BlackBerry Reports Third Quarter Fiscal Year 2026 Results

• Achieves another quarter of higher-than-expected revenue and profitability and hits the top-end of cash flow guidance

• QNX division achieves highest revenue quarter ever

• Secure Communications division beats revenue and adjusted EBITDA guidance, raises full year guidance

• Delivers seventh consecutive quarter of improved GAAP profitability and third consecutive quarter of positive GAAP net income

WATERLOO, ONTARIO / ACCESS Newswire / December 18, 2025 / BlackBerry Limited (NYSE:BB)(TSX:BB) today reported financial results for the three months ended November 30, 2025 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).

"BlackBerry delivered revenue above the top end of the previously-provided guidance range, which, coupled with ongoing cost discipline, helped the company achieve its strongest quarter of GAAP profitability in almost 4 years, along with increased operating cash flow," said John J. Giamatteo, CEO, BlackBerry. "Our QNX division recorded an all-time record quarter for revenue as the division continues to extend deeper into automotive and wider into adjacent verticals. Our Secure Communications division performed strongly, delivering higher-than-expected revenue and adjusted EBITDA."

Third Quarter Fiscal 2026 Financial Highlights

• Total company revenue beat previously-provided guidance at $141.8 million, increasing by $12.2 million sequentially and decreasing by $1.8 million year-over-year

• Total company GAAP and adjusted gross margin decreased by 1 percentage point year-over-year to 78%

• QNX revenue came in at the top end of guidance with 10% year-over-year growth to $68.7 million; QNX segment adjusted gross margin increased 1 percentage point sequentially and decreased 2 percentage points year-over-year to 84%

• QNX adjusted EBITDA achieved the top-end of previously-provided guidance at $16.4 million, or 24% of revenue

• Secure Communications revenue exceeded previously-provided guidance at $67.0 million, increasing $7.1 million sequentially and decreasing $7.6 million year-over-year; Secure Communications segment adjusted gross margin decreased 1 percentage point year-over-year and increased 6 percentage points sequentially to 72%; Secure Communications ARR increased year-over-year and sequentially to $216 million; Secure Communications DBNRR was down 3 percentage points year-over-year, and decreased by 1 percentage point sequentially to 92%

• Secure Communications adjusted EBITDA beat previously provided guidance at $17.3 million, or 26% of revenue

• Licensing revenue was in line with expectations at $6.1 million, and adjusted EBITDA was $5.3 million

• Total company adjusted EBITDA was $28.7 million, or 20% of revenue; Total company GAAP operating income was $11.9 million

• BlackBerry again achieved GAAP profitability, with GAAP net income of $13.7 million and adjusted net income of $26.8 million

• GAAP basic earnings per share was $0.02 and non-GAAP basic earnings per share was $0.05, exceeding the top end of previously-provided guidance range

• Operating cash flow for the third quarter grew both sequentially and year-over-year to positive $17.9 million

• $5 million was returned to shareholders by the repurchase of approximately 1.2 million common shares ¹

• Total cash, cash equivalents, short-term and long-term investments increased by $14 million sequentially to $378 million

Business Highlights & Strategic Announcements

• BlackBerry appointed John Wall as President of QNX division

• QNX announced that more than 275 million vehicles on the road are being powered by their embedded technology

• QNX announced that a leading Chinese automaker selected QNX® Sound for their luxury EV lineup

• BlackBerry announced the expansion of BlackBerry® SecuSUITE® to Windows devices, extending sovereign-grade protection across the digital workplace

• BlackBerry and Universiti Kebangsaan Malaysia announced a strategic partnership to advance Malaysia's future cyber-defenders and embedded software talent

• Malaysia expanded the deployment of BlackBerry Secure Communications software for the 46th and 47th ASEAN Summits

Financial Outlook

BlackBerry is providing the following guidance for the fourth fiscal quarter and the full fiscal year 2026 (ending February 28, 2026).

