Blackberry (BB) Q2 2027 earnings summary

Executive summary

• Revenue grew 26% year-over-year to $163.3 million, driven by record QNX performance and stable Secure Communications, with Licensing also delivering strong results.

• Adjusted EBITDA rose 81% year-over-year to $47.0 million (29% margin), and GAAP net income was $33.9 million, the strongest since Q4 FY2022.

• QNX achieved its largest-ever design win with Coretura, adding over $100 million to its royalty backlog and validating the Alloy Kore platform.

• Operating cash flow was $29.3 million, marking the sixth consecutive quarter of positive GAAP net income.

• Full-year revenue and Adjusted EBITDA guidance were raised following robust first-half execution.

Financial highlights

• Adjusted gross margin expanded 3 percentage points year-over-year to 78.2%; GAAP gross margin at 77.8%.

• Adjusted net income increased 79% year-over-year to $43.2 million; adjusted basic EPS was $0.07.

• Free cash flow for the quarter was $28.1 million, with $447.1 million in cash and investments at quarter end.

• Operating cash flow for the quarter was $29.3 million, up significantly year-over-year.

• Adjusted EPS for the quarter was $0.07, above guidance.

Outlook and guidance

• Full-year revenue guidance raised to $616–$636 million (14% year-over-year growth), with Q3 revenue expected at $143–$154 million.

• QNX full-year revenue outlook increased to $315–$325 million; Q3 revenue expected at $82–$88 million.

• Secure Communications full-year revenue forecast revised to $260–$270 million, with Q3 revenue expected at $55–$60 million.

• Licensing full-year revenue outlook raised to $41 million, with Q3 and Q4 expected to normalize at $6 million per quarter.

• Adjusted basic EPS for FY27 projected at $0.19–$0.22; operating cash flow outlook raised to $115 million.