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6 days ago
- Business
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BB's Q1 Earnings Beat, Revenues Down Y/Y, Stock Up on Improved Outlook
BlackBerry Limited BB reported first-quarter fiscal 2026 non-GAAP earnings per share (EPS) of 2 cents. The figure beat the company's estimate of a loss of 1 cent to breakeven. In the year-ago quarter, it reported a non-GAAP loss of 2 cents. The Zacks Consensus Estimate was pegged at total revenues of $121.7 million exceeded its guidance ($107-$115 million) but fell 1.4% year over year, mainly due to soft sales in Secure Communications and Licensing units amid continued strength in the QNX continues to operate in a challenging macro environment, with some customers delaying guidance amid ongoing uncertainty. While automotive tariffs have not had a direct impact, they have contributed to delays in customer purchasing decisions. Potential supply chain disruptions for OEMs may also affect production volumes and, in turn, royalty revenues. These factors are reflected in its guidance, which will be continuously reviewed throughout fiscal 2026. Despite market fluctuations, BB has maintained its full-year revenue guidance of $250–$270 million and adjusted EBITDA of $55–$60 million for the QNX exceeded fiscal first-quarter Secure Comms expectations by closing major Secusmart deals earlier than planned. With a strong pipeline ahead, it has raised full-year revenue guidance by $4 million to $234–$244 million and adjusted EBITDA to $37–$47 million (16–19%). It continues to project Licensing & Other revenues to be around $24 million. Non-GAAP loss per share is expected to be between 8 cents and 10 cents, the same as the prior view. BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote With a stronger outlook for Secure Communications revenues and EBITDA, the company has also raised its fiscal 2026 revenue guidance. It now projects total revenues of $508–$538 million and adjusted EBITDA of $72–$87 million. Previously, it estimated revenues to be between $504 million and $534 million and adjusted EBITDA of $69–$84 better-than-anticipated performance and bolstered view, BB's shares gained 10% in the pre-market trading on June 25, 2025. The stock has gained 95.9% in the past year compared with the Zacks Internet-Software industry's growth of 37.6%. Image Source: Zacks Investment Research Revenues from the QNX business totaled $57.5 million, surpassing the high end of guidance ($51-$55 million). This reflects 8% year-over-year growth, despite ongoing uncertainty in the auto market and recent tariff announcements. The growth was mainly driven by a 9% increase in royalties and a 23% rise in development seat license revenues. During the quarter, the company continued its design win momentum in the core digital cockpit and ADAS. GEM now makes up 43% of the total SDP 8.0 pipeline, which grew 55% in the Communication revenues declined 7.3% year over year to $59.5 million. It, however, beat the top limit of guidance ($50-$54 million) driven by steady traction in its Secusmart product. It was a strong quarter for German government sales, with some large deals closing early. The global pipeline is growing, especially in defense, as governments seek more secure tools. Despite long government sales cycles, BB anticipates more Secusmart deals this year. Increasing design wins for AtHoc and UEM are another revenues reached $4.7 million compared with $6 million in the previous-year quarter, due to lower revenues from existing licensing deals. Malikie, which bought BB's noncore patents, is exploring new licensing opportunities. While no extra revenues are expected this year, management expects healthy performance in fiscal 2027 and fiscal 2028. Adjusted gross margin was 74.6%, up from 73.5% in the year-ago period. QNX's gross margin fell 1% year over year to 81% due to adverse forex impacts. Secure Comms' gross margin was 70%, up both sequentially and year over year, driven by a higher share of Secusmart software EBITDA was $16.4 million, up from $10.5 million in the year-ago quarter, owing to effective cost management. The company expected adjusted EBITDA to be breakeven to $7 million. QNX's adjusted EBITDA for the quarter came in above the high end of guidance ($2-$6 million) at $12.7 million. Strong leverage in the Secure Communications model helped the division beat expectations ($3-$6 million) with adjusted EBITDA of $9.6 million. Licensing adjusted EBITDA lagged projection (around $5 million) at $3.8 operating expenses were $78.4 million, down 7.5%. For the quarter that ended on May 31, 2025, BlackBerry used $18 million of net cash in operating activities compared with $15 million in the prior-year quarter. Management had guided the usage of $20-$30 of May 31, BlackBerry had $381.9 million in cash, cash equivalents, short-term and long-term investments, down from $410 million as of Feb. 28, 2025. The company returned $10 million to shareholders during the quarter via a buyback of 2.57 million common shares. The company expects fiscal second-quarter 2026 revenues to be in the $115-$125 million range. Non-GAAP EPS is expected to range between breakeven and 1 cent. It forecasts an operating cash usage of $5-$15 million band and adjusted EBITDA to be between $8 million and $14 is taking a cautious stance on QNX due to possible impacts from tariffs and slower buying decisions, mostly for fresh products like QNX Cabin. It expects revenues of $55–$60 million and adjusted EBITDA of $10–$13 by a strong Secure Communications' pipeline, it expects revenues of $54–$59 million and adjusted EBITDA of $3–$6 million. BB continues to expect licensing revenues of about $6 million and adjusted EBITDA of about $5 million per quarter. At present, BlackBerry carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. CoreWeave CRWV reported first-quarter 2025 loss per share of $1.49, which was much wider than a loss of 62 cents in the year-ago quarter. Adjusted net loss for the quarter was $149.6 million compared with a loss of $23.6 million a year ago. Shares of CoreWeave have surged 68% in the past month. Atlassian Corporation TEAM reported third-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Its non-GAAP earnings per share of 97 cents beat the Zacks Consensus Estimate by 7.8%. The figure jumped 9% from the year-ago quarter's non-GAAP earnings of 89 cents per share. Shares of TEAM have fallen 3% in the past Software, Inc GWRE reported non-GAAP earnings per share of 88 cents in third-quarter fiscal 2025 (ended April 30, 2025), up 238.5% year over year and beat the Zacks Consensus Estimate by 91.3%. In the past month, shares of GWRE have gained 13.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
6 days ago
- Business
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BlackBerry Stock is Gapping Higher After Earnings, Here's Why
BlackBerry (BB) last night reported Q1 FY2026 results that marked a significant milestone, as the company returned to GAAP profitability for the first time since Q4 FY2022, posting a net income of $1.9 million. The company's total revenue reached $121.7 million, surpassing guidance expectations, despite showing a slight decline from the previous year's $123.4 million. BlackBerry's QNX division delivered particularly strong growth, increasing by 8% year-over-year to $57.5 million, while Secure Communications generated revenue of $59.5 million. BB stock is up more than 11% in premarket trading this morning, on pace to open at 3-month highs. The stock is gapping away from recent support at its rising 20-day moving average ahead of the bell, and is looking to break away from resistance in the $4.50 area. Super Micro Computer Just Struck a Deal with Ericsson. Should You Buy SMCI Stock Here? CEO Jensen Huang Just Sold Nvidia Stock. Should You? Cathie Wood Is Dumping Circle Stock. Should You? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The company's strategic focus on cybersecurity and embedded systems continues to yield positive results, with the QNX segment showing particular strength in both automotive and non-automotive verticals. This is evidenced by the impressive 55% growth in the SDP8.0 pipeline during the quarter, and BlackBerry's efforts to expand QNX beyond automotive into industrial automation and medical devices. BlackBerry maintains a strong financial position with $381.9 million in cash and investments, and has initiated a $100 million share buyback program, of which $10 million was executed in Q1. Management's decision to raise full-year revenue guidance to $508-538 million reflects growing optimism about the company's trajectory, particularly in the cybersecurity space. The secure communications segment's forecast was notably increased to $234-244 million from $230-240 million, driven by robust demand for cybersecurity services amid rising online crimes. BlackBerry's gross margin expanded to 74%, while its Secure Communications division maintained a stable annual recurring revenue (ARR) of $209 million. Looking ahead, BlackBerry's transformation continues as it distances itself from its historical operations, focusing instead on emerging technology verticals and cybersecurity solutions. The company expects to generate approximately $35 million in operating cash flow for fiscal 2026, though some near-term caution exists regarding potential auto production impacts from recent tariff changes. On Wall Street, BB stock has a consensus rating of 'Hold' from the 5 analysts in coverage, and the shares are set to open north of their average 12-month price target of $4.43. This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
7 days ago
- Business
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BlackBerry Reports First Quarter Fiscal Year 2026 Results
Exceeds top end of guidance range for revenue, adjusted EBITDA, adjusted EPS and operating cash flow for the total Company Delivers revenue and adjusted EBITDA above guidance for QNX division Beats revenue and adjusted EBITDA guidance for Secure Communications division, raising full year guidance Returns $10 million to shareholders as part of share buyback program WATERLOO, ON / / June 24, 2025 / BlackBerry Limited (NYSE:BB)(TSX:BB) today reported financial results for the three months ended May 31, 2025 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated). "BlackBerry made a strong start to the new fiscal year, building on the solid foundation we as a company have laid over the past year," said John J. Giamatteo, CEO, BlackBerry. "Both our QNX and Secure Communications divisions continue to execute effectively against their strategies, beating both top line and profitability expectations. BlackBerry's solid balance sheet and plan for continuing profitability and cash generation this fiscal year enable us to allocate capital efficiently, with $10 million of share buybacks executed this past quarter." First Quarter Fiscal 2026 Financial Highlights Total company revenue exceeded previously-provided guidance at $121.7 million Total company gross margin was 74% and non-GAAP gross margin was 75% QNX revenue beat guidance and delivered 8% year-over-year growth to $57.5 million; QNX gross margin and adjusted gross margin was 81% QNX adjusted EBITDA beat previously-provided guidance at $12.7 million, or 22% of revenue Secure Communications revenue exceeded previously-provided guidance at $59.5 