BLACKBERRY Ltd

Previous wording

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read together with the unaudited interim consolidated financial statements and the accompanying notes (the “Consolidated Financial Statements”) of BlackBerry Limited for the three months ended May 31, 2026, included in Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as the Company’s audited consolidated financial statements and accompanying notes and MD&A for the fiscal year ended February 28, 2026 (the “Annual MD&A”) included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2026 (the “Annual Report”). The Consolidated Financial Statements are presented in U.S. dollars and have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All financial information in this MD&A is presented in U.S. dollars, unless otherwise indicated.

Current wording

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read together with the unaudited interim consolidated financial statements and the accompanying notes (the “Consolidated Financial Statements”) of BlackBerry Limited for the three and six months ended August 31, 2026, included in Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as the Company’s audited consolidated financial statements and accompanying notes and MD&A for the fiscal year ended February 28, 2026 (the “Annual MD&A”) included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2026 (the “Annual Report”). The Consolidated Financial Statements are presented in U.S. dollars and have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All financial information in this MD&A is presented in U.S. dollars, unless otherwise indicated.

Previous wording

•the Company’s expectations with respect to its total and segment revenue and adjusted EBITDA, non-GAAP EPS and operating cash flow in the second quarter of fiscal 2027 and for fiscal 2027 as a whole;

Current wording

•the Company’s expectations with respect to its total and segment revenue and adjusted EBITDA, non-GAAP EPS and operating cash flow in the third quarter of fiscal 2027 and for fiscal 2027 as a whole;

Previous wording

QNX and Vector Informatik GmbH recently introduced Alloy Kore, a foundational vehicle software platform designed to simplify and accelerate the development of software-defined vehicles. Alloy Kore integrates QNX’s safety-certified RTOS and virtualization capabilities and Vector’s safe middleware modules to deliver a lightweight, scalable foundation for deploying applications across vehicle domains. The Company believes that Alloy Kore has the potential to expand average selling prices by multiples on a per-vehicle basis and drive meaningful backlog growth.

Current wording

QNX and Vector Informatik GmbH recently introduced Alloy Kore, a foundational vehicle software platform designed to simplify and accelerate the development of software-defined vehicles. Alloy Kore integrates QNX’s safety-certified RTOS and virtualization capabilities and Vector’s safe middleware modules to deliver a lightweight, scalable foundation for deploying applications across vehicle domains. The Company believes that Alloy Kore has the potential to expand average selling prices by multiples on a per-vehicle basis and drive meaningful backlog growth. Subsequent to the end of the quarter, the Company announced an Alloy Kore design win with Coretura, the commercial vehicle software joint venture between Volvo Group and Daimler Truck. The design win is the largest in QNX history and added more than $100 million to the QNX royalty backlog.

Previous wording

(1)Diluted earnings per share on a U.S. GAAP basis for the first quarter of fiscal 2027 and fiscal 2026 does not include the dilutive effect of the Notes (as defined in “Financial Condition - Debt Financing and Other Funding Sources”), as to do so would be anti-dilutive. Diluted earnings per share on a U.S. GAAP basis for the first quarter of fiscal 2027 and fiscal 2026 includes the dilutive effect of stock-based compensation. See Note 7 to the Consolidated Financial Statements for the Company’s calculation of the diluted weighted average number of shares outstanding.

Current wording

(1)Diluted earnings per share on a U.S. GAAP basis for the second quarter of fiscal 2027 includes the dilutive effect of the Notes (as defined in “Financial Condition - Debt Financing and Other Funding Sources”). Diluted earnings per share on a U.S. GAAP basis for the second quarter of fiscal 2027 and fiscal 2026 includes the dilutive effect of stock-based compensation. See Note 7 to the Consolidated Financial Statements for the Company’s calculation of the diluted weighted average number of shares outstanding.

