Slides
Page 1
© 2026 BlackBerry. All Rights Reserved 1 Q2 Fiscal Year 2027 Earnings Conference Call & Webcast September 24, 2026 www.BlackBerry.com NYSE: BB TSX: BB
Page 2
© 2026 BlackBerry. All Rights Reserved 2 Cautionary Statements Some of the statements we will be making constitute forward-looking statements and are made pursuant to the safe harbor provisions of applicable U.S. and Canadian securities laws. We will indicate forward-looking statements by using words such as expect, will, should, model, intend, believe and similar expressions. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are relevant. Many factors could cause the Company's actual results or performance to differ materially from those expressed or implied by the forward-looking statements. These factors include the risk factors that are discussed in the Company's annual filings and MD&A. You should not place undue reliance on the Company's forward-looking statements. Any forward-looking statements are made only as of the date of this presentation and the Company has no intention, and undertake s no obligation, to update or revise any of them, except as required by law. This presentation will reference certain Non-GAAP numbers. For a reconciliation between the Company’s GAAP and Non-GAAP numbers, please see the earnings press release published on September 24, 2026, which is available on the EDGAR, SEDAR plus and BlackBerry.com websites.
Page 3
© 2026 BlackBerry. All Rights Reserved 3 © 2026 BlackBerry. All Rights Reserved 3 John Giamatteo Chief Executive Officer Corporate Overview © 2026 BlackBerry. All Rights Reserved
Page 4
© 2026 BlackBerry. All Rights Reserved 4 Q2 FY27: Profitable Growth Model Is Scaling REVENUE, PROFITABILITY, AND CASH GENERATION all surpassed expectations OPERATING CASH FLOW $29M Strongest Q2 in 5 years EXCEEDED Rule of 401 Second Consecutive Quarter GAAP NET INCOME $34M Strongest quarter since Q4 FY22 ADJ. EBITDA $47M 81% YoY 29% Margin TOTAL REVENUE $163M +26% YoY Above high end of guidance Q2 adds further proof that BlackBerry can grow revenue while maintaining cost discipline and convert that growth into profit and cash Beat Q2 Guidance QNX Record Quarter Secured First Alloy Kore Win Cash Generation Accelerated 1 Rule of 40: Defined as the sum of the Company’s GAAP revenue year-over-year growth percentage and its non-GAAP adjusted EBITDA margin percentage. Where the sum equals or exceeds 40, then the Rule of 40 is considered to have been achieved.
Page 5
© 2026 BlackBerry. All Rights Reserved 5 Q2 was the strongest quarter ever for design-win dollars (i.e., amount added to backlog) H1 FY27 design-win value already surpassed any full prior fiscal year Record design-win activity DESIGN WINS Q2 RECORD REVENUE AND DESIGN -WIN ACTIVITY strengthen both current performance and future royalty runway © 2026 BlackBerry. All Rights Reserved LEADING INDICATORS SUPPORT THE FUTURE ROYALTY RUNWAY QNX: Structural Growth Engine with Expanding Long-Term Opportunity Previously awarded programs are beginning to enter production Higher QNX content secured in those designs is starting to translate into royalty revenue Visibility into future royalty conversion 5 DESIGN-WIN VALUE Record H1 FY27 Total exceeds any prior full-year ADJ. EBITDA $29M +41% YoY 36% Margin ADJ. GROSS MARGIN 87% +4 PP YoY REVENUE $80M +27% YoY Record quarterly revenue DEV. LICENSES Healthy Recurring Revenue near recent peak levels Recurring development-license revenue remained healthy quarter over quarter Customers typically purchase these tools early in the program, making them a useful leading indicator Early indicator of future design wins DEVELOPMENT ACTIVITY TODAY PRODUCTION / ROYALTIES NEXT
Page 6
