BB

Strong SDP 8.0 design-win momentum and first Alloy Kore award drive 26% growth since fiscal year-end 2026 OTTAWA, ON / ACCESS Newswire / October 20, 2026 / BlackBerry Limited (NYSE:BB)(TSX:BB) today announced that its QNX division has exceeded $1.2 billion in royalty backlog, establishing a new record for the business and marking a significant milestone in QNX's growth. The achievement represents an increase of more than $250 million, or more than 26%, from the approximately $950 million reported at the end of fiscal year 2026. The increase reflects strong customer adoption of QNX's trusted software, particularly QNX® Software Development Platform 8.0, together with the first design win of Alloy Kore™, QNX's foundational automotive OS. Increasing adoption of SDP 8.0 is expanding QNX's opportunity within next-generation, high-performance compute architectures. As automakers consolidate vehicle functions onto increasingly powerful centralized and domain-based compute platforms, QNX can support multiple software domains and multiple instances within a single vehicle, creating opportunities for greater QNX software content and associated royalty value per vehicle. QNX is actively working with several major global automotive OEMs and Tier 1 suppliers as they evaluate and develop on the platform. Alloy Kore further expands this opportunity by moving QNX beyond individual software components towards a broader, foundational automotive OS. Its first design win, valued at more than $100 million of estimated future royalties, is the largest design win in QNX's history. The award provides significant commercial validation for Alloy Kore and demonstrates its potential to materially broaden QNX's role within each vehicle and increase the royalty opportunity per program. Beyond automotive, General Embedded Markets and Physical AI based systems also contributed to the 26% growth in QNX royalty backlog through a number of important design wins across robotics, industrial automation and medical devices. These wins underscore the growing demand for trusted foundational software in systems that must interact safely, securely and reliably with the physical world. QNX is encouraged by the momentum in these markets and the continued expansion of its opportunity pipeline, supported by strategic relationships with leading silicon providers that further strengthen its position in the development of next-generation intelligent systems. Next-Generation Platforms Driving Growth "Exceeding $1.2 billion in royalty backlog is an important milestone for BlackBerry and compelling evidence of the momentum we are building at QNX," said John Giamatteo, Chief Executive Officer, BlackBerry. "In just two quarters, our backlog has grown by more than $250 million from the approximately $950 million we previously reported, reflecting strong demand for our foundational software and the impact of our next generation of products. The growing adoption of SDP 8.0 and the commercial validation of Alloy Kore demonstrate that our strategy is working, expanding our opportunity and increasing the value of QNX software content within each vehicle." QNX's business model begins well before customer production. Once QNX secures a design win and the associated future royalties can be reasonably estimated, those anticipated royalties are included in QNX royalty backlog. Royalty revenue is subsequently recognized as customer programs enter production and volumes ramp. "The increase in our royalty backlog reflects an important evolution in both the breadth and value of QNX's customer relationships," said John Wall, President, QNX. "Customers are increasingly adopting SDP 8.0 for the high-performance compute architectures at the centre of Software-Defined Vehicles, while our first Alloy Kore design win demonstrates the potential to extend QNX's position further up the software stack. We are also applying our proven foundational software capabilities to General Embedded Markets and emerging Physical AI applications, where safety, security and reliability are critical. We believe the momentum across these growth opportunities creates a strong foundation for QNX's continued expansion." About QNX Royalty Backlog The Company defines QNX royalty backlog as estimated future revenue from variable forecasted royalties. The estimation is based on QNX royalty rates and projections of anticipated volumes based on historical experience and current customer projections that management believes are reasonable over the lifetime of a design. QNX royalty backlog may not be indicative of actual future revenue. The revenue ultimately recognized is subject to several factors, including actual production volumes and potential terminations or modifications of customer contracts. ### 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. Safe. Certified. Secure. For more information visit BlackBerry.com and follow BlackBerry on LinkedIn About QNX QNX, a division of BlackBerry Limited (NYSE: BB; TSX: BB), provides the trusted foundation that software-defined and physical AI systems depend on to operate safely and predictably in the real world. For nearly half a century, QNX has powered safety-critical applications where failure is not an option. The business leads the way in delivering safe and secure operating systems, hypervisors, middleware, solutions, and development tools, along with the support and services delivered by trusted embedded software experts. Today, QNX technology underpins hundreds of millions of vehicles on the road and a wide range of mission-critical systems across industrial controls, robotics, medical devices, commercial transportation, rail, and aerospace and defense. QNX is headquartered in Ottawa, Canada. Learn more at qnx.software. Trademarks, including but not limited to BLACKBERRY and EMBLEM Design, are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved. All other trademarks are the property of their respective owners. BlackBerry is not responsible for any third-party products or services. Investor Contact: BlackBerry Investor Relations +1 (519) 888-7465 [email protected] Media Contact: BlackBerry Media Relations +1 (519) 597-7273 [email protected] SOURCE: QNX View the original press release on ACCESS Newswire

BlackBerry Limited BB shares gained 13.3% over one week, renewing attention on whether improving operating trends can sustain the move. Record QNX performance, stronger profitability and higher fiscal 2027 guidance provide fundamental support. The counterweight is valuation. With the stock trading well above its five-year EV/Sales median, continued upside may depend on QNX growth, cash generation and consistent execution across the company's businesses. Second-quarter fiscal 2027 revenues rose 26% year over year to $163.3 million. Adjusted EBITDA climbed 81% to $47 million, representing 29% of revenues, as higher-margin QNX royalties and licensing supported operating leverage. Image Source: Zacks Investment Research Operating cash flow improved to $29.3 million from $3.4 million a year earlier. QNX revenues increased 27.3% year over year to a quarterly record of $80.3 million. Adjusted EBITDA advanced 41.5% to $29 million, while adjusted gross margin expanded four percentage points to 87%. Development-license activity remained healthy, and previously awarded programs are moving into production. The first Alloy Kore design win added more than $100 million to QNX royalty backlog. NVIDIA Corporation NVDA, with its Hyperion platform for robotaxi and Level 4 vehicle development, highlights the broader physical-AI ecosystem QNX is targeting. Management raised fiscal 2027 revenue guidance to $616-$636 million and adjusted EBITDA guidance to $141-$158 million. The company also lifted its operating cash flow outlook to approximately $115 million. QNX revenue guidance increased to $315-$325 million, with adjusted EBITDA projected at $95-$105 million. Management cited automotive momentum and royalty-backlog conversion as key drivers for the segment. Secure Communications revenues were $60.9 million, up 1.7% year over year but down from $73.6 million in the prior quarter. Dollar-based net retention slipped to 91% from 92% sequentially, while adjusted EBITDA declined 17.5% year over year to $8 million. Larger government opportunities can create quarterly variability because of long sales cycles, and automotive program timing can delay QNX royalties. Microsoft Corporation MSFT, whose Entra ID platform centers on identity and access management, is relevant to the same security ecosystem in which BlackBerry is extending AtHoc integrations. BlackBerry trades at 8.0X trailing 12-month EV/Sales, compared with a five-year median of 3.8X. That premium suggests the market is already assigning substantial value to the company's improving growth and profitability profile. The valuation does not eliminate upside, but it raises the execution threshold. QNX royalty conversion, cash flow and steadier Secure Communications performance may need to remain favorable for the stock to support a higher multiple. The stock currently carries a Zacks Rank #3 (Hold), which argues against treating the recent rally as a clear near-term buy signal. The rank is consistent with a more balanced stance after the sharp weekly advance. BlackBerry has a Growth Score of A, Momentum Score of A and VGM Score of B, while its Value Score of F points to valuation risk. The combination supports the growth and momentum case, but the Hold rank and weak value profile favor selectivity rather than chasing the move. 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 BlackBerry Limited (BB) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- BB drops 6% to $8.19 despite QNX posting record quarterly revenue of $80M, though the stock remains up 116% year to date. - With SPY up 0.5% and IGV down just 0.3%, BB's slide is company-specific, driven by Q3 guidance that only matches Wall Street's expectations. - Giamatteo called the Alloy Kore deal with Coretura the largest design win in QNX history, projecting over $100M in future royalties. - Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor) Profit-taking is overshadowing a strong earnings report at BlackBerry (NYSE:BB), where a record quarter from the QNX automotive software unit triggered a rally that is fading. BlackBerry stock trades at $8.14 this afternoon, down 7%. Even after the pullback, BlackBerry stock is up 115% year to date, a run that gave holders a large cushion of gains to protect. BlackBerry's slide stands out against a calmer backdrop for technology shares. The iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) is down 0.3%, a mild dip across the software group. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.5%, leaving the broad market shifted higher while BlackBerry stock is sinking. That divergence points to a reaction rooted in BlackBerry's own report. The quarter itself was strong. The pressure traces to a current-quarter outlook that only matches Wall Street's expectations, plus a sharp run in BlackBerry stock right after the results came out. BlackBerry reported adjusted earnings of $0.07 per share for its fiscal second quarter of 2027, ahead of Wall Street expectations, on revenue that also topped forecasts. QNX, BlackBerry's automotive software unit, posted record quarterly revenue of $80 million, above the high end of the company's own guidance. Management raised the full-year revenue and adjusted earnings outlook on the strength of those results. ------ Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years. That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here › ------ However, BlackBerry's revenue guidance for the fiscal third quarter of 2027 brackets what Wall Street had been modeling, and its adjusted earnings range for the period tops out at the consensus figure. BlackBerry stock also climbed right after the report, and that gain is fading as holders lock in profits. Chief executive John Giamatteo stated that the quarter "provides further evidence that BlackBerry's profitable growth model is working," and the selloff leaves that verdict intact. The bull case rests on QNX royalties finally moving from backlog into reported revenue. Chief financial officer Tim Foote told analysts that QNX was the standout of the quarter and that royalties led the way within QNX. He added that the design-win backlog the company last reported is starting to convert. According to chief executive John Giamatteo, the value of QNX design wins secured in the first half of fiscal 2027 has already passed BlackBerry's previous record for any full year. The Alloy Kore platform pushes BlackBerry further up the vehicle software stack. Its first Alloy Kore design win went to Coretura. The venture, formed by Volvo Group and Daimler Truck, is targeting next-generation commercial vehicles, and John Giamatteo estimated the award will generate more than $100 million in future royalties. He added that the average selling price per instance is roughly three times that of Coretura's current QNX deployment. Giamatteo called the award "the largest design win in QNX history" in the earnings release, framing it as a commercial milestone for BlackBerry. Management also cautioned on the earnings call that commercial vehicle volumes run smaller than those for passenger cars, so the company expects most of that value to arrive later through production royalties. BlackBerry expects the win to leave its current fiscal-year revenue profile largely unchanged. Across the automotive software group, Mobileye (NASDAQ:MBLY) stands as a natural listed peer; MBLY stock is up 2% to $7.82. BlackBerry presents QNX as safety-certified base software underneath vehicle applications, and management expects that opportunity to extend as more cars adopt high-performance centralized compute architectures. Industry forecasts cited by BlackBerry show that segment expanding from roughly one third of global vehicle production to roughly three quarters over the next five years. The problem for BlackBerry is that guidance for the fiscal third quarter lines up with what Wall Street already expected, leaving the raised full-year outlook resting on a second half the company hasn't delivered yet. BlackBerry stock also has a history of giving back strong first reactions to earnings beats, which adds pressure when expectations run this high. Whether BlackBerry's design-win backlog converts on the timeline management describes is the question these figures leave open. BlackBerry management called QNX "a long-term business with long sales cycles and long production cycles," a reminder that quarter-to-quarter results can swing. Any delay in programs reaching production could push back the royalty growth at the heart of BlackBerry's story. The next quarterly report could show whether royalties keep climbing as more design wins ship in vehicles. With BlackBerry stock already up sharply and prone to big swings around earnings, holders should keep their positions moderate and add to their exposure gradually. (Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here › Contact [email protected] for any questions or corrections.