million; Secure Communications adjusted gross margin increased by 6 percentage points sequentially and 4 percentage points year-over-year to 70% Secure Communications ARR remained stable, relatively flat sequentially at $209 million; Secure Communications DBNRR decreased by 1 percentage point to 92% Secure Communications adjusted EBITDA exceeded previously provided guidance at $9.6 million Licensing revenue was $4.7 million, and adjusted EBITDA was $3.8 million BlackBerry achieved GAAP profitability for first time since Q4 FY22, with net income of $1.9 million and non-GAAP net income was $12.3 million Total company adjusted EBITDA exceeded previously-provided guidance at $16.4 million GAAP basic earnings per share was breakeven and non-GAAP basic earnings per share was $0.02, beating the previously-provided guidance Operating cash usage for the seasonally-low first quarter beat expectations at $18 million $10 million was returned to shareholders by the repurchase of 2.57 million common shares during the quarter Total cash, cash equivalents, short-term and long-term investments decreased by $28.4 million sequentially to $381.9 million Business Highlights & Strategic Announcements BlackBerry announced a normal course issuer bid share buyback program QNX launched QNX® Hypervisor 8.0, built on the next-generation SDP 8.0 architecture, facilitating high-performance virtualization of multiple operating systems on a single SoC WeRide launched its next-generation ADAS platform for L2++ autonomous drive, built upon QNX® OS for Safety Leapmotor selected QNX® technology as the foundation of its intelligent digital cockpit and autonomous drive domain controllers in its new B10 electric SUV Direct ChassisLink Inc (DCLI) announced the deployment of BlackBerry® Radar® across 100,000 chassis BlackBerry® AtHoc® became the first critical event management provider to achieve FedRAMP High authorization Malaysia Cybersecurity Center of Excellence celebrated its first anniversary with new partnerships, scholarships and expanded education programs Financial Outlook BlackBerry is providing the following guidance for the second fiscal quarter (ending August 31, 2025) and the full fiscal year 2026 (ending February 28, 2026). Q2 FY26 Full fiscal year FY26 Total BlackBerry revenue: $115 - $125 million $508 - $538 million QNX revenue: $55 - $60 million $250 - $270 million Secure Communications revenue: $54 - $59 million $234 - $244 million Licensing revenue: Approximately $6 million Approximately $24 million QNX segment adjusted EBITDA: $10 - $13 million $55 - $60 million Secure Communications segment adjusted EBITDA: $3 - $6 million $37 - $47 million Licensing segment adjusted EBITDA: Approximately $5 million Approximately $20 million Adjusted Corporate Costs1: Approximately $10 million Approximately $40 million Total Company adjusted EBITDA: $8 - $14 million $72 - $87 million Non-GAAP basic EPS: Breakeven - $0.01 $0.08 - $0.10 Operating cash flow (usage) ($5) - ($15) million Approximately $35 million 1 Excluding amortization costs. Use of Non-GAAP Financial Measures The tables at the end of this press release include a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios used by the Company to comparable U.S. GAAP measures and an explanation of why the Company uses them. The Company does not provide a reconciliation of expected Adjusted EBITDA and expected Non-GAAP basic EPS for the second quarter of 2026 to the most directly comparable expected GAAP measures because it is unable to predict with reasonable certainty, among other things, restructuring charges and impairment charges and, accordingly, a reconciliation is not available without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For more information on the non-GAAP financial measures, please refer to the tables at the end of this press release. Conference Call and Webcast A conference call and live webcast will be held today beginning at 5:30 p.m. ET, which can be accessed using the following link (here) or through the Company's investor webpage ( or by dialing toll free +1 (844) 763-8275 and entering Elite Entry Number 52549. A replay of the conference call will be available at approximately 8:30 p.m. ET today, using the same webcast link (here) or by dialing toll free +1 (877) 481-4010 and entering Replay Access Code 52549. About BlackBerry BlackBerry (NYSE:BB)(TSX:BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management. For more information, visit and follow @BlackBerry. Investor Contact: BlackBerry Investor Relations+1 (519) 888-7465investorrelations@ Media Contact: BlackBerry Media Relations+1 (519) 597-7273mediarelations@ ### This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry's plans, strategies and objectives. The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, financial performance, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, and competition. Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; BlackBerry's ability to enhance, develop, introduce or monetize its products and services in a timely manner with competitive pricing, features and performance; significant changes in government customer demand or procurement requirements; BlackBerry's sales cycles and the time and expense of its sales efforts; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; risks arising from a failure or perceived failure of the security features of BlackBerry's solutions; adverse macroeconomic and geopolitical conditions, including trade policies; litigation against BlackBerry; network disruptions or other business interruptions; BlackBerry's ability to foster an ecosystem of third-party application developers; BlackBerry's dependence in part on its relationships with resellers and channel partners; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; BlackBerry's use of artificial intelligence solutions; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry's use of open source software and its ability to obtain rights to use third-party software ; BlackBerry potentially being found to have infringed on the intellectual property rights of others; BlackBerry's indebtedness, which could impact its operating flexibility and financial condition; the asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; potential impacts of acquisitions, divestitures and other business initiatives; risks associated with foreign operations, including fluctuations in foreign currencies; environmental events; the fluctuation of BlackBerry's quarterly revenue and operating results; and the volatility of the market price of BlackBerry's common shares. These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form 10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at or All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and BlackBerry has no intention and undertakes no obligation to update or revise any of them, except as required by law. ### BlackBerry LimitedIncorporated under the Laws of Ontario(United States dollars, in millions except share and per share amounts) Consolidated Statements of Operations Three Months Ended May 31, 2025 February 28, 2025 May 31, 2024 Revenue $ 121.7 $ 141.7 $ 123.4 Cost of sales 31.4 37.6 33.4 Gross margin 90.3 104.1 90.0 Gross margin % 74.2 % 73.5 % 72.9 % Operating expenses Research and development 25.0 23.2 30.6 Sales and marketing 28.7 27.1 23.8 General and administrative 30.5 50.0 40.3 Amortization 4.0 4.1 4.7 Impairment of long-lived assets 0.1 4.9 3.5 Litigation settlements - 2.8 - 88.3 112.1 102.9 Operating income (loss) 2.0 (8.0 ) (12.9 ) Investment income, net 2.9 1.6 4.0 Income (loss) before income taxes 4.9 (6.4 ) (8.9 ) Provision for income taxes 3.0 1.4 7.6 Income (loss) from continuing operations 1.9 (7.8 ) (16.5 ) Gain from disposal of discontinued operation, net of tax - 10.2 - Loss from discontinued operations, net of tax - (9.8 ) (24.9 ) Net income (loss) $ 1.9 $ (7.4 ) $ (41.4 ) Earnings (loss) per share Basic earnings (loss) per share from continuing operations $ 0.00 $ (0.01 ) $ (0.03 ) Total basic earnings (loss) per share $ 0.00 $ (0.01 ) $ (0.07 ) Diluted earnings (loss) per share from continuing operations $ 0.00 $ (0.01 ) $ (0.03 ) Total diluted earnings (loss) per share $ 0.00 $ (0.01 ) $ (0.07 ) Weighted-average number of common shares outstanding (000s) Basic 596,300 594,267 589,821 Diluted 600,831 594,267 589,821 Total common shares outstanding (000s) 594,529 596,231 590,171 BlackBerry LimitedIncorporated under the Laws of Ontario(United States dollars, in millions) Consolidated Balance Sheets As at May 31, 2025 February 28, 2025 Assets Current Cash and cash equivalents $ 276.0 $ 266.7 Short-term investments 30.6 71.1 Accounts receivable, net of allowance of $6.0 and $6.6, respectively 129.9 173.7 Other receivables 51.7 48.4 Income taxes receivable 1.7 1.6 Other current assets 43.3 30.0 533.2 591.5 Restricted cash and cash equivalents 16.5 13.6 Long-term investments 58.8 58.9 Other long-term assets 48.0 76.5 Operating lease right-of-use assets, net 20.1 22.0 Property, plant and equipment, net 12.7 13.4 Intangible assets, net 44.2 47.3 Goodwill 476.9 472.4 $ 1,210.4 $ 1,295.6 Liabilities Current Accounts payable $ 5.2 $ 31.1 Accrued liabilities 83.3 126.2 Income taxes payable 28.6 25.5 Deferred revenue, current 136.3 161.5 253.4 344.3 Deferred revenue, non-current 8.8 5.6 Operating lease liabilities 26.3 28.7 Other long-term liabilities 1.2 1.8 Long-term notes 195.6 195.3 485.3 575.7 Shareholders' equity Capital stock and additional paid-in capital 2,970.5 2,976.4 Deficit (2,232.6 ) (2,237.3 ) Accumulated other comprehensive loss (12.8 ) (19.2 ) 725.1 719.9 $ 1,210.4 $ 1,295.6 BlackBerry LimitedIncorporated under the Laws of Ontario(United States dollars, in millions) Consolidated Statements of Cash Flows Three Months Ended May 31, 2025 May 31, 2024 Cash flows from operating activities Net income (loss) $ 1.9 $ (41.4 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Amortization 5.7 13.2 Stock-based compensation 5.7 7.7 Impairment of long-lived assets 0.1 3.5 Operating leases (1.6 ) (2.7 ) Other (0.7 ) (2.9 ) Net changes in working capital items Accounts receivable, net of allowance 43.8 51.0 Other receivables (3.3 ) 0.7 Income taxes receivable (0.1 ) 0.9 Other assets 17.0 (11.6 ) Accounts payable (25.9 ) (11.1 ) Accrued liabilities (41.7 ) (6.5 ) Income taxes payable 3.1 0.5 Deferred revenue (22.0 ) (16.4 ) Net cash used in operating activities (18.0 ) (15.1 ) Cash flows from investing activities Proceeds on sale, maturity or distribution from long-term investments 0.1 - Acquisition of property, plant and equipment (0.9 ) (1.4 ) Proceeds on sale of property, plant and equipment - 0.1 Acquisition of intangible assets (1.2 ) (1.5 ) Acquisition of short-term investments (21.7 ) (48.9 ) Proceeds on sale or maturity of short-term investments 62.2 24.5 Net cash provided by (used in) investing activities 38.5 (27.2 ) Cash flows from financing activities Issuance of common shares 1.2 1.5 Common shares repurchased (10.0 ) - Net cash provided by (used in) financing activities (8.8 ) 1.5 Effect of foreign exchange gain on cash, cash equivalents, restricted cash, and restricted cash equivalents 0.5 - Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period 12.2 (40.8 ) Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period 280.3 200.5 Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period $ 292.5 $ 159.7 As at May 31, 2025 