Previous wording

The following table shows information by operating segments for the three months ended May 31, 2026 and May 31, 2025. The Company reports segment information in accordance with U.S. GAAP, pursuant to the Financial Accounting Standards Board’s Accounting Standard Codification Topic 280, Segment Reporting, based on the “management” approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance of the Company’s reportable operating segments. The measure of segment profit or loss disclosed by the Company in the Consolidated Financial Statements under the “management” approach in reviewing the results of the Company’s operating segments is segment adjusted gross margin. Additionally, the following tables include the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA, a non-GAAP financial measure, which excludes amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment charge. For the three months ended May 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 to align to the operating expense presentation on the Consolidated Statement of Operations. For purposes of comparability, the Company’s segment adjusted EBITDA for the three months ended May 31, 2025 has been updated to conform to the current year’s presentation. See Note 10 to the Consolidated Financial Statements for a description of the Company’s operating segments.

Current wording

The following tables show information by operating segments for the three and six months ended August 31, 2026 and August 31, 2025. The Company reports segment information in accordance with U.S. GAAP, pursuant to the Financial Accounting Standards Board’s Accounting Standard Codification Topic 280, Segment Reporting, based on the “management” approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance of the Company’s reportable operating segments. The measure of segment profit or loss disclosed by the Company in the Consolidated Financial Statements under the “management” approach in reviewing the results of the Company’s operating segments is segment adjusted gross margin. Additionally, the following tables include the additional measures of segment profit or loss used by the CODM which is segment adjusted EBITDA, a non-GAAP financial measure, which excludes amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment charge. For the three and six 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 to align to the operating expense presentation on the Consolidated Statement of Operations. For purposes of comparability, the Company’s segment adjusted EBITDA for the three and six months ended August 31, 2025 has been updated to conform to the current year’s presentation. See Note 10 to the Consolidated Financial Statements for a description of the Company’s operating segments.

Previous wording

The Company had approximately $422.9 million in cash, cash equivalents and investments as of May 31, 2026 (February 28, 2026 - $432.4 million).

Current wording

The Company had approximately $447.1 million in cash, cash equivalents and investments as of August 31, 2026 (February 28, 2026 - $432.4 million).

Previous wording

In the first quarter of fiscal 2027, the Company recognized revenue of $152.9 million and net income of $8.5 million, or $0.01 basic and diluted earnings per share, on a U.S. GAAP basis (first quarter of fiscal 2026 - revenue of $121.7 million and net income of $1.9 million, or $0.00 basic and diluted earnings per share).

Current wording

In the second quarter of fiscal 2027, the Company recognized revenue of $163.3 million and net income of $33.9 million, or $0.06 basic earnings per share and$0.05 diluted earnings per share, on a U.S. GAAP basis (second quarter of fiscal 2026 - revenue of $129.6 million and net income of $13.3 million, or $0.02 basic and diluted earnings per share).

Previous wording

The Company recognized adjusted net income of$25.4 million, and adjusted basic earnings of $0.04 per share, on a non-GAAP basis in the first quarter of fiscal 2027 (first quarter of fiscal 2026 - adjusted net income of $10.8 million and adjusted basic earnings of $0.02 per share). See “Non-GAAP Financial Measures” below.

Current wording

The Company recognized adjusted net income of$43.2 million, and adjusted basic earnings per share of $0.07, on a non-GAAP basis in the second quarter of fiscal 2027 (second quarter of fiscal 2026 - adjusted net income of $24.2 million and adjusted basic earnings per share of $0.04). See “Non-GAAP Financial Measures” below.

Previous wording

The Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, and information contained in this MD&A is presented on that basis. On June 25, 2026, the Company announced financial results for the three months ended May 31, 2026, which included certain non-GAAP financial measures and non-GAAP ratios, including adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted net income, adjusted earnings per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income, adjusted EBITDA, segment adjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA margin percentage and free cash flow (usage). These non-GAAP financial measures and non-GAAP ratios do not have any standardized meaning as prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures presented by other companies.

