BlackBerry said the win adds more than $100 million to QNX’s estimated future royalty backlog.
- BlackBerry stock neared a one-month high after Coretura, founded by Daimler Truck and Volvo Group, selected Alloy Kore for its commercial vehicle platform.
- The selection is Alloy Kore’s first design win and the largest in QNX history.
- BlackBerry reports earnings Thursday and RBC Capital says investors will watch for more Alloy Kore wins and momentum in physical AI and GEM.
BlackBerry shares (BB) hit nearly a one-month high on Tuesday after Coretura, the commercial vehicle software venture founded by Daimler Truck and Volvo Group, selected QNX’s Alloy Kore platform, marking the product’s first design win ahead of Thursday’s earnings report.
BB stock rose 1% on Monday to close at $8.62, logging its fourth straight session in the green.
BlackBerry Lands Its Biggest QNX Design Win Yet
Coretura chose Alloy Kore as the safety-certified software foundation for a platform intended to serve next-generation commercial vehicles. It will use the Vector Distribution, which pairs the platform developed by QNX and Vector with Vector’s middleware and integration tools.
BlackBerry said the Coretura program adds more than $100 million to QNX’s royalty backlog and is the largest design win in QNX history. The aim is to give vehicle makers a common base for essential software functions, reducing the work required to connect separate systems while leaving manufacturers free to develop their own applications.
“We are building one foundation the industry can rely on, so our customers can concentrate their engineering on the applications that bring value to theirs,” Coretura CEO Johan Lunden said. He said the platform could help deliver commercial vehicles that become “smarter, safer and more valuable long after launch.”
The more than $100 million is an estimate of future variable royalties based on projected vehicle volumes and royalty rates. It is not revenue BlackBerry has already booked. Actual revenue will depend on production volumes and could change if the customer program is modified or terminated, BlackBerry said in a regulatory filing.
Earlier this month, BlackBerry expanded its focus for BlackBerry Radar, a platform that helps fleet operators use equipment data to prioritize inspections, maintenance and other operational decisions. Radar addresses fleet operations, while Alloy Kore supplies foundational software for vehicles - both show how BlackBerry is seeking a larger role in the transportation industry.
BB Earnings Preview
BlackBerry is scheduled to report second-quarter results on Thursday. Sequentially, Koyfin estimates revenue of $145.53 million, down 5% from a quarter ago. It projects EBITDA of $27.47 million, down 24%, and adjusted earnings per share of $0.04, roughly flat.
On an annual basis, Fiscal AI estimates revenue of $143.3 million, up about 18% from $121.27 million a year earlier. Its EBITDA estimate of $27 million compares with $12 million last year, while its EPS forecast of $0.04 compares with $0.01.
RBC Capital maintained a ‘Sector Perform’ rating and a $9 price target, implying about a 4% upside from current levels. The firm sees a chance that revenue will slightly exceed consensus and that EBITDA and EPS will beat expectations. It said investor sentiment around the quarter would hinge partly on the timing of further Alloy Kore design wins, as well as momentum in physical AI and GEM.
How Do Retail Traders Feel About BB?
On Stocktwits, retail sentiment for BB jumped to ‘extremely bullish’ from ‘neutral’ levels a week ago amid a 31% rise in message volumes over the same period.
One user said, “$BB Today was the first day in 13 years of holding BlackBerry that the company actually made an announcement with revenue attached to it. Brighter days ahead along with higher revenues.”
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Another user said, “$BB Forget where the price is. Blackberry brought it again. Adding $100 million and providing proof rather than fluff. Substance over speculation. Real world products that touch everything and everyone. That's my Blackberry.”
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BB stock has jumped 127% year-to-date.
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