BlackBerry Limited (BB) Q2 Earnings call transcript Sep 26, 2025

In the latest earnings call, BlackBerry reported a solid performance in its second quarter, with both IoT and cybersecurity divisions delivering impressive revenue growth. The company's IoT division saw a 12% year-over-year increase in revenue, driven by a surge in production-based royalties and the success of its design wins, particularly in the automotive sector. On the other hand, the cybersecurity division exceeded expectations, with a 10% year-over-year growth, highlighting the strong demand for secure communications solutions.

BlackBerry's Chief Executive Officer, John Giamatteo, expressed satisfaction with the company's progress in executing its strategy, stating that both IoT and cybersecurity divisions have made significant strides in their respective markets. Giamatteo also emphasized the company's cost-cutting efforts, which have led to breakeven EBITDA and non-GAAP EPS in Q2, marking a crucial milestone for the company.

Key Themes and Trends

BlackBerry's earnings call was characterized by a focus on the company's strategic growth in IoT and cybersecurity sectors. The IoT division's revenue growth, driven by design wins in the automotive industry, demonstrates the company's strong position in the market. Additionally, the cybersecurity division's performance underscores the growing demand for secure communications solutions, especially in government and financial services sectors. The company's ongoing efforts to reduce costs while maintaining top-line growth and achieving breakeven EBITDA and non-GAAP EPS are notable achievements.

Management's Confidence and Outlook

Management's confidence in BlackBerry's performance was evident throughout the call, with Giamatteo expressing optimism about the company's prospects. The upcoming Investor Day on October 16 is expected to provide a deeper insight into the company's financials, product portfolios, and capital allocation priorities, further highlighting the company's commitment to growth and innovation.

Investor and Analyst Interactions

Key investors and analysts raised questions about the company's opportunities in emerging areas like generative AI devices, managed services in cybersecurity, and the potential impact of geopolitical developments on BlackBerry's business. Management's responses underscored the company's adaptability and strategic focus, emphasizing the potential for growth in these areas.

Financial Performance and Outlook

BlackBerry's Q2 financial performance showed a clear improvement, with revenue coming in ahead of expectations and a significant reduction in operating expenses. The company's outlook for Q3 and the full fiscal year 2025 highlights continued growth in both IoT and cybersecurity divisions, underscoring the company's commitment to driving revenue and improving profitability.

In conclusion, BlackBerry's Q2 earnings call painted a picture of a company on the cusp of significant growth, driven by its strategic focus on IoT and cybersecurity sectors. The company's financial performance, coupled with its strategic outlook and management's confidence, bodes well for BlackBerry's future prospects. The upcoming Investor Day promises to provide further insights into the company's financial health and growth strategies, positioning BlackBerry for continued success in the competitive technology landscape.