BB Stock Eyes Best Week In 3 Months As QNX Royalties Become ‘Star Of The Show’ — President’s Holdings Revealed

• QNX posted record revenue of $80 million, up 27% from a year ago, while its adjusted gross margin reached 87%.
• BlackBerry expects its record Coretura design win to generate more than $100 million in future royalties.
• A new SEC filing disclosed that QNX President John Wall holds 11,252 shares directly and 2,500 through his spouse, along with stock awards related to 239,573 shares.

Shares of BlackBerry (BB) are tracking their best week in three months after a strong second quarter (Q2) put a spotlight on rising QNX royalties, while a new regulatory filing disclosed the shareholdings of QNX President John Wall.

BB stock jumped 4% on Thursday to $8.73, lifting its weekly gains to 9%. 

Auto Royalties Drive Record QNX Quarter 

“In this quarter, QNX was the star of the show, and within that, royalties were also the star of the show,” BlackBerry CFO Tim Foote told analysts on the earnings call. Foote said newer, larger vehicle programs won over the past several years were moving into production. “That backlog, the $950 million that we last reported, is starting to convert,” he said.

QNX reported record quarterly revenue of $80 million, up 27% from a year earlier and above the high end of BlackBerry’s guidance. Its adjusted gross margin rose four percentage points to 87%, matching the segment’s highest reported quarterly level. Foote attributed part of the margin improvement to a favorable mix that included higher-margin royalties.

The pipeline behind future royalties is growing, too. CEO John Giamatteo said that the value of QNX design wins secured in the first half of fiscal 2027 had already surpassed the previous record for an entire fiscal year. Giamatteo said development license activity was healthy. Since customers typically buy those tools early in a program, BlackBerry views it as an indicator of potential future design wins and royalties. 

BB’s Record Deal Points To Future Royalties 

BlackBerry’s first Alloy Kore design win added another substantial opportunity to that pipeline. Coretura, the software venture formed by Volvo Group and Daimler Truck, selected the platform for its next-gen commercial vehicles.

BlackBerry estimates the award will generate more than $100 million in future royalties, making it the largest design win in QNX history. Giamatteo said that the average selling price per instance is about three times that of Coretura’s current QNX operating-system deployment. The platform is intended to put QNX software into more parts of a vehicle and move BlackBerry further up the software stack.

The company also pointed to a change in some new customer contracts that could make future business easier to forecast. BlackBerry is securing more minimum contractual volume commitments instead of relying on non-contractual vehicle-production estimates, Giamatteo said. Foote said that the arrangements could bring in cash earlier.

What The QNX President’s Filing Reveals

Separately, a regulatory filing from Thursday disclosed QNX President John Christopher Wall’s ownership of BlackBerry securities. The filing lists 11,252 shares held directly and 2,500 held indirectly through his spouse.

It also lists restricted and performance-based share units related to 239,573 shares. Those awards are subject to certain vesting conditions, and BlackBerry may settle each unit in shares, cash, or a combination.

BB Q2 Review

BlackBerry reported Q2 revenue of $163.3 million, topping the $145.53 million consensus estimate. Adjusted earnings were $0.07 per share, versus expectations of $0.04. Revenue rose 26% from a year ago, while adjusted EBITDA climbed 81% to $47 million. 

“Our strong second quarter performance provides further evidence that BlackBerry’s profitable growth model is working, with revenue, profitability, and cash flow generation all exceeding our expectations,” Giamatteo said in a statement. BlackBerry raised its 2027 revenue outlook to $616 million-$636 million, compared with a $614.49 million consensus estimate. It forecast adjusted earnings of $0.19-$0.22 per share, compared with the $0.19 consensus.

For the third quarter, BlackBerry expects revenue of $143 million-$154 million, compared with a consensus estimate of $149.73 million. It forecasts adjusted earnings of $0.04-$0.05 per share, against a $0.05 consensus estimate. 

How Do Retail Traders Feel About BB?

On Stocktwits, retail sentiment for BB jumped to ‘extremely bullish’ from ‘bullish’ levels a week ago amid ‘extremely high’ message volume.

One user said, “$BB JG [John Giamatteo] is starting to hit his stride with regard to his presentations with today’s being his absolute best presentation yet. I feel this is a reflection of his confidence not only in the company but also in his own ability to positively affect its future growth.”

Another user said, “$BB Sitting, waiting, wishing it was 2031 and I could retire from selling some BB”

BB stock has jumped 130% year to date.

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