BlackBerry Limited

Good afternoon and welcome to the BlackBerry third quarter fiscal year 2026 results conference call. My name is Nick and I will be your conference moderator for today's call. During the presentation, all participants will be in a listen-only mode. We will be facilitating a brief question and answer session towards the end of the conference. Should you need assistance during the call, please signal a conference specialist by pressing star zero. As a reminder, this conference is being recorded for replay purposes. I would now like to turn today's call over to Martha Gonder, Director of Investor Relations, BlackBerry. Please go ahead, ma'am.

Thank you, Nick. Good afternoon, everyone, and welcome to BlackBerry's third quarter fiscal year 2026 earnings conference call. Joining me on today's call is BlackBerry's Chief Executive Officer, John Giammatteo, and Chief Financial Officer, Tim Foote. After I read our cautionary note regarding forward-looking statements, John will provide a business update and Tim will review the financial results. We will then open the call for a brief Q&A session. This call is available to the general public via call-in numbers and via webcast in the investor information section at blackberry.com. A replay will also be available on the blackberry.com website. Some of the statements we'll be making today constitute forward-looking statements and are made pursuant to the safe harbor provisions of applicable U.S. and Canadian securities laws. We'll 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 today, and the company has no intention and undertakes no obligation to update or revise any of them, except as required by law. As is customary, during the call, John and Tim will reference non-GAAP numbers in their summary of our quarterly results. For a reconciliation between our GAAP and non-GAAP numbers, please see the earnings press release published earlier today, which is available on the EDGAR, Cedar Plus, and BlackBerry.com websites. And with that, let me now turn the call over to John.