© 2026 BlackBerry. All Rights Reserved 6 3 Complementary Growth Pillars EXPAND THE ADDRESSABLE MARKET BEYOND AUTOMOTIVE LONGER-TERM MARKET EXPANSION GEM & PHYSICAL AI • Represents ~20% of QNX revenue today and is a dynamic segment • Broadening pipeline across robotics, medical, industrial and autonomous systems • Proof points include robotaxis, Hailo and Momenta XHEART EXPANSION OPPORTUNITY QNX’s safety-certified, deterministic foundation applies across robotics, medical, industrial and other intelligent edge systems 3 INCREASE SOFTWARE CONTENT PER VEHICLE MID-TERM COMMERCIAL VALIDATION ALLOY KORE • Reduces integration complexity for OEMs • First design win is the largest in QNX history • Potential to materially increase software content and unit economics over time MOVING UP THE STACK Delivering a software platform by bringing foundational software middleware and common services together 2 DEEPEN QNX’S AUTOMOTIVE POSITION NEAR-TERM PERFORMANCE + PRODUCTION RAMPS CORE AUTOMOTIVE • Increasingly centralized architectures expand QNX’s addressable market • Multiple QNX instances per vehicle increases ASP potential • Production ramps and healthy development activity support royalty growth SOFTWARE-DEFINED VEHICLES Increasing both the number of addressable vehicles and the amount of QNX content per vehicle 1
Page 7
© 2026 BlackBerry. All Rights Reserved 7 QNX CORE AUTOMOTIVE: Centralized Compute Is Expanding the QNX Content Architectural consolidation is shifting value from hardware to software and increasing the need for safety-certified foundational systems From 2024 to 2030: Distributed share declines from 69% to 26% while Domain-Centralized + Vehicle-Centralized grows from 31% to 74% 2024 2025 2026 2027 2028 2029 2030 89.5M 89.5M 91.2M 93.1M 93.9M 96.2M 50% 27% 24% 26%69% 95.5M Global Light Passenger Vehicle (LPV) Volumes Vehicle Architecture Evolution 1 Distributed 2 Domain Centralized 3 Vehicle Centralized Source: S&P Global E/E Architecture Forecast, Oct. 2025 More centralized compute drives higher software content, greater systems complexity, and a larger role for QNX Why This Matters for QNX Vehicle-Centralized • Zonal architectures and vehicle computers • High-performance, low-latency communications • Greater need for software management, integration, and safety certification 3 Distributed • Many discrete ECUs with fixed functions • Limited consolidation and software reuse 1 Domain-Centralized • Consolidation of features into domain controllers • Mixed-criticality workloads • Increasing software complexity 2 321
Page 8
© 2026 BlackBerry. All Rights Reserved 8 The first Alloy Kore win validates QNX’s move up the software stack and demonstrates the potential to materially increase both content and royalty value per vehicle Coretura selects Alloy Kore as the foundational software layer for next-generation software-defined commercial vehicles QNX ALLOY KORE: Alloy Kore Achieves Commercial Validation A major milestone for Alloy Kore1st 321 STRATEGIC CUSTOMER Coretura is the commercial vehicle joint venture between Volvo Group and Daimler Truck FOUNDATIONAL SOFTWARE LAYER Alloy Kore will serve as the safety-certified software layer within Coretura’s SDV architecture for high- performance computing environments CUSTOMER VALUE A pre-integrated software foundation can reduce integration effort, accelerate development and streamline certification First Design Win Largest in QNX History Multi-Domain Deployment
Page 9