BlackBerry Limited BB reported second-quarter fiscal 2027 non-GAAP earnings of 7 cents per share, up 75% year over year. The figure beat the Zacks Consensus Estimate of 4 cents. Revenues rose 26% year over year to $163.3 million and topped the consensus estimate by 14.2%. Record QNX revenue and a large licensing transaction supported the upside, while Secure Communications annual recurring revenue reached $221 million, up 4% year over year. BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote QNX revenue increased 27.3% year over year to $80.3 million, marking a quarterly record. Segment adjusted gross margin expanded 4 percentage points to 87%, while adjusted EBITDA rose 41.5% to $29 million, representing a 36% margin. Performance was broad-based across development licenses, professional services and royalties, with royalty revenue benefiting as earlier design wins moved into production. QNX also secured its first Alloy Kore design win with Coretura, the commercial-vehicle software joint venture between Volvo Group and Daimler Truck. The award adds more than $100 million to QNX royalty backlog and is the largest design win in QNX history. Management said the Alloy Kore average selling price per instance is about three times the customer's current QNX operating-system deployment. Secure Communications revenue rose 1.7% year over year to $60.9 million. Segment adjusted gross margin fell 5 percentage points to 61%, reflecting lower-margin Secusmart device revenue. Adjusted EBITDA was $8 million, down 17.5%, with a 13% margin. Dollar-based net retention rate was 91% compared with 93% a year earlier. The business continued to secure renewals and expansions across government, critical infrastructure and regulated sectors. Management said larger government opportunities can create quarter-to-quarter variability because of long sales cycles. It also cited greater uncertainty around deal timing amid geopolitical developments and Canada-U.S. trade tensions, though no material impact had emerged during the quarter. Licensing revenue climbed to $22.1 million from $6.6 million a year ago, driven primarily by a new licensing arrangement. Segment adjusted EBITDA reached $20 million from $5.6 million in the prior-year quarter, reflecting the business's high incremental operating leverage. Following the strong quarter, BlackBerry raised its fiscal 2027 Licensing revenue outlook to approximately $41 million and adjusted EBITDA forecast to about $36 million. Management expects Licensing revenue to return to roughly $6 million in each of the third and fourth quarters, with adjusted EBITDA of around $5 million per quarter. Adjusted gross margin improved to 78.2% from 75% a year earlier. Adjusted EBITDA increased 81% to $47 million and represented 29% of revenues. Adjusted operating expenses rose to $84.8 million from $74.8 million, while higher-margin QNX royalties and licensing aided operating leverage. Operating cash flow improved to $29.3 million from $3.4 million in the year-ago quarter. Free cash flow reached $28.1 million, up from $2.6 million. BlackBerry ended the quarter with $447.1 million in cash and investments compared with $432.4 million on Feb. 28, 2026. BlackBerry raised fiscal 2027 revenue guidance to $616-$636 million and adjusted EBITDA guidance to $141-$158 million. The company also lifted its adjusted basic earnings forecast to 19-22 cents per share and operating cash flow outlook to approximately $115 million. For the third quarter of fiscal 2027, BB expects revenues of $143-$154 million and adjusted EBITDA of $28-$37 million. Basic earnings are projected at 4-5 cents per share, while operating cash flow is expected between $20 million and $30 million. The company raised its fiscal 2027 QNX revenue outlook to $315-$325 million and adjusted EBITDA guidance to $95-$105 million. For the third quarter, QNX revenue is expected to be between $82 million and $88 million, with adjusted EBITDA of $27-$32 million. Management cited strong core automotive momentum and conversion of the royalty backlog into production revenue. For Secure Communications, BlackBerry revised fiscal 2027 revenue guidance to $260-$270 million and adjusted EBITDA guidance to $50-$58 million. Third-quarter revenue is expected at $55-$60 million, with adjusted EBITDA of $6-$10 million, reflecting a more cautious view of the timing of larger government opportunities. 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. NetApp, Inc. NTAP delivered a record first quarter of fiscal 2027, with non-GAAP earnings of $2.58 per share, up 66.5% year over year. The figure beat the Zacks Consensus Estimate of $2.13 by 21.1%. Net revenues rose 29.9% to $2,025 million and surpassed the $1,843 million consensus mark by 9.9%. Strong AI and modernization spending, accelerated purchases and pricing benefits supported growth. Billings increased 36.1% to $2,057 million. Ciena Corporation CIEN reported third-quarter fiscal 2026 adjusted earnings of $2.11 per share, which soared 215% year over year and beat the Zacks Consensus Estimate of $1.74. Quarterly revenues rose 37% to $1.67 billion and topped the $1.65 billion consensus mark. AI-driven networking demand remained the key growth engine. Cloud provider revenues accounted for 53% of total sales and jumped 82% year over year, underscoring the scale of hyperscaler spending behind Ciena's record quarter. Autodesk ADSK reported second-quarter fiscal 2027 non-GAAP earnings of $3.30 per share, up 26% year over year, aided by operating leverage and benefits from sales optimization. The figure surpassed the Zacks Consensus Estimate of $3.12 by 5.77%. Revenues increased 16% year over year to $2.05 billion, beating the Zacks Consensus Estimate of $2.01 billion by 1.84%. Strength in construction and emerging markets supported results, while net revenue retention approximated the top end of the 100-110% range in constant currency. 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 BlackBerry Limited (BB) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report NetApp, Inc. (NTAP) : Free Stock Analysis Report Autodesk, Inc. (ADSK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Sept. 24, 2026 - Senior Director of Investor Relations - Suzanne Spera - Chief Executive Officer - John Joseph Giamatteo - Chief Financial Officer - Tim Foote Operator: Good morning, and welcome to BlackBerry's Second Quarter Fiscal Year 27 Earnings Conference Call. My name is Betsy, and I will be your conference moderator for today's call. During the presentation, all participants will be in a listen-only mode. We will be facilitating a brief question-and-answer session. Should you need assistance during the call, please signal a conference specialist by pressing zero. As a reminder, this conference is being recorded for replay purposes. I would now like to turn today's call over to Suzanne Spera, senior director of investor relations of BlackBerry. Please go ahead. Suzanne Spera: Thank you, Betsy. Good morning, everyone, and welcome to BlackBerry's second quarter fiscal year 27 Earnings Conference Call. Joining me on today's call is BlackBerry's Chief Executive John Joseph Giamatteo. And chief financial officer, Tim Foote. After I read our cautionary note regarding forward-looking statements, John will provide a business update, and Tim will review the financial results. We will then open the call for a brief Q&A session. This call is available to the general public via call in numbers and via webcast in the investor information section at blackberry.com. As part of today's webcast presentation slides will be displayed. The slides are also available on the Investor Information section at blackberry.com as well as the replay of today's call. Some of the statements we will be making today constitute forward-looking statements, and are made pursuant to the safe harbor provisions of applicable U. S and Canadian securities laws. We will indicate forward-looking statements by using words such as expect, will, should, model, intend, believe, and similar expressions. Forward-looking statements are based on estimates and made by the company in light of its experience and its perception of historical trends, current conditions, and expected future developments. As well as other factors that the company believes are relevant. Many factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward-looking statements. Those factors include the risk factors that are discussed in the company's annual filings in MD and A. You should not place undue reliance on the company's forward-looking statements. Any forward-looking statements are made only as of today, and the company has no intention or undertakes no obligation to update or revise any of them. Except as required by law. As is customary during the call, John and Tim will reference certain non GAAP numbers in their summary of our quarterly results. For a reconciliation between our GAAP and non GAAP numbers, please see the earnings press release published earlier today. Which is available on the EDGAR, SEDAR+, and blackberry.com websites. And with that, let me now turn the call over to John. John Joseph Giamatteo: Thanks, Suzanne. And thanks to everyone for joining us. We are pleased to report another very strong quarter for BlackBerry reflecting meaningful progress both financially and strategically. Revenue grew 26 percent year over year while adjusted EBITDA grew 81 percent resulting in our second consecutive Rule of 40 quarter. We also generated $29 million of operating cash flow delivered our 6th consecutive quarter of positive GAAP net income, and adjusted earnings per share again exceeded our target our expectations. QNX had a record quarter, and strategically we reached an important milestone with our first Alloy Core design win. The largest design win in our history. So when you put all of that together, Q2, gives us another clear proof point that the profitable growth model we have been building is working. It also gives us increased confidence as we head into the second half. And as Tim will discuss in more detail, we are raising our full year revenue and adjusted EBITDA outlook. Let me start my review of the quarter with QNX. QNX delivered record quarterly revenue of $80 million representing 27 percent year over year growth. And coming in well above the high end of our guidance. Combined with expanded profitability, QNX once again comfortably exceeded the Rule of 40 benchmark for the quarter. Performance was broad based across development licenses, professional services and royalties. In particular, Q2, was our strongest quarter ever for DesignWind Dollars. With the value of Design Win secured in the first half, exceeding our previous record for any full fiscal year. Development license activity also remained healthy in Q2, with recurring development license revenue holding strong quarter over quarter. That matters because customers typically purchase these tools early in a program. Making them a useful leading indicator of future design wins and royalty opportunities. So in Q2,, we saw strength not only in the revenue being recognized today, but also in activity that can support future growth. As you may recall, our QNX strategy is built around 3 growth pillars. the first is our core automotive business, Second is moving further up the software stack, Alloy Core. And third is expanding beyond auto into adjacent general embedded markets. Now let me start with the first pillar, QNX's core auto business, which was the main driver behind this quarter's strong performance. That strength is being supported by the auto industry's transition towards software defined vehicles and more centralized compute architectures. Let me put some numbers around that because I believe they help explain the opportunity. Roughly 90 million vehicles are produced globally each year. Today, about 1-third of them have the type of high performance centralized compute architecture where QNX's capabilities