BlackBerry Shares Rise Premarket After Q2 Revenue Reaches $163.3 Million

BlackBerry (NYSE:BB) shares rose more than 2% in premarket trading on Thursday after the company reported second-quarter revenue and adjusted earnings per share above analyst estimates and provided updated guidance for fiscal 2027.

Adjusted earnings per share were $0.07, compared with the analyst estimate of $0.04. Revenue increased 26% year-on-year to $163.3 million, above the consensus estimate of $142.55 million.

Total adjusted EBITDA increased 81% from the same period a year earlier to $47.0 million, while adjusted gross margin rose by 3 percentage points to 78.2%.

QNX Revenue Rises 27%

Revenue from BlackBerry’s QNX business increased 27% year-on-year to $80.3 million.

The segment’s adjusted gross margin expanded by 4 percentage points to 87%, while adjusted EBITDA increased 41% to $29.0 million, representing a margin of 36%.

Secure Communications revenue rose 2% to $60.9 million. Adjusted gross margin for the segment declined by 5 percentage points to 61%, while adjusted EBITDA decreased 18% to $8.0 million, equivalent to a 13% margin.

Annual recurring revenue for Secure Communications was unchanged at $221 million, with dollar-based net retention of 91%.

BlackBerry reported Licensing revenue of $22.1 million and segment adjusted EBITDA of $20.0 million.

BlackBerry Provides Third-Quarter Guidance

For the third quarter, BlackBerry expects adjusted earnings per share of between $0.04 and $0.05, compared with an analyst consensus estimate of $0.05.

The company forecasts third-quarter revenue of $143 million to $154 million. The midpoint of that range is $148.5 million, compared with the consensus estimate of $149.73 million.

Third-quarter adjusted EBITDA is expected to range from $28 million to $37 million.

Fiscal 2027 Revenue Forecast at $616 Million to $636 Million

For fiscal 2027, BlackBerry expects adjusted earnings per share of $0.19 to $0.22, compared with the analyst consensus of $0.19.

The company forecasts full-year revenue of between $616 million and $636 million, compared with the analyst estimate of $614.49 million.

BlackBerry also expects full-year adjusted EBITDA of $141 million to $158 million.

The guidance represents management’s current expectations for the periods and does not constitute achieved financial results.