BlackBerry hits profitability milestone after 9 years

Former smartphone maker BlackBerry just hit a major milestone: positive operating cash flow for the first time in nine years. In the latest quarter, the Ontario-based company's QNX software business—which powers infotainment systems, safety controls, and industrial applications—increased revenue 26% year-over-year. The news sent BlackBerry's stock on Bay Street surging about 20% Thursday.

The company has spent years transforming away from devices into software and cybersecurity after the iPhone reshaped what smartphones could be. BlackBerry released its last native device in 2015 and its last licensed smartphone in 2018. The transition was brutal: the company risked bankruptcy, cut thousands of jobs, and burned cash for years.

QNX, an advanced software system for automotive and industrial safety, became the turnaround bet. It's widely deployed in vehicle infotainment centres and consoles—the technology behind everything from climate control to music systems. It's also gaining demand in healthcare and industrial applications, though users rarely see its name. "It's not as visible … but it's critical to establishing safety in the vehicle," according to tech analyst Crane.

For nine years, QNX cost more money than it generated. Thursday's earnings marked the inflection point: the service finally made more money than it spent.

BlackBerry's cybersecurity business has also been a steady revenue generator, including through government contracts with Canada's federal government. In March, Ottawa extended BlackBerry's contract through Shared Services Canada to secure voice, messaging, and file-sharing services for approved government users.

"I think the market is telling you that they're back," Crane said. "The public is realizing that BlackBerry is deployed in many places that you might not see as visible as a smartphone."