Paul Treiber's questions to BLACKBERRY (BB) leadership • Q2 2026
Question
Paul Treiber asked about the back-end loaded nature of QNX's annual revenue outlook, seeking clarification on whether this pattern is driven by one-time licenses, professional services, or a ramp-up in royalties. He also inquired about the current feedback from automotive OEMs regarding the prioritization and timing of new platform development and large programs.
Answer
CFO Tim Foote explained that QNX's revenue pattern has historically been back-end loaded, with Q1 being the lowest and Q4 the highest, primarily due to the timing of design work, program starts, and development seat licenses. He noted a gradual increase in royalties as programs come online. Regarding the auto market, Tim Foote stated that while programs are coming online, they have generally 'shifted to the right,' and challenges like tariff uncertainty and software development complexity persist, though there's more certainty than at the beginning of the year. CEO John Giamatteo added that increased S&P global light vehicle production and OEMs maintaining guidance suggest stabilization after a 'pause button' in Q1.