BlackBerry Reviews First Quarter Fiscal 12 months 2026 Outcomes

• Exceeds high finish of steerage vary for income, adjusted EBITDA, adjusted EPS and working money stream for the entire Firm

• Delivers income and adjusted EBITDA above steerage for QNX division

• Beats income and adjusted EBITDA steerage for Safe Communications division, elevating full 12 months steerage

• Returns $10 million to shareholders as a part of share buyback program

WATERLOO, ON / ACCESS Newswire / June 24, 2025 / BlackBerry Restricted (NYSE:BB)(TSX:BB) right this moment reported monetary outcomes for the three months ended Could 31, 2025 (all figures in U.S. {dollars} and U.S. GAAP, besides the place in any other case indicated).

“BlackBerry made a robust begin to the brand new fiscal 12 months, constructing on the strong basis we as an organization have laid over the previous 12 months,” stated John J. Giamatteo, CEO, BlackBerry. “Each our QNX and Safe Communications divisions proceed to execute successfully towards their methods, beating each high line and profitability expectations. BlackBerry’s strong steadiness sheet and plan for persevering with profitability and money technology this fiscal 12 months allow us to allocate capital effectively, with $10 million of share buybacks executed this previous quarter.”

First Quarter Fiscal 2026 Monetary Highlights

• Whole firm income exceeded previously-provided steerage at $121.7 million

• Whole firm gross margin was 74% and non-GAAP gross margin was 75%

• QNX income beat steerage and delivered 8% year-over-year progress to $57.5 million; QNX gross margin and adjusted gross margin was 81%

• QNX adjusted EBITDA beat previously-provided steerage at $12.7 million, or 22% of income

• Safe Communications income exceeded previously-provided steerage at $59.5 million; Safe Communications adjusted gross margin elevated by 6 share factors sequentially and 4 share factors year-over-year to 70%

• Safe Communications ARR remained steady, comparatively flat sequentially at $209 million; Safe Communications DBNRR decreased by 1 share level to 92%

• Safe Communications adjusted EBITDA exceeded beforehand supplied steerage at $9.6 million

• Licensing income was $4.7 million, and adjusted EBITDA was $3.8 million

• BlackBerry achieved GAAP profitability for first time since This autumn FY22, with internet revenue of $1.9 million and non-GAAP internet revenue was $12.3 million

• Whole firm adjusted EBITDA exceeded previously-provided steerage at $16.4 million

• GAAP primary earnings per share was breakeven and non-GAAP primary earnings per share was $0.02, beating the previously-provided steerage

• Working money utilization for the seasonally-low first quarter beat expectations at $18 million

• $10 million was returned to shareholders by the repurchase of two.57 million frequent shares throughout the quarter

• Whole money, money equivalents, short-term and long-term investments decreased by $28.4 million sequentially to $381.9 million

Enterprise Highlights & Strategic Bulletins

• BlackBerry introduced a traditional course issuer bid share buyback program

• QNX launched QNX® Hypervisor 8.0, constructed on the next-generation SDP 8.0 structure, facilitating high-performance virtualization of a number of working techniques on a single SoC

• WeRide launched its next-generation ADAS platform for L2++ autonomous drive, constructed upon QNX® OS for Security

• Leapmotor chosen QNX® expertise as the inspiration of its clever digital cockpit and autonomous drive area controllers in its new B10 electrical SUV

• Direct ChassisLink Inc (DCLI) introduced the deployment of BlackBerry® Radar® throughout 100,000 chassis

• BlackBerry® AtHoc® turned the primary important occasion administration supplier to attain FedRAMP Excessive authorization

• Malaysia Cybersecurity Heart of Excellence celebrated its first anniversary with new partnerships, scholarships and expanded teaching programs

Monetary Outlook

BlackBerry is offering the next steerage for the second fiscal quarter (ending August 31, 2025) and the complete fiscal 12 months 2026 (ending February 28, 2026).

¹ Excluding amortization prices.

