BlackBerry today reported financial results for the second quarter, beating estimates and the company raising its fiscal year 2026 outlook.
For the three months ended August 31, 2025, net earnings amounted to $13.3 million or $0.02 per share compared with a loss of $19.7 million or $0.03 per share in the previous year.
On adjusted basis, earnings stood at $24.2 million compared with a loss of $2.6 million in the prior year.
On average, analysts expected earnings of $0.01 per share during the same quarter.
Revenue increased to $129.6 million from last year’s $126.2 million.
“BlackBerry delivered year-over-year revenue growth and expanded gross margins while reducing operating expenses. This combination ensured strong profitability in the second quarter, beating expectations and achieving a second consecutive quarter of GAAP profitability,” said John J. Giamatteo, CEO, BlackBerry.
“Our QNX division recorded a “rule of 40″ quarter and progress across all our key growth initiatives. Our Secure Communications division exceeded expectations at both the top and bottom line, and delivered improvements in its key metrics.”
Total company revenue exceeded previously-provided guidance at $129.6 million, increasing 3% year-over-year.
Total company GAAP and adjusted gross margin increased by 4 percentage points year-over-year to 75%..
QNX revenue beat guidance and achieved 15% year-over-year growth to $63.1 million; QNX segment adjusted gross margin were flat year-over-year at 83%.
QNX adjusted EBITDA beat previously-provided guidance at $20.5 million, or 32% of revenue.
Secure Communications revenue exceeded previously-provided guidance at $59.9 million, decreasing 10% year-over-year; Secure Communications segment adjusted gross margin increased 5 percentage points year-over-year to 66%.
Secure Communications ARR increased year-over-year and sequentially to $213 million; Secure Communications DBNRR was flat year-over-year, and increased by 1 percentage point sequentially to 93%.
Secure Communications adjusted EBITDA exceeded previously provided guidance at $9.7 million.
Licensing revenue was $6.6 million, and adjusted EBITDA was $5.6 million.
Total company adjusted EBITDA exceeded previously-provided guidance at $25.9 million, or 20% of revenue; Total company GAAP Operating Income was $11.5 million, a $9.5 million increase sequentially and a $9.3 million increase year-over-year.
BlackBerry achieved another quarter of GAAP profitability, with GAAP net income of $13.3 million and adjusted net income of $24.2 million.
GAAP basic earnings per share was $0.02 and non-GAAP basic earnings per share was $0.04, beating the previously-provided guidance.
Operating cash flow for the second quarter beat expectations at positive $3.4 million.
$20 million was returned to shareholders by the repurchase of approximately 5 million common shares during the quarter.
Total cash, cash equivalents, short-term and long-term investments therefore decreased by $18.4 million sequentially to $363.5 million.
Looking ahead, the company expects adjusted basic earnings of $0.02 – $0.04 per share for the third quarter, and $0.11 – $0.15 per share for the fiscal year 2026.
The company sees total revenue of $132 – $140 million for the third quarter, and $519 – $541 million for the full year 2026.