© 2026 BlackBerry. All Rights Reserved 9 Lightweight, Reliable and Optimized Core for Application Development and Deployment Mission • Solve complexity management, technology integration, safety / security demands, and business complexities in a singular software platform • Help OEMs reduce duplicative software development and rework, enabling them to focus on delivering in-vehicle experiences QNX Opportunity • Shift from component to solution value capture • Drive adoption of vehicle-wide software foundation • Take on the work OEMs don’t want to own, and will pay to outsource NOW Automotive Manufacturer Differentiating Feature Set Vehicle Services, Abstractions and Middleware Alloy Kore BEFORE Automotive Manufacturer Differentiating Feature Set Foundational Software Components Vehicle Services and Abstractions Vehicle Middleware QNX ALLOY KORE: From Strategic Opportunity with Vector to Commercial Validation 321
Page 10
© 2026 BlackBerry. All Rights Reserved 10 Physical AI systems must do more than think, they must act safely, predictably and in real time Deterministic real time performance Functional safety and certification Secure, reliable operation in mission-critical systems ✓ ✓ ✓ ✓ Why QNX Matters Robotaxis AMRs Autonomous Tractors Humanoid Robots Surgical Robots Drones / Aerospace QNX is engaging early where deterministic, safety-critical execution matters most QNX GEM & PHYSICAL AI: Expanding QNX Beyond Automotive QNX LAUNCHPAD Early Engagement Helping emerging companies begin development on QNX NEW DESIGN WIN Robotaxis QNX selected as foundational software for next-gen vehicles ROBOTICS PIPELINE 20+ companies engaging around NVIDIA-based platform CURRENT GEM MIX 20% of QNX revenue 321
Page 11
© 2026 BlackBerry. All Rights Reserved 11 SECURE COMMUNICATIONS: Stable and Profitable Contributor ARR is a holistic metric reflecting both retention and new business across the recurring base DBNRR 91% Relatively stable ARR $221M +4% YoY Stable foundation ADJ. EBITDA $8M 13% Margin REVENUE $61M +2% YoY within guidance Remains profitable and cash-generative, with quarter-to-quarter variability from larger government opportunities Recurring revenue foundation ARR provides an important base of recurring revenue and customer relationships Government upside Digital sovereignty, defense spending and mission-critical communications support a meaningful pipeline, but large deals can be intermittent UNDERLYING MODEL © 2026 BlackBerry. All Rights Reserved H1 REVENUE GROWTH 13% YoY 11
Page 12
© 2026 BlackBerry. All Rights Reserved 12 © 2026 BlackBerry. All Rights Reserved 12 Tim Foote Chief Financial Officer Financial Overview © 2026 BlackBerry. All Rights Reserved
Page 13
© 2026 BlackBerry. All Rights Reserved 13 High-margin revenue growth is flowing efficiently through the model ADJ. BASIC EPS $0.07 Above guidance OPERATING CASH FLOW $29M Above guidance EXPANDED GROSS MARGIN 78% +3 PP YoY ADJ. EBITDA $47M Nearly double YoY with 29% margin TOTAL REVENUE $163M Above high end of guidance +26% YoY Operating Leverage Is Translating Growth into Profit and Cash The model is scaling while we continue to invest in our highest-return growth opportunities Higher-Margin QNX Royalties Licensing Upside Disciplined Cost Base Capex-Light Operating Model
Page 14
© 2026 BlackBerry. All Rights Reserved 14 Q2 Segment Financial Highlights Exceeded Rule of 401 for the 2nd Consecutive Quarter Q2 Segment Financial Highlights QNX ADJ. EBITDA $29M +41% YoY 36% margin ADJ. GROSS MARGIN 87% +4 PP YoY REVENUE $80M +27% YoY above guidance SECURE COMMS ADJ. EBITDA $8M (18%) YoY 13% margin ADJ. GROSS MARGIN 61% (5) PP YoY REVENUE $61M +2% YoY above guidance LICENSING ADJ. EBITDA $20M +257% YoY 90% margin ADJ. GROSS MARGIN 93% +16 PP YoY REVENUE $22M +235% YoY above guidance 14© 2026 BlackBerry. All Rights Reserved 1 Rule of 40: Defined as the sum of the Company’s GAAP revenue year-over-year growth percentage and its non-GAAP adjusted EBITDA margin percentage. Where the sum equals or exceeds 40, then the Rule of 40 is considered to have been achieved.
