Left to right: John Giamatteo, CEO of BlackBerry, and Mohamed Helmy, General Manager/Image: Provided
BlackBerry has transformed from a trailblazer in mobile device manufacturing to a prominent player in secure communications and embedded software. This transformation, guided by CEO John Giamatteo, represents a crucial shift in the company’s strategy, paving the way for sustainable growth.
“When we shifted our focus from the device market to software and services, we explored numerous avenues,” Giamatteo shared. “Over the last couple of years, we have approached our operations with thorough focus and scrutiny. We realized that various small initiatives and investments were diverting our attention. Consequently, we decided to concentrate on two primary segments: our embedded software, now referred to as the QNX division, and secure communications.”
This sharpened focus has been pivotal in BlackBerry’s resurgence. By honing in on these two areas, the company has streamlined its operations, discontinued or divested from non-essential businesses, and reduced costs by over $150 million. “We are now a more agile, focused company that is seeing growth again,” Giamatteo remarked. “In the last quarter, we experienced 3 percent growth, marking our most profitable period in years, alongside positive cash flow.”
Fostering growth via QNX and secure communications
QNX remains one of BlackBerry’s standout brands, operating in over 255 million vehicles globally, delivering real-time reliability for automotive systems. “Chances are your vehicle is powered by BlackBerry technology right now,” Giamatteo quipped. “QNX is flourishing, and our secure communications sector continues to cater to all G7 governments worldwide.”
Currently, government contracts account for approximately three-quarters of BlackBerry’s revenue, highlighting its sustained strength in critical mission environments. While QNX is expanding more rapidly than secure communications, both divisions are not only profitable but also contribute positively to cash flow. “This steadiness provides us with a robust foundation for future growth,” he added.
In the second quarter of this financial year, BlackBerry reported what Giamatteo described as a “notable turnaround.” The company experienced overall revenue growth of 3 percent, with EBITDA margins at 20 percent. The QNX division alone saw a 15 percent growth with margins exceeding 30 percent, qualifying it as a “rule-of-40 company.” In the software industry, a combined growth rate and profit margin above 40 percent signifies exceptional performance.
“The QNX sector is truly the engine driving our success,” he stated. “The secure communications side saw a steadier performance but delivered 20 percent EBITDA margins. Together, they constitute a high-performing software entity.”
Reestablishing BlackBerry’s presence in the Gulf region
Giamatteo emphasized the significance of the Gulf region in the company’s growth strategy. “One of the reasons we are participating in GITEX is to enhance our visibility,” he explained. “When you undergo a corporate reinvention, it’s vital to communicate who you are and what you’re doing. This event is perfect for that.”
BlackBerry has formed strategic partnerships in the region, including one with Midis Group, a prominent technology distributor and solutions provider. “Midis has extensive reach within the region,” noted Giamatteo. “We collaborate closely with them to deliver our products and services to customers across the Gulf.”
At GITEX 2025, the company presented its complete portfolio, emphasizing secure communications. A standout offering is the SecuSUITE product, providing encrypted voice, data, and video communications. “It encrypts voice, data, and video. We initially acquired a company that supplied hardware-based encryption via an SD card,” Giamatteo explained. “We have invested significantly to evolve that into a software-based solution, eliminating the need for hardware. Now, it operates as an app on your smartphone. Once logged in, all activities within that app are entirely encrypted.”
This solution meets NATO-certified, top-secret security classifications, thereby serving government and enterprise clients effectively. “For average users, platforms like WhatsApp or Telegram might suffice,” he noted. “However, if you are a Fortune 500 company or government, ensuring your communications are completely secure, encrypted, and managed within your own infrastructure is crucial. The data remains with the customer and never reaches us.”
SecuSUITE is among BlackBerry’s fastest-growing products, reflecting the rising global demand for reliable communication platforms amid heightened concerns over data breaches and surveillance. “We are witnessing significant interest from governments in North America, Europe, and also in the Gulf region, in addition to large banks and corporations,” he shared.
Future outlook: enlarging the embedded software ecosystem
Having completed its structural reorganization, BlackBerry’s next phase will revolve around expanding its core operations and exploring adjacent sectors that necessitate real-time operating systems. “We hold a substantial market share within the automotive sector—collaborating with every major car manufacturer,” Giamatteo stated. “Now, we are considering other verticals requiring real-time operating systems, such as robotics, industrial automation, and medical devices.”
These fields have similar requirements for reliability, precision, and performance. “Our objective is to apply the expertise we’ve garnered in the automotive sector to other industries that demand that same high reliability,” he asserted. “This is where we foresee future growth.”
For Giamatteo, BlackBerry’s transformation has demanded not just innovation but also discipline. By refocusing on secure technology and prioritizing areas where it holds a competitive edge globally, the company has regained both stability and relevance. “If it’s not about secure communications or embedded software, we won’t pursue it,” he affirmed. “That targeted approach is what propels our growth, profitability, and confidence moving forward.”