Secure Comms grew four quarters in a row; FY2026 revenue $259M, Q1 annualized ~$295M
ARR base $220M, DBNRR 92%
Delta between $220M ARR and ~$280M annual guidance driven by large government deals (e.g., Shared Services Canada) with upfront revenue recognition
Mgmt stance: Neutral — ARR still a "really good indicator" of stability, but quarterly conversion of large government upsides is the best way to judge upside.
Q2 — Kingsley Crane
Topic: Alloy Kore long-term penetration of deployed vehicles
Key points:
Analyst suggested 5% in FY2030 as potential target; mgmt would not confirm a specific number
Mgmt describes upside as "significant": increase in TAM and ASP per car by "hundreds of percent", not 10–20%
Expects design wins this year; will announce when secured
Mgmt stance: Bullish — long-term revenue uplift from Alloy Kore is "significant" and "hundreds of percent" increase per vehicle, but early days.
Q3 — Suthan Sukumar
Topic: Alloy Kore platform compatibility (SDP7 vs. SDP8) & GEM competitive landscape
Key points:
Alloy Kore leans more toward SDP8 for new models with advanced chipsets, but can be retrofitted to SDP7 if OEM wants
Existing in-flight programs could be curtailed and moved to Alloy Kore, creating an uplift on existing backlog
In GEM: key verticals are robotics, medical instrumentation, industrial automation; pipeline is "the strongest it's ever been"
Mgmt stance: Bullish — auto strengths (safety certification, security, real-time determinism) give an edge in GEM; competitive win rates driven by these same values.
Q4 — Todd Coupland
Topic: Secure Comms pipeline & margin guidance
Key points:
Strong pipeline across EMEA and Asia Pacific for digital sovereignty solutions; Secusmart traction from geopolitical shift away from consumer messaging for top-secret comms
DBNRR at 92%; long-term goal to get closer to 100%, but inherent headwinds in parts of portfolio
QNX margin 86% in the quarter; potential for further expansion as royalties (100% margin) grow
Secure Comms margin varies quarter-to-quarter, but large software-heavy deals can drive significant expansion
Mgmt stance: Cautiously optimistic — Secure Comms stabilizing (ARR up 5% YoY); DBNRR expected to "tick up higher" toward 100%; QNX margins should "trickle up."
Q5 — John Shao
Topic: NVIDIA partnership economics & China geopolitical risk
Key points:
Relationship evolved from auto (NVIDIA Thor platform standardized on QNX) to physical AI (entire NVIDIA Halos safety stack standardizing on QNX)
In China, mgmt sees QNX as a "hand-in-glove" fit for exporting Chinese robotics/technology globally due to safety certification needs
Mgmt works closely with the Canadian government to facilitate these exports
Mgmt stance: Bullish — NVIDIA partnership deepening; China presence strong and positioned to help Chinese exports meet international safety standards.