Page 15
© 2026 BlackBerry. All Rights Reserved 15 Positive cash flow and a strong net cash position provide flexibility to invest, repurchase shares and evaluate strategic opportunities Cash Generation Strengthens Strategic Flexibility NET CASH $247M Strategic Asset CASH & INVESTMENTS $447M at Q2 FY27 FREE CASH FLOW $28M Capex-light Model OPERATING CASH FLOW $29M Above guidance Invest in QNX Growth Prioritize largest long-term organic value creation opportunities Disciplined Share Repurchases Recently-expanded NCIB1 share buyback facility provides flexibility to advance shareholder value Evaluate M&A selectively Assess options to accelerate strategy High strategic and financial bar Capital Allocation Priorities © 2026 BlackBerry. All Rights Reserved 1 Normal course issuer bid (NCIB)
Page 16
© 2026 BlackBerry. All Rights Reserved 16 $ in millions except per share amounts Q3 FY27 FY27 Total Revenue $143 — $154M $616 — $636M Raised QNX Revenue $82 — $88M $315 — $325M Raised Secure Communications Revenue $55 — $60M $260 — $270M Updated Licensing Revenue $6M $41M Raised Total Adj. EBITDA $28 — $37M $141 — $158M Raised QNX Adj. EBITDA $27 — $32M $95 — $105M Raised Secure Communications Adj. EBITDA $6 — $10M $50 — $58M Updated Licensing Adj. EBITDA $5M $36M Raised Adj. Basic EPS1 $0.04 — $0.05 $0.19 — $0.22 Raised Operating Cash Flow $20 — $30M $115M Raised Q3 and FY27 Guidance ✓ QNX Strong trajectory with normal timing variability ✓ SECURE COMMUNICATIONS Updated outlook reflects uncertainty in H2, including geopolitical factors COMPANY Raised FY27 outlook while maintaining a measured approach ✓ 1 EPS guidance does not include the effect of any potential future share repurchases not yet completed as of the date of this release.
Page 17
© 2026 BlackBerry. All Rights Reserved 17 We remain focused on creating long-term shareholder value Stronger Cash Generation Creates Strategic Flexibility Robust balance sheet supports continued investment in growth while preserving flexibility around buybacks and selective M&A BlackBerry Key Takeaways © 2026 BlackBerry. All Rights Reserved 17 FINANCIAL MODEL IS SOLID AND SCALABLE Exceeded Rule of 401, with strong operating leverage and cash generation, while raising full-year outlook QNX Opportunity is Broader and More Tangible Core automotive is delivering record performance, Alloy Kore has moved to commercial validation, and the longer-term GEM and Physical AI opportunities continue to build 1 Rule of 40: Defined as the sum of the Company’s GAAP revenue year-over-year growth percentage and its non-GAAP adjusted EBITDA margin percentage. Where the sum equals or exceeds 40, then the Rule of 40 is considered to have been achieved.