are most relevant and we have a very strong market share in that segment. Industry forecasts indicate that this segment could expand to roughly 3-quarters of the market over the next 5 years. That means our addressable market could more than double over that period. In addition to more vehicles, becoming addressable to QNX, as more domains become software defined, we see potential for greater QNX content in each of those vehicles as well. We have already secured design wins with multiple instances of QNX in a single vehicle, and we expect those design wins to continue to move into production over the next several years. So QNX does not need global vehicle production to increase to enable revenue growth. But rather through greater penetration of the market and greater dollar content per vehicle. We are also seeing increasing adoption of SDP 8 our next generation platform designed for these higher performance compute architectures. We are working with multiple major global OEMs and tier 1 suppliers as they evaluate and develop on SDP 8. Importantly, some of the programs we have won over the past several years are now entering production. Allowing higher QNX content secured in those designs to begin translating into royalty revenue. As our software content within the vehicle increases, so does the value of that opportunity. The transition to SDP8 and the greater value it delivers is also creating an opportunity to evolve our commercial model. For new commercial arrangements, we are increasingly securing minimum contractual volume commitments rather than non contractual forecasts. This is giving us greater certainty around volumes, revenue and cash flow from new design wins and the potential for us to both receive cash and recognize a portion of revenue earlier. Over time, we believe this could improve both the visibility and economics of our customer relationships. We are also seeing a lot of opportunity in China New government mandated safety requirements for assisted and automated driving systems reinforce the importance of proven safety certified foundational software and we continue to see strong momentum in China. The second QNX growth pillar builds on our core automotive business by moving us further up the software stack. As we have discussed, Alloy Core expands QNX from a foundational operating system towards a broader software platform. This quarter, we reached an important milestone with our first Alloy Core design win. Cortica, the commercial vehicle software joint venture between Volvo Group and Daimler Truck selected Alloy Core as the foundational software platform for its next generation high performance compute architecture. Cortica plans to deploy Alloy Core across multiple software domains in its next generation vehicles and is expected to substantially increase QNX software content and royalty per vehicle compared with traditional QNX operating system deployments. In fact, for this first design win, the ASP per instance is approximately 3x higher than the customer's current deployment of QNX operating system. This is an important commercial validation of Alloy Core, and demonstrates the opportunity to expand QNX from individual foundational software components to a broader software platform within the vehicle. Alloy Core addresses 1 of the biggest challenges facing OEMs today. The cost and complexity of integrating the foundational software stack. By bringing QNX foundational software common automotive services and vector middleware together in a pre integrated safety certified platform Alloy Core can reduce integration complexity, and allow OEMs to focus more engineering resources on differentiated applications. The magnitude of this first award also demonstrates the potential of the platform. The value of future royalties from this design win is estimated to be more than $100 million making it the largest design win in QNX's history despite annual commercial vehicle volumes being significantly smaller than for passenger cars. As with traditional QNX design wins, there will be a lead time before the majority of the value is realized through production royalties. So we did not expect this design win to materially change our revenue profile this fiscal year. The more important takeaway is that Alloy Core has moved from a strategic opportunity to commercial validation. And we believe this is just the beginning. We are actively working with a number of global OEMs and major Tier 1s on alloy opportunities around the globe, but particularly in Europe and Asia, with potential further wins in coming quarters. And the third QNX growth pillar is expansion beyond automotive. Into adjacent general embedded markets. Today, JEM represents approximately 20 percent of QNX revenue and is an important part of our longer term growth opportunity. We are excited about the opportunity because the same capabilities that differentiate QNX in automotive including real time determinism, functional safety, security and reliability, are increasingly relevant in adjacent verticals. We are seeing this across physical AI, robotics, industrial automation, medical devices, aerospace and defense, rail, and more. We are also investing in programs that help us engage earlier across the JEM ecosystem. QNX Everywhere is free for noncommercial use and puts the platform into the hands of more developers. At the same time, our QNX Launchpad program is designed to lower the barriers to entry for commercial development on QNX, helping early stage companies build on and continue using our platform as their business grows. Using a baseball analogy, if you think about this as a 9 inning game, I would say we are really just about the beginning of the second inning. Seeing real customer activity a growing pipeline and meaningful ecosystem development, some markets starting to mature and others still relatively early in their adoption cycles and needing more time to become material financial contributors. 1 area we are particularly excited about is physical AI. At a high level, physical AI is what happens when AI moves beyond the digital world and begins interacting with the physical world. Robotaxis are a great example of physical AI in practice. They are intelligent systems that must not only make decisions, but execute them safely and predictably in the real world. AI can recognize objects and understand the environments around the vehicle but the underlying system still has to translate those decisions into physical action. like steering, braking, and acceleration. Safely and reliably every time. That is exactly where QNX's deterministic safety certified foundation becomes essential. And the robotaxi market is beginning to transition from concept towards production at scale. This quarter, we are excited to announce that we have secured a new design win with Uber. Which selected QNX as the foundation for software and its next generation of vehicles. Providing an important proof point of the opportunity we see in physical AI. Momenta and Xpeng also selected QNX OS for safety built on SDP 8 as the foundation for a production ready autonomous driving platform certified to ISO 26.3 thousand. The same principles that apply to robotaxis also apply to autonomous robots operating in a factory or warehouse. Beyond Uber, we are also seeing a growing pipeline of robotics and physical AI opportunities including more than 20-plus companies currently engaging with us around NVIDIA based platforms. Within the pipeline, we have a number of humanoid robot OEMs as well as surgical robots, autonomous mobile robots or AMRs, as well as autonomous tractors, drones, and planes. While many JEM markets remain early, the combination of a broadening pipeline growing customer base, and increasing demand for safety critical software gives us confidence that JEM can materially expand QNX's long term addressable market. Taken together, core automotive Alloy Core, and GEM give QNX multiple paths to growth. Across different time horizons. Turning to secure communications. The business performed broadly as expected following a particularly strong first quarter. Revenue was $61 million up 2 percent year over year and within our guidance range. Annual recurring revenue or ARR was approximately $221 million up 4 percent year over year while our dollar based net retention rate or DBNRR remained relatively stable at 91 percent. ARR provides a stable recurring revenue base, while larger government opportunities can provide incremental growth and profitability when they convert. Those opportunities can have long sales cycles and do create variability from quarter to quarter. Importantly, for the first half of 27, secure communications revenue grew 13 percent year over year. We also continue to see customer activity across government, critical infrastructure and other highly regulated sectors during the quarter, including renewals and expansions with customers across The U. S, Canada, Europe, Asia, and The Middle East. These included organizations such as a number of agents in the US federal government, as well as internationally, with the Dutch police The UK's National Grid, Rolls Royce, the Saudi National Bank, and Babcock. So while quarterly timing can vary, the underlying business remains stable and profitable. Touching briefly on licensing, revenue was approximately $22 million significantly above our expectations. The upside was driven primarily by a new licensing arrangement secured during the quarter. So while Q2, was strong, we would not view this level of activity as a new quarterly run rate. With that, let me now turn the call over to Tim who will provide more detail on our financial results. Tim Foote: Thank you, John, and good morning, everyone. As John mentioned, Q2, was another very strong quarter for BlackBerry and 1 that demonstrated the strong operating leverage in our financial model. Based on our revenue growth, and adjusted EBITDA margin, we actually delivered a Rule of 50 quarter. Also recorded our strongest quarterly GAAP net income since Q4 of fiscal 22, while QNX achieved its highest quarterly revenue in history. What stands out to me is how efficiently our revenue is translating into higher profitability and cash generation. While we continue to invest for growth. With that, let me walk through the quarter in more detail. Revenue for BlackBerry as a whole was 163 million, up 26 percent year over year and above the high end of our guidance range. Total company adjusted gross margin expanded 3 percentage points year over year to 78 percent while adjusted EBITDA almost doubled. And exceeded expectations at 47 million. Representing 29 percent of revenue. Adjusted net income for the quarter was 43 million and GAAP net income was $34 million. Adjusted EPS was $0.07, also above our expectations. Importantly, the combination of solid revenue growth gross margin expansion and disciplined management of operating expenses, drove significant operating leverage in the quarter. That leverage was particularly evident in the higher margin areas of the business, including QNX royalties, and licensing. We also generated strong operating and free cash flow which I will discuss in more detail shortly. Turning first to the segments. QNX revenue was $80 million exceeding the high end of guidance growing 27 percent year over year. Adjusted gross margin expanded 4 percentage points year over year to 87 percent, matching the highest reported quarterly level in the business's history. Adjusted EBITDA increased 41 percent to 29 million, representing a margin of 36 percent for the quarter. This performance reflects the benefit of meaningful revenue growth and a favorable mix, particularly higher margin royalty revenue. We continue to invest in go to market and R&D. The combination of continued growth and profitability again put QNX comfortably above the Rule of 40 benchmark in Q2,. In secure communications, revenue was $61 million representing 2 percent year over year