0001070235-26-000076
SEC filingRevenue grew 25.6% YoY to $152.9M, with net income of $8.5M, driven by QNX and Secure Communications strength.
The first quarter of fiscal 2027 (ended May 31, 2026) showed a strong performance with total revenue of $152.9 million, a 25.6% increase from $121.7 million in the prior year quarter. Gross margin expanded 4.1 percentage points to 78.3%, driven by favorable mix shifts toward higher-margin QNX and SecuSUITE software licenses. Operating income surged from $2.0 million to $15.3 million, reflecting operating leverage. Net income rose to $8.5 million ($0.01 EPS) from $1.9 million ($0.00 EPS). On an adjusted basis, EBITDA reached $36.3 million (23.7% margin), well above the guided range of $14–$22 million. Free cash flow turned positive at $1.7 million, compared to a usage of $18.9 million in the prior year.
Management raised full-year fiscal 2027 guidance across key metrics. Total revenue is now expected in the range of $594–$621 million (up from $584–$611 million), reflecting stronger QNX and Licensing performance. Adjusted EBITDA guidance was increased to $119–$139 million (from $110–$130 million), and non-GAAP EPS to $0.16–$0.20 (from $0.15–$0.19). For the second quarter, revenue is guided to $137–$148 million, adjusted EBITDA $20–$30 million, and non-GAAP EPS $0.03–$0.04. Operating cash flow is expected to be between breakeven and $10 million in Q2. The company also highlighted progress with Alloy Kore, NVIDIA integration, and expanded government contracts (SecuSUITE renewal, FedRAMP recertification). Liquidity remains healthy with $422.9 million in cash and investments.
BlackBerry ended Q1 FY2027 with $256.8M cash and cash equivalents, $94.1M short-term investments, and $57.8M long-term investments, totaling $422.9M in cash and investments (including $14.2M restricted). The company reports $196.8M in long-term convertible notes (3.00% due 2029), resulting in net cash of $226.1M. Shareholders' equity stood at $750.7M, up from $746.0M at year-end due to net income of $8.5M partially offset by share repurchases and OCI losses.
The Notes section discloses $14.2M in collateralized letters of credit and a performance bond supporting a government contract. Additionally, QNX has recognized $28.6M from claims with the Ministry of Innovation, Science and Economic Development Canada, a portion of which may be repayable if certain conditions are not met. No other significant purchase commitments or contractual obligations are disclosed.
During Q1, BlackBerry repurchased 2.6M common shares for $10.0M under the prior NCIB. On May 8, 2026, the company renewed its NCIB, authorizing the buyback of up to 26.8M shares (4.58% of public float) through May 11, 2027. Capital expenditures totaled $2.9M for PP&E and $1.6M for intangible assets (mainly patent maintenance), representing 2.9% of revenue. No dividends were paid. The convertible notes remain outstanding with no new debt issuance or repayment.
Three operating segments are reported: QNX ($72.3M revenue, 47% of total), Secure Communications ($73.6M, 48%), and Licensing ($7.0M, 5%). Segment adjusted gross margins were QNX $61.9M (85.6%), Secure Communications $52.8M (71.7%), and Licensing $5.5M (78.6%). Geographically, North America contributed 48.3% of revenue, Europe/Middle East/Africa 29.1%, and other regions 22.6%. Licensing revenue is classified entirely within North America. Revenue recognized over time was $56.7M (37%) and at point in time $96.2M (63%). Remaining performance obligations totaled $133.9M, substantially all within 12 months.