Page 18
© 2026 BlackBerry. All Rights Reserved 18 18 © 2026 BlackBerry. All Rights Reserved Q&A
Page 19
© 2026 BlackBerry. All Rights Reserved 19 19 © 2026 BlackBerry. All Rights Reserved Thank You
Page 20
© 2026 BlackBerry. All Rights Reserved 20 www.BlackBerry.com NYSE: BB | TSX: BB Follow us on Webcast & Presentation Downloadable Financials
Page 21
© 2026 BlackBerry. All Rights Reserved 21 21 © 2026 BlackBerry. All Rights Reserved Appendix
Page 22
© 2026 BlackBerry. All Rights Reserved 22 GAAP Income Statement ($M) GAAP Income Statement (Three Months Ended) Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 QNX $ 57.5 $ 63.1 $ 68.7 $ 78.7 $ 268.0 $ 72.3 $ 80.3 Secure Communications 59.5 59.9 67.0 72.5 258.9 73.6 60.9 Software and Services 117.0 123.0 135.7 151.2 526.9 145.9 141.2 Licensing 4.7 6.6 6.1 4.8 22.2 7.0 22.1 Total revenue $ 121.7 $ 129.6 $ 141.8 $ 156.0 $ 549.1 $ 152.9 $ 163.3 Cost of sales 31.4 33.0 31.9 34.6 130.9 33.2 36.2 GAAP gross margin $ 90.3 $ 96.6 $ 109.9 $ 121.4 $ 418.2 $ 119.7 $ 127.1 Operating expenses Research and development 25.0 25.6 29.6 33.4 113.6 33.0 33.2 Sales and marketing 28.7 24.4 29.3 31.6 114.0 29.5 25.3 General and administrative 30.5 31.5 36.1 30.7 128.8 39.3 31.8 Amortization 4.0 3.1 2.4 1.9 11.4 2.5 2.5 Impairment of long-lived assets 0.1 0.5 0.6 0.9 2.1 0.1 0.7 Total operating expenses 88.3 85.1 98.0 98.5 369.9 104.4 93.5 Operating income $ 2.0 $ 11.5 $ 11.9 $ 22.9 $ 48.3 $ 15.3 $ 33.6 Investment income, net 2.9 1.9 2.9 3.0 10.7 1.1 1.6 Income before income tax 4.9 13.4 14.8 25.9 59.0 16.4 35.2 Provision for income taxes 3.0 0.1 1.1 1.6 5.8 7.9 1.3 Net income $ 1.9 $ 13.3 $ 13.7 $ 24.3 $ 53.2 $ 8.5 $ 33.9 Basic earnings per share $ 0.00 $ 0.02 $ 0.02 $ 0.04 $ 0.09 $ 0.01 $ 0.06 Diluted earnings per share $ 0.00 $ 0.02 $ 0.02 $ 0.04 $ 0.09 $ 0.01 $ 0.05 Weighted-average number of common shares outstanding (000s) Basic 596,300 592,938 590,892 588,783 592,251 586,741 586,627 Diluted 600,831 597,369 596,303 643,613 597,585 593,193 649,655
Page 23
© 2026 BlackBerry. All Rights Reserved 23 For the three months ended August 31, 2026, the Company presented segment adjusted EBITDA results excluding amortization in segment research and development, segment sales and marketing and segment general and administrative expenses to align to the operating expense presentation on the Consolidated Statement of Operation s. For purposes of comparability, the Company’s segment adjusted EBITDA for the three months ended August 31, 2025 has been updated to conform to the current year’s presentation. Segment Information ($M) Segment Adjusted Gross Margin and EBITDA (Three Months Ended) Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 QNX Segment revenue $ 57.5 $ 63.1 $ 68.7 $ 78.7 $ 268.0 $ 72.3 $ 80.3 Segment cost of sales 11.2 10.7 11.3 12.2 45.4 10.4 10.6 Segment adjusted gross margin $ 46.3 $ 52.4 $ 57.4 $ 66.5 $ 222.6 $ 61.9 $ 69.7 Segment adjusted gross margin % 81% 83% 84% 84% 83% 86% 