BlackBerry shares gain premarket as Q2 results, guidance beat estimates

Investing.com -- BlackBerry shares rose more than 2% in premarket trading Thursday after the company reported second-quarter results and full-year guidance that came in well ahead of Wall Street expectations.

Adjusted earnings per share came in at $0.07, topping the analyst estimate of $0.04, on revenue of $163.3 million that beat the consensus of $142.55 million and rose 26% year-over-year.

Total company adjusted EBITDA rose 81% year-over-year to $47.0 million, while adjusted gross margin improved 3 percentage points to 78.2%. QNX revenue increased 27% to $80.3 million, with segment adjusted gross margin expanding 4 percentage points to 87% and adjusted EBITDA up 41% to $29.0 million, a 36% margin.

Secure Communications revenue rose 2% to $60.9 million, though segment adjusted gross margin fell 5 percentage points to 61% and adjusted EBITDA declined 18% to $8.0 million, a 13% margin. Annual recurring revenue in that segment held steady at $221 million, with dollar-based net retention at 91%.

Licensing revenue came in at $22.1 million, with segment adjusted EBITDA of $20.0 million.

For the third quarter, BlackBerry guided adjusted EPS of $0.04-$0.05, versus a $0.05 consensus, and revenue of $143 million-$154 million, versus $149.73 million expected.

For fiscal 2027, the company guided adjusted EPS of $0.19-$0.22, roughly in line with the $0.19 consensus, and total revenue of $616 million-$636 million, above the $614.49 million analyst estimate.

Full-year adjusted EBITDA is guided at $141 million-$158 million, with third-quarter adjusted EBITDA expected at $28 million-$37 million.

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