BlackBerry Limited has reported strong financial results for the first quarter of fiscal year 2026, which ended on May 31, 2025. The company exceeded its revenue and profitability guidance for both its total operations and specific divisions, presenting a promising outlook for the year ahead.
The total revenue for BlackBerry reached $121.7 million, surpassing guidance expectations, with a gross margin of 74%. The QNX division demonstrated robust performance, achieving 8% year-over-year revenue growth of $57.5 million. Similarly, the Secure Communications segment also outperformed, generating $59.5 million in revenue and raising its full-year guidance. Noteworthy was the increase in adjusted EBITDA for Secure Communications, which hit $9.6 million.
CEO John J. Giamatteo expressed optimism about the company’s future, stating, “BlackBerry made a strong start to the new fiscal year, building on the solid foundation we have laid over the past year.” He emphasized that both QNX and Secure Communications divisions are executing effectively against their strategies.
In a notable move to boost shareholder value, BlackBerry returned $10 million to its shareholders as part of an ongoing share buyback program, repurchasing 2.57 million common shares during the quarter. This complements the company’s overall strategy of capital allocation aimed at maintaining profitability and cash generation.
In terms of profitability, BlackBerry announced its first GAAP profit since Q4 FY22, with a net income of $1.9 million while non-GAAP net income stood at $12.3 million. This marks a significant turnaround for the company after experiencing losses in previous quarters.
Looking forward, BlackBerry has provided revenue guidance for the upcoming second quarter, estimating between $115 million and $125 million, with the full fiscal year anticipated to yield between $508 million and $538 million.
In addition to its strong financial results, BlackBerry introduced several important initiatives during the quarter:
– The launch of QNX® Hypervisor 8.0, enhancing virtualization capabilities.
– WeRide unveiled a next-generation ADAS platform utilizing QNX® OS for Safety.
– A partnership with Direct ChassisLink Inc. for the deployment of BlackBerry® Radar® technology.
Overall, BlackBerry’s current trajectory showcases a promising revival as it navigates through the tech landscape, focusing on innovations in software and communications security while aiming for sustainable growth and profitability.