Current wording

The Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, and information contained in this MD&A is presented on that basis. On September 24, 2026, the Company announced financial results for the three and six months ended August 31, 2026, which included certain non-GAAP financial measures and non-GAAP ratios, including adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted net income, adjusted basic earnings per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income, adjusted EBITDA, segment adjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA margin percentage and free cash flow (usage). These non-GAAP financial measures and non-GAAP ratios do not have any standardized meaning as prescribed by U.S. GAAP and are therefore unlikely to be comparable to similar measures presented by other companies.

Previous wording

•Deferred share units revaluation adjustment. The Company measures its deferred share units (“DSUs”) at fair value as liability-classified awards in accordance with U.S. GAAP. Each period, the fair value of the DSUs is remeasured and the resulting gain and loss from the change in fair value of these liability-classified awards are recognized in income. The amount varies each period depending on changes in the Company’s share price, which is influenced by market factors in addition to Company performance. This is not indicative of the Company’s core operating performance and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

Current wording

•Deferred share units revaluation adjustment. The Company measures its deferred share units (“DSUs”) at fair value as liability-classified awards in accordance with U.S. GAAP. Each period, the fair value of the DSUs is remeasured and the resulting gain and loss from the change in fair value of these liability-classified awards is recognized in income. The amount varies each period depending on changes in the Company’s share price, which is influenced by market factors in addition to Company performance. This is not indicative of the Company’s core operating performance and may not be meaningful when comparing the Company’s operating performance against that of prior periods.

Previous wording

Company’s business using the same evaluation measures that management uses, and is therefore a useful indication of the Company’s performance or expected performance of future operations and facilitates period-to-period comparison of operating performance. As a result, the Company considers it appropriate and reasonable to provide, in addition to U.S. GAAP measures, supplementary non-GAAP financial measures that exclude certain items from the presentation of its financial results.

Current wording

On a U.S. GAAP basis, the impacts of these items are reflected in the Company’s income statement. However, the Company believes that the provision of supplemental non-GAAP measures allows investors to evaluate the financial performance of the Company’s business using the same evaluation measures that management uses, and is therefore a useful indication of the Company’s performance or expected performance of future operations and facilitates period-to-period comparison of operating performance. As a result, the Company considers it appropriate and reasonable to provide, in addition to U.S. GAAP measures, supplementary non-GAAP financial measures that exclude certain items from the presentation of its financial results.

Previous wording

Readers are cautioned that adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted net income, adjusted earnings per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income, adjusted EBITDA, segment adjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA margin percentage and free cash flow (usage) and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies. These non-GAAP financial measures should be considered in the context of the U.S. GAAP results, which are described in this MD&A and presented in the Consolidated Financial Statements.

Current wording

Readers are cautioned that adjusted gross margin, adjusted gross margin percentage, adjusted operating expenses, adjusted net income, adjusted basic earnings per share, adjusted research and development expense, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted amortization expense, adjusted operating income, adjusted EBITDA, segment adjusted EBITDA, adjusted operating income margin percentage, adjusted EBITDA margin percentage and free cash flow (usage) and similar measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies. These non-GAAP financial measures should be considered in the context of the U.S. GAAP results, which are described in this MD&A and presented in the Consolidated Financial Statements.

Previous wording

A reconciliation of the most directly comparable U.S. GAAP gross margin and gross margin percentagefor the three months ended May 31, 2026 and May 31, 2025 to both adjusted gross margin and adjusted gross margin percentage are reflected in the table below:

Current wording

A reconciliation of the most directly comparable U.S. GAAP gross margin and gross margin percentagefor the three months ended August 31, 2026 and August 31, 2025 to both adjusted gross margin and adjusted gross margin percentage is reflected in the table below:

Previous wording

The CODM also uses the segment metric of segment adjusted EBITDA, which is a non-GAAP measure including segment expenses that exclude amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment. The following table reconciles the U.S. GAAP measures of segment profit or loss disclosed by the Company in the Consolidated Financial Statements from segment adjusted gross margin to segment adjusted EBITDA for the three months ended May 31, 2026 and May 31, 2025.

