BlackBerry Ltd. reported a stronger first quarter, posting higher profit and revenue compared with the same period last year while increasing its revenue outlook for the full fiscal year.
The software company, which reports its financial results in US dollars, recorded a net profit of $8.5 million for the three months ended May 31, 2026, compared with $1.9 million in the corresponding quarter a year earlier.
Revenue for the quarter rose 26 per cent to $152.9 million, up from $121.7 million in the same period last year.
Investors responded positively to the results.
Following the release of its first-quarter results, BlackBerry’s shares climbed 16% on the Toronto Stock Exchange on Thursday.
At the time of writing, the stock was up about 0.39% in pre-market trading.
Revenue outlook increased
Following the quarterly performance, BlackBerry raised its revenue guidance for the full fiscal year.
The company now expects annual revenue to be between $594 million and $621 million, compared with its previous forecast of $584 million to $611 million.
BlackBerry reported earnings of one US cent per share for the quarter, compared with break-even results in the same period last year.
The company earned four US cents per share, up from two US cents per share a year earlier.
Financial statements prepared under US GAAP
Management said the interim consolidated financial statements were prepared in accordance with United States generally accepted accounting principles.
The company noted that the statements do not include all disclosures required for annual financial reporting and should be read alongside its audited annual financial statements for the year ended February 28, 2026.
Management also stated that all normal recurring adjustments considered necessary for a fair presentation have been included.
However, it cautioned that operating results for the quarter ended May 31, 2026, may not necessarily indicate performance for the full fiscal year ending February 28, 2027.
The company added that preparing the financial statements requires management to make estimates and assumptions related to assets, liabilities, revenue, expenses, and contingent liabilities.
Actual results could differ from those estimates, and the differences could be material.
Operating structure remains unchanged
BlackBerry said it continues to operate through three reportable business segments: QNX, Secure Communications, and Licensing.
The company also said there were no material changes to its significant accounting policies or critical accounting estimates compared with those outlined in its annual financial statements.
Accounting standards
BB said it adopted ASU 2025-05 during the first quarter of fiscal 2027.
The accounting update relates to the estimation of expected credit losses on certain receivables.
According to the company, adopting the standard did not have, and is not expected to have, a material impact on its consolidated financial statements.
The company also outlined several accounting standards that have not yet been adopted.
BlackBerry said it plans to adopt ASU 2024-03 in fiscal 2028 and is evaluating its disclosure requirements.
It also expects to adopt ASU 2025-09, covering derivatives and hedge accounting, in fiscal 2028.
The company said it has not yet determined the potential impact of the guidance on its financial statements.
Fair value measurement practices
The company said it measures fair value based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.
BlackBerry stated that it uses a three-level fair value hierarchy based on observable and unobservable inputs.
Cash, cash equivalents, receivables, and accounts payable are carried at amounts that approximate their fair values because of their short-term nature.
The company said it primarily relies on an independent third-party valuator to determine the fair value of investments while conducting its own internal review of pricing for reasonableness.
It also remeasures certain long-lived assets and non-marketable equity investments when events indicate impairment or other valuation changes.
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