87% Segment research and development 12.3 13.0 16.8 19.6 61.7 18.9 19.6 Segment sales and marketing 13.2 10.7 15.3 17.0 56.2 15.6 12.4 Segment general and administrative 8.1 8.2 9.0 8.5 33.8 8.1 8.7 Less amortization included in segment cost of sales - - 0.1 - 0.1 - - QNX segment adjusted EBITDA $ 12.7 $ 20.5 $ 16.4 $ 21.4 $ 71.0 $ 19.3 $ 29.0 Secure Communications Segment revenue $ 59.5 $ 59.9 $ 67.0 $ 72.5 $ 258.9 $ 73.6 $ 60.9 Segment cost of sales 18.1 20.2 18.6 20.3 77.2 20.8 23.5 Segment adjusted gross margin $ 41.4 $ 39.7 $ 48.4 $ 52.2 $ 181.7 $ 52.8 $ 37.4 Segment adjusted gross margin % 70% 66% 72% 72% 70% 72% 61% Segment research and development 11.2 11.0 11.3 12.3 45.8 12.6 11.8 Segment sales and marketing 13.6 12.1 12.4 12.9 51.0 12.3 11.1 Segment general and administrative 7.1 6.9 7.5 7.5 29.0 7.8 6.6 Less amortization included in segment cost of sales 0.1 - 0.1 - 0.2 0.1 0.1 Secure Communications segment adjusted EBITDA $ 9.6 $ 9.7 $ 17.3 $ 19.5 $ 56.1 $ 20.2 $ 8.0
Page 24
© 2026 BlackBerry. All Rights Reserved 24 Segment Gross Margin and EBITDA ($M) Segment Adjusted Gross Margin and EBITDA (Three Months Ended) Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 Licensing Segment revenue $ 4.7 $ 6.6 $ 6.1 $ 4.8 $ 22.2 $ 7.0 $ 22.1 Segment cost of sales 1.6 1.5 1.5 1.5 6.1 1.5 1.5 Segment adjusted gross margin $ 3.1 $ 5.1 $ 4.6 $ 3.3 $ 16.1 $ 5.5 $ 20.6 Segment adjusted gross margin % 66% 77% 75% 69% 73% 79% 93% Segment general and administrative 0.9 0.9 0.9 (1.5) 1.2 0.8 2.1 Less amortization included in segment cost of sales 1.6 1.4 1.6 1.5 6.1 1.5 1.5 Licensing segment adjusted EBITDA $ 3.8 $ 5.6 $ 5.3 $ 6.3 $ 21.0 $ 6.2 $ 20.0 Total Segment Adjusted Gross Margin 90.8 97.2 110.4 122.0 420.4 120.2 127.7 Adjustment to cost of sales (0.5) (0.6) (0.5) (0.6) (2.2) (0.5) (0.6) Total gross margin $ 90.3 $ 96.6 $ 109.9 $ 121.4 $ 418.2 $ 119.7 $ 127.1
Page 25
© 2026 BlackBerry. All Rights Reserved 25 Key Metrics Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 Net cash provided by (used in) operating activities $ (18.0) $ 3.4 $ 17.9 $ 45.6 $ 50.3 $ 4.6 $ 29.3 Acquisition of property, plant and equipment (0.9) (0.8) (0.9) (1.2) (3.8) (2.9) (1.2) Free cash flow (usage) $ (18.9) $ 2.6 $ 17.0 $ 44.4 $ 46.5 $ 1.7 $ 28.1 Key Metrics (Three Months Ended) Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 Secure Communications Annual Recurring Revenue $ 209 $ 213 $ 216 $ 218 $ 220 $ 221 Secure Communications Dollar-Based Net Retention Rate 92% 93% 92% 94% 92% 91% QNX Royalty Backlog $ 950 Key metrics such as Annual Recurring Revenue ("ARR"), Dollar-Based Net Retention Rate ("DBNRR") and QNX Royalty Backlog do not have standardized meanings and are unlikely to be comparable to similarly titled measures reported by other companies. The Company regularly monitors a number of financial and operating metrics, including key metrics, in order to measure the Company's current performance and estimate future performance.