February 28, 2025 Cash and cash equivalents $ 276.0 $ 266.7 Restricted cash and cash equivalents 16.5 13.6 Short-term investments 30.6 71.1 Long-term investments 58.8 58.9 $ 381.9 $ 410.3 Reconciliations of the Company's Segment Results and Segment Adjusted EBITDA to the Consolidated Results The following tables show information by operating segment for the three months ended May 31, 2025 and May 31, 2024. The Company reports segment information in accordance with U.S. GAAP, pursuant to the Financial Standards Accounting Board's Accounting Standard Codification Topic 280, Segment Reporting, based on the "management" approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker ("CODM") for making decisions and assessing performance of the Company's reportable operating segments. The measure of segment profit or loss disclosed by the Company in the Consolidated Financial Statements under the "management" approach in reviewing the results of the Company's operating segments is segment adjusted gross margin. Additionally, the following tables include the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA, a non-GAAP financial measure. See Note 11 to the Consolidated Financial Statements for a description of the Company's operating segments. For the Three Months Ended (in millions) QNX Secure Communications Licensing Segment Totals May 31, May 31, May 31, May 31, Change Change Change Change 2025 2024 2025 2024 2025 2024 2025 2024 Segment revenue $ 57.5 $ 53.2 $ 4.3 $ 59.5 $ 64.2 $ (4.7 ) $ 4.7 $ 6.0 $ (1.3 ) $ 121.7 $ 123.4 $ (1.7 ) Segment cost of sales 11.2 9.5 1.7 18.1 21.8 (3.7 ) 1.6 1.4 0.2 30.9 32.7 (1.8 ) Segment adjusted gross margin $ 46.3 $ 43.7 $ 2.6 $ 41.4 $ 42.4 $ (1.0 ) $ 3.1 $ 4.6 $ (1.5 ) $ 90.8 $ 90.7 $ 0.1 Segment research and development 12.4 16.4 (4.0 ) 11.3 12.3 (1.0 ) - - - 23.7 28.7 (5.0 ) Segment sales and marketing 13.3 10.7 2.6 13.6 12.2 1.4 - - - 26.9 22.9 4.0 Segment general and administrative 8.6 8.2 0.4 7.5 9.6 (2.1 ) 1.6 2.1 (0.5 ) 17.7 19.9 (2.2 ) Less amortization included in the above 0.7 0.5 0.2 0.6 1.0 (0.4 ) 2.3 2.2 0.1 3.6 3.7 (0.1 ) Segment adjusted EBITDA $ 12.7 $ 8.9 $ 3.8 $ 9.6 $ 9.3 $ 0.3 $ 3.8 $ 4.7 $ (0.9 ) $ 26.1 $ 22.9 $ 3.2 The following tables reconcile the Company's segment adjusted gross margin results for the three months ended May 31, 2025 to consolidated U.S. GAAP results: For the Three Months Ended May 31, 2025(in millions)QNX Secure Communications Licensing Segment Totals Reconciling Items Consolidated U.S. GAAP Revenue $ 57.5 $ 59.5 $ 4.7 $ 121.7 $ - $ 121.7 Cost of sales 11.2 18.1 1.6 30.9 0.5 31.4 Gross margin (1) $ 46.3 $ 41.4 $ 3.1 $ 90.8 $ (0.5 ) $ 90.3 Operating expenses 88.3 88.3 Investment income, net 2.9 2.9 Income before income taxes $ 4.9 For the Three Months Ended May 31, 2024 (in millions) (unaudited) QNX Secure Communications Licensing Segment Totals Reconciling Items Consolidated U.S. GAAP Revenue $ 53.2 $ 64.2 $ 6.0 $ 123.4 $ - $ 123.4 Cost of sales 9.5 21.8 1.4 32.7 0.7 33.4 Gross margin (1) $ 43.7 $ 42.4 $ 4.6 $ 90.7 $ (0.7 ) $ 90.0 Operating expenses 102.9 102.9 Investment income, net 4.0 4.0 Loss before income taxes $ (8.9 ) (1) See "Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures" for a reconciliation of selected U.S. GAAP-based measures to adjusted measures for the three months ended May 31, 2025 and May 31, 2024. The following table reconciles total segment adjusted EBITDA for the three months ended May 31, 2025 and May 31, 2024 to the Company's consolidated totals: Three Months Ended May 31, 2025 May 31, 2024 Total Segment Adjusted EBITDA $ 26.1 $ 22.9 Adjustments (1): Stock compensation expense 5.7 6.2 Restructuring charges 2.9 7.3 Less: Corporate general and administrative expense 9.7 12.4 Amortization 5.7 6.4 Impairment of long-lived assets 0.1 3.5 Investment income (2.9 ) (4.0 ) Consolidated income (loss) from continuing operations before income taxes $ 4.9 $ (8.9 ) (1) The CODM reviews segment information on an adjusted EBITDA basis, which excludes certain amounts as described below: Stock compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company's management. Restructuring charges - Restructuring charges relate to employee termination benefits, facilities, streamlining many of the Company's centralized corporate functions into Secure Communications and QNX specific teams, and other costs pursuant to programs to reduce the Company's annual expenses amongst R&D, infrastructure and other functions and do not reflect expected future operating expenses, are not indicative of the Company's core operating performance, and may not be meaningful when comparing the Company's operating performance against that of prior periods. Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures In the Company's internal reports, management evaluates the performance of the Company's business on a non-GAAP basis by excluding the impact of certain items from the Company's U.S. GAAP financial results. The Company believes that these non-GAAP financial measures and non-GAAP ratios provide management, as well as readers of the Company's financial statements, with a consistent basis for comparison across accounting periods and are useful in helping management and readers understand the Company's operating results and underlying operational trends. Readers are cautioned that adjusted gross margin, adjusted gross margin percentage, adjusted operating expense, adjusted corporate operating costs, adjusted corporate operating costs excluding amortization, adjusted net income (loss), adjusted earnings (loss) per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income (loss), adjusted EBITDA, adjusted segment EBITDA, adjusted operating income (loss) margin