Waterloo, Ontario * Blackberry Limited (NYSE: BB; TSX: BB) has announced its financial results for the three months ended August 31, 2025. The company reported year-over-year revenue growth, expanded adjusted EBITDA margins, and GAAP profitability, along with positive operating cash flow.
In the second quarter of fiscal 2026, Blackberry's total company revenue exceeded previous guidance, reaching $129.6 million, indicating a 3% year-over-year increase. The total company GAAP and adjusted gross margin also saw a 4 percentage point year-over-year increase to 75%.
The QNX division achieved significant growth with its revenue beating guidance and reaching $63.1 million, marking a 15% year-over-year increase. The QNX segment's adjusted gross margin remained flat year-over-year at 83%. QNX adjusted EBITDA surpassed guidance, reaching $20.5 million, which accounted for 32% of the revenue.
In the secure communications division, revenue exceeded previous guidance at $59.9 million, despite a 10% year-over-year decrease. However, the division's adjusted gross margin increased by 5 percentage points year-over-year to 66%. The division's annual recurring revenue (ARR) increased both year-over-year and sequentially to $213 million, while the division's adjusted EBITDA exceeded previously provided guidance at $9.7 million.
Blackberry also achieved another quarter of GAAP profitability, with GAAP net income reaching $13.3 million and adjusted net income at $24.2 million. The company's GAAP basic earnings per share stood at $0.02, outperforming previous guidance.
Furthermore, the company's operating cash flow for the second quarter beat expectations, reaching a positive $3.4 million. Blackberry also returned $20 million to shareholders through the repurchase of approximately 5 million common shares during the quarter.
Looking ahead, Blackberry provided guidance for the third fiscal quarter and the full fiscal year 2026. The company expects total revenue for the full fiscal year to range between $519 million and $541 million, with QNX revenue projected to range between $256 million and $270 million.
The company also anticipates its total company adjusted EBITDA to range between $82 million and $101 million for the full fiscal year, with non-GAAP basic EPS projected to be between $0.11 and $0.15.
As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $4.27. For more information, read the company's full 8-K submission here.
