Wed, Jun 25, 8:53 PM (18 days ago)
**Summary of BlackBerry Limited (BB) Q1 Fiscal 2026 Financial Health and Performance** **Revenue and Profit Margins:** - **Revenue:** $121.7 million, a slight decrease of $1.7 million YoY. - **Gross Margin:** $90.3 million, a marginal increase of $0.3 million YoY, with a gross margin percentage of 74.2%. - **Operating Expenses:** $88.3 million, a significant decrease of $14.6 million YoY. - **Net Income:** $1.9 million, a substantial improvement from a net loss of $41.4 million YoY. - **Earnings per Share (EPS):** $0.00 basic and diluted EPS, an improvement from a loss of $0.07 YoY. **Cash Flow and Liquidity:** - **Cash and Cash Equivalents:** $276.0 million, an increase of $9.3 million from the previous quarter. - **Net Cash Used in Operating Activities:** $18.0 million, a slight increase of $2.9 million YoY. - **Investing Activities:** $38.5 million in cash flows provided, a significant improvement from a use of $27.2 million YoY. - **Financing Activities:** $8.8 million in cash flows used, primarily due to share repurchases. **Segment Performance:** - **QNX:** Revenue increased by $4.3 million to $57.5 million, with a gross margin of $46.3 million. - **Secure Communications:** Revenue decreased by $4.7 million to $59.5 million, with a gross margin of $41.4 million. - **Licensing:** Revenue decreased by $1.3 million to $4.7 million, with a gross margin of $3.1 million. **Future Operations and Uncertainties:** - **Guidance:** The company expects total revenue to be in the range of $115 million to $125 million in the second quarter of fiscal 2026. - **Cash Flow:** The company anticipates positive operating cash flow in the second half of the fiscal year. - **Uncertainties:** The company faces risks related to foreign exchange fluctuations, interest rate changes, and credit risk. **Conclusion:** BlackBerry Limited showed significant improvement in its financial health and performance in Q1 Fiscal 2026, with notable increases in net income and cash flows from investing activities. However, the company continues to face uncertainties related to market conditions and operational challenges. The guidance for future quarters indicates a positive outlook, but investors should monitor the company's progress closely.