Blackberry (BB) CIBC Technology & Innovation Conference 2026 summary

Business transformation and financial performance

• Transitioned from loss-making to solid profitability, with eight consecutive quarters of improving GAAP net income and $50 million in operating cash flow last fiscal year, expected to double to $100 million this year.

• Achieved cost reductions exceeding $150 million and divested Cylance to streamline operations.

• QNX division delivered 14% top-line growth, with company-wide modest single-digit revenue growth and reinvestment of incremental EBITDA into QNX.

• Secure Communications business returned to growth, with guidance for its first top-line increase in six years, driven by digital sovereignty and defense spending.

• All three business units—QNX, Secure Communications, and Licensing—are now contributing to profitability and cash flow.

QNX business and growth drivers

• QNX provides foundational, safety-critical software for automotive and general embedded markets, focusing on operating systems and virtualization.

• 80% of QNX revenue is automotive, but expansion into the general embedded market (GEM) is a major growth lever.

• Backlog has grown rapidly to nearly $1 billion, with twice as much added as recognized last year, indicating strong future royalty revenue.

• Automotive market maturing, leading to more programs entering production and increased revenue realization.

• Collaboration with Vector and launch of Alloy Kore platform expected to significantly increase average selling prices (ASP) and market opportunity.

Alloy Kore and future opportunities

• Alloy Kore is a foundational software layer for automotive ECUs, enabling hardware abstraction, faster time to market, and reduced delays for OEMs.

• ASP for Alloy Kore is projected at 2.5x to 5x higher than standard QNX OS deployments.

• Pilot program underway with Mercedes; if successful, royalties would begin with model year 2029 or 2030, with development revenue recognized earlier.

• Alloy Kore is expected to be relevant for most of the global vehicle market as compute requirements increase.