growth and within our guidance range. Adjusted gross margin for Secure Communications was 61 percent reflecting lower margin SecuSmart device revenue. in the quarter. Adjusted EBITDA was $8 million representing a margin of 13 percent with disciplined expense management partially offsetting the lower gross margin. Overall, the segment delivered the stable and profitable performance we expected following a particularly strong first quarter. Licensing revenue was $22 million well above our expectations. With adjusted EBITDA at 20 million The strong conversion of incremental licensing revenue into adjusted EBITDA reflects the high incremental operating leverage of this business. As always, the timing of larger licensing transactions can vary between quarters. Importantly, we converted the expanded profitability in the quarter into cash. We generated $29 million of operating cash flow in Q2, significantly above our guidance range. For the first half of fiscal 27, we generated $34 million of operating cash flow compared with a usage of cash of $14 million in the prior year period. Representing a year over year improvement of $48 million The story was very similar for free cash flow given BlackBerry's CapEx light operating model. With free cash flow for the quarter at $28 million and $30 million year to date. We ended the quarter with approximately $447 million of cash and investments, representing net cash of approximately $247 million Our improving cash generation continues to strengthen our balance sheet and gives us significant financial flexibility in how we allocate capital. Our priorities remain unchanged, and are centered on 3 areas. First, investing for growth in QNX. We continue to prioritize what we believe are our largest long term organic value creation opportunities. Including investment behind core automotive, Alloy Core, and Gen. Second, disciplined share repurchases. We retained significant capacity under our current NCIB buyback program. And we will continue to evaluate repurchases when we believe they represent an attractive use of capital relative to other opportunities. And third, selectively evaluating M&A. We continue to assess potential value accretive opportunities that could accelerate our strategy. Particularly with a view to fast-tracking the JEM opportunity. We have the balance sheet to act when the right opportunity arises. But the strategic and financial bar remains high. Overall, our approach remains disciplined. And focused on creating long term shareholder value. With that, let's turn to our outlook. Following the strong first half performance, we are raising our full year QNX revenue outlook for the second consecutive quarter by $17 million at the midpoint. To 315 to 325 million. And adjusted EBITDA by $20 million at the midpoint, to between 95 and 105 million. For Q3, we expect QNX revenue to be between 82 and $88 million which is 24 percent year over year growth at the midpoint. And adjusted EBITDA of between 27 and $32 million. The increased outlook reflects the strength and trajectory we continue to see across the business, while maintaining an appropriate level of flexibility for normal quarter to quarter variability. This is not a quarterly business. And we continue to encourage investors to focus on longer term growth trends rather than focus on growth from quarter to quarter. For secure communications, an already dynamic backdrop in The US where Secure Communications has a substantial footprint with the US federal government is being further complicated by recent geopolitical developments. Including trade tensions between Canada and The United States. As a result, we are prudently updating our full year revenue outlook. While we have not yet seen anything material arising from this issue, nor have we seen a slowdown in pipeline generation outside of North America, we consider it appropriate to be cautious as we head into the second half. Accordingly, we are revising the full year revenue forecast for Secure Communications to $260 to $270 million and adjusted EBITDA outlook to be between 50 million and 58 million For Q3, we expect revenue to be between $55 and $60 million and adjusted EBITDA between 6 million and 10 million For licensing, we are raising our full year revenue outlook by $12 million to approximately 41 million. And adjusted EBITDA outlook to approximately 36 million Following the unusually strong performance in Q2,, for Q3 and Q4, we expect licensing to return to a more typical quarterly revenue level of approximately $6 million with adjusted EBITDA of approximately 5 million As noted earlier, the timing of larger licensing transactions can vary from quarter to quarter. So we continue to take a measured approach to the quarterly outlook. So for the second consecutive quarter, we are raising our full year total company outlook. For both revenue and EBITDA. Reflecting the strength of our first half execution and increased confidence in the business. For revenue, we are increasing guidance by $9 million at the midpoint to $616 to $636 million. Representing 14 percent year over year growth. We are also raising our adjusted EBITDA outlook by $21 million at the midpoint to 141 to 158 million. Which is 43 percent year over year growth. For Q3, we expect total company revenue of between $143 million and $154 million and adjusted EBITDA of between $28 and $37 million We expect to deliver adjusted basic earnings per share of between $0.04 and $0.05 for the quarter and are increasing our full year outlook to be between $0.19 and $0.22. We also expect another quarter of positive operating cash flow. Of between 20 million and $30 million, and are raising of full year outlook by 15 million to approximately $115 million as we continue to materially strengthen our balance sheet. The increased full year outlook reflects the solid execution we have seen in the first half. While maintaining a measured approach. to the second half. With that, let me hand the call back to John. John Joseph Giamatteo: Thanks, Tim. And before we move to Q&A, let me leave you with 3 things I think are most important from the quarter. First, the financial model is solid and scalable. We delivered another strong quarter achieved better than Rule of 40 performance generated robust cash flow, and raised our full year outlook. Second, the QNX opportunity is becoming broader and more tangible. Our core automotive business is delivering record performance today, Alloy Core has moved from strategic opportunity to commercial validation and we continue to build the long term opportunity in JEM and physical AI. And third, expanded profitability and cash generation are giving us greater strategic flexibility. This allows us to keep investing in the business while remaining disciplined in how we approach buybacks, and selectively evaluate M&A. The progress we are seeing today reflects the foundation we built through the transformation work over the past 2 years. And we are now seeing that translate into stronger growth margins and cash generations. So as we head into the second half, we feel very good about the position of the business and the opportunities in front of us. And with that, let's move to Q&A. Betsy, could you please open up the lines? Operator: We will now begin the question and answer session. To ask a question, Again, press star 1 to ask a question. We will pause for just a moment to allow everyone an opportunity to signal for questions. We request that you limit yourself to 1 question and 1 follow-up. the first question today comes from Suthan Sukumar with Stifel. Please go ahead. Suthan Sukumar: Good morning, guys. And the first question for me is on the improving profitability outlook. Could you guys speak to what the mix of royalty revenues that have been converting from backlog, how has that been trending quarter over quarter, year over year? And how much of that full year guide raise on the profitability side is led by the licensing strength you saw in the quarter? Tim Foote: Hi Suthan. Thanks for the questions. Some good stuff there. So, yeah, we are feeling great about the leverage in our model. I think we have got a really tight cost structure. And we continue to invest, but very a very disciplined manner. So that incremental top line is very rapidly translating into expanded bottom line margins. And also efficiently converting into cash as well. So see a very strong, balance sheet right now. So, yes, in this quarter, the QNX was the star of the show, and within that, royalties was also the star of the show. So what we are seeing is, obviously, we have had significant growth in our backlog over the last few years as we have secured newer, larger design wins And what we are seeing is some of those are now moving into production. And that backlog, the 950 million that we last reported is starting to convert. So it is a it is a great line of sight for us in terms of revenue. that is why we feel good about raising our outlook for the rest of the year. For the second quarter in a row. And right now, we feel like we have definitely got the wind at our backs in that business. it is it is really on fire in terms of the core automotive side of things. Thank you. Suthan Sukumar: that is good color. For my next question, I just wanted to touch on the physical AI opportunity here. How does the revenue model, in GEM compared to a typical automotive program? And I am just wondering if it is still kind of per unit type model or is it different? And secondly, is there an Alloy Core opportunity in the GEM market? Tim Foote: So I will take the first part and then maybe hand over to John for the second part So in terms of the model, it is fundamentally the same. Suthan. So it is it is a volume based royalty model. And with some pre preproduction royalty stream similar to the automotive side of things such as development licenses and services as well. You can because the volumes tend to be lower. You can see some higher per unit economics there. But as we start to see GM expand, in some of these more nascent markets actually move towards higher production volumes. So I would expect to see them to move down the price curve per unit. Ultimately, with a much higher scale. So would not think of it much differently. it is pretty much the same model, and ultimately, it is the same software. that is 1 of the beauties of the market is that we are able to leverage the investment that we have made products that we battle tested in the automotive side and roll them out across into these adjacent verticals. So relatively similar. John Joseph Giamatteo: But, John, on the Alloy Core opportunity. Yeah. Thanks Suthan. Yeah. On the Alloy Core, what I would say about it in the JEM space and the physical AI space, is it is definitely early days. it is a market that is really forming now. And our approach has really been to take a broader type of ecosystem approach. So you are seeing us with these programs like QNX everywhere. Getting QNX into the hands of as many developers as we possibly can in the early stages of them building the software platforms for a lot of these devices that are coming. Now this quarter, we actually launched the QNX Launchpad program. That was another kind of way for us to engage with the industry more broadly So, you know, we kind of use our core asset of that real time performance operating system and how that helps manage this whole physical world and digital world collision that is starting to happen. And, I do think there is gonna be tremendous opportunities for us to play a broader role long term And the final thing, I guess, I would mention is just how the engagement with Silicon players. Our partnership with NVIDIA is very quickly starting to build a strong pipeline of opportunities. So this broader ecosystem player with the silicon players, with the QNX everywhere and Launchpad programs, puts us square into I think, a leadership position long term. Whether that develops into a broader