BlackBerry Evaluations First Quarter Fiscal 12 Months 2026 Outcomes

• Exceeds excessive end of steering fluctuate for earnings, adjusted EBITDA, adjusted EPS and dealing cash stream for the complete Agency

• Delivers earnings and adjusted EBITDA above steering for QNX division

• Beats earnings and adjusted EBITDA steering for Secure Communications division, elevating full 12 months steering

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

WATERLOO, ON / ACCESS Newswire / June 24, 2025 / BlackBerry Restricted (NYSE:BB)(TSX:BB) proper this second reported financial outcomes for the three months ended Might 31, 2025 (all figures in U.S. {{dollars}} and U.S. GAAP, in addition to the place in another case indicated).

“BlackBerry made a strong start to the model new fiscal 12 months, developing on the sturdy foundation we as a corporation have laid over the earlier 12 months,” said John J. Giamatteo, CEO, BlackBerry. “Every our QNX and Secure Communications divisions proceed to execute efficiently in direction of their strategies, beating every excessive line and profitability expectations. BlackBerry’s sturdy steadiness sheet and plan for persevering with profitability and cash expertise this fiscal 12 months permit us to allocate capital successfully, with $10 million of share buybacks executed this earlier quarter.”

First Quarter Fiscal 2026 Financial Highlights

• Entire agency earnings exceeded previously-provided steering at $121.7 million

• Entire agency gross margin was 74% and non-GAAP gross margin was 75%

• QNX earnings beat steering 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 steering at $12.7 million, or 22% of earnings

• Secure Communications earnings exceeded previously-provided steering at $59.5 million; Secure Communications adjusted gross margin elevated by 6 share elements sequentially and 4 share elements year-over-year to 70%

• Secure Communications ARR remained regular, comparatively flat sequentially at $209 million; Secure Communications DBNRR decreased by 1 share stage to 92%

• Secure Communications adjusted EBITDA exceeded beforehand equipped steering at $9.6 million

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

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

• Entire agency adjusted EBITDA exceeded previously-provided steering at $16.4 million

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

• Working cash 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 all through the quarter

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

Enterprise Highlights & Strategic Bulletins

• BlackBerry launched a standard course issuer bid share buyback program

• QNX launched QNX® Hypervisor 8.0, constructed on the next-generation SDP 8.0 construction, facilitating high-performance virtualization of numerous working methods on a single SoC

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

• Leapmotor chosen QNX® experience because the inspiration of its intelligent digital cockpit and autonomous drive space controllers in its new B10 electrical SUV

• Direct ChassisLink Inc (DCLI) launched the deployment of BlackBerry® Radar® all through 100,000 chassis

• BlackBerry® AtHoc® turned the first vital event administration provider to realize FedRAMP Extreme authorization

• Malaysia Cybersecurity Coronary heart of Excellence celebrated its first anniversary with new partnerships, scholarships and expanded instructing packages

Financial Outlook

BlackBerry is providing the subsequent steering for the second fiscal quarter (ending August 31, 2025) and the whole fiscal 12 months 2026 (ending February 28, 2026).

¹ Excluding amortization costs.

Use of Non-GAAP Financial Measures

The tables on the end of this press launch embrace a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios utilized by the Agency to comparable U.S. GAAP measures and a proof of why the Agency makes use of them. The Agency doesn’t current a reconciliation of anticipated Adjusted EBITDA and anticipated Non-GAAP main EPS for the second quarter of 2026 to primarily probably the most instantly comparable anticipated GAAP measures on account of it’s unable to predict with reasonably priced certainty, amongst completely different points, restructuring bills and impairment bills and, accordingly, a reconciliation shouldn’t be accessible with out unreasonable effort. This stuff are not sure, rely on diverse elements, and may have a material have an effect on on GAAP reported outcomes for the steering interval. For additional information on the non-GAAP financial measures, please talk about with the tables on the end of this press launch.

Conference Identify and Webcast

A conference identify and reside webcast could be held proper this second beginning at 5:30 p.m. ET, which is likely to be accessed using the subsequent hyperlink (proper right here) or by way of the Agency’s investor webpage (BlackBerry.com/Patrons) or by dialing toll free +1 (844) 763-8275 and coming into Elite Entry Amount 52549.

A replay of the conference identify could be accessible at roughly 8:30 p.m. ET proper this second, using the an identical webcast hyperlink (proper 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) provides enterprises and governments the intelligent software program program and suppliers that vitality the world spherical us. Based in Waterloo, Ontario, the company’s high-performance foundational software program program permits foremost automakers and industrial giants alike to unlock transformative features, drive new earnings streams and launch progressive enterprise fashions, all with out sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a whole, extraordinarily protected, and extensively licensed portfolio for cell fortification, mission-critical communications, and demanding events administration.

For additional information, 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 info launch incorporates forward-looking statements contained in the which implies of certain securities authorized tips, along with beneath the U.S. Private Securities Litigation Reform Act of 1995 and related Canadian securities authorized tips, along with statements regarding BlackBerry’s plans, strategies and goals.

