BlackBerry Limited (NYSE: BB; TSX: BB) said on Thursday that its QNX division posted record quarterly revenue of $80.3 million in the second quarter of fiscal 2027, up 27% from a year earlier. The Waterloo, Ontario, company reported results for the three months ended August 31, 2026.
The BlackBerry QNX revenue total exceeded the $70 million to $75 million range the company forecast for the quarter in its first-quarter report. It also topped the division's previous quarterly record of $78.7 million, reported for the fourth quarter of fiscal 2026.
Total company revenue rose 26% year over year to $163.3 million, compared with $129.6 million in the prior-year quarter and $152.9 million in the first quarter. BlackBerry had guided for second-quarter revenue of $137 million to $148 million.
Adjusted EBITDA, a non-GAAP measure of earnings before interest, taxes, depreciation and amortization, rose 81% to $47 million. BlackBerry said this was its second straight quarter meeting its "Rule of 40" benchmark, which it defines as revenue growth plus adjusted EBITDA margin totaling at least 40.
Under standard accounting rules (GAAP), net income was $33.9 million, or 6 cents per basic share, compared with $13.3 million, or 2 cents, a year earlier. The company said it was the sixth consecutive quarter of positive GAAP net income.
Operating cash flow was $29.3 million in the quarter, up from $3.4 million a year earlier. BlackBerry ended the period with $447.1 million in cash and investments, and $197.1 million in long-term notes on its balance sheet.
#BlackBerry QNX Revenue Reaches $80.3 Million in Record Quarter
QNX segment adjusted gross margin widened by 4 percentage points from a year earlier to 87%. Segment adjusted EBITDA rose 41% to $29 million, representing a 36% margin on the division's revenue.
Coretura, a joint venture between Volvo Group and Daimler Truck, selected Alloy Kore, the foundational vehicle software platform jointly developed by QNX and Vector, for its next-generation commercial vehicle software platform. BlackBerry said the agreement is the first design win for Alloy Kore, meaning a customer has chosen it for a future product, and the largest in QNX history.
BlackBerry said the Coretura win adds more than $100 million to the QNX royalty backlog, its measure of expected future royalties. The company reported a royalty backlog of $950 million at the end of fiscal 2026 and did not give an updated total in its second-quarter release.
"QNX delivered record performance in the quarter, driven by strength in our core automotive business. The first Alloy Kore design win, the largest design win in QNX history, marks an important commercial milestone," John J. Giamatteo, Chief Executive Officer, BlackBerry, said in the earnings release.
BlackBerry, once best known for smartphones, now reports three segments, QNX, Secure Communications and Licensing, after selling its Cylance cybersecurity unit to Arctic Wolf in 2025. The company said in April that QNX software was embedded in more than 275 million vehicles worldwide.
#Secure Communications Revenue Rises 2% as Segment Profit Declines
Secure Communications, which sells secure messaging and device management software to governments and enterprises, grew revenue 2% year over year to $60.9 million. Giamatteo described the segment as a stable contributor following a particularly strong first quarter.
The segment's adjusted gross margin narrowed by 5 percentage points from a year earlier to 61%. Secure Communications adjusted EBITDA fell 18% to $8 million, a 13% margin.
Annual recurring revenue in Secure Communications, which tracks subscription income on a yearly basis, held steady at $221 million.
Licensing, which covers BlackBerry's patent portfolio, generated $22.1 million in revenue and $20 million in segment adjusted EBITDA. The company had forecast licensing revenue of about $10 million for the quarter.
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#BlackBerry Raises Fiscal 2027 Revenue Outlook to as Much as $636 Million
BlackBerry now expects full-year fiscal 2027 revenue of $616 million to $636 million, up from its previous forecast of $594 million to $621 million. The fiscal year ends February 28, 2027.
The company raised its full-year adjusted EBITDA outlook to $141 million to $158 million, from $119 million to $139 million. It lifted its QNX revenue forecast to $315 million to $325 million, from $295 million to $312 million.
BlackBerry lowered its full-year Secure Communications revenue forecast to $260 million to $270 million, from $270 million to $280 million.
For the third quarter ending November 30, BlackBerry forecast total revenue of $143 million to $154 million, below the second-quarter figure. The company expects licensing revenue of about $6 million in the period.
BlackBerry identified risks to its outlook that include competition, changes in government customer demand or procurement, adverse macroeconomic and geopolitical conditions including trade policies, and fluctuations in quarterly revenue and operating results.
Management projected fiscal 2027 revenue of $616 million to $636 million and operating cash flow of about $115 million, though a softer Secure Communications outlook, government spending shifts, and trade and economic conditions remain key risks to that forecast.