Bridgeline Digital (NASDAQ:BLIN) Announces Quarterly Earnings Results

by · The Markets Daily

Bridgeline Digital (NASDAQ:BLIN – Get Free Report) issued its quarterly earnings data on Thursday. The software maker reported ($0.04) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.02), FiscalAI reports. Bridgeline Digital had a negative net margin of 10.75% and a negative return on equity of 17.46%. The company had revenue of $3.92 million for the quarter, compared to the consensus estimate of $4.70 million.

Here are the key takeaways from Bridgeline Digital’s conference call:

  • Core momentum remained strong: Bridgeline tied its record with nine new customer wins, signed 19 subscription contracts worth $1.7 million in total contract value, and generated more than $370,000 in new ARR. Core net revenue retention was 106%, while Core revenue grew 13% over the trailing 12 months.
  • HawkSearch continues to gain traction in complex B2B and B2C commerce, including deployments involving large catalogs, multiple sites, and wholesale distribution networks. The product was ranked number one for the B2B search use case in Gartner’s 2026 critical capabilities report for the second consecutive year.
  • Financial performance improved on the bottom line but overall growth was modest: revenue rose to $3.9 million from $3.8 million, adjusted EBITDA improved to negative $102,000 from negative $330,000, and net loss narrowed to $500,000 from $800,000. Gross margin declined to 46% from the prior year’s roughly 49%.
  • Management expects to remain approximately cash neutral in fiscal 2027, with some quarters potentially modestly negative, while continuing to prioritize growth investments over near-term profitability. Cash was $1.5 million at quarter-end, and management said it intends to avoid a non-accretive capital raise while maintaining current quarterly lead-generation spending of about $350,000.
  • Management expects Core products to exceed 70% of total revenue and 75% of subscription revenue next year as Legacy products decline. It believes this mix shift, combined with continued double-digit Core growth, could make Bridgeline’s overall valuation more comparable to that of a focused software company.

Bridgeline Digital Stock Performance

NASDAQ BLIN traded up $0.01 on Thursday, reaching $1.10. 130,340 shares of the company’s stock traded hands, compared to its average volume of 66,178. The firm has a market cap of $13.86 million, a price-to-earnings ratio of -7.33 and a beta of 0.95. The stock has a 50 day moving average price of $1.15 and a 200-day moving average price of $0.99. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.67 and a current ratio of 0.67. Bridgeline Digital has a fifty-two week low of $0.69 and a fifty-two week high of $1.62.

Hedge Funds Weigh In On Bridgeline Digital

Several large investors have recently made changes to their positions in the company. Citadel Advisors LLC acquired a new stake in shares of Bridgeline Digital during the 3rd quarter valued at about $41,000. DRW Securities LLC acquired a new stake in shares of Bridgeline Digital in the fourth quarter valued at about $45,000. Finally, Lido Advisors LLC purchased a new stake in shares of Bridgeline Digital during the fourth quarter worth about $48,000. 15.08% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of Bridgeline Digital in a research note on Monday, July 13th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Bridgeline Digital presently has an average rating of “Hold” and an average price target of $4.62.

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About Bridgeline Digital

(Get Free Report)

Bridgeline Digital, Inc is a software-as-a-service company that delivers digital experience management solutions to mid-market and enterprise organizations. The company’s core offering, the LX Platform, integrates content management, e-commerce, customer portals and digital marketing tools into a unified cloud-based environment. Bridgeline’s platform is designed to help businesses streamline the delivery of personalized content and commerce capabilities across web, mobile and other channels.

The LX Platform features modules for web content creation, online storefront management, customer self-service portals and marketing automation.

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