BlackBerry Reports Q1 Fiscal 2026 Results with Revenue of $121.7 Million and Net Income Turnaround

BlackBerry Limited reported its financial results for the first quarter of fiscal 2026, ending May 31, 2025, revealing a revenue of $121.7 million, a decrease of $1.7 million compared to $123.4 million in the same period last year. The company achieved a net income of $1.9 million, or $0.00 per share, a significant turnaround from a net loss of $41.4 million, or $0.07 per share, in the prior year. The gross margin for the quarter was $90.3 million, slightly up from $90.0 million, reflecting a gross margin percentage increase to 74.2% from 72.9%.

The company experienced notable changes in its operational segments. Revenue from the QNX segment increased by $4.3 million to $57.5 million, driven by higher development seat revenue and royalty income. Conversely, the Secure Communications segment saw a decline of $4.7 million to $59.5 million, primarily due to decreased product revenue from Secusmart and BlackBerry UEM. The Licensing segment also reported a decrease of $1.3 million, totaling $4.7 million, attributed to lower revenue from existing intellectual property arrangements.

In terms of strategic developments, BlackBerry has continued to focus on its core divisions, QNX and Secure Communications, while also managing its costs effectively. Operating expenses decreased to $88.3 million from $102.9 million year-over-year, largely due to reduced restructuring costs and other operational efficiencies. The company also repurchased 2.6 million common shares for $10.0 million as part of its normal course issuer bid, which commenced on May 12, 2025.

As of May 31, 2025, BlackBerry reported cash, cash equivalents, and investments totaling $381.9 million, down from $410.3 million at the end of the previous quarter. The company’s current assets decreased to $533.2 million, while current liabilities fell to $253.4 million, resulting in a working capital increase to $279.8 million. The company noted that it is focused on maintaining appropriate cash balances and managing liquidity needs effectively.

Looking ahead, BlackBerry anticipates total revenue for the second quarter of fiscal 2026 to be in the range of $115 million to $125 million, with expectations for QNX revenue between $55 million and $60 million, and Secure Communications revenue between $54 million and $59 million. The company also projects adjusted EBITDA for the second quarter to be between $8 million and $14 million, reflecting a positive outlook for its operational performance.