Thanks, Martha, and thanks to everyone for joining today's call. Q3 was another quarter of solid results, adding to our track record of consistently meeting or beating guidance. Once again, we delivered across the three core metrics of revenue, profitability, and cash. Total company revenue came in at $141.8 million, above the high end of our guidance range. Q3 was another strong quarter of profitability, with adjusted EBITDA beating guidance, and it was also our third consecutive quarter of achieving GAAP profitability. Adjusted EBITDA for the total company was $28.7 million, which represents a 20% margin. GAAP net income improved by $24.2 million year-over-year to $13.7 million in Q3, and non-GAAP EPS exceeded guidance at positive $0.05. Conversion of profitability into cash was also strong. Operating cash flow was $17.9 million, up three times year over year, reflecting strong execution and disciplined cost management. Moving on to the results from our divisions, QNX delivered an all-time record for quarterly revenue at $68.7 million. This represents 10% year-over-year growth, beating expectations and finishing at the high end of the guidance range. Revenue was driven primarily by solid growth in royalties, with development seat and professional services revenue also growing both sequentially and year-over-year. During the quarter, we were excited to announce John Wall's appointment as president of QNX. In our opinion, nobody knows the embedded software space, both the technology and the market, quite like John. He has a very strong reputation with customers and partners and within the company. QNX has tremendous opportunities for multi-year growth, and driving our key initiatives to harness those opportunities will be John's number one priority moving forward. We saw more design win momentum in Q3, exceeding our internal targets, and the pipeline of potential design wins in Q4 continues to grow. This design wind growth demonstrates the progress we're making with the initiatives to drive deeper into automotive and wider into the general embedded space. In the quarter, we secured a number of major automotive design winds with top European and Asian OEMs for ADAS and cockpit domains, all being developed on the latest version of the QNX platform, SDP-8. The number of customers using SPP8 continues to grow each quarter with many leading OEMs now developing on it. We continue to see traction with other new products as well. We're securing new wins for both QNX Sound and QNX Cabin as OEMs recognize the strategic benefit of these products for reducing their bill of materials and time to market. This was the second quarter in a row that QNX Sound was chosen by a leading Chinese OEM, with this quarter's win being deployed in their luxury EV range. We've also secured another multi-year contract for our cloud-based QNX cabin product with a top five global automaker based in Europe. A potential needle mover for ASP per vehicle is the vehicle software platform that we're co-developing with leading middleware provider Vector. Development is progressing well, and the second early access version is scheduled for release by the end of January. Early discussions with a number of OEMs are progressing, and we're targeting significantly higher pricing per vehicle compared to the core RTOS. Once we've secured some wins, we'll provide more color on the potential upside from this product. And finally for auto, earlier this week we announced that leading technology market analyst CounterPoint Research has determined that QNX is now powering more than 275 million vehicles on the road. This is a 20 million increase year over year and clearly demonstrates how significant a player we are in the space. In the non-automotive general embedded space, we continue to drive across our target verticals of industrial automation, medical instrumentation, and robotics. Let me provide some additional color on a couple of in-quarter wins with industrial automation companies. The first was with one of our longtime customers, Bentley Nevada, an industry-leading company in online condition monitoring used for wind turbines and other applications, who has adopted SDP-8. Additionally, two leading industrial automation OEMs, one North American and one European, have also adopted SDP-8 to be used in a variety of their applications, from robotics to manufacturing production. We also had an exciting development in the aerospace and defense vertical with NASA, who are adding QNX SDP-8 to their supported operating systems. Earlier this year, we launched QNX General Embedded Development Platform, or GEDP as we call it, which is a subscription-based solution tailor-made for OEMs in gem verticals. GEDP aims to accelerate the time to market for developers of embedded systems. And feedback from our customers so far has been extremely positive as they can leverage this platform for all supported versions of QNX across their portfolio. In the quarter, we saw a number of new design wins from customers for GEDP. So in summary, Q3 was another great quarter for QNX. In fact, an all-time record quarter. Moving now to secure communications, in Q3 we delivered revenue of $67 million, beating the top end of guidance and consensus. This was a great achievement by the division as we were faced with U.S. government shutdown for a portion of the quarter. These strong results were in large part driven by better-than-expected renewals of UEM and navigation of U.S. government shutdown. As a percentage of revenue for the last 12 months, UEM remains just over half of secure communications totals, with SecuSmart at slightly more than ad hoc for the remainder. Key metrics for the division remain solid, with annual recurring revenue, or ARR, increasing $3 million sequentially to $216 million, and dollar-based net retention rate, or DBNRR, was at 92%. SecuSmart revenue grew sequentially but was lower year over year due to a tough compare as a result of the strong upgrade cycle from the German government in Q3 of the prior fiscal year. Ad hoc, despite having the most exposure of the three product groups to the U.S. federal government shutdown, delivered year over year and sequential revenue growth. Earlier this year, we achieved FedRAMP high certification, becoming the only critical events management solution provider to achieve this stringent level of security, directly enabling significant U.S. government expansions this quarter, including both the U.S. Navy and the Department of Justice. Ad hoc continues to grow outside of North America as well, securing new wins with the National University of Malaysia, Australia's Department of Foreign Affairs and Trade, and key UK energy infrastructure provider, Scottish and Southern Energy. For UEM, in addition to the continued trend for reduced customer churn, we had some significant expansion deals for this product in the quarter. One of these expansion deals included an eight-figure multi-year renewal with the Dutch government. Other strong renewals included the Scottish Police Service and the UK Ministry of Defence, as well as a number of financial services companies. As we mentioned in Q2, BlackBerry UEM became the first solution to be certified by Germany's Federal Office for Information Security, or BSI. And in Q3, we closed our first deal that was enabled by this very demanding security certification. Targeted investment in certifications like BSI for UEM and FedRAMP High for AdHoc are strengthening our portfolio's position at the heart of government secure communication strategies. Overall, this was another solid quarter of performance for our Secure Communications Division. This has been a year of stabilization with improvements in renewal rates and our ability to close new business. Finally, licensing revenue was $6.1 million, which was in line with expectations. And with that, let me now turn the call over to Tim for more color on our financials.