Use of Non-GAAP Monetary Measures

The tables on the finish of this press launch embrace a reconciliation of the non-GAAP monetary measures and non-GAAP monetary ratios utilized by the Firm to comparable U.S. GAAP measures and a proof of why the Firm makes use of them. The Firm doesn’t present a reconciliation of anticipated Adjusted EBITDA and anticipated Non-GAAP primary EPS for the second quarter of 2026 to essentially the most immediately comparable anticipated GAAP measures as a result of it’s unable to foretell with affordable certainty, amongst different issues, restructuring expenses and impairment expenses and, accordingly, a reconciliation shouldn’t be accessible with out unreasonable effort. These things are unsure, rely upon varied components, and will have a cloth affect on GAAP reported outcomes for the steerage interval. For extra data on the non-GAAP monetary measures, please discuss with the tables on the finish of this press launch.

Convention Name and Webcast

A convention name and reside webcast can be held right this moment starting at 5:30 p.m. ET, which might be accessed utilizing the next hyperlink (right here) or by means of the Firm’s investor webpage (BlackBerry.com/Buyers) or by dialing toll free +1 (844) 763-8275 and coming into Elite Entry Quantity 52549.

A replay of the convention name can be accessible at roughly 8:30 p.m. ET right this moment, utilizing the identical webcast hyperlink (right here) or by dialing toll free +1 (877) 481-4010 and coming into Replay Entry Code 52549.

About BlackBerry

BlackBerry (NYSE:BB)(TSX:BB) gives enterprises and governments the clever software program and providers that energy the world round us. Based mostly in Waterloo, Ontario, the corporate’s high-performance foundational software program allows main automakers and industrial giants alike to unlock transformative functions, drive new income streams and launch progressive enterprise fashions, all with out sacrificing security, safety, and reliability. With a deep heritage in Safe Communications, BlackBerry delivers operational resiliency with a complete, extremely safe, and extensively licensed portfolio for cell fortification, mission-critical communications, and demanding occasions administration.

For extra data, go to BlackBerry.com and observe @BlackBerry.

Investor Contact:

BlackBerry Investor Relations
+1 (519) 888-7465
[email protected]

Media Contact:

BlackBerry Media Relations
+1 (519) 597-7273
[email protected]

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This information launch incorporates forward-looking statements inside the which means of sure securities legal guidelines, together with underneath the U.S. Non-public Securities Litigation Reform Act of 1995 and relevant Canadian securities legal guidelines, together with statements concerning BlackBerry’s plans, methods and aims.

The phrases “count on”, “anticipate”, “estimate”, “might”, “will”, “ought to”, “might”, “intend”, “imagine”, “goal”, “plan” and related expressions are meant to determine these forward-looking statements. Ahead-looking statements are based mostly on estimates and assumptions made by BlackBerry in gentle of its expertise and its notion of historic traits, present circumstances and anticipated future developments, in addition to different components that BlackBerry believes are acceptable within the circumstances, together with however not restricted to, BlackBerry’s expectations concerning its enterprise, monetary efficiency, technique, alternatives and prospects, the launch of recent services, basic financial circumstances, and competitors. Many components might trigger BlackBerry’s precise outcomes, efficiency or achievements to vary materially from these expressed or implied by the forward-looking statements, together with, with out limitation, dangers associated to the next components: BlackBerry’s capacity to keep up or increase its buyer base for its software program and providers choices to develop income or obtain sustained profitability; the extraordinary competitors confronted by BlackBerry; BlackBerry’s capacity to boost, develop, introduce or monetize its services in a well timed method with aggressive pricing, options and efficiency; vital adjustments in authorities buyer demand or procurement necessities; BlackBerry’s gross sales cycles and the time and expense of its gross sales efforts; the prevalence or notion of a breach of BlackBerry’s community cybersecurity measures, or an inappropriate disclosure of confidential or private data; BlackBerry’s persevering with capacity to draw new personnel, retain current key personnel and handle its staffing successfully; dangers arising from a failure or perceived failure of the safety features of BlackBerry’s options; opposed macroeconomic and geopolitical circumstances, together with commerce insurance policies; litigation towards BlackBerry; community disruptions or different enterprise interruptions; BlackBerry’s capacity to foster an ecosystem of third-party utility builders; BlackBerry’s dependence partly on its relationships with resellers and channel companions; BlackBerry’s services being dependent upon interoperability with quickly altering techniques supplied by third events; BlackBerry’s use of synthetic intelligence options; failure to guard BlackBerry’s mental property and to earn anticipated revenues from mental property rights; BlackBerry’s use of open supply software program and its capacity to acquire rights to make use of third-party software program ; BlackBerry probably being discovered to have infringed on the mental property rights of others; BlackBerry’s indebtedness, which might affect its working flexibility and monetary situation; the asset threat confronted by BlackBerry, together with the potential for expenses associated to its long-lived belongings and goodwill; tax provision adjustments, the adoption of recent tax laws or publicity to further tax liabilities; the use and administration of consumer information and private data; authorities rules relevant to BlackBerry’s services, together with merchandise containing encryption capabilities; environmental, social and governance expectations and requirements; the failure of BlackBerry’s suppliers, subcontractors, channel companions and representatives to make use of acceptable moral enterprise practices or adjust to relevant legal guidelines; potential impacts of acquisitions, divestitures and different enterprise initiatives; dangers related to international operations, together with fluctuations in foreign exchange; environmental occasions; the fluctuation of BlackBerry’s quarterly income and working outcomes; and the volatility of the market value of BlackBerry’s frequent shares.

