BlackBerry Limited Q4 FY2026 earnings call

• BlackBerry finished fiscal year with strong quarter, double-digit top-line growth, eighth consecutive quarter of improving gap profitability. • New management team turned BlackBerry into profitable growth company. • QNX delivered rule of 40 quarter, second consecutive record revenue, driven by royalties and development revenue, royalty backlog growing. • QNX strategy underpinned by automotive leadership, with alloy core platforms and general embedded space growth. • Secure Communications has returned to growth, supported by digital sovereignty demand, strong wins. • Tight cost control reduced corporate overhead by 5% in fiscal year 2026. • Continued share buyback program, repurchasing 6.7 million shares for $25 million in Q4.

QNX: Delivered double-digit top-line growth, achieved second consecutive record revenue in the quarter at 78.7 million, 20% year-over-year growth. Revenue driven by record royalties and development revenue, royalty backlog increased to ~$950 million. Strong in automotive and growing in physical AI, robotics, industrial, medical, and emerging markets. Secure Communications: Revenue was 72.5 million, 8% year-over-year growth, near Rule of 40 quarter. SecuSMART revenue grew meaningfully, multi-year extension and expansion with Shared Services Canada, UEM renewal rate improved, ad hoc had double-digit year-over-year revenue growth in Q4. Licensing: Revenue 4.8 million, slightly below guidance due to quarterly variation in returns from pre-existing arrangements.

• Q1 revenue expected to be 60-64 million. • Full fiscal year 2027 revenue range 290-307 million, top end ~15% growth. • QNX adjusted EBITDA range 69-81 million. • Secure comms expected to return to full year growth. • Total company fiscal year 2027 top-line growth 6%-11%, adjusted EBITDA 110-130 million, non-GAAP EPS 15-19 cents. • Q1 expected to be seasonal low for cash flow but maintain positive operating cash flow breakeven to 10 million, four-year operating cash flow ~100 million.

Q: Kingsley Crane asks about physical AI and distinction between deterministic and probabilistic action.

A: John Giammatteo says credibility in automotive space translates well to physical AI, building pipeline in robotic space.

Q: Todd Coupland asks about LA Corps and robotics.

A: John Giammatteo says LA Corps pipeline growing, could impact backlog, robotics is part of general embedded space with momentum.

Q: Paul Treber asks about QNX backlog growth and investments.

A: John Giammatteo and Tim Foote say broader portfolio in auto and gem momentum helped backlog, investments in R&D and sales/marketing for growth.

Q: Stephen Lee asks about share count.

A: Tim Foote says need to check diluted share count details