BlackBerry Reports First Quarter Fiscal Year 2026 Results

• Exceeds high finish of steering vary for income, adjusted EBITDA, adjusted EPS and working money circulation for the overall Firm

• Delivers income and adjusted EBITDA above steering for QNX division

• Beats income and adjusted EBITDA steering for Safe Communications division, elevating full yr steering

• Returns $10 million to shareholders as a part of share buyback program

WATERLOO, ON / ACCESS Newswire / June 24, 2025 / BlackBerry Limited (NYSE:BB)(TSX:BB) at present reported monetary outcomes for the three months ended Could 31, 2025 (all figures in U.S. {dollars} and U.S. GAAP, besides the place in any other case indicated).

“BlackBerry made a robust begin to the brand new fiscal yr, constructing on the stable basis we as an organization have laid over the previous yr,” stated John J. Giamatteo, CEO, BlackBerry. “Each our QNX and Safe Communications divisions proceed to execute successfully in opposition to their methods, beating each high line and profitability expectations. BlackBerry’s stable steadiness sheet and plan for persevering with profitability and money technology this fiscal yr allow us to allocate capital effectively, with $10 million of share buybacks executed this previous quarter.”

First Quarter Fiscal 2026 Monetary Highlights

• Complete firm income exceeded previously-provided steering at $121.7 million

• Complete firm gross margin was 74% and non-GAAP gross margin was 75%

• QNX income beat steering and delivered 8% year-over-year progress to $57.5 million; QNX gross margin and adjusted gross margin was 81%

• QNX adjusted EBITDA beat previously-provided steering at $12.7 million, or 22% of income

• Safe Communications income exceeded previously-provided steering at $59.5 million; Safe Communications adjusted gross margin elevated by 6 share factors sequentially and 4 share factors year-over-year to 70%

• Safe Communications ARR remained steady, comparatively flat sequentially at $209 million; Safe Communications DBNRR decreased by 1 share level to 92%

• Safe Communications adjusted EBITDA exceeded beforehand offered steering at $9.6 million

• Licensing income was $4.7 million, and adjusted EBITDA was $3.8 million

• BlackBerry achieved GAAP profitability for first time since This fall FY22, with web earnings of $1.9 million and non-GAAP web earnings was $12.3 million

• Complete firm adjusted EBITDA exceeded previously-provided steering at $16.4 million

• GAAP primary earnings per share was breakeven and non-GAAP primary earnings per share was $0.02, beating the previously-provided steering

• Working money utilization for the seasonally-low first quarter beat expectations at $18 million

• $10 million was returned to shareholders by the repurchase of two.57 million frequent shares through the quarter

• Complete money, money equivalents, short-term and long-term investments decreased by $28.4 million sequentially to $381.9 million

Enterprise Highlights & Strategic Bulletins

• BlackBerry introduced a standard course issuer bid share buyback program

• QNX launched QNX® Hypervisor 8.0, constructed on the next-generation SDP 8.0 structure, facilitating high-performance virtualization of a number of working techniques on a single SoC

• WeRide launched its next-generation ADAS platform for L2++ autonomous drive, constructed upon QNX® OS for Security

• Leapmotor chosen QNX® know-how as the inspiration of its clever digital cockpit and autonomous drive area controllers in its new B10 electrical SUV

• Direct ChassisLink Inc (DCLI) introduced the deployment of BlackBerry® Radar® throughout 100,000 chassis

• BlackBerry® AtHoc® turned the primary vital occasion administration supplier to realize FedRAMP Excessive authorization

• Malaysia Cybersecurity Heart of Excellence celebrated its first anniversary with new partnerships, scholarships and expanded teaching programs

Monetary Outlook

BlackBerry is offering the next steering for the second fiscal quarter (ending August 31, 2025) and the complete fiscal yr 2026 (ending February 28, 2026).

¹ Excluding amortization prices.