percentage, adjusted EBITDA margin percentage and free cash flow (usage) and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies. Reconciliation of non-GAAP based measures with most directly comparable U.S. GAAP based measures for the three months ended May 31, 2025 and May 31, 2024 A reconciliation of the most directly comparable U.S. GAAP financial measures for the three months ended May 31, 2025 and May 31, 2024 to adjusted financial measures is reflected in the table below: For the Three Months Ended (in millions) May 31, 2025 May 31, 2024 Gross margin $ 90.3 $ 90.0 Stock compensation expense 0.5 0.7 Adjusted gross margin $ 90.8 $ 90.7 Gross margin % 74.2 % 72.9 % Stock compensation expense 0.4 % 0.6 % Adjusted gross margin % 74.6 % 73.5 % Reconciliation of U.S. GAAP operating expense for the three months ended May 31, 2025, and May 31, 2024 to adjusted operating expense is reflected in the table below: For the Three Months Ended (in millions) May 31, 2025 May 31, 2024 Operating expense $ 88.3 $ 102.9 Restructuring charges 2.9 7.3 Stock compensation expense 5.2 5.5 Acquired intangibles amortization 1.7 1.8 LLA impairment charge 0.1 3.5 Adjusted operating expense $ 78.4 $ 84.8 Reconciliation of U.S. GAAP corporate operating costs for the three months ended May 31, 2025 and May 31, 2024 to adjusted corporate operating costs excluding amortization is reflected in the table below: For the Three Months Ended (in millions) May 31, 2025 May 31, 2024 Corporate operating costs $ 14.9 $ 25.4 Restructuring charges 2.9 7.3 Stock compensation expense 1.9 1.3 LLA impairment charge - 3.5 Adjusted corporate operating costs 10.1 13.3 Amortization 0.4 0.9 Adjusted corporate operating costs excluding amortization $ 9.7 $ 12.4 Reconciliation of U.S. GAAP net income (loss) and U.S. GAAP basic earnings (loss) per share for the three months ended May 31, 2025 and May 31, 2024 to adjusted net income (loss) and adjusted basic earnings (loss) per share is reflected in the table below: For the Three Months Ended (in millions, except per share amounts) May 31, 2025 May 31, 2024Basic earnings per shareBasic loss per share Net income (loss) $ 1.9 $ 0.00 $ (41.4 ) $ (0.07 ) Restructuring charges 2.9 7.3 Stock compensation expense 5.7 7.7 Acquired intangibles amortization 1.7 8.6 LLA impairment charge 0.1 3.5 Adjusted net income (loss) $ 12.3 $ 0.02 $ (14.3 ) $ (0.02 ) Reconciliation of U.S. GAAP research and development, sales and marketing, general and administrative, and amortization expense for the three months ended May 31, 2025 and May 31, 2024 to adjusted research and development, sales and marketing, general and administrative, and amortization expense is reflected in the table below: For the Three Months Ended (in millions) May 31, 2025 May 31, 2024 Research and development $ 25.0 $ 30.6 Stock compensation expense 1.3 1.8 Adjusted research and development expense $ 23.7 $ 28.8 Sales and marketing $ 28.7 $ 23.8 Stock compensation expense 1.4 0.8 Adjusted sales and marketing expense $ 27.3 $ 23.0 General and administrative $ 30.5 $ 40.3 Restructuring charges 2.9 7.3 Stock compensation expense 2.5 2.9 Adjusted general and administrative expense $ 25.1 $ 30.1 Amortization $ 4.0 $ 4.7 Acquired intangibles amortization 1.7 1.8 Adjusted amortization expense $ 2.3 $ 2.9 Adjusted operating income, adjusted EBITDA, adjusted operating income margin percentage and adjusted EBITDA margin percentage for the three months ended May 31, 2025 and May 31, 2024 are reflected in the table below. For the Three Months Ended (in millions) May 31, 2025 May 31, 2024 Operating income (loss) $ 2.0 $ (12.9 ) Non-GAAP adjustments to operating income (loss) Restructuring charges 2.9 7.3 Stock compensation expense 5.7 6.2 Acquired intangibles amortization 1.7 1.8 LLA impairment charge 0.1 3.5 Total non-GAAP adjustments to operating income (loss) 10.4 18.8 Adjusted operating income 12.4 5.9 Amortization 5.7 6.4 Acquired intangibles amortization (1.7 ) (1.8 ) Adjusted EBITDA $ 16.4 $ 10.5 Revenue $ 121.7 $ 123.4 Adjusted operating income margin % (1) 10.2 % 4.8 % Adjusted EBITDA margin % (2) 13.5 % 8.5 % (1) Adjusted operating income margin % is calculated by dividing adjusted operating income by revenue.(2) Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by revenue. The Company uses free cash flow (usage) when assessing its sources of liquidity, capital resources, and quality of earnings. The Company believes that free cash flow (usage) is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow trends in the Company's business. Reconciliation of U.S. GAAP net cash used in operating activities for the three months ended May 31, 2025 and May 31, 2024 to free cash flow (usage) is reflected in the table below: For the Three Months Ended (in millions) May 31, 2025 May 31, 2024 Net cash used in operating activities $ (18.0 ) $ (15.1 ) Acquisition of property, plant and equipment (0.9 ) (1.4 ) Free cash usage $ (18.9 ) $ (16.5 ) Key Metrics The Company regularly monitors a number of financial and operating metrics, including the following key metrics, in order to measure the Company's current performance and estimated future performance. Readers are cautioned that Secure Communications annual recurring revenue ("ARR") and Secure Communications dollar-based net retention rate ("DBNRR") do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies. For the Three Months Ended (in millions) May 31, 2025 Secure Communications Annual Recurring Revenue $ 209 Secure Communications Dollar-Based Net Retention Rate 92 % SOURCE: BlackBerry View the original press release on ACCESS Newswire
Yahoo
20-06-2025
- Automotive
- Yahoo
Can Momentum in QNX Unit Fuel BlackBerry's Top-Line Growth?
