BlackBerry Limited Q3 FY2026 earnings call

• QNX had record quarterly revenue, strong royalties, and design wins in automotive and general embedded spaces. Appointed John Wall as president of QNX. Secured major automotive design wins and saw traction with QNX Sound and QNX Cabin. • Secure Communications delivered $67M revenue, beat guidance, with ARR increasing, FedRAMP High certification enabling U.S. government expansions, and UEM having significant expansion deals. • Total company had solid revenue, profitability, and cash flow, with adjusted EBITDA at 20% margin, GAAP net income up year-over-year, and operating cash flow up three times year-over-year.

QNX delivered an all-time record quarterly revenue of $68.7 million, representing 10% year-over-year growth, with adjusted EBITDA of $16.4 million (24% margin). Secure Communications had revenue of $67 million, beating guidance, with adjusted EBITDA of $17.3 million (26% margin). Licensing revenue was $6.1 million, with adjusted EBITDA of $5.3 million. Total company revenue was $141.8 million, adjusted EBITDA was $28.7 million, GAAP net income was $13.7 million, and operating cash flow was $17.9 million.

• QNX Q4 revenue expected $71-77M, adjusted EBITDA $17-23M; full-year 2026 revenue $262-266M, adjusted EBITDA $67-73M. • Secure Communications Q4 revenue $61-65M, adjusted EBITDA $11-15M; full-year 2026 revenue $247-251M, adjusted EBITDA $47-51M. • Total company Q4 revenue $138-148M, adjusted EBITDA $22-32M; full-year 2026 revenue $531-541M, adjusted EBITDA $94-104M. • Operating cash flow expected $40-45M in Q4, full-year operating cash flow $43-48M, with additional cash from Cylance sale in Q4.

• Factors causing actual results to differ from forward-looking statements, as outlined in annual filings and MD&A. • Impact of U.S. government shutdown on Secure Communications, though managed successfully.

Q: Kingsley Crane asks about investment in the GEM space for fiscal 2027 and what's working/needs help.

A: John Giamatteo responds about continuing to invest in go-to-market activities, including more field presence and partnerships.

Q: Luke Junk inquires about the vehicle award gates and China EV win cost sensitivity.

A: John Giamatteo talks about focus on technology integration with Vector, and cost savings, safety solutions as key in China.

Q: Todd Coupland asks about QNX growth trend and SecureCom's new normal.

A: Tim Foote mentions backlog as a lead indicator for QNX, and John Giamatteo notes strong pipeline in SecureCom.

Q: Trip Chowdhry asks about government shutdown normalcy and robotics space color.

A: John Giamatteo discusses navigating government dynamics and robotics use cases.

Q: Paul Treiber asks about vehicle software platform ROI and Canadian government opportunity.

A: Tim Foote explains cost savings for automakers and John Giamatteo talks about Canadian government relationships and expansion opportunities.