platform stack along lines of what we are doing with Alloy Core. that is probably something that will develop over time. Operator: the next question comes from Paul Treiber with RBC Capital Markets. Please go ahead. Paul Treiber: Thanks for taking the question and good morning. Congrats on a strong quarter. Just trying to understand the cadence of QNX's growth here. And just looking at the typically the year is back end loaded. Based on our calculations guidance does imply that Q4 revenue for QNX is down slightly from Q3 and the growth slows. Can you just speak to that cadence through the year And then what if anything is driving that slower growth in Q4? John Joseph Giamatteo: Yes. I think I will start, Paul. Tim, you can chip in. We continue to try to encourage everybody. I mean, this is a this is a long term business with long sales cycles and long production. So, you know, kind of the longer term growth trends we think, is the important thing for everybody to focus on. Quarter-over-quarter variations is not how we manage the business, not how we invest, it is not how we partner with our customers. So yes, from quarter-to-quarter, can be lumpy. But overall, when you look at the year at the midpoint level where we are at now, you know, we are projecting it to be 19 percent growth year over year, which is, I think, really strong growth. it is above where what we thought we would be, at the start of the year. You know, the fact that the other thing I would say was the design wins and the fact that we booked more design wins in the first half of the year than we booked in any full fiscal year ever in the business' history. These are all to me, they point to strong long term fundamentals of the QNX business. So I would avoid getting too fixated on quarter to quarter on what that might look like. I think the long term trajectory of the business is really in a healthy place. Tim Foote: Yes. QNX is definitely not slowing down. it is if anything, it is accelerating. But from quarter-to-quarter, that is not gonna be linear. Paul Treiber: Okay. that is that is good to hear. just a second question. Just on you mentioned in the prepared remarks that there is now contracted minimum royalties and that led to some of revenue being recognized at an earlier stage. Can you elaborate on that? In particular, when did you start to see a larger number of these contracted minimum royalty in contracts? And what was the magnitude of contribution from that in Q2,? Tim Foote: So, yes. This is this is a really good opportunity for us. As part of our transition to SDP8 and a significant incremental value that we bring to our customers Ultimately, gives us greater certainty as we look forward. As John mentioned, it is moving away from non contractual forecast towards contractual fixed minimums. And for us, that in addition to certainty also accelerates receipt of cash. Which obviously, every company is looking to do. As part of that, there is potential for a portion of revenue to be recognized earlier. I mean, we are kind of feeling our way into this right now. For new contracts. And it over time, we should see this start to grow. But for us, this is great. I mean, it is just greater certainty, earlier cash, and ultimately potential for some revenue too. John Joseph Giamatteo: The only thing I would add to it, Paul, is what we all the things Tim said, really helped the business in so many ways. But the customer dynamic, what we love about it also, conviction that our customers have with our product. This is a strong statement because typically in the automotive industry, they give you an estimate, they will adjust you. Now our customers are coming in and say, we are bought into you guys for the long term to the point where we will actually make a minimum commitment that is a new dynamic, and I think that is attributable to you know, how, the strength of the product is and our vision and where we are going. That they wanna make a longer term firm commitment with us, which is definitely an inflection point from where we were a few years ago. Operator: the next question comes from Todd Coupland with CIBC. Please go ahead. Todd Coupland: I am wondering if you can talk about the Alloy Core pipeline. Obviously, great to see the first deal. Just talk about, the nature of that pipeline. Is it, commercial, or is it in light vehicles? Talk about expectations for the second half of the year in terms of future design wins and how they might compare to, this first win. Thank you. John Joseph Giamatteo: Thanks, Todd. Yes. Really healthy pipeline, I would tell you. And it does span everything. It just so happens that Cortica and commercial was the first 1 out of the gate. But we are we have got a lot of global OEMs and tier ones that we are engaging with on the passenger vehicle side of the equation as well. So lot of activity right now, particularly in Europe and Asia, with engagement on you know, how this simplifies their world. I think the value proposition of us partnering with Vector and stitching together a broader set of safety certified platforms and capabilities that will allow them to focus on some of the more differentiated. I think that is resonating And I think if anything, you know, the Alloy Core, the Cortica win generally, people I think it get more interest. You know? Hey. Tell us a little bit more about that. How can that work for us? So we are, very healthy pipeline Obviously, they are big decisions that take time. To work through the funnel. But we are very excited about what this could mean for the business long term. Todd Coupland: And then my second question had to do with US Fed. Obviously clipped the guidance for the second half of the year. When would you expect, with what you know now to get visibility on whether or not that is actually going to play out? John Joseph Giamatteo: Yes. As Tim mentioned in his remarks, we do not see anything today that specifically is creating that is. it is more of a, I think, a general cautionary tone. A lot of we think about the secure communications business, 220-plus million dollars of it is ARR. Very durable, very good strong line of sight to it. And then the balance between our guidance and what our, you know, new deals upfront revenue And with all the, Todd, just the geopolitical uncertainty that is happening around the world, the timing of some of those deals, I do not know. it is just we feel a little bit more, uncertain about it with some of the unrest that is happening around the world and trade conversations and all those types of things. So we thought it was prudent to just take a little bit more of a cautious tone on the timing of some of those new opportunities because, you know, the government in and of itself tends to be a bit of a longer sales cycle. Add on top of that some of the geopolitical activity now we thought the right thing to do was to be a little more cautious there. Operator: the next question comes from John Shao with TD Cowen. Please go ahead. John Chao: Hey, good morning guys and thanks for taking my question. John, you mentioned Robotaxi, and congrats on a win with Uber. So could you help us frame this robotaxi opportunity as whether exposure is direct or indirect? The content per vehicle, and maybe comment on the pipeline. John Joseph Giamatteo: Good questions. Tim, like I said, I we are sick robotaxis tremendous opportunity. there is been a lot of innovation and a lot of investment going into it. And really started to take see that look take the next step from a concept to more production. So our partnership with a company, like Uber, we think, puts us in a in a in a strong position you know, for that over time. I will say, though, you know, the whole physical AI space is going back to my analogy of, of baseball. it is, we are in the early days here. You know, the, the ASP per car know, whether it is in a it is a broader kind of Alloy Core type of play that there is so many variables right now in a market that is just really, starting to develop and starting to mature. That, you know, we will play that out. But we do think our strong pole position with our safety certified foundational software capability starting to resonate with the Robotaxi we think that is a really strong place to be. And, you know, we will, as the industry develops, we think we are in a really good position to capture our, more than our fair share of the market. John Chao: Thanks for the color. And if I plug into our operating cash flow guidance, I think the company is going to have close to $half a billion dollars cash by the end of this fiscal year. And Tim, you mentioned the company will consider an acquisition, especially in the JEM space. So could you help us understand your current pipeline in terms of M&A and how you evaluate these deals and what the trigger is more driven by the valuation or functionality, and you are actually okay with paying a premium. Tim Foote: Yeah. So a lot of good things in John. So first of all, it is a good problem to have. A good problem to have. But what are you going to do with the all the cash that we are generating? So mean, we are as we mentioned, we are doing. We are investing in the business right now. We will take a look share buybacks as well when that is appropriate. But, yes, M&A, if we see a really large opportunity in JEM. In physical AI and all the other verticals that John mentioned. So if we can fast track, then we will. We have got the balance sheet to give us the flexibility to be able to do that. But as was mentioned, the bar is gonna be high. The strategic fit has to be very good. The financial profile has to be appropriate. It really does have to move us further down the field quite meaningfully. So we continue to look at opportunities The team, our corp-dev team, and also QNX team spend a lot of time looking at this. So not gonna say much more than that today as you would probably expect, but if something comes up that fits our criteria, then we are definitely in a position to be able to execute on it. Operator: the next question comes from Kingsley Crane with Canaccord Genuity. Please go ahead. Kingsley Crane: Hi. Thanks for taking the questions. Been bouncing on a few other calls, so apologies if of this has been asked. But just wanna frame the, Cortica you know, record win in another way. So of the $100 million added to backlog, just trying to get a sense of maybe what the value of that deal would have been if you had been chosen more for basic capabilities like BaseOS and Hypervisor. Versus this Alloy Core engagement? Thanks. John Joseph Giamatteo: Yeah. I think we tried to address it a little bit in our comments around the Cortica win If we had just done a traditional QNX operating system, addressing maybe 1 or 2 domains. Relative to the more, you know, complete platform approach that we kind of the holistic car approach that we are moving towards with the with some of our customers. It probably adds probably 3x a normal ASP of what it would be on a traditional SDP 8 alone type of approach. So I think it is a combination of moving up the stack and moving into more domains. You know? A few years ago, a lot of what we did, was digital cockpit. Now it is ADAS. it is body it is it is a broader set of capabilities. And that coupled with the middleware layer and some of the, you diagnostic systems and capabilities that Vector brings to the table. The combination of those 2 stitched together with services that delivers it reliably for our customers, I think that is what is really expanding the addressable market and our ASP per vehicle in a material way. So hopefully, that gives you a little more color on how that opportunity is materializing. Kingsley Crane: Okay. Really helpful. And then Tim, understood on the comments around conservatism on secure communications in the back half. It just seems like based on the updated guidance and the implied Q3, Q4 split that almost all of that conservatism is at is applied to Q3, at