Current wording

The CODM also uses segment adjusted EBITDA, which is a non-GAAP measure including segment expenses that exclude amounts related to investment income, taxes, amortization, restructuring charges, stock compensation expenses and long-lived asset impairment. The following table reconciles the U.S. GAAP measures of segment profit or loss disclosed by the Company in the Consolidated Financial Statements from segment adjusted gross margin to segment adjusted EBITDA for the three months ended August 31, 2026 and August 31, 2025.

Previous wording

The Company uses free cash flow (usage) when assessing its sources of liquidity, capital resources, and quality of earnings. The Company believes that free cash flow (usage) is helpful in understanding the Company’s capital requirements and provides an additional means to reflect the cash flow (usage) trends in the Company’s business.

Current wording

The Company uses free cash flow (usage) when assessing its sources of liquidity, capital resources, and quality of earnings. The Company defines free cash flow (usage) as net cash provided by (used in) operating activities less acquisitions of property, plant and equipment. The Company believes that free cash flow (usage) is helpful in understanding the Company’s capital requirements and provides an additional means to reflect the cash flow (usage) trends in the Company’s business.

Previous wording

Reconciliation of U.S. GAAP net cash provided by (used in) operating activities for the three months ended May 31, 2026 and May 31, 2025 to free cash flow (usage) is reflected in the table below:

Current wording

Reconciliation of U.S. GAAP net cash provided by (used in) operating activities for the three and six months ended August 31, 2026 and August 31, 2025 to free cash flow (usage) is refle cted in the table below:

Previous wording

Secure Communications ARR was approximately $220 million as at May 31, 2026 and increased compared to $218 million as at February 28, 2026 and $209 million as at May 31, 2025.

Current wording

Secure Communications ARR was approximately $221 million as at August 31, 2026 and increased by $1 million sequentially compared to $220 million as at May 31, 2026 and increased by $8 million year-over-year compared to $213 million as at August 31, 2025.

Previous wording

Secure Communications DBNRR was 92% as at May 31, 2026 and decreased compared to 94% as at February 28, 2026 and was consistent with 92% as at May 31, 2025.

Current wording

Secure Communications DBNRR was 91% as at August 31, 2026 and decreased by 1% sequentially compared to 92% as at May 31, 2026 and 2% year-over-year compared to 93% as at August 31, 2025.

Previous wording

The Company previously stated that it expected QNX revenue to be in the range of $60 million to $64 million in the first quarter of fiscal 2027. QNX revenue in the first quarter of fiscal 2027 was $72.3 million due to stronger than expected royalty revenue.

Current wording

The Company previously stated that it expected QNX revenue to be in the range of $70 million to $75 million in the second quarter of fiscal 2027. QNX revenue in the second quarter of fiscal 2027 was $80.3 million primarily due to stronger than expected royalty revenue.

Previous wording

The Company expects QNX revenue to be in the range of $70 million to $75 million in the second quarter of fiscal 2027. The Company previously stated that it expected QNX revenue to be in the range of $290 million to $307 million in fiscal 2027 as a whole. The Company now expects QNX revenue to be in the range of $295 million to $312 million in fiscal 2027 as a whole due to stronger than expected QNX revenue in the first quarter of fiscal 2027.

Current wording

The Company expects QNX revenue to be in the range of $82 million to $88 million in the third quarter of fiscal 2027. The Company previously stated that it expected QNX revenue to be in the range of $295 million to $312 million in fiscal 2027 as a whole. The Company now expects QNX revenue to be in the range of $315 million to $325 million in fiscal 2027 as a whole, due to a strong first-half performance, including stronger than expected royalty revenue, as well as continued momentum across the business, supported by strong design win activity and demand for its products and services.