The phrases “rely on”, “anticipate”, “estimate”, “would possibly”, “will”, “must”, “would possibly”, “intend”, “think about”, “objective”, “plan” and associated expressions are supposed to decide these forward-looking statements. Forward-looking statements are primarily based totally on estimates and assumptions made by BlackBerry in mild of its experience and its notion of historic traits, current circumstances and anticipated future developments, along with completely different elements that BlackBerry believes are acceptable throughout the circumstances, along with nonetheless not restricted to, BlackBerry’s expectations regarding its enterprise, financial effectivity, approach, alternate options and prospects, the launch of current providers, fundamental monetary circumstances, and rivals. Many elements would possibly set off BlackBerry’s exact outcomes, effectivity or achievements to fluctuate materially from these expressed or implied by the forward-looking statements, along with, with out limitation, risks related to the subsequent elements: BlackBerry’s capability to maintain up or enhance its purchaser base for its software program program and suppliers selections to develop earnings or get hold of sustained profitability; the extraordinary rivals confronted by BlackBerry; BlackBerry’s capability to spice up, develop, introduce or monetize its providers in a effectively timed technique with aggressive pricing, choices and effectivity; important changes in authorities purchaser demand or procurement requirements; BlackBerry’s product sales cycles and the time and expense of its product sales efforts; the prevalence or notion of a breach of BlackBerry’s group cybersecurity measures, or an inappropriate disclosure of confidential or non-public information; BlackBerry’s persevering with capability to attract new personnel, retain present key personnel and deal with its staffing efficiently; risks arising from a failure or perceived failure of the protection options of BlackBerry’s choices; opposed macroeconomic and geopolitical circumstances, along with commerce insurance coverage insurance policies; litigation in direction of BlackBerry; group disruptions or completely different enterprise interruptions; BlackBerry’s capability to foster an ecosystem of third-party utility builders; BlackBerry’s dependence partly on its relationships with resellers and channel companions; BlackBerry’s providers being dependent upon interoperability with shortly altering methods equipped by third occasions; BlackBerry’s use of artificial intelligence choices; failure to protect BlackBerry’s psychological property and to earn anticipated revenues from psychological property rights; BlackBerry’s use of open provide software program program and its capability to amass rights to utilize third-party software program program ; BlackBerry most likely being found to have infringed on the psychological property rights of others; BlackBerry’s indebtedness, which could have an effect on its working flexibility and financial state of affairs; the asset risk confronted by BlackBerry, along with the potential for bills related to its long-lived belongings and goodwill; tax provision changes, the adoption of current tax legal guidelines or publicity to additional tax liabilities; the use and administration of client info and personal information; authorities guidelines related to BlackBerry’s providers, along with merchandise containing encryption capabilities; environmental, social and governance expectations and necessities; the failure of BlackBerry’s suppliers, subcontractors, channel companions and representatives to utilize acceptable ethical enterprise practices or regulate to related authorized tips; potential impacts of acquisitions, divestitures and completely different enterprise initiatives; risks associated to worldwide operations, along with fluctuations in overseas alternate; environmental events; the fluctuation of BlackBerry’s quarterly earnings and dealing outcomes; and the volatility of the market worth of BlackBerry’s frequent shares.

These risk elements and others referring to BlackBerry are talked about in bigger aspect in BlackBerry’s Annual Report on Type 10-Okay and the “Cautionary Bear in mind Regarding Forward-Attempting Statements” a part of BlackBerry’s MD&A (copies of which filings may be obtained at http://www.sedarplus.ca or http://www.sec.gov). All of these elements must be thought-about fastidiously, and readers shouldn’t place undue reliance on BlackBerry’s forward-looking statements. Any statements which could be forward-looking statements are supposed to permit BlackBerry’s shareholders to view the anticipated effectivity and prospects of BlackBerry from administration’s perspective on the time such statements are made, they usually’re matter to the risks which could be inherent in all forward-looking statements, as described above, along with difficulties in forecasting BlackBerry’s financial outcomes and effectivity for future durations, notably over longer durations, given changes in experience and BlackBerry’s enterprise approach, evolving commerce necessities, intense rivals and temporary product life cycles that characterize the industries by which BlackBerry operates. Any forward-looking statements are made solely as of proper this second and BlackBerry has no intention and undertakes no obligation to interchange or revise any of them, in addition to as required by regulation.

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BlackBerry Restricted
Built-in beneath the Authorized tips of Ontario
(United States {{dollars}}, in lots of of hundreds in addition to share and per share portions)

Consolidated Statements of Operations

BlackBerry Restricted
Built-in beneath the Authorized tips of Ontario
(United States {{dollars}}, in lots of of hundreds)

Consolidated Stability Sheets

BlackBerry Restricted
Built-in beneath the Authorized tips of Ontario
(United States {{dollars}}, in lots of of hundreds)

Consolidated Statements of Cash Flows

Reconciliations of the Agency’s Part Outcomes and Part Adjusted EBITDA to the Consolidated Outcomes