least in our models, So is that the right way to think about it? Is that, you know, purely due to the sort of federal concerns? And just how you how to think about those 2 quarters. Thanks. Tim Foote: Yeah. So I think John addressed this earlier, but just to reiterate the point, the way we look at the Secure Communications business, which remains stable it remains profitable, it is generating cash, is that it has a solid base of ARR, which is roughly speaking around about 80 percent of that business. And then 20 percent the remaining 20 percent of the guide really relies on some bigger government opportunities that drive in quarter revenue. So right now, we are just feeling not as good in terms of the timing of some of those deals. Not that they are necessarily going away, but the timing becomes slightly less certain than before. So as a result, we are just taking a prudent view on things and see where things kind of land. But John mentioned in his remarks, we have not seen well, actually, it is me. We have not actually seen anything material so far. So hope that remains to be the case. Operator: I would like to turn the call back over to John Joseph Giamatteo, CEO of BlackBerry for closing remarks. John Joseph Giamatteo: Terrific. Thank you, Betsy. Hey, thanks everybody for joining today's call. Thanks for your interest in BlackBerry and the exciting business and opportunities that we have in front of us. We look forward to providing you a good comprehensive update on the business next quarter. Thanks again for being with us. Operator: This concludes today's call. Thank you for your participation. You may now disconnect. Before you buy stock in BlackBerry, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BlackBerry wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $384,839!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,385,657!* Now, it's worth noting Stock Advisor's total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 24, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends BlackBerry. The Motley Fool has a disclosure policy. BlackBerry (BB) Q2 2027 Earnings Call Transcript was originally published by The Motley Fool

BlackBerry Limited BB used its fiscal second-quarter 2027 earnings call to emphasize improving operating leverage, record QNX performance and stronger cash generation. Management also raised its full-year company revenue and adjusted EBITDA outlook after a strong first half. CEO John Giamatteo said QNX's automotive momentum, the first Alloy Kore design win and growing physical AI opportunities broaden the company's growth avenues. Management remained more cautious on Secure Communications because of uncertainty around the timing of government transactions. BlackBerry reported adjusted earnings of 7 cents per share, exceeding the Zacks Consensus Estimate of 4 cents. Revenues of $163.3 million also surpassed the consensus estimate of $143 million. Revenues increased 26% year over year. BlackBerry Limited Price, Consensus and EPS Surprise BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote CFO Tim Foote said adjusted EBITDA reached $47 million, representing 29% of revenues, while adjusted gross margin expanded three percentage points year over year to 78%. GAAP net income was $34 million. Foote attributed the operating leverage to revenue growth, gross-margin expansion and disciplined expense management, with higher-margin QNX royalties and licensing providing particular support. BlackBerry raised its fiscal 2027 revenue forecast to $616-$636 million, up $19 million at the midpoint from its prior outlook. Adjusted EBITDA guidance rose $21 million at the midpoint to $141-$158 million. For the fiscal third quarter, management expects revenues of $143-$154 million and adjusted EBITDA of $28-$37 million. Adjusted basic earnings are projected to be 4-5 cents per share. The full-year operating cash flow forecast was raised by $15 million to approximately $115 million. Second-quarter operating cash flow was $29 million, while free cash flow reached $28 million. QNX delivered record quarterly revenues of $80 million, up 27% year over year. Giamatteo said strength spanned development licenses, professional services and royalties, while first-half design-win value exceeded BlackBerry's previous record for any full fiscal year. Management highlighted the transition toward software-defined vehicles and centralized computing architectures as important drivers. Foote said newer and larger design wins are beginning to enter production, allowing the previously reported QNX backlog to convert into revenues. BlackBerry raised full-year QNX revenue guidance to $315-$325 million. The company expects fiscal third-quarter QNX revenues of $82-$88 million and adjusted EBITDA of $27-$32 million. Giamatteo highlighted Coretura's selection of Alloy Kore as a major commercial milestone. The Volvo Group-Daimler Truck joint venture plans to use the platform across multiple software domains in next-generation commercial vehicles. Management estimates future royalties from the award at more than $100 million, making it QNX's largest design win. Giamatteo said the average selling price per instance is approximately three times higher than the customer's existing QNX operating-system deployment. During Q&A, a CIBC Capital Markets analyst asked about the Alloy Kore pipeline. Giamatteo said engagements span global automakers and Tier 1 suppliers, with particularly active discussions in Europe and Asia. Giamatteo described physical AI as an early-stage opportunity for QNX. BlackBerry secured a design win with Uber and reported engagement with more than 20 companies around NVIDIA-based platforms, including robotics and autonomous-system developers. Secure Communications revenues totaled $61 million, up 2% year over year. ARR was approximately $221 million, up 4%, while dollar-based net retention remained relatively stable at 91%. Management reduced full-year Secure Communications revenue guidance to $260-$270 million. In Q&A, executives stressed that they had not seen a material deterioration but were taking a more cautious view of government-deal timing amid geopolitical and trade uncertainty. Foote said BlackBerry ended the quarter with approximately $447 million of cash and investments and about $247 million of net cash. Capital priorities remain organic QNX investment, disciplined share repurchases and selective acquisitions. Management's broader message centered on profitable growth, cash generation and continued investment in QNX. The company intends to prioritize core automotive, Alloy Kore and general embedded markets while maintaining a high strategic and financial threshold for acquisitions. BB currently carries a Zacks Rank #3 (Hold), alongside an A Growth Score, F Value Score, C Momentum Score and C VGM Score. The A Growth Score indicates comparatively favorable growth characteristics under the Style Scores framework, while the other scores are less favorable. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Rank #3 indicates a neutral near-term earnings-estimate-revision signal. BB's mixed Style Scores likewise provide varied signals across growth, value and momentum factors. The Zacks Rank can change as analysts revise estimates following the newly reported results. 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 BlackBerry Limited (BB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BlackBerry (BB) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +75.00%. A quarter ago, it was expected that this cybersecurity software and services company would post earnings of $0.03 per share when it actually produced earnings of $0.04, delivering a surprise of +33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. BlackBerry, which belongs to the Zacks Internet - Software industry, posted revenues of $163.3 million for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 14.20%. This compares to year-ago revenues of $129.6 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. BlackBerry shares have added about 121.1% since the beginning of the year versus the S&P 500's gain of 12.6%. While BlackBerry has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for BlackBerry was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $145 million in revenues for the coming quarter and $0.17 on $612.37 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Penguin Solutions, Inc. (PENG), is yet to report results for the quarter ended August 2026. The results are expected to be released on October 6. This company is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of +74.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Penguin Solutions, Inc.'s revenues are expected to be $512.5 million, up 51.7% from the year-ago quarter. 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 BlackBerry Limited (BB) : Free Stock Analysis Report Penguin Solutions, Inc. (PENG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in BlackBerry Limited? Here are five stocks we like better. - BlackBerry reported strong fiscal Q2 results, with revenue up 26% year over year to $163 million, $29 million in operating cash flow and a sixth consecutive quarter of positive GAAP net income. - QNX reached record quarterly revenue of $80 million, driven by higher-margin royalties and growing demand for software-defined vehicles. Its first Alloy Kore design win with Coretura carries estimated future royalty value exceeding $100 million. - BlackBerry raised its full-year company revenue outlook to $616 million–$636 million and adjusted EBITDA guidance to $141 million–$158 million, while lowering its secure communications revenue forecast because of geopolitical and trade-related uncertainty. - 3 European Banks That Could Win Big From ECB Rate Hikes BlackBerry (NYSE:BB) reported second-quarter fiscal 2027 revenue growth of 26% year over year, record QNX revenue and a higher full-year outlook, as the company cited expanding automotive software demand, growing royalty contributions and a strong licensing quarter. Chief Executive Officer John Giamatteo said the company generated $163 million in total revenue during the quarter, delivered $29 million in operating cash flow and posted its sixth consecutive quarter of positive GAAP net income. BlackBerry reported GAAP net income of $34 million and adjusted net income of $43 million, while adjusted earnings per share reached $0.07. → Microsoft's 8% Dividend Hike: Confidence Signal or Distraction From Capex Math? - 3 Retail Stocks to Watch After a Big Consumer Earnings Week "Q2 gives us another clear proof point that the profitable growth model we have been building is working," Giamatteo said, adding that the company's financial and strategic progress increased management's confidence entering the second half of the fiscal year. QNX, BlackBerry's embedded software business, generated a record $80 million of quarterly revenue, up 27% from a year earlier and above the high end of the company's guidance range. Adjusted gross margin rose four percentage points to 87%, while adjusted EBITDA increased 41% to $29 million, or 36% of segment revenue. → Paramount Skydance Clears a Major Warner Bros. Discovery Hurdle—Here's What Comes Next - Is Best Buy the AI Winner Hiding in the Electronics Aisle? Chief Financial Officer Tim Foote said QNX benefited from revenue growth and favorable mix, particularly higher-margin royalty revenue. During the question-and-answer session, Foote said some of the company's larger historical design wins are moving into production, allowing its previously reported $950 million backlog to begin converting into revenue. Giamatteo said QNX's strongest activity came from its core automotive business, where the industry is shifting toward software-defined vehicles and centralized compute architectures. He said about one-third of the approximately 90 million vehicles produced globally each year currently use the type of high-performance centralized architecture