Previous wording

The Company previously stated that it expected Secure Communications revenue to be in the range of $66 million to $70 million in the first quarter of fiscal 2027. Secure Communications revenue in the first quarter of fiscal 2027 was $73.6 million due to stronger than expected BlackBerry SecuSUITE product revenue.

Current wording

The Company previously stated that it expected Secure Communications revenue to be in the range of $57 million to $63 million in the second quarter of fiscal 2027. Secure Communications revenue in the second quarter of fiscal 2027 was $60.9 million.

Previous wording

The increase in Licensing revenue of $2.3 million was primarily due to an increase in revenue from the Company’s intellectual property licensing arrangements.

Current wording

The increase in Licensing revenue of $15.5 million was primarily due to an increase in revenue from the Company’s intellectual property licensing arrangements.

Previous wording

The Company previously stated that it expected Licensing revenue to be approximately $6 million in each of the four quarters of fiscal 2027. Licensing revenue in the first quarter of fiscal 2027 was $7 million. The Company now expects Licensing revenue to be approximately $10 million in the second quarter of fiscal 2027 due to improvement in the pipeline of direct licensing opportunities.

Current wording

The Company expects Licensing revenue to be approximately $6 million in the third and fourth quarters of fiscal 2027. The Company previously stated that it expected Licensing revenue to be approximately $29 million in fiscal 2027 as a whole. The Company now expects licensing revenue to be approximately $41 million in fiscal 2027 as a whole due to stronger than expected licensing revenue recognized in the first half of fiscal 2027.

Previous wording

The Company previously stated that it expected total BlackBerry revenue to be approximately $132 million to $140 million in the first quarter of fiscal 2027. Total BlackBerry revenue was $152.9 million in the first quarter of fiscal 2027, better than expected due to the reasons noted above in “Revenue by Segment”.

Current wording

The Company previously stated that it expected total BlackBerry revenue to be approximately $137 million to $148 million in the second quarter of fiscal 2027. Total BlackBerry revenue was $163.3 million in the second quarter of fiscal 2027, better than expected due to an increase in revenue from QNX and Licensing due to the reasons discussed above in “Revenue by Segment”.

Previous wording

The Company expects total BlackBerry revenue to be in the range of $137 million to $148 million in the second quarter of fiscal 2027. The Company previously stated that it expected total BlackBerry revenue to be in the range of $584 million to $611 million in fiscal 2027 as a whole. The Company now expects total BlackBerry revenue to be in the range of $594 million to $621 million in fiscal 2027 as a whole due to stronger than expected QNX revenue in the first quarter of fiscal 2027 and the stronger than expected Licensing revenue for fiscal 2027 as a whole.

Current wording

The Company expects total BlackBerry revenue to be in the range of $143 million to $154 million in the third quarter of fiscal 2027. The Company previously stated that it expected total BlackBerry revenue to be in the range of $594 million to $621 million in fiscal 2027 as a whole. The Company now expects total BlackBerry revenue to be in the range of $616 million to $636 million in fiscal 2027 as a whole, due to a strong first-half performance and changes to fiscal 2027 outlook for the business units due to the reasons noted above.

Previous wording

The increase in Europe, Middle East and Africa revenue of $2.0 million was primarily due to an increase of $1.8 million in BlackBerry UEM product revenue, an increase of $0.7 million in QNX development license revenue and an increase of $0.3 million in professional services revenue, partially offset by a decrease of $1.2 million relating to BlackBerry SecuSUITE product revenue.

Current wording

The increase in Europe, Middle East and Africa revenue of $18.4 million was primarily due to an increase of $8.0 million in QNX royalty revenue, an increase of $5.4 million relating to BlackBerry SecuSUITE product revenue, an increase of $3.4 million in QNX development license revenue and an increase of $1.3 million in BlackBerry UEM product revenue.

Previous wording

The increase in Other regions revenue of $10.2 million was primarily due to an increase of $7.3 million in QNX development license revenue and an increase of $3.7 million in QNX royalty revenue, partially offset by a decrease of $0.5 million in professional services revenue.