Use of Non-GAAP Monetary Measures

The tables on the finish of this press launch embody a reconciliation of the non-GAAP monetary measures and non-GAAP monetary ratios utilized by the Firm to comparable U.S. GAAP measures and an evidence of why the Firm makes use of them. The Firm doesn’t present a reconciliation of anticipated Adjusted EBITDA and anticipated Non-GAAP primary EPS for the second quarter of 2026 to probably the most instantly comparable anticipated GAAP measures as a result of it’s unable to foretell with cheap certainty, amongst different issues, restructuring prices and impairment prices and, accordingly, a reconciliation will not be out there with out unreasonable effort. These things are unsure, depend upon varied components, and will have a fabric influence on GAAP reported outcomes for the steering interval. For extra data on the non-GAAP monetary measures, please confer with the tables on the finish of this press launch.

Convention Name and Webcast

A convention name and stay webcast shall be held at present starting at 5:30 p.m. ET, which could be accessed utilizing the next hyperlink (here) or via the Firm’s investor webpage (BlackBerry.com/Investors) or by dialing toll free +1 (844) 763-8275 and coming into Elite Entry Quantity 52549.

A replay of the convention name shall be out there at roughly 8:30 p.m. ET at present, utilizing the identical webcast hyperlink (here) or by dialing toll free +1 (877) 481-4010 and coming into Replay Entry Code 52549.

About BlackBerry

BlackBerry (NYSE:BB)(TSX:BB) supplies enterprises and governments the clever software program and providers that energy the world round us. Primarily based in Waterloo, Ontario, the corporate’s high-performance foundational software program allows main automakers and industrial giants alike to unlock transformative purposes, drive new income streams and launch progressive enterprise fashions, all with out sacrificing security, safety, and reliability. With a deep heritage in Safe Communications, BlackBerry delivers operational resiliency with a complete, extremely safe, and extensively licensed portfolio for cellular fortification, mission-critical communications, and important occasions administration.

For extra data, go to BlackBerry.com and observe @BlackBerry.

Investor Contact:

BlackBerry Investor Relations
+1 (519) 888-7465
[email protected]

Media Contact:

BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

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This information launch accommodates forward-looking statements inside the which means of sure securities legal guidelines, together with beneath the U.S. Non-public Securities Litigation Reform Act of 1995 and relevant Canadian securities legal guidelines, together with statements relating to BlackBerry’s plans, methods and goals.

The phrases “count on”, “anticipate”, “estimate”, “might”, “will”, “ought to”, “may”, “intend”, “consider”, “goal”, “plan” and related expressions are supposed to establish these forward-looking statements. Ahead-looking statements are primarily based on estimates and assumptions made by BlackBerry in mild of its expertise and its notion of historic developments, present circumstances and anticipated future developments, in addition to different components that BlackBerry believes are applicable within the circumstances, together with however not restricted to, BlackBerry’s expectations relating to its enterprise, monetary efficiency, technique, alternatives and prospects, the launch of latest services, common financial circumstances, and competitors. Many components may trigger BlackBerry’s precise outcomes, efficiency or achievements to vary materially from these expressed or implied by the forward-looking statements, together with, with out limitation, dangers associated to the next components: BlackBerry’s capacity to take care of or develop its buyer base for its software program and providers choices to develop income or obtain sustained profitability; the extreme competitors confronted by BlackBerry; BlackBerry’s capacity to reinforce, develop, introduce or monetize its services in a well timed method with aggressive pricing, options and efficiency; vital adjustments in authorities buyer demand or procurement necessities; BlackBerry’s gross sales cycles and the time and expense of its gross sales efforts; the incidence or notion of a breach of BlackBerry’s community cybersecurity measures, or an inappropriate disclosure of confidential or private data; BlackBerry’s persevering with capacity to draw new personnel, retain current key personnel and handle its staffing successfully; dangers arising from a failure or perceived failure of the safety features of BlackBerry’s options; antagonistic macroeconomic and geopolitical circumstances, together with commerce insurance policies; litigation in opposition to BlackBerry; community disruptions or different enterprise interruptions; BlackBerry’s capacity to foster an ecosystem of third-party utility builders; BlackBerry’s dependence partially on its relationships with resellers and channel companions; BlackBerry’s services being dependent upon interoperability with quickly altering techniques offered by third events; BlackBerry’s use of synthetic intelligence options; failure to guard BlackBerry’s mental property and to earn anticipated revenues from mental property rights; BlackBerry’s use of open supply software program and its capacity to acquire rights to make use of third-party software program ; BlackBerry probably being discovered to have infringed on the mental property rights of others; BlackBerry’s indebtedness, which may influence its working flexibility and monetary situation; the asset threat confronted by BlackBerry, together with the potential for prices associated to its long-lived property and goodwill; tax provision adjustments, the adoption of latest tax laws or publicity to further tax liabilities; the use and administration of person information and private data; authorities rules relevant to BlackBerry’s services, together with merchandise containing encryption capabilities; environmental, social and governance expectations and requirements; the failure of BlackBerry’s suppliers, subcontractors, channel companions and representatives to make use of acceptable moral enterprise practices or adjust to relevant legal guidelines; potential impacts of acquisitions, divestitures and different enterprise initiatives; dangers related to overseas operations, together with fluctuations in foreign currency echange; environmental occasions; the fluctuation of BlackBerry’s quarterly income and working outcomes; and the volatility of the market value of BlackBerry’s frequent shares.