These threat components and others referring to BlackBerry are mentioned in larger element in BlackBerry’s Annual Report on Kind 10-Okay and the “Cautionary Be aware Relating to Ahead-Trying Statements” part of BlackBerry’s MD&A (copies of which filings could also be obtained at http://www.sedarplus.ca or http://www.sec.gov). All of those components needs to be thought-about fastidiously, and readers shouldn’t place undue reliance on BlackBerry’s forward-looking statements. Any statements which can be forward-looking statements are meant to allow BlackBerry’s shareholders to view the anticipated efficiency and prospects of BlackBerry from administration’s perspective on the time such statements are made, and they’re topic to the dangers which can be inherent in all forward-looking statements, as described above, in addition to difficulties in forecasting BlackBerry’s monetary outcomes and efficiency for future durations, notably over longer durations, given adjustments in expertise and BlackBerry’s enterprise technique, evolving trade requirements, intense competitors and brief product life cycles that characterize the industries by which BlackBerry operates. Any forward-looking statements are made solely as of right this moment and BlackBerry has no intention and undertakes no obligation to replace or revise any of them, besides as required by regulation.

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BlackBerry Restricted
Integrated underneath the Legal guidelines of Ontario
(United States {dollars}, in hundreds of thousands besides share and per share quantities)

Consolidated Statements of Operations

BlackBerry Restricted
Integrated underneath the Legal guidelines of Ontario
(United States {dollars}, in hundreds of thousands)

Consolidated Stability Sheets

BlackBerry Restricted
Integrated underneath the Legal guidelines of Ontario
(United States {dollars}, in hundreds of thousands)

Consolidated Statements of Money Flows

Reconciliations of the Firm’s Section Outcomes and Section Adjusted EBITDA to the Consolidated Outcomes

The next tables present data by working section for the three months ended Could 31, 2025 and Could 31, 2024. The Firm stories section data in accordance with U.S. GAAP, pursuant to the Monetary Requirements Accounting Board’s Accounting Commonplace Codification Subject 280, Section Reporting, based mostly on the “administration” strategy. The administration strategy designates the interior reporting utilized by the Chief Working Choice Maker (“CODM”) for making choices and assessing efficiency of the Firm’s reportable working segments. The measure of section revenue or loss disclosed by the Firm within the Consolidated Monetary Statements underneath the “administration” strategy in reviewing the outcomes of the Firm’s working segments is section adjusted gross margin. Moreover, the next tables embrace the extra measures of section revenue or loss utilized by the CODM which is section adjusted EBITDA, a non-GAAP monetary measure. See Be aware 11 to the Consolidated Monetary Statements for an outline of the Firm’s working segments.

The next tables reconcile the Firm’s section adjusted gross margin outcomes for the three months ended Could 31, 2025 to consolidated U.S. GAAP outcomes:

⁽¹⁾ See “Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures” for a reconciliation of chosen U.S. GAAP-based measures to adjusted measures for the three months ended Could 31, 2025 and Could 31, 2024.

The next desk reconciles whole section adjusted EBITDA for the three months ended Could 31, 2025 and Could 31, 2024 to the Firm’s consolidated totals:

⁽¹⁾ The CODM evaluations section data on an adjusted EBITDA foundation, which excludes sure quantities as described beneath:

Inventory compensation bills – Fairness compensation is a non-cash expense and doesn’t affect the continuing working choices taken by the Firm’s administration.