Page 26
© 2026 BlackBerry. All Rights Reserved 26 Reconciliation of Non-GAAP Based Measures with Most Directly Comparable U.S. GAAP Based Measures Non-GAAP Income Statement (Three Months Ended) Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 QNX $ 57.5 $ 63.1 $ 68.7 $ 78.7 $ 268.0 $ 72.3 $ 80.3 Secure Communications 59.5 59.9 67.0 72.5 258.9 73.6 60.9 Software and Services 117.0 123.0 135.7 151.2 526.9 145.9 141.2 Licensing 4.7 6.6 6.1 4.8 22.2 7.0 22.1 Revenue $ 121.7 $ 129.6 $ 141.8 $ 156.0 $ 549.1 $ 152.9 $ 163.3 Cost of sales 30.9 32.4 31.4 34.0 128.7 32.7 35.6 Adjusted gross margin $ 90.8 $ 97.2 $ 110.4 $ 122.0 $ 420.4 $ 120.2 $ 127.7 Operating expenses Research and development 23.7 24.2 28.2 32.1 108.2 31.5 31.6 Sales and marketing 27.3 23.1 28.1 30.4 108.9 28.4 23.9 General and administrative 26.6 25.5 26.6 26.2 104.9 25.6 26.8 Amortization 2.3 2.0 2.1 1.9 8.3 2.5 2.5 Total adjusted operating expenses 79.9 74.8 85.0 90.6 330.3 88.0 84.8 Adjusted operating income $ 10.9 $ 22.4 $ 25.4 $ 31.4 $ 90.1 $ 32.2 $ 42.9 Investment income, net 2.9 1.9 2.9 3.0 10.7 1.1 1.6 Adjusted income before income tax 13.8 24.3 28.3 34.4 100.8 33.3 44.5 Provision for income taxes 3.0 0.1 1.1 1.6 5.8 7.9 1.3 Adjusted net income $ 10.8 $ 24.2 $ 27.2 $ 32.8 $ 95.0 $ 25.4 $ 43.2 Adjusted income before income tax, adjusted net income, adjusted gross margin, adjusted gross margin percentage, total segment adjusted gross margin, adjusted operating income, adjusted EBITDA, secure communications segment adjusted EBITDA, QNX segment adjusted EBITDA, licensing segment adjusted EBITDA, adjusted operating ex penses, segment adjusted EBITDA, adjusted earnings per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, and free cash flow (usage) do not have standardized meanings prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures and non-GAAP ratios enables the Company and its shareholders to better assess the Company's operating results relative to its operating results in prior periods and improves the comparability of the information presented. This non-GAAP information should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. You are encouraged to review the Company's filings on SEDAR+ and EDGAR. The Company makes no commitment to update the information above subsequently.
Page 27
© 2026 BlackBerry. All Rights Reserved 27 Reconciliation of Non-GAAP Based Measures with Most Directly Comparable U.S. GAAP Based Measures Non-GAAP adjustments (Three Months Ended) Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 Restructuring charges $ 2.9 $ 3.4 $ 6.1 $ 3.3 $ 15.7 $ 0.3 $ 2.7 Stock compensation expense 5.7 5.9 6.1 5.5 23.2 6.5 7.5 Acquired intangibles amortization 1.7 1.1 0.3 - 3.1 - - Impairment of long-lived assets 0.1 0.5 0.6 0.9 2.1 0.1 0.7 Deferred share units revaluation adjustment (1.5) - 0.4 (1.2) (2.3) 10.0 (1.6) Non-GAAP adjustments $ 8.9 $ 10.9 $ 13.5 $ 8.5 $ 41.8 $ 16.9 $ 9.3 Adjusted gross margin Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 GAAP revenue $ 121.7 $ 129.6 $ 141.8 $ 156.0 $ 549.1 $ 152.9 $ 163.3 Total cost of sales 31.4 33.0 31.9 34.6 130.9 33.2 36.2 Non-GAAP adjustments to cost of sales (0.5) (0.6) (0.5) (0.6) (2.2) (0.5) (0.6) Adjusted gross margin $ 90.8 $ 97.2 $ 110.4 $ 122.0 $ 420.4 $ 120.2 $ 127.7 Adjusted gross margin % 75% 75% 78% 78% 77% 79% 78%