BlackBerry Limited's BB QNX business, formed by rebranding its IoT unit, is benefiting from strength in the automotive segment, particularly strong demand for its solutions across the advanced driver assistance systems market and digital cockpit domain. Continued design win momentum is anticipated to further strengthen the QNX royalty backlog. The increasing adoption of the next-generation version of the QNX operating system, Software Development Platform (SDP) 8.0 (across aerospace, medical equipment, rail and defence verticals), as well as the release of the QNX General Embedded Development Platform, are aiding it. It supports modern platforms (ARMv9, RISC-V, multicore CPUs) and development tools and includes QNX Hypervisor 2.2 for mixed-criticality virtualization. Recently, BlackBerry's QNX announced that its SDP 8.0 will serve as the base OS for the Eclipse Foundation's Safe Open Vehicle Core (S-CORE) Project, supporting faster, cost-effective development of Software Defined Vehicles and marking a key step toward a common, safety-critical automotive platform. In May 2025, BlackBerry's QNX unit launched QNX Hypervisor 8.0, a virtualization tool built on SDP 8.0 to simplify complex embedded software development. It enables multiple OSes—like Android, Linux and QNX—to run securely on a single SoC via a microkernel architecture, offering virtualized memory, CPUs, devices and system isolation. Growing momentum in QNX Cabin with multi-year deal wins from the top 10 global auto OEMs further cushions its prospects. Despite delays in automotive software development, QNX's royalty backlog grew year over year to about $865 million. This shows that QNX is adding future royalty revenue faster than it is being recognized, which BlackBerry sees as a strong sign of the business's long-term health. QNX is a leading brand in the automotive sector, and BlackBerry is increasingly leveraging its strength as a key driver for top-line growth for fiscal 2026 and beyond. For the QNX business, revenues are expected to be in the range of $51-$55 million in the first quarter of fiscal 2026. However, the company anticipates a sequential fall in the revenues from the QNX business, which totaled $65.8 million during the fourth quarter of fiscal 2025. Volatility in the automotive sector remains concerning. Management, on the last earnings call, highlighted that due to recent tariff changes, especially on automotive goods, BlackBerry is currently unsure how this will affect its business. While it does not expect a direct impact on products and services, there may be indirect effects on its customers, such as supply chain disruptions and changes in demand. Alphabet Inc.'s GOOG Android Automotive OS (AAOS), launched in 2017, is a full-stack OS running directly on vehicle hardware, with services like Google Maps, Assistant and Play Store. It powers vehicles from Volvo, GM, Ford, Renault-Nissan, Stellantis, BMW and others. BMW adopted AAOS for OS8, and Ford plans to shift over half its fleet to it. According to S&P Global's report, AAOS will reach approximately 18% market share by 2027, while QNX falls to around 5%. Though AAOS lacks real-time and safety certifications, it excels in infotainment and app integration, often requiring a separate RTOS for critical systems. Wind River, owned by Aptiv PLC APTV, offers VxWorks (a real-time OS), Wind River Linux and Wind River Studio (cloud-based development/IoT platform). VxWorks is a mature RTOS certified for ISO 26262 ASIL-D, widely used in avionics and some automotive domains (particularly ADAS and autonomous platforms). Wind River has collaborated with Elektrobit to demo a software-defined vehicle controller. It's among the few RTOSes supporting OCI containers for edge deployments. While its automotive market share is smaller than BlackBerry QNX's, it's widely deployed in mission-critical systems. Wind River partners with AWS, NXP, Intel and Tier-1 suppliers, focusing on software-defined vehicles and IoT. Recent efforts include deeper integration with Elektrobit and AWS to advance autonomous vehicle development and edge-to-cloud solutions. Shares of BB have gained 87.8% in the past year compared with the Zacks Internet – Software industry's growth of 37.3%. Image Source: Zacks Investment Research From a valuation standpoint, BB trades at a forward price-to-sales of 4.79X, lower than the industry's average of 5.67X. Image Source: Zacks Investment Research BB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report Aptiv PLC (APTV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-06-2025
- Automotive
- Yahoo
BlackBerry Stock Surges 47% in Six Months: Time to Hold or Fold?