most relevant to QNX, while industry forecasts indicate that share could reach roughly three-quarters over the next five years. → Is the Fed Playing Chess With Rates—Or Just Behind the Curve Again? The company said it expects to grow through greater penetration of addressable vehicles and more QNX software content per vehicle, rather than relying on higher overall global vehicle production. It also highlighted growing adoption of its SDP 8.0 platform, which is designed for higher-performance compute architectures. For new commercial arrangements, BlackBerry said it is increasingly obtaining contractual minimum volume commitments rather than relying on non-contractual customer forecasts. Foote said the revised approach could provide greater certainty, accelerate cash receipts and potentially allow a portion of revenue to be recognized earlier, though the company is still "feeling" its way into the model for new contracts. BlackBerry announced its first Alloy Kore design win, selecting Coretura, a commercial-vehicle software joint venture between Volvo Group and Daimler Truck, as a customer. Coretura plans to use Alloy Kore as the foundational software platform for its next-generation high-performance compute architecture across multiple software domains. Giamatteo said the estimated future royalty value from the win exceeds $100 million, making it QNX's largest design win to date. The company said the average selling price per instance is approximately three times higher than the customer's current QNX operating-system deployment. Alloy Kore combines QNX foundational software, common automotive services and Vector middleware into a pre-integrated, safety-certified platform. According to BlackBerry, the platform is intended to reduce the cost and complexity of integrating foundational software stacks, allowing vehicle manufacturers to focus engineering resources on differentiated applications. Management said the Coretura award is not expected to materially alter revenue during the current fiscal year because production royalties will require lead time. However, Giamatteo described the deal as commercial validation of Alloy Kore and said the company has a "very healthy" pipeline involving global original equipment manufacturers and tier-one suppliers, particularly in Europe and Asia. BlackBerry said its general embedded markets, or GEM, business represents approximately 20% of QNX revenue. The company is targeting opportunities in robotics, industrial automation, medical devices, aerospace and defense, rail and Physical AI applications. During the quarter, Uber selected QNX as the software foundation for its next generation of vehicles. Momenta and XHEART also selected QNX OS for Safety, built on SDP 8.0, for a production-ready autonomous-driving platform certified to ISO 26262. Giamatteo said BlackBerry has more than 20 companies engaging with it around NVIDIA-based platforms, including developers of humanoid robots, surgical robots, autonomous mobile robots, tractors, drones and planes. Secure communications revenue was $61 million, up 2% year over year and within guidance. Annual recurring revenue was approximately $221 million, up 4%, while dollar-based net retention was 91%. The segment generated $8 million in adjusted EBITDA, representing a 13% margin. Foote said BlackBerry remains cautious about the secure communications outlook because of geopolitical developments and trade tensions between Canada and the United States. The company said it has not yet seen a material effect from those issues, but larger government opportunities can have long sales cycles and create variability in quarterly results. Licensing revenue totaled $22 million, above management's expectations, driven primarily by a new licensing arrangement. BlackBerry said it does not view the quarter's licensing performance as a new run rate and expects revenue of approximately $6 million in each of the third and fourth quarters. BlackBerry raised its full-year QNX revenue outlook to between $315 million and $325 million and its adjusted EBITDA outlook to between $95 million and $105 million. For the third quarter, it projected QNX revenue of $82 million to $88 million and adjusted EBITDA of $27 million to $32 million. The company reduced its full-year secure communications revenue outlook to between $260 million and $270 million, with adjusted EBITDA expected between $50 million and $58 million. Third-quarter secure communications revenue is projected at $55 million to $60 million. BlackBerry increased its full-year licensing outlook to approximately $41 million in revenue and approximately $36 million in adjusted EBITDA. At the company level, it raised full-year revenue guidance to $616 million to $636 million and adjusted EBITDA guidance to $141 million to $158 million. It expects adjusted EPS of $0.19 to $0.22 for the full year and operating cash flow of approximately $115 million. BlackBerry ended the quarter with approximately $447 million in cash and investments, or net cash of roughly $247 million. Foote said the company intends to continue investing in QNX, evaluate share repurchases under its existing program and selectively consider acquisitions that could accelerate its GEM strategy, though he said the strategic and financial bar for deals remains high. BlackBerry Limited is a Canadian software company headquartered in Waterloo, Ontario, that provides cybersecurity and Internet of Things (IoT) solutions to enterprises, governments and other organizations worldwide. Its cybersecurity offerings include endpoint protection, endpoint management, identity and access controls, secure communications, and tools designed to help organizations monitor and respond to cyber threats. The company's IoT business is built around QNX, a software platform used in automotive systems and other embedded applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BlackBerry Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

This article first appeared on GuruFocus. - Total Revenue: $163 million, up 26% year-over-year, above high end of guidance. - Adjusted Gross Margin: Expanded 3 percentage points year-over-year to 78%. - Adjusted EBITDA: $47 million, nearly doubled year-over-year, representing 29% of revenue. - Adjusted Net Income: $43 million. - GAAP Net Income: $34 million, strongest quarterly GAAP net income since Q4 fiscal 2022; sixth consecutive quarter of positive GAAP net income. - Adjusted EPS: $0.07, above expectations. - Operating Cash Flow: $29 million in Q2; $34 million for first half of fiscal 2027 vs. cash usage of $14 million in prior year period. - Free Cash Flow: $28 million for the quarter; $30 million year-to-date. - Cash and Investments: Approximately $447 million, representing net cash of approximately $247 million. - QNX Revenue: Record $80 million, up 27% year-over-year, above high end of guidance. - QNX Adjusted Gross Margin: Expanded 4 percentage points year-over-year to 87%, matching highest reported quarterly level in history. - QNX Adjusted EBITDA: $29 million, up 41%, representing 36% margin. - Secure Communications Revenue: $61 million, up 2% year-over-year, within guidance range. - Secure Communications Adjusted Gross Margin: 61%, reflecting lower margin Secusmart device revenue. - Secure Communications Adjusted EBITDA: $8 million, representing 13% margin. - Secure Communications ARR: Approximately $221 million, up 4% year-over-year. - Secure Communications DBNRR: 91%, relatively stable. - Licensing Revenue: Approximately $22 million, significantly above expectations, driven by a new licensing arrangement. - Licensing Adjusted EBITDA: $20 million. - Full Year Revenue Outlook: Raised by $19 million at midpoint to $616 million$636 million, representing 14% year-over-year growth. - Full Year Adjusted EBITDA Outlook: Raised by $21 million at midpoint to $141 million$158 million, representing 43% year-over-year growth. - Full Year Adjusted EPS Outlook: Increased to $0.19$0.22. - Full Year Operating Cash Flow Outlook: Raised by $15 million to approximately $115 million. - Q3 Total Revenue Guidance: $143 million$154 million. - Q3 Adjusted EBITDA Guidance: $28 million$37 million. - Q3 Adjusted EPS Guidance: $0.04$0.05. - Q3 Operating Cash Flow Guidance: $20 million$30 million. - Warning! GuruFocus has detected 3 Warning Sign with BB. - Is BB fairly valued? Test your thesis with our free DCF calculator. Release Date: September 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Revenue grew 26% year-over-year, with adjusted EBITDA up 81%, marking the second consecutive Rule of 40 quarter. - QNX delivered record quarterly revenue of $80 million, up 27% year-over-year, and achieved its highest-ever design win dollars in the first half. - First Alloy Kore design win with Coretura is the largest in QNX history, with estimated future royalties exceeding $100 million and ASP per instance about 3x higher than traditional QNX OS. - Secure Communications revenue grew 13% year-over-year in the first half, with ARR of approximately $221 million, up 4% year-over-year. - Full-year revenue and adjusted EBITDA outlook raised for the second consecutive quarter, with revenue guidance increased by $19 million at the midpoint and adjusted EBITDA by $21 million. - Secure Communications full-year revenue outlook revised down to $260-$270 million due to geopolitical uncertainties and trade tensions between Canada and the United States. - Dollar-based net retention rate for Secure Communications remained relatively stable at 91%, indicating limited expansion within existing customers. - Licensing revenue is expected to return to a more typical quarterly level of approximately $6 million in Q3 and Q4, significantly below the $22 million in Q2. - QNX revenue growth is not linear quarter-to-quarter, and Q4 revenue is implied to be down slightly from Q3, which may concern investors. - Secure Communications adjusted EBITDA outlook for the full year was lowered to $50-$58 million, reflecting cautious timing of larger government deals. Q: Suthan Sukumar of Stifel asked about the improving profitability outlook, specifically how royalty revenue converting from backlog has trended and how much of the full-year profitability raise was driven by the strong licensing quarter. A: CFO Tim Foote credited the company's tight cost structure and operating leverage, noting QNX was the star of the quarter with royalties leading the way. He said the previously reported $950 million backlog is now starting to convert into production revenue as newer, larger design wins ramp, giving good line of sight and supporting the second consecutive raise to full-year guidance. He added the core automotive business is "really on fire." Q: Suthan Sukumar of Stifel asked how the revenue model in GEM (general embedded markets) and Physical AI compares to a typical automotive program, and whether there is an Alloy Kore opportunity in GEM. A: CFO Tim Foote said the model is fundamentally the same volume-based royalty structure with pre-production streams like development licenses and services, though lower volumes can mean higher per-unit economics that should decline as scale builds. CEO John Giamatteo said Alloy Kore in GEM and Physical AI is early days, with BlackBerry taking an ecosystem approach through programs like QNX Everywhere and the newly launched QNX Launchpad, plus a fast-building pipeline from its NVIDIA partnership. Q: Paul Treiber of RBC Capital Markets asked about QNX's growth cadence, noting guidance implies Q4 revenue declines slightly from Q3 and growth slows. A: CEO John Giamatteo urged investors to focus on the long-term growth trend rather than quarter-to-quarter variability, noting QNX is projected to grow 19% year-over-year at the midpoint, above initial expectations. He highlighted that design wins booked in the first half exceeded any full fiscal year in the company's history. CFO Tim Foote added that QNX is "definitely not slowing down" and is