¹ In Q3 BlackBerry ordered the repurchase of $5 million, or 1.2 million shares. Approximately $1 million, or 0.2 million shares settled shortly after the quarter end and therefore are not included in this quarter's 10-Q filing
² Excluding amortization costs

Use of Non-GAAP Financial Measures

The tables at the end of this press release include a reconciliation of the non-GAAP financial measures and non-GAAP financial ratios used by the Company to comparable U.S. GAAP measures and an explanation of why the

Company uses them. The Company does not provide a reconciliation of expected Adjusted EBITDA and expected

Non-GAAP basic EPS for the fourth quarter of 2026 to the most directly comparable expected GAAP measures because it is unable to predict with reasonable certainty, among other things, restructuring charges and impairment charges and, accordingly, a reconciliation is not available without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For more information on the non-GAAP financial measures, please refer to the tables at the end of this press release.

Conference Call and Webcast

A conference call and live webcast will be held today beginning at 5:30 p.m. ET, which can be accessed using the following link (here) or through the Company's investor webpage (BlackBerry.com/Investors) or by dialing toll free +1 (877) 883-0383 and entering Elite Entry Number 6312676.

A replay of the conference call will be available at approximately 8:30 p.m. ET today, using the same webcast link (here) or by dialing toll free +1 (855) 669-9658 and entering Replay Access Code 5460109.

About BlackBerry

BlackBerry (NYSE: BB; TSX: BB) provides enterprises and governments the intelligent software and services that power the world around us. Based in Waterloo, Ontario, the company's high-performance foundational software enables major automakers and industrial giants alike to unlock transformative applications, drive new revenue streams and launch innovative business models, all without sacrificing safety, security, and reliability. With a deep heritage in Secure Communications, BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management.

For more information, visit BlackBerry.com and follow @BlackBerry.

Investor Contact:

BlackBerry Investor Relations
+1 (519) 888-7465
investorrelations@blackberry.com

Media Contact:

BlackBerry Media Relations
+1 (519) 597-7273
mediarelations@blackberry.com

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This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding BlackBerry's plans, strategies and objectives.

The words "expect", "anticipate", "estimate", "may", "will", "should", "could", "intend", "believe", "target", "plan" and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances, including but not limited to, BlackBerry's expectations regarding its business, strategy, opportunities and prospects, the launch of new products and services, general economic conditions, competition and BlackBerry's expectations regarding its financial performance. Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following factors: BlackBerry's ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; BlackBerry's ability to enhance, develop, introduce or monetize its products and services in a timely manner with competitive pricing, features and performance; significant changes in government customer demand or procurement requirements; BlackBerry's sales cycles and the time and expense of its sales efforts; the occurrence or perception of a breach of BlackBerry's network cybersecurity measures, or an inappropriate disclosure of confidential or personal information; BlackBerry's continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; risks arising from a failure or perceived failure of the security features of BlackBerry's solutions; adverse macroeconomic and geopolitical conditions, including trade policies; litigation against BlackBerry; network disruptions or other business interruptions; BlackBerry's ability to foster an ecosystem of third-party application developers; BlackBerry's dependence in part on its relationships with resellers and channel partners; BlackBerry's products and services being dependent upon interoperability with rapidly changing systems provided by third parties; BlackBerry's use of artificial intelligence solutions; failure to protect BlackBerry's intellectual property and to earn expected revenues from intellectual property rights; BlackBerry's use of open source software and its ability to obtain rights to use third-party software ; BlackBerry potentially being found to have infringed on the intellectual property rights of others; BlackBerry's indebtedness, which could impact its operating flexibility and financial condition; the asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities; the use and management of user data and personal information; government regulations applicable to BlackBerry's products and services, including products containing encryption capabilities; environmental, social and governance expectations and standards; the failure of BlackBerry's suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or comply with applicable laws; potential impacts of acquisitions, divestitures and other business initiatives; risks associated with foreign operations, including fluctuations in foreign currencies; environmental events; the fluctuation of BlackBerry's quarterly revenue and operating results; and the volatility of the market price of BlackBerry's common shares.

These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Report on Form 10-K and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedarplus.ca or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry's forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry's shareholders to view the anticipated performance and prospects of BlackBerry from management's perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry's financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry's business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. Any forward-looking statements are made only as of today and BlackBerry has no intention and undertakes no obligation to update or revise any of them, except as required by law.

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BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except share and per share amounts)

Consolidated Statements of Operations

BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions)

Consolidated Balance Sheets