITDA of $82–$101 million. Non-GAAP EPS is projected to be $0.11–$0.15 for FY2026, with positive operating cash flow of $35–$40 million for the year (excluding the $38 million from Cylance sale proceeds to be received in Q4). The company expects ongoing leverage from QNX (high gross margins and expanding royalties) and continued improvement in Secure Communications’ ARR and DVNRR. Key risk factors to monitor include macro automotive market volatility, tariff/headwinds, longer government procurement cycles, and the pace of design-win conversions. The company noted that most restructuring and tax payments from prior years are behind it, signaling a more stable P&L trajectory.