Current wording

The increase in Other regions revenue of $5.0 million was primarily due to an increase of $3.3 million in QNX royalty revenue and an increase of $2.0 million in QNX development license revenue, partially offset by a decrease of $0.6 million in professional services revenue.

Previous wording

Consolidated gross margin percentage increased by 4.1% to approximately 78.3% of consolidated revenue in the first quarter of fiscal 2027 (first quarter of fiscal 2026 -74.2%). The increase was primarilydue to a change in mix, specifically a higher relative gross margin contributions from QNX and BlackBerry SecuSUITE software licenses.

Current wording

Consolidated gross margin percentage increased by 3.3% to approximately 77.8% of consolidated revenue in the second quarter of fiscal 2027 (second quarter of fiscal 2026 -74.5%). The increase was primarilydue to a change in mix, specifically higher relative gross margin contributions from Licensing and QNX, partially offset by a decrease in gross margin contributions from BlackBerry SecuSUITE software licenses.

Previous wording

See “First Quarter Fiscal 2027 Summary Results of Operations” for information about the Company’s operating segments and the basis of operating segment results.

Current wording

See “Second Quarter Fiscal 2027 Summary Results of Operations” for information about the Company’s operating segments and the basis of operating segment results.

Previous wording

The increase in QNX segment adjusted gross margin percentage of 5% was primarily due to a change in mix, specifically an increased gross margin contribution from development license revenue.

Current wording

The increase in QNX segment adjusted gross margin percentage of 4% was primarily due to a change in mix, specifically an increased gross margin contribution from royalty revenue.

Previous wording

The increase in QNX segment adjusted EBITDA of $6.6 million was primarily due to the reasons discussed above in “Revenue by Segment”, partially offset by a decrease in benefits from claims filed by QNX with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund (“SIF”) filedin the first quarter of fiscal 2026 which did not recur and an increase in salaries and benefits expense.

Current wording

The increase in QNX segment adjusted EBITDA of $8.5 million was primarily due to the reasons discussed above in “Revenue by Segment”, partially offset bythe absence of benefits from claims filed by QNX with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund (“SIF”) filed in the prior year period and an increase in salaries and benefits costs.

Previous wording

The Company previously stated that it expected QNX segment adjusted EBITDA to be in the range of $4 million to $8 million in the first quarter of fiscal 2027. QNX segment adjusted EBITDA was $19.3 million in the first quarter of fiscal 2027 due to revenue exceeding previously provided guidance for the reasons described above in “Revenue by Segment”.

Current wording

The Company previously stated that it expected QNX segment adjusted EBITDA to be in the range of $16 million to $21 million in the second quarter of fiscal 2027. QNX segment adjusted EBITDA was $29.0 million in the second quarter of fiscal 2027 due to revenue exceeding previously provided guidance for the reasons described above in “Revenue by Segment”.

Previous wording

The Company expects QNX segment adjusted EBITDA to be in the range of $16 million to $21 million in the second quarter of fiscal 2027. The Company previously stated that it expected QNX segment adjusted EBITDA to be in the range of $69 million to $81 million in fiscal 2027 as a whole. The Company now expects QNX segment adjusted EBITDA to be in the range of $74 million to $86 million in fiscal 2027 as a whole due to stronger than expected QNX revenue in the first quarter of fiscal 2027.

Current wording

The Company expects QNX segment adjusted EBITDA to be in the range of $27 million to $32 million in the third quarter of fiscal 2027. The Company previously stated that it expected QNX segment adjusted EBITDA to be in the range of $74 million to $86 million in fiscal 2027 as a whole. The Company now expects QNX segment adjusted EBITDA to be in the range of $95 million to $105 million in fiscal 2027 as a whole due to the reasons described above in “Revenue by Segment”.

Previous wording

The increase in Secure Communications segment adjusted EBITDA of $10.6 million was primarily due to an increase in revenue due to the reasons discussed above in “Revenue by Segment” and a decrease in salaries and benefits expense, partially offset by an increase in provision for expected credit losses.