if anything accelerating, though growth will not be linear quarter to quarter. Q: Paul Treiber of RBC Capital Markets asked about the new contracted minimum royalties that allow earlier revenue recognition, including when this trend began and its contribution in Q2. A: CFO Tim Foote said the shift to contractual fixed minimums, tied to the transition to SDP 8.0, gives greater certainty, accelerates cash receipt, and allows a portion of revenue to be recognized earlier. He said the company is "feeling its way" into this for new contracts and expects it to grow over time. CEO John Giamatteo added that customers making firm minimum commitments is a new dynamic and an inflection point, reflecting their long-term conviction in BlackBerry's product. Q: Todd Coupland of CIBC asked about the Alloy Kore pipeline, including whether it is commercial or light vehicle, and expectations for future design wins in the second half. A: CEO John Giamatteo described a healthy pipeline spanning commercial and passenger vehicles, with significant engagement among global OEMs and Tier 1s, particularly in Europe and Asia. He said the value proposition of partnering with Vector to stitch together safety-certified platforms is resonating, and the Coretura win is generating more interest, though these are big decisions that take time to work through the funnel. Q: Todd Coupland of CIBC asked when BlackBerry expects visibility on whether the trimmed Secure Communications guidance will play out. A: CEO John Giamatteo said nothing specific is currently driving the caution, but with over $220 million of ARR providing a durable base, the trimmed outlook reflects uncertainty around the timing of larger government deals amid global geopolitical unrest and trade tensions. He said government sales cycles are already long, and the company felt it prudent to take a more cautious tone on the timing of new opportunities. Q: John Shao of TD Cowen asked about the robotaxi opportunity following the Uber win, including whether exposure is direct or indirect, content per vehicle, and the timeline. A: CEO John Giamatteo said robotaxis represent a tremendous opportunity transitioning from concept toward production, and the Uber partnership positions BlackBerry well. He cautioned that Physical AI is still in the early innings, with many variables around ASP per vehicle, but said the company's safety-certified foundational software gives it a strong pole position to capture more than its fair share as the industry develops. Q: John Shao of TD Cowen asked about the company's M&A pipeline, how it evaluates deals, and whether the trigger is valuation or functionality. A: CFO Tim Foote said the growing cash balance is "a good problem to have," with priorities remaining investing in the business, evaluating share buybacks, and selectively pursuing M&A, particularly to fast-track the GEM and Physical AI opportunity. He said the bar remains high, requiring strong strategic fit, an appropriate financial profile, and meaningful advancement of the strategy, but the balance sheet provides flexibility to act when the right opportunity arises. Q: Kingsley Crane of Canaccord Genuity asked what the Coretura deal would have been worth had BlackBerry been chosen only for basic capabilities like base OS and hypervisor, versus the full Alloy Kore engagement. A: CEO John Giamatteo said the Alloy Kore approach carries roughly three times the normal ASP of a traditional SDP 8.0 deployment, reflecting both moving up the software stack and expanding into more vehicle domains such as ADAS and body control beyond digital cockpit. He said combining QNX's platform with Vector's middleware and diagnostics materially expands the addressable market and content per vehicle. Q: Kingsley Crane of Canaccord Genuity asked whether the Secure Communications conservatism is mostly applied to Q3 and whether it is purely due to federal concerns. A: CFO Tim Foote reiterated that roughly 80% of the Secure Communications business is durable ARR, while the remaining 20% depends on larger government deals that drive in-quarter revenue. He said the company simply feels less certain about the timing of those deals, not that they are going away, and has not seen anything material so far, but is taking a prudent view given the uncertainty. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- BlackBerry beat expectations, set a QNX quarterly record, and raised its full-year outlook, yet shares still fell 2% to $8. - Secure Communications uncertainty is capping BlackBerry's valuation despite record QNX momentum, with investors demanding clearer traction before bidding shares higher. - Mobileye edged up while BlackBerry dropped, showing investors are repositioning less dramatically in pure autonomous-driving plays than in mixed automotive-software businesses. - Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor) BlackBerry Limited (NYSE:BB) stock is falling Thursday despite the company reporting quarterly results that beat expectations, posting record QNX performance and raising its full-year outlook. BlackBerry stock is down 2% to $8.23, while Mobileye Global (NASDAQ:MBLY) stock is up 0.33% to $7.64. The decline comes as investors weigh BlackBerry's stronger results against more cautious commentary around the near-term outlook. Broader market weakness is also part of the backdrop, with iShares Expanded Tech-Software Sector ETF (BATS:IGV) down 0.75% to $107.29 and SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) down 0.52% to $763.80. BlackBerry's QNX business delivered record quarterly performance, helping drive an earnings report that exceeded expectations. BlackBerry also raised its full-year outlook, reinforcing the argument that the company's push toward profitable growth is gaining traction. Even with those positives, BlackBerry stock is moving lower as traders look beyond the headline results. Some market participants are pointing to profit-taking and broader weakness, while others appear focused on the more cautious near-term outlook and commentary surrounding Secure Communications. BlackBerry's Secure Communications business is creating a more complicated picture for investors evaluating the quarter. Stronger QNX performance can support the overall growth story, yet concerns about Secure Communications could make investors less willing to assign a higher valuation to BlackBerry stock until the business shows clearer momentum. If you've saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life. Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor) The Alloy Kore design win offers another potential source of longer-term opportunity for BlackBerry. The win could expand the company's reach as customers adopt its technology, although investors may need additional evidence of commercial traction before that opportunity meaningfully changes sentiment toward BlackBerry stock. MobilEye stock is holding relatively steady as investors assess the broader technology market and developments across automotive software. MobilEye's business gives investors exposure to advanced driver-assistance and autonomous-driving technology, creating a different set of growth opportunities and risks from BlackBerry's mix of automotive software and secure communications. The contrast between BlackBerry stock and MobilEye stock is notable because both companies operate in technology markets tied to vehicles and software. BlackBerry is dealing with an immediate disconnect between strong reported results and the stock's reaction, while MobilEye's modest gain suggests less dramatic repositioning by investors today. BlackBerry's quarter demonstrates why strong financial results don't always translate into an immediate stock gain. BlackBerry beat expectations, delivered record QNX performance and raised its full-year outlook, yet the shares remain sensitive to expectations for Secure Communications and the company's near-term trajectory. MobilEye stock's steadier trading provides a broader comparison for investors considering automotive technology exposure during a weaker market session. Investors should watch for signs that BlackBerry's QNX momentum is broadening across the business and that Secure Communications concerns are easing, while keeping position sizes modest as BlackBerry stock remains sensitive to shifting expectations. If you've saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life. Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor) Contact [email protected] for any questions or corrections.

BlackBerry (BB) raised its full-year outlook on Thursday as the company's fiscal second-quarter results increased year over year, driven by double-digit revenue growth in its software solutions segment. The Canada-based firm, once a major name in the smartphone industry, now expects adjusted earnings in a range of $0.19 to $0.22 per share for fiscal 2027, up from its previous projections of $0.16 to $0.20. Revenue is pegged at $616 million to $636 million, compared with the $594 million to $621 million prior guidance. The consensus on FactSet is for non-GAAP EPS of $0.19 and sales of $610.1 million. For the quarter ended August, adjusted EPS rose to $0.07 from $0.04 the year before. Four analysts polled by FactSet had estimated an unchanged print. Revenue jumped 26% to $163.3 million, compared with the $141.8 million consensus based on projections from the same number of analysts. Revenue in the QNX division, which offers software solutions for a variety of industries, advanced 27% to $80.3 million, boosted by strength in the company's core automotive business, Chief Executive John Giamatteo said in a statement. Vehicle platform company Coretura has chosen Alloy Kore for its next-generation commercial vehicle software platform. Alloy Kore is a jointly developed by Vector and QNX. The design win adds more than $100 million to the QNX royalty backlog, BlackBerry said. RBC Capital Markets expected BlackBerry to top quarterly revenue estimates, saying investor sentiment would depend on the timing of Alloy Kore design wins and momentum around physical artificial intelligence and QNX's general embedded market. For fiscal 2027, BlackBerry anticipates QNX revenue between $315 million and $325 million, up from its previous outlook of $295 million to $312 million. "The increased outlook reflects the strength and trajectory we continue to see across the (QNX) business, while maintaining an appropriate level of flexibility for normal quarter to quarter variability," Chief Financial Officer Tim Foote said during an earnings call, according to a FactSet transcript. The secure communications segment reported revenue of $60.9 million in the second quarter, representing an annual gain of 2%. Recent geopolitical developments, including trade tensions between the US and Canada, are further complicating a dynamic backdrop for secure communications, which has a "substantial footprint" with the US federal government, Foote told analysts. The US is banning imports of certain Canadian goods, including dairy products and motor vehicles. In late August, Canada announced retaliatory tariffs on about US$20 billion of American goods. "While we haven't yet seen anything material arising from this issue, nor have we seen a slowdown in pipeline generation outside of North America, we consider it appropriate to be cautious as we head into the second half," Foote said on the call. For the ongoing three-month period, BlackBerry forecasts total revenue of $143 million to $154 million. Four analysts surveyed by FactSet are looking for $147.6 million. Adjusted EPS is set to come in at $0.04 to $0.05, compared with the $0.05 analyst view. Earlier in September, cybersecurity company Palo Alto Networks (PANW) reported fiscal fourth-quarter results above market expectations. Last month, CrowdStrike (CRWD) raised its full-year net new annual recurring revenue outlook amid increasing demand for cybersecurity solutions to address AI risks.