BlackBerry Limited (NYSE: BB; TSX: BB) is a Canadian software company specializing in secure communications and enterprise-level software solutions. The company operates through two primary divisions: QNX, which focuses on automotive and embedded systems, and Secure Communications, which provides critical event management and cybersecurity services.

In the first quarter of fiscal year 2026, BlackBerry reported a revenue of $121.7 million, exceeding its previously provided guidance. The company experienced a gross margin of 74%, with QNX revenue increasing by 8% year-over-year to $57.5 million, indicating a stable to rising condition. Adjusted EBITDA for the total company was reported at $16.4 million, surpassing guidance. The Secure Communications division also exceeded expectations with revenue of $59.5 million, which included a 4 percentage point increase in adjusted gross margin to 70%.

BlackBerry achieved net income of $1.9 million for the quarter, marking its first GAAP profitability since Q4 FY22. Non-GAAP net income was reported at $12.3 million, and non-GAAP EPS stood at $0.02, beating previously provided guidance. The company’s operating cash usage for the quarter was lower than expected at $18 million. Additionally, $10 million was returned to shareholders through a buyback program, which included the repurchase of 2.57 million shares.

Looking ahead, BlackBerry provided guidance for the second quarter of fiscal year 2026, forecasting total company revenue between $115 million and $125 million. The full fiscal year guidance suggests revenue of $508 million to $538 million. For the QNX division, revenue guidance is set at $55 million to $60 million, while the Secure Communications revenue is estimated to be between $54 million and $59 million.

In terms of profitability, QNX segment adjusted EBITDA is projected to range from $10 million to $13 million, with Secure Communications adjusted EBITDA expected between $3 million and $6 million. For the entire company, adjusted EBITDA guidance for Q2 FY26 is set at $8 million to $14 million. The anticipated basic EPS for this quarter is breakeven to $0.01, with a full-year expectation of $0.08 to $0.10.

BlackBerry’s total cash, cash equivalents, and investments decreased sequentially by $28.4 million to $381.9 million as of May 31, 2025. This reflects ongoing investments and operational adjustments as the company aims to increase profitability and capitalize on growth opportunities across its divisions.