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SEC filingBlackBerry reported strong Q1 FY2027 results with 26% revenue growth and positive operating cash flow, exceeding expectations and raising full-year guidance.
BlackBerry delivered a standout first fiscal quarter, surpassing expectations across revenue, profitability, and cash flow. Total revenue rose 26% year-over-year to $152.9 million, driven by broad-based strength in both QNX and Secure Communications. QNX revenue grew 26% to $72.3 million, benefiting from increased royalties from automotive and embedded system deployments, including a key design win with Chinese EV maker Leapmotor and expanded collaboration with NVIDIA for safety-critical AI. Secure Communications revenue increased 24% to $73.6 million, supported by strong demand for mission-critical communications and a stable ARR of $220 million with DBNRR of 92%. Gross margins expanded significantly, with total company adjusted gross margin reaching 78.6%, up 400 basis points year-over-year, reflecting improved scale and mix.
Profitability saw substantial improvement. GAAP operating income improved to $15.3 million from $2.0 million a year ago, while adjusted EBITDA surged 144% to $36.3 million, representing a 24% margin. Net income remained positive for the fifth consecutive quarter, with GAAP net income of $8.5 million and adjusted net income of $25.4 million. Significantly, the company generated positive operating cash flow of $4.6 million, its first cash-positive first quarter in nine years (excluding the prior patent sale). This allowed for $10 million in share repurchases (2.6 million shares) and a renewed NCIB for up to 26.8 million shares.
Management highlighted the strength of the QNX platform in software-defined vehicles and the broader embedded market, including robotics and physical AI. The guidance for Q2 and full-year FY2027 reflects confidence in continued momentum. Q2 revenue is expected between $137-$148 million, with full-year revenue of $594-$621 million, implying acceleration in the back half. Adjusted EBITDA for the full year is guided to $119-$139 million, with operating cash flow of approximately $100 million. The disciplined execution and improving cash generation mark a significant inflection point for BlackBerry, positioning it for sustainable profitable growth.