BlackBerry Ltd (NYSE:BB) stock rallies 12.59% (As on June 25, 11:21:14 AM UTC-4, Source: Google Finance) after the company posted better-than-anticipated results and raised its guidance following strong demand for its QNX automotive software. QNX revenue beat guidance and delivered 8% year-over-year growth to $57.5 million; QNX gross margin and adjusted gross margin was 81%. However, it was down almost 5% to $59.5 million at the Secure Communications division, and Licensing revenue slipped more than 1% to $4.7 million. Secure Communications ARR remained stable, relatively flat sequentially at $209 million; Secure Communications DBNRR decreased by 1 percentage point to 92%. BlackBerry achieved GAAP profitability for first time since Q4 FY22, with net income of $1.9 million and non-GAAP net income was $12.3 million. Total company adjusted EBITDA exceeded previously-provided guidance at $16.4 million. Operating cash usage for the seasonally-low first quarter beat expectations at $18 million. Total cash, cash equivalents, short-term and long-term investments decreased by $28.4 million sequentially to $381.9 million.
Moreover, BlackBerry announced a normal course issuer bid share buyback program. QNX launched QNX® Hypervisor 8.0, built on the next-generation SDP 8.0 architecture, facilitating high performance virtualization of multiple operating systems on a single SoC. WeRide launched its next-generation ADAS platform for L2++ autonomous drive, built upon QNX OS for Safety. Leapmotor selected QNX technology as the foundation of its intelligent digital cockpit and autonomous drive domain controllers in its new B10 electric SUV. Direct ChassisLink Inc (DCLI) announced the deployment of BlackBerry Radar across 100,000 chassis. BlackBerry AtHoc became the first critical event management provider to achieve FedRAMP High authorization.
BB in the first quarter of FY26 has reported the adjusted earnings per share of $0.02, beating the analysts’ estimates for the adjusted earnings per share of $0.00. The company had reported the adjusted revenue decline of 1.4 percent to $121.7 million in the first quarter of FY26, beating the analysts’ estimates for revenue of $112.19 million. Total company non-GAAP gross margin was 75% and total company adjusted EBITDA exceeded previously-provided guidance at $16.4 million.
Additionally, BB announced a $100 million share buyback program, demonstrating confidence in its financial strategy and shareholder value.
BlackBerry now sees full-year revenue of $508 million to $538 million, up from its previous estimate of $504 million to $534 million. It expects Secure Communications sales of $234 million to $244 million versus the earlier outlook of $230 million to $240 million.