These threat components and others referring to BlackBerry are mentioned in higher element in BlackBerry’s Annual Report on Kind 10-Ok and the “Cautionary Observe Concerning Ahead-Wanting Statements” part of BlackBerry’s MD&A (copies of which filings could also be obtained at http://www.sedarplus.ca or http://www.sec.gov). All of those components must be thought of rigorously, and readers shouldn’t place undue reliance on BlackBerry’s forward-looking statements. Any statements which might be forward-looking statements are supposed to allow BlackBerry’s shareholders to view the anticipated efficiency and prospects of BlackBerry from administration’s perspective on the time such statements are made, and they’re topic to the dangers which might be inherent in all forward-looking statements, as described above, in addition to difficulties in forecasting BlackBerry’s monetary outcomes and efficiency for future intervals, notably over longer intervals, given adjustments in know-how and BlackBerry’s enterprise technique, evolving trade requirements, intense competitors and brief product life cycles that characterize the industries through which BlackBerry operates. Any forward-looking statements are made solely as of at present and BlackBerry has no intention and undertakes no obligation to replace or revise any of them, besides as required by regulation.

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BlackBerry Restricted
Integrated beneath the Legal guidelines of Ontario
(United States {dollars}, in hundreds of thousands besides share and per share quantities)

Consolidated Statements of Operations

BlackBerry Restricted
Integrated beneath the Legal guidelines of Ontario
(United States {dollars}, in hundreds of thousands)

Consolidated Stability Sheets

BlackBerry Restricted
Integrated beneath the Legal guidelines of Ontario
(United States {dollars}, in hundreds of thousands)

Consolidated Statements of Money Flows

Reconciliations of the Firm’s Section Outcomes and Section Adjusted EBITDA to the Consolidated Outcomes

The next tables present data by working section for the three months ended Could 31, 2025 and Could 31, 2024. The Firm stories section data in accordance with U.S. GAAP, pursuant to the Monetary Requirements Accounting Board’s Accounting Normal Codification Matter 280, Section Reporting, primarily based on the “administration” method. The administration method designates the inner reporting utilized by the Chief Working Determination Maker (“CODM”) for making choices and assessing efficiency of the Firm’s reportable working segments. The measure of section revenue or loss disclosed by the Firm within the Consolidated Monetary Statements beneath the “administration” method in reviewing the outcomes of the Firm’s working segments is section adjusted gross margin. Moreover, the next tables embody the extra measures of section revenue or loss utilized by the CODM which is section adjusted EBITDA, a non-GAAP monetary measure. See Observe 11 to the Consolidated Monetary Statements for an outline of the Firm’s working segments.

The next tables reconcile the Firm’s section adjusted gross margin outcomes for the three months ended Could 31, 2025 to consolidated U.S. GAAP outcomes:

⁽¹⁾ See “Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures” for a reconciliation of chosen U.S. GAAP-based measures to adjusted measures for the three months ended Could 31, 2025 and Could 31, 2024.

The next desk reconciles whole section adjusted EBITDA for the three months ended Could 31, 2025 and Could 31, 2024 to the Firm’s consolidated totals:

⁽¹⁾ The CODM critiques section data on an adjusted EBITDA foundation, which excludes sure quantities as described under:

Inventory compensation bills – Fairness compensation is a non-cash expense and doesn’t influence the continued working choices taken by the Firm’s administration.

