Blackberry (BB) Q3 2026 earnings summary

Executive summary

• Q3 FY26 delivered solid results, exceeding guidance on revenue, profitability, and cash flow, with total revenue at $141.8 million and adjusted EBITDA of $28.7 million (20% margin).

• GAAP net income improved by $24.2 million year over year to $13.7 million, marking the third consecutive quarter of GAAP profitability.

• All three business segments—QNX, Secure Communications, and Licensing—were profitable, with QNX achieving its highest quarterly revenue ever and Secure Communications showing sequential growth.

• The company maintained a strong cash and investment position of $377.5 million and returned $5 million to shareholders via share buybacks in Q3.

• Operating cash flow was $17.9 million, up threefold year over year, reflecting strong execution and cost management.

Financial highlights

• Total company revenue reached $141.8 million, above the high end of guidance, with adjusted gross margin at 78% and adjusted EBITDA of $28.7 million.

• GAAP net income was $13.7 million; adjusted net income was $26.8 million; non-GAAP EPS was $0.05, beating guidance.

• Operating cash flow for the quarter was $17.9 million; free cash flow was $17.0 million; total cash and investments ended at $377.5 million.

• Adjusted operating expenses were $85.4 million, up 7% year over year due to strategic investments in QNX.

• Gross margin for Q3 FY26 was 77.5%, down 0.6 percentage points year-over-year, mainly due to product mix changes.

Outlook and guidance

• Q4 FY26 revenue expected at $138–$148 million; adjusted EBITDA at $22–$32 million.

• Full-year FY26 revenue guidance raised to $531–$541 million; adjusted EBITDA to $94–$104 million; non-GAAP EPS expected at $0.14–$0.16.

• QNX Q4 revenue expected at $71–$77 million; Secure Communications Q4 revenue at $61–$65 million; Licensing ~$6 million.

• Operating cash flow for Q4 expected at $40–$45 million; full-year guidance raised to $43–$48 million.

• QNX revenue for FY26 now expected at $260–$266 million; Secure Communications at $247–$251 million.