The company announced first-quarter revenues of $152.9 million, reflecting a 26% increase compared to the previous year, and has upgraded its full-year financial forecast due to accelerated growth in its QNX embedded software division and the identification of expanding prospects in the field of artificial intelligence.
These results exceeded the company’s own expectations, which had estimated quarterly revenue could reach up to $140 million. With an adjusted earnings per share of 4 cents, BlackBerry surpassed both its own guidance range of 2 to 3 cents and the 3-cent consensus forecast from analysts, as reported by The Wall Street Journal.
BlackBerry has revised its full-year revenue expectations to a range of $594 million to $621 million, an increase from the previous forecast of $584 million to $611 million, as stated by the company. The guidance for full-year adjusted earnings has also been raised to between 16 and 20 cents per share.
The QNX division, which provides embedded software for vehicles and other safety-critical environments, reported revenue of $72.3 million, marking a 26% increase compared to the same period last year. Adjusted EBITDA for this segment rose to $19.3 million, reflecting a 52% increase. BlackBerry identified software-defined vehicles, robotics, industrial automation, and medical devices as key areas for growth over the coming years.
“We are particularly optimistic about the multi-year growth prospects in software-defined vehicles, including significant content expansion with the Alloy Kore platform, as well as extensive opportunities in the broader embedded market, particularly in physical AI,” stated CEO John Giamatteo. “We believe these prospects greatly enhance QNX’s long-term potential.”
The Secure Communications unit, which offers encrypted messaging and crisis response solutions, generated $73.6 million in revenue for the quarter, representing a 24% increase year-over-year, according to The Globe and Mail. A renegotiated agreement to extend SecuSUITE services to Canadian federal employees until 2033 was highlighted as a significant factor in this growth. The annualized recurring revenue for this division reached $220 million.
On a GAAP basis, net income amounted to $8.5 million, marking the fifth consecutive profitable quarter. Operating cash flow turned positive at $4.6 million, a milestone the company noted it had not achieved in a fiscal first quarter for nine years, excluding proceeds from a patent portfolio sale in fiscal 2024. At the end of the quarter, cash and investments totaled $422.9 million.
Revenue for the second quarter is anticipated to fall within the range of $137 million to $148 million, while adjusted earnings per share are projected to be between 3 and 4 cents.
Upon the market’s opening on Thursday, shares experienced a surge exceeding 20%.