Current wording

The decrease in Secure Communications segment adjusted gross margin of $2.3 million was primarily due to an increase in cost of sales related to BlackBerry SecuSUITE hardware devices, partially offset by an increase in revenue due to the reasons discussed above in “Revenue by Segment”.

Previous wording

The Company expects Secure Communications segment adjusted EBITDA to be in the range of $5 million to $10 million in the second quarter of fiscal 2027.

Current wording

The Company previously stated that it expected Secure Communications segment adjusted EBITDA to be in the range of $5 million to $10 million in the second quarter of fiscal 2027. Secure Communications segment adjusted EBITDA was $8.0 million in the second quarter of fiscal 2027.

Previous wording

The Company previously stated that it expected Secure Communications segment adjusted EBITDA to be in the range of $14 million to $18 million in the first quarter of fiscal 2027. Secure Communications segment adjusted EBITDA was $20.2 million in the first quarter of fiscal 2027 due to revenue exceeding previously provided guidance for the reasons described above in “Revenue by Segment”.

Current wording

The Company previously stated that it expected Licensing segment adjusted EBITDA to be approximately $9 million in the second quarter of fiscal 2027. Licensing segment adjusted EBITDA was $20.0 million in the second quarter of fiscal 2027 due to revenue exceeding previously provided guidance for the reasons described above in “Revenue by Segment”.

Previous wording

The Company previously stated that it expected Licensing segment adjusted EBITDA to be approximately $5 million in each of the four quarters of fiscal 2027. Licensing segment adjusted EBITDA was $6.2 million in the first quarter of fiscal 2027. The Company now expects the Licensing segment adjusted EBITDA to be approximately $9 million in the second quarter of fiscal 2027 for the reason described above in “Revenue by Segment”.

Current wording

The Company expects the Licensing segment adjusted EBITDA to be approximately $5 million in the third and fourth quarters of fiscal 2027. The Company previously stated that it expected Licensing segment adjusted EBITDA to be approximately $25 million in fiscal 2027 as a whole. The Company now expects Licensing segment adjusted EBITDA to be approximately $36 million in fiscal 2027 as a whole for the reason described above in “Revenue by Segment”.

Previous wording

The table below presents a comparison of research and development, sales and marketing, general and administrative, and amortization expenses for the quarter ended May 31, 2026, compared to the quarter ended May 31, 2025.

Current wording

The table below presents a comparison of research and development, sales and marketing, and general and administrative expenses, amortization, and impairment of long-lived assets for the quarter ended August 31, 2026, compared to the quarter ended August 31, 2025.

Previous wording

Operating expenses increased by $16.1 million year-over-year, or 18.2%, in the first quarter of fiscal 2027, compared to the first quarter of fiscal 2026 primarily due to an increase of $11.5 million in deferred share unit costs, a benefit of $4.5 million from SIF claims filed in the first quarter of fiscal 2026 which did not recur, an increase of $1.6 million in legal costs and an increase of $1.4 million in variable incentive plan costs, partially offset by a decrease of $2.6 million in restructuring costs and a decrease of $1.5 million in amortization expense.

Current wording

General and administrative expenses increased by $0.3 million, or 1.0%, in the second quarter of fiscal 2027 compared to the second quarter of fiscal 2026. The increase was primarily due to an increase of $2.4 million in legal costs, an increase of $1.2 million in stock compensation expenses and an increase of $0.8 million in variable incentive plan costs, partially offset by a decrease of $1.3 million in deferred share unit costs, a decrease of $0.9 million in salaries and benefits costs, a decrease of $0.7 million in restructuring costs and a decrease of $0.6 million in infrastructure costs.

Previous wording

The decrease in amortization expense included in operating expense of $1.5 million was primarily due to the lower cost base of assets.

Current wording

The decrease in amortization expense included in operating expenses of $0.6 million was primarily due to the lower cost base of assets.