Frequently asked questions
How did BlackBerry do in Q2 FY27?
BlackBerry posted its fifth consecutive triple beat: revenue of $163.3M, up 26% year over year against about $144M consensus, adjusted EBITDA of $47.0M, up 81% for a 29% margin, and adjusted EPS of $0.07 versus $0.04 consensus. QNX revenue hit a record $80.3M, up 27%. It was also the sixth consecutive GAAP-profitable quarter, with net cash of roughly $250M.
What is the Uber design win?
CEO John Giamatteo announced on the Q2 FY27 call that Uber selected QNX as the foundation for software in its next generation of vehicles, described as an important proof point for the physical-AI opportunity. Management separately noted more than 20 companies engaging around NVIDIA-based platforms across humanoids, surgical robots, and other autonomous machines. The call never linked NVIDIA to the Uber deal.
What is the verdict?
BlackBerry’s Q2 FY27 print was the fifth consecutive triple beat, with revenue up 26%, EBITDA up 81%, and management raising full-year revenue, EBITDA, EPS, and cash-flow guidance. The earnings call added a genuine catalyst: an Uber design win for QNX in next-generation vehicles, plus a separate NVIDIA-based robotics pipeline. The one weak spot is Secure Communications, where EBITDA fell 18% and the FY27 guide was trimmed by about $10M. The scorecard reads 5 pass and 1 partial, and the turnaround thesis is intact.
What do the quarter's numbers show?
| Metric | Q2 FY27 | Change |
|---|---|---|
| Total revenue | $163.3M | +26% YoY, vs ~$144M consensus |
| Adjusted EBITDA | $47.0M | +81% YoY, 29% margin |
| QNX revenue | $80.3M | +27% YoY, record quarter |
| Adjusted EPS | $0.07 | vs $0.04 consensus |
| Free cash flow | $28.1M | Cash + investments $447.1M |
| Rule of 40 score | 55 | Second consecutive quarter; CFO called it a Rule of 50 quarter |
This is also the sixth consecutive GAAP-profitable quarter, with net cash of roughly $250M on the balance sheet.
What guidance was raised?
FY27 guidance went up on every total-company line: revenue $616M to $636M, QNX revenue $315M to $325M, adjusted EBITDA $141M to $158M, adjusted EPS $0.19 to $0.22, and operating cash flow of about $115M. The only cut was Secure Communications, trimmed by roughly $10M to $260M-$270M, described on the call as precaution around the US federal backdrop and Canada-US trade tensions rather than observed weakness.
What the call added
Uber selects QNX. CEO John Giamatteo announced “we’ve secured a new design win with Uber, which selected QNX as the foundation for software and its next generation of vehicles, providing an important proof point of the opportunity we see in physical AI.” TD Cowen pressed on robotaxi unit economics in Q&A; management called it early days with many variables.
NVIDIA pipeline, stated separately. In the next breath, management said more than 20 companies are engaging around NVIDIA-based platforms across humanoids, surgical robots, autonomous mobile robots, tractors, drones, and planes. The call never linked NVIDIA to the Uber deal; these are two distinct facts.
Commercial inflection. Customers are increasingly signing minimum contractual volume commitments instead of non-contractual forecasts, pulling cash and some revenue recognition earlier. Giamatteo called it an inflection point in customer conviction.
Capital allocation. Priorities remain investing in QNX, buybacks under the NCIB (significant capacity retained), and selective M&A only where it fast-tracks the GEM embedded opportunity. The bar, per the CFO, is high.
Q3 outlook. Revenue $143M-$154M, QNX about $82M, Secure Communications $55M-$60M, and licensing back to roughly $6M after Q2’s one-off $22M arrangement.
What are the honest weak spots?
Secure Communications EBITDA fell 18% year over year, net revenue retention slipped to 91%, and its guide was cut. Licensing remains lumpy and should not be modeled as recurring. Quarterly operating-cash conversion ran at about 62% of adjusted EBITDA.
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Research and opinion, not investment advice. Do your own due diligence before investing.