ONE BRICK AT A TIME

Underneath $BB sits QNX — BlackBerry's real-time operating system powering safety-critical software across cars, robotics, industrial systems, defense and the emerging world of Physical AI.

The market is only beginning to reprice what that could mean.

THE $BB THESIS

QNX is growing.

Last quarter, QNX revenue grew 26% year-over-year to $72.3M, beating BlackBerry's own expectations. BlackBerry responded by raising its full-year QNX revenue outlook to $295–312M.

This isn't just a turnaround story anymore. The business is growing again.

The margins are software margins.

QNX posted an 86% adjusted gross margin last quarter.

As more QNX-powered vehicles and machines enter production, BlackBerry collects licensing and royalty revenue on software that has already been built and integrated.

More deployments. More royalties. More operating leverage.

QNX is moving beyond cars.

Cars were the wedge.

The bigger thesis is Physical AI.

Autonomous vehicles. Robots. Industrial machines. Medical devices. Defense systems. Intelligent hardware operating in the real world.

These systems need software that is fast, deterministic, secure and safe enough to trust with physical machines.

That is exactly the problem QNX has spent decades solving.

BlackBerry is already working across the ecosystem with companies including NVIDIA, Arm, Qualcomm and Hailo.

ALLOY KORE

QNX and Vector are building Alloy Kore, a foundational software platform for software-defined vehicles.

Instead of QNX supplying only pieces of the underlying operating system, Alloy Kore lets BlackBerry move further up the software stack and capture more value per vehicle.

Mercedes-Benz is already evaluating the platform.

If major manufacturers adopt it, the amount of BlackBerry software sold into each vehicle could become materially larger.

That's one of the biggest bricks left to break.

THE NUMBERS ARE CHANGING

The old BlackBerry story was shrinking revenue and nostalgia.

The current numbers look different.

• $152.9Mquarterly revenue+26% YoY
• $72.3MQNX revenue+26% YoY
• 86%QNX adjusted gross margin
• $36.3Madjusted EBITDA+144% YoY

BlackBerry also produced its first cash-positive fiscal Q1 in nine years, excluding its prior patent sale.

The turnaround is starting to show up in the financials.

THEN THERE ARE THE SHORTS

Roughly 36.9 million BB shares were reported short as of August 14, representing approximately 6.3% of the float.

That's not GameStop-level short interest.

But it's enough to add fuel if the fundamental story continues improving and momentum returns.

WHAT COULD BREAK THE NEXT BRICK?

September 24 — Q2 earnings

• Another beat.
• Another guidance raise.
• QNX backlog growth.
• Major Physical AI deployments.
• The first meaningful Alloy Kore production win.
• A major automotive OEM adoption.
• More NVIDIA / robotics / edge-AI integration.

None of these are guaranteed.

But there are multiple shots on goal.

WHY WE'RE HERE

We aren't betting on BlackBerry making phones again.

We're betting that the market still sees too much BlackBerry...

…and not enough QNX.

A high-margin software platform already embedded deep inside the automotive industry is trying to become foundational infrastructure for software-defined vehicles and Physical AI.

If that transition works, today's BlackBerry could look very different from tomorrow's BlackBerry.

One brick at a time.