Restructuring prices – Restructuring prices relate to worker termination advantages, services, streamlining most of the Firm’s centralized company capabilities into Safe Communications and QNX particular groups, and different prices pursuant to applications to scale back the Firm’s annual bills amongst R&D, infrastructure and different capabilities and don’t mirror anticipated future working bills, aren’t indicative of the Firm’s core working efficiency, and is probably not significant when evaluating the Firm’s working efficiency in opposition to that of prior intervals.

Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures

Within the Firm’s inner stories, administration evaluates the efficiency of the Firm’s enterprise on a non-GAAP foundation by excluding the influence of sure gadgets from the Firm’s U.S. GAAP monetary outcomes. The Firm believes that these non-GAAP monetary measures and non-GAAP ratios present administration, in addition to readers of the Firm’s monetary statements, with a constant foundation for comparability throughout accounting intervals and are helpful in serving to administration and readers perceive the Firm’s working outcomes and underlying operational developments.

Readers are cautioned that adjusted gross margin, adjusted gross margin share, adjusted working expense, adjusted company working prices, adjusted company working prices excluding amortization, adjusted web earnings (loss), adjusted earnings (loss) per share, adjusted analysis and growth expense, adjusted gross sales and advertising expense, adjusted common and administrative expense, adjusted amortization expense, adjusted working earnings (loss), adjusted EBITDA, adjusted section EBITDA, adjusted working earnings (loss) margin share, adjusted EBITDA margin share and free money circulation (utilization) and related measures should not have any standardized which means prescribed by U.S. GAAP and are due to this fact unlikely to be similar to equally titled measures reported by different corporations.

Reconciliation of non-GAAP primarily based measures with most instantly comparable U.S. GAAP primarily based measures for the three months ended Could 31, 2025 and Could 31, 2024

A reconciliation of probably the most instantly comparable U.S. GAAP monetary measures for the three months ended Could 31, 2025 and Could 31, 2024 to adjusted monetary measures is mirrored within the desk under:

Reconciliation of U.S. GAAP working expense for the three months ended Could 31, 2025, and Could 31, 2024 to adjusted working expense is mirrored within the desk under:

Reconciliation of U.S. GAAP company working prices for the three months ended Could 31, 2025 and Could 31, 2024 to adjusted company working prices excluding amortization is mirrored within the desk under:

Reconciliation of U.S. GAAP web earnings (loss) and U.S. GAAP primary earnings (loss) per share for the three months ended Could 31, 2025 and Could 31, 2024 to adjusted web earnings (loss) and adjusted primary earnings (loss) per share is mirrored within the desk under:

Reconciliation of U.S. GAAP analysis and growth, gross sales and advertising, common and administrative, and amortization expense for the three months ended Could 31, 2025 and Could 31, 2024 to adjusted analysis and growth, gross sales and advertising, common and administrative, and amortization expense is mirrored within the desk under:

Adjusted working earnings, adjusted EBITDA, adjusted working earnings margin share and adjusted EBITDA margin share for the three months ended Could 31, 2025 and Could 31, 2024 are mirrored within the desk under.

⁽¹⁾ Adjusted working earnings margin % is calculated by dividing adjusted working earnings by income.
⁽²⁾ Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by income.

The Firm makes use of free money circulation (utilization) when assessing its sources of liquidity, capital sources, and high quality of earnings. The Firm believes that free money circulation (utilization) is useful in understanding the Firm’s capital necessities and supplies an extra means to mirror the money circulation developments within the Firm’s enterprise.

Reconciliation of U.S. GAAP web money utilized in working actions for the three months ended Could 31, 2025 and Could 31, 2024 to free money circulation (utilization) is mirrored within the desk under:

Key Metrics

The Firm often screens quite a few monetary and working metrics, together with the next key metrics, with the intention to measure the Firm’s present efficiency and estimated future efficiency. Readers are cautioned that Safe Communications annual recurring income (“ARR”) and Safe Communications dollar-based web retention charge (“DBNRR”) should not have any standardized which means and are unlikely to be similar to equally titled measures reported by different corporations.

SOURCE: BlackBerry