Restructuring expenses – Restructuring expenses relate to worker termination advantages, services, streamlining lots of the Firm’s centralized company features into Safe Communications and QNX particular groups, and different prices pursuant to applications to cut back the Firm’s annual bills amongst R&D, infrastructure and different features and don’t mirror anticipated future working bills, are usually not indicative of the Firm’s core working efficiency, and might not be significant when evaluating the Firm’s working efficiency towards that of prior durations.

Reconciliation of Non-GAAP Measures with the Nearest Comparable U.S. GAAP Measures

Within the Firm’s inner stories, administration evaluates the efficiency of the Firm’s enterprise on a non-GAAP foundation by excluding the affect of sure gadgets from the Firm’s U.S. GAAP monetary outcomes. The Firm believes that these non-GAAP monetary measures and non-GAAP ratios present administration, in addition to readers of the Firm’s monetary statements, with a constant foundation for comparability throughout accounting durations and are helpful in serving to administration and readers perceive the Firm’s working outcomes and underlying operational traits.

Readers are cautioned that adjusted gross margin, adjusted gross margin share, adjusted working expense, adjusted company working prices, adjusted company working prices excluding amortization, adjusted internet revenue (loss), adjusted earnings (loss) per share, adjusted analysis and improvement expense, adjusted gross sales and advertising expense, adjusted basic and administrative expense, adjusted amortization expense, adjusted working revenue (loss), adjusted EBITDA, adjusted section EBITDA, adjusted working revenue (loss) margin share, adjusted EBITDA margin share and free money stream (utilization) and related measures would not have any standardized which means prescribed by U.S. GAAP and are due to this fact unlikely to be akin to equally titled measures reported by different corporations.

Reconciliation of non-GAAP based mostly measures with most immediately comparable U.S. GAAP based mostly measures for the three months ended Could 31, 2025 and Could 31, 2024

A reconciliation of essentially the most immediately comparable U.S. GAAP monetary measures for the three months ended Could 31, 2025 and Could 31, 2024 to adjusted monetary measures is mirrored within the desk beneath:

Reconciliation of U.S. GAAP working expense for the three months ended Could 31, 2025, and Could 31, 2024 to adjusted working expense is mirrored within the desk beneath:

Reconciliation of U.S. GAAP company working prices for the three months ended Could 31, 2025 and Could 31, 2024 to adjusted company working prices excluding amortization is mirrored within the desk beneath:

Reconciliation of U.S. GAAP internet revenue (loss) and U.S. GAAP primary earnings (loss) per share for the three months ended Could 31, 2025 and Could 31, 2024 to adjusted internet revenue (loss) and adjusted primary earnings (loss) per share is mirrored within the desk beneath:

Reconciliation of U.S. GAAP analysis and improvement, gross sales and advertising, basic and administrative, and amortization expense for the three months ended Could 31, 2025 and Could 31, 2024 to adjusted analysis and improvement, gross sales and advertising, basic and administrative, and amortization expense is mirrored within the desk beneath:

Adjusted working revenue, adjusted EBITDA, adjusted working revenue margin share and adjusted EBITDA margin share for the three months ended Could 31, 2025 and Could 31, 2024 are mirrored within the desk beneath.

⁽¹⁾ Adjusted working revenue margin % is calculated by dividing adjusted working revenue by income.
⁽²⁾ Adjusted EBITDA margin % is calculated by dividing adjusted EBITDA by income.

The Firm makes use of free money stream (utilization) when assessing its sources of liquidity, capital assets, and high quality of earnings. The Firm believes that free money stream (utilization) is useful in understanding the Firm’s capital necessities and gives an extra means to mirror the money stream traits within the Firm’s enterprise.

Reconciliation of U.S. GAAP internet money utilized in working actions for the three months ended Could 31, 2025 and Could 31, 2024 to free money stream (utilization) is mirrored within the desk beneath:

Key Metrics

The Firm recurrently screens quite a lot of monetary and working metrics, together with the next key metrics, in an effort to measure the Firm’s present efficiency and estimated future efficiency. Readers are cautioned that Safe Communications annual recurring income (“ARR”) and Safe Communications dollar-based internet retention price (“DBNRR”) would not have any standardized which means and are unlikely to be akin to equally titled measures reported by different corporations.

SOURCE: BlackBerry