BlackBerry Limited's BB shares have rallied 46.5% in the past six months, outperforming the Internet Software industry's growth of 7.8% and the S&P 500 composite's decline of 0.9%, thereby attracting investors' interest. BB stock inched up 1.5% and closed the session at $4.13, still down 33.8% from its recent 52-week high of $6.24. Image Source: Zacks Investment Research Once known for smartphones, BB has made a pivot to cybersecurity and Internet of Things (IoT), focusing on enterprise security, embedded software and auto technology. BlackBerry has also outperformed peers within the cybersecurity space, such as Fortinet FTNT and CrowdStrike Holdings, Inc. CRWD. Fortinet and CrowdStrike have gained 8.1% and 35.1%, respectively, over the same time frame. FTNT is a provider of network security appliances and Unified Threat Management network security solutions, while CRWD is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services. Now, the question arises: Does BB's rally still have room to run, or was the surge a temporary pop driven by speculation? Let's explore the catalysts behind the surge, the fundamentals, and whether you should hold on or fold. The renamed QNX division (formerly IoT unit) is being positioned as the strategic core going forward. BlackBerry's QNX business is gaining from strength in the automotive segment, particularly strong demand for its solutions across the advanced driver assistance systems market and digital cockpit domain. The rapid adoption of the QNX platform in the General Embedded markets is a positive factor. The increasing adoption of the next-generation version of the QNX operating system, SDP 8.0, in the Auto and General Embedded market and the release of the QNX General Embedded Development Platform are positive factors. Earlier in the year, QNX and Microsoft MSFT partnered to aid automakers in building, validating and refining software within the cloud to power the evolution of SDVs. The partnership will bring the QNX Software Development Platform 8.0 to Microsoft Azure, offering automakers a comprehensive cloud-based environment to accelerate innovation while reducing development risks. Also, QNX and Microsoft plan to extend their collaboration to include the QNX Hypervisor and the QNX Cabin. Growing momentum in QNX Cabin with multi-year deal wins from the top 10 global auto OEMs further cushions its prospects. Despite delays in automotive software development, QNX's royalty backlog grew year over year to about $865 million. This shows that QNX is adding future royalty revenues faster than it's being recognized, which BlackBerry sees as a strong sign of the business's long-term health. BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote BlackBerry has offloaded its underperforming Cylance unit to Arctic Wolf. The transaction with Arctic Wolf unlocked $80 million in initial cash proceeds and 5.5 million shares, while preserving BlackBerry's AI/ML patent assets and tax losses. BB expects these tax losses to provide a shield for future profits generated by its U.S. entities. Momentum in the Secure Communication division, driven by solid operational execution and cost-saving efforts, is working in favor of BlackBerry. Fiscal fourth-quarter revenues of $67.3 million beat the high limit of the company's forecast ($62-$66 million), driven by strong AtHoc revenues and renewals in the core German market. Healthy momentum in UEM stemmed from rising deal wins from government agencies, top banks and law firms. Expansion of the deal with the Malaysian government bolsters both the contract length and the number of licenses. The Malaysian government is a great example of successfully using its full Secure Communications portfolio, and it is working to replicate this model in other regions. Management highlights this division to be a key contributor to BlackBerry's overall EBITDA and cash flow. BlackBerry's total adjusted EBITDA for fiscal 2025 was $39.3 million, including Cylance. This is a $54 million improvement from last year after adjusting for the patent sale in early fiscal 2024. Cost-cutting and restructuring measures are driving up profitability for BlackBerry. It has successfully achieved its initial target of cutting back roughly $150 million from its run rate. Image Source: Zacks Investment Research Management expects an additional $75 million of cash to be added in fiscal 2026, including the second Cylance payment of $40 million, positioning the company to reinvest or return capital opportunistically. Due to recent tariff changes, especially on automotive goods, BlackBerry is currently unsure how this will affect its business. While it does not expect a direct impact on products and services, there may be indirect effects on its customers, such as supply chain disruptions and changes in demand. Given the current uncertainty, BlackBerry is maintaining the upper end of the revenue guidance ($260-$270 million) shared at Investor Day in October but widening the lower end. It now expects QNX revenues to fall within the range of $250 million to $270 million. BB's QNX backlog may look robust, but the realization of the same may be delayed owing to the ongoing weakness in global auto production, and with several OEMs facing supply chain disruptions and demand uncertainty. BlackBerry is also taking a cautious stance on the Secure Communications division due to ongoing turmoil in its core government markets. The potential impact of DOGE and other shifts within the U.S. administration, as well as political changes in Canada, Germany and other regions, is likely to create a challenging and unstable environment. While significant effects are yet to be seen, the situation remains unpredictable. These developments could lead to short-term disruptions for the business. BlackBerry faces increasing competitive pressures in both IoT and cybersecurity businesses. Given the factors, analysts remain cautious, as evidenced by unchanged estimates in the past 60 days. Image Source: Zacks Investment Research Though the company's strategic pivot toward high-margin areas, such as IoT and Secure Communications, augurs well, there are several risks that could put downward pressure on the stock price. Its heavy reliance on cost-cutting measures to drive EBITDA, exposure to volatile markets like automotive, and stiff competition in the cybersecurity space remain concerns. Though BB stock is trading at a discount with a trailing 12-month price/book multiple of 3.43 compared with the industry's multiple of 6.34, this could mean more risk than opportunity. Image Source: Zacks Investment Research Given these factors, investors should exercise caution and wait for a more favorable entry point. Investors holding BB stock should closely monitor how BlackBerry executes its strategic priorities in the coming quarters. BB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