Page 28
© 2026 BlackBerry. All Rights Reserved 28 Reconciliation of Non-GAAP Based Measures with Most Directly Comparable U.S. GAAP Based Measures Research and development Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 GAAP research and development expense $ 25.0 $ 25.6 $ 29.6 $ 33.4 $ 113.6 $ 33.0 $ 33.2 Stock compensation expense 1.3 1.4 1.4 1.3 5.4 1.5 1.6 Adjusted research and development expense $ 23.7 $ 24.2 $ 28.2 $ 32.1 $ 108.2 $ 31.5 $ 31.6 Sales and marketing Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 GAAP sales and marketing expense $ 28.7 $ 24.4 $ 29.3 $ 31.6 $ 114.0 $ 29.5 $ 25.3 Stock compensation expense 1.4 1.3 1.2 1.2 5.1 1.1 1.4 Adjusted sales and marketing expense $ 27.3 $ 23.1 $ 28.1 $ 30.4 $ 108.9 $ 28.4 $ 23.9 General and administrative Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 GAAP general and administrative expense $ 30.5 $ 31.5 $ 36.1 $ 30.7 $ 128.8 $ 39.3 $ 31.8 Restructuring charges 2.9 3.4 6.1 3.3 15.7 0.3 2.7 Stock compensation expense 2.5 2.6 3.0 2.4 10.5 3.4 3.9 Deferred share units revaluation adjustment (1.5) - 0.4 (1.2) (2.3) 10.0 (1.6) Adjusted general and administrative expense $ 26.6 $ 25.5 $ 26.6 $ 26.2 $ 104.9 $ 25.6 $ 26.8 Amortization Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 GAAP amortization expense $ 4.0 $ 3.1 $ 2.4 $ 1.9 $ 11.4 $ 2.5 $ 2.5 Acquired intangibles amortization 1.7 1.1 0.3 - 3.1 - - Adjusted amortization expense $ 2.3 $ 2.0 $ 2.1 $ 1.9 $ 8.3 $ 2.5 $ 2.5
Page 29
© 2026 BlackBerry. All Rights Reserved 29 Reconciliation of Non-GAAP Based Measures with Most Directly Comparable U.S. GAAP Based Measures Adjusted EBITDA Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 GAAP operating income $ 2.0 $ 11.5 $ 11.9 $ 22.9 $ 48.3 $ 15.3 $ 33.6 Non-GAAP adjustments 8.9 10.9 13.5 8.5 41.8 16.9 9.3 Adjusted operating income $ 10.9 $ 22.4 $ 25.4 $ 31.4 $ 90.1 $ 32.2 $ 42.9 Amortization 5.7 4.6 4.0 3.5 17.8 4.1 4.1 Acquired intangibles amortization (1.7) (1.1) (0.3) - (3.1) - - Adjusted EBITDA $ 14.9 $ 25.9 $ 29.1 $ 34.9 $ 104.8 $ 36.3 $ 47.0
Page 30
© 2026 BlackBerry. All Rights Reserved 30 Reconciliation of Non-GAAP Based Measures with Most Directly Comparable U.S. GAAP Based Measures Reconciliation from GAAP Net Income to Adjusted Net Income and Adjusted Earnings per Share Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY26 Q1FY27 Q2FY27 GAAP net income $ 1.9 $ 13.3 $ 13.7 $ 24.3 $ 53.2 $ 8.5 $ 33.9 Total non-GAAP adjustments (Three months ended, after-tax) 8.9 10.9 13.5 8.5 41.8 16.9 9.3 Adjusted Net Income $ 10.8 $ 24.2 $ 27.2 $ 32.8 $ 95.0 $ 25.4 $ 43.2 Adjusted earnings per share Adjusted basic earnings per share $ 0.02 $ 0.04 $ 0.05 $ 0.06 $ 0.16 $ 0.04 $ 0.07 Adjusted diluted earnings per share $ 0.02 $ 0.04 $ 0.04 $ 0.05 $ 0.16 $ 0.04 $ 0.07 Weighted-average number of common shares outstanding for adjusted earnings per share reconciliation (000s) Basic 596,300 592,938 590,892 588,783 592,251 586,741 586,627 Diluted 600,831 648,915 647,849 643,613 649,131 644,739 649,655