The following tables current information by working part for the three months ended Might 31, 2025 and Might 31, 2024. The Agency tales part information in accordance with U.S. GAAP, pursuant to the Financial Necessities Accounting Board’s Accounting Commonplace Codification Topic 280, Part Reporting, primarily based totally on the “administration” technique. The administration technique designates the inside reporting utilized by the Chief Working Alternative Maker (“CODM”) for making selections and assessing effectivity of the Agency’s reportable working segments. The measure of part income or loss disclosed by the Agency throughout the Consolidated Financial Statements beneath the “administration” technique in reviewing the outcomes of the Agency’s working segments is part adjusted gross margin. Furthermore, the subsequent tables embrace the additional measures of part income or loss utilized by the CODM which is part adjusted EBITDA, a non-GAAP financial measure. See Bear in mind 11 to the Consolidated Financial Statements for a top level view of the Agency’s working segments.

The following tables reconcile the Agency’s part adjusted gross margin outcomes for the three months ended Might 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 Might 31, 2025 and Might 31, 2024.

The following desk reconciles complete part adjusted EBITDA for the three months ended Might 31, 2025 and Might 31, 2024 to the Agency’s consolidated totals:

⁽¹⁾ The CODM evaluations part information on an adjusted EBITDA basis, which excludes certain portions as described beneath:

Stock compensation payments – Equity compensation is a non-cash expense and doesn’t have an effect on the persevering with working selections taken by the Agency’s administration.

Restructuring bills – Restructuring bills relate to employee termination benefits, providers, streamlining a lot of the Agency’s centralized firm options into Secure Communications and QNX explicit teams, and completely different costs pursuant to functions to chop again the Agency’s annual payments amongst R&D, infrastructure and completely different options and don’t mirror anticipated future working payments, are often not indicative of the Agency’s core working effectivity, and may not be important when evaluating the Agency’s working effectivity in direction of that of prior durations.

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

Throughout the Agency’s interior tales, administration evaluates the effectivity of the Agency’s enterprise on a non-GAAP basis by excluding the have an effect on of certain devices from the Agency’s U.S. GAAP financial outcomes. The Agency believes that these non-GAAP financial measures and non-GAAP ratios current administration, along with readers of the Agency’s financial statements, with a continuing basis for comparability all through accounting durations and are useful in serving to administration and readers understand the Agency’s working outcomes and underlying operational traits.

Readers are cautioned that adjusted gross margin, adjusted gross margin share, adjusted working expense, adjusted firm working costs, adjusted firm working costs excluding amortization, adjusted web income (loss), adjusted earnings (loss) per share, adjusted evaluation and enchancment expense, adjusted product sales and promoting expense, adjusted fundamental and administrative expense, adjusted amortization expense, adjusted working income (loss), adjusted EBITDA, adjusted part EBITDA, adjusted working income (loss) margin share, adjusted EBITDA margin share and free cash stream (utilization) and associated measures wouldn’t have any standardized which implies prescribed by U.S. GAAP and are as a consequence of this reality unlikely to be akin to equally titled measures reported by completely different companies.

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

A reconciliation of primarily probably the most instantly comparable U.S. GAAP financial measures for the three months ended Might 31, 2025 and Might 31, 2024 to adjusted financial measures is mirrored throughout the desk beneath:

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

Reconciliation of U.S. GAAP firm working costs for the three months ended Might 31, 2025 and Might 31, 2024 to adjusted firm working costs excluding amortization is mirrored throughout the desk beneath:

Reconciliation of U.S. GAAP web income (loss) and U.S. GAAP main earnings (loss) per share for the three months ended Might 31, 2025 and Might 31, 2024 to adjusted web income (loss) and adjusted main earnings (loss) per share is mirrored throughout the desk beneath:

Reconciliation of U.S. GAAP evaluation and enchancment, product sales and promoting, fundamental and administrative, and amortization expense for the three months ended Might 31, 2025 and Might 31, 2024 to adjusted evaluation and enchancment, product sales and promoting, fundamental and administrative, and amortization expense is mirrored throughout the desk beneath:

Adjusted working income, adjusted EBITDA, adjusted working income margin share and adjusted EBITDA margin share for the three months ended Might 31, 2025 and Might 31, 2024 are mirrored throughout the desk beneath.

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

The Agency makes use of free cash stream (utilization) when assessing its sources of liquidity, capital belongings, and top quality of earnings. The Agency believes that free cash stream (utilization) is beneficial in understanding the Agency’s capital requirements and offers an additional means to reflect the cash stream traits throughout the Agency’s enterprise.

Reconciliation of U.S. GAAP web cash utilized in working actions for the three months ended Might 31, 2025 and Might 31, 2024 to free cash stream (utilization) is mirrored throughout the desk beneath:

Key Metrics

The Agency recurrently screens numerous financial and dealing metrics, along with the subsequent key metrics, in an effort to measure the Agency’s current effectivity and estimated future effectivity. Readers are cautioned that Secure Communications annual recurring earnings (“ARR”) and Secure Communications dollar-based web retention worth (“DBNRR”) wouldn’t have any standardized which implies and are unlikely to be akin to equally titled measures reported by completely different companies.

SOURCE: BlackBerry