BlackBerry lifts its revenue outlook to as much as $636 million, but the raise leans on licensing

BlackBerry (BB) reported fiscal second-quarter revenue of $163.3 million, up 26% from a year earlier, and raised its full-year revenue forecast to $616 million to $636 million, according to its earnings release. Adjusted EBITDA rose 81% to $47.0 million and GAAP net income was $33.9 million, the sixth straight profitable quarter. Adjusted earnings were 7 cents a share. The shares were at $8.45 in premarket trading at 8:53 a.m., up 0.8% from Wednesday's close, according to Nasdaq.

What actually got raised

Laying the new outlook next to the one BlackBerry gave in June shows where the extra revenue is coming from:

Midpoint changes are our calculations. Two things stand out. The licensing line, which is patent income, is lumpy: it delivered $22.1 million this quarter against about $10 million guided, and BlackBerry expects only about $6 million next quarter. And the Secure Communications business, the old security and government-messaging franchise, now looks smaller for the year than it did in June. Its quarterly revenue grew 2% to $60.9 million, but its adjusted EBITDA fell 18% to $8.0 million and its dollar-based net retention rate was 91%, meaning existing customers are spending less.

Without licensing, second-quarter revenue was $141.2 million. That alone falls inside the $137 million to $148 million BlackBerry guided in June for the whole company, licensing included.

QNX is the story the company wants told

QNX, the operating system that runs in car dashboards and driver-assistance systems, grew revenue 27% to a record $80.3 million with a 36% adjusted EBITDA margin. Its full-year EBITDA forecast rose to $95 million to $105 million from $74 million to $86 million. BlackBerry said Coretura, the software joint venture of Volvo Group and Daimler Truck, picked its new Alloy Kore platform, a deal it said adds more than $100 million to QNX's royalty backlog. Royalties like those arrive over years as vehicles ship, so the backlog matters more than any one quarter.

The full-year adjusted EBITDA forecast rose to $141 million to $158 million, from $119 million to $139 million. Operating cash flow is now expected at about $115 million, up from about $100 million, and the company ended the quarter with $447.1 million in cash and investments.

Sources: BlackBerry Q2 fiscal 2027 release (SEC); BlackBerry Q1 fiscal 2027 release (SEC); Nasdaq quotes. Guidance comparisons are our calculations. This is market information, not investment advice.