Bridgeline Digital (NASDAQ:BLIN) Announces Earnings Results

Bridgeline Digital (NASDAQ:BLIN) posted its quarterly earnings results on Thursday. The software maker reported ($0.03) earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.03, Zacks reports. The company had revenue of $3.87 million for the quarter, compared to the consensus estimate of $3.95 million. Bridgeline Digital had a negative return on equity of 25.79% and a negative net margin of 16.81%.

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

• HawkSearch now drives the business — the suite accounted for 58% of total revenue ($8.9M) and over 60% of subscription revenue ($7.4M), and management expects HawkSearch to represent significantly more than 60% of total revenue in FY2026.
• Strong commercial metrics — management reported 117% net revenue retention, 16% CAGR for core products, a shortened average sales cycle (160 → 92 days), and a 35% increase in average ARR per sale to $25,000.
• Product and partner momentum — Bridgeline launched six AI-driven products (e.g., SmartSearch, SmartResponse, SmartAgents, RapidUI) and opened distribution channels via Unilog and the Salesforce AppExchange to broaden the TAM and speed deal flow.
• Near-term financial constraints — Q1 revenue was flat at $3.9M, gross margin was 66%, net loss was $400k, adjusted EBITDA was -$169k, and cash was $1.6M, which could limit runway if losses persist.
• Elevated marketing push — management injected $2M of capital and doubled ad spend to $500k/quarter (total sales & marketing ≈ $1.1M/quarter) to fuel a 65% larger pipeline, but said it will reassess spend and cash at the end of FY2026.

Bridgeline Digital Stock Performance

Shares of NASDAQ:BLIN traded down $0.02 during mid-day trading on Friday, reaching $0.97. 31,427 shares of the company traded hands, compared to its average volume of 93,273. The company’s 50 day moving average price is $1.14 and its 200-day moving average price is $1.33. The firm has a market cap of $11.69 million, a PE ratio of -3.57 and a beta of 0.73. Bridgeline Digital has a 52 week low of $0.90 and a 52 week high of $2.80. The company has a debt-to-equity ratio of 0.02, a current ratio of 0.77 and a quick ratio of 0.77.

Institutional Trading of Bridgeline Digital

An institutional investor recently bought a new position in Bridgeline Digital stock. Citadel Advisors LLC purchased a new position in Bridgeline Digital, Inc. (NASDAQ:BLIN) during the third quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 31,069 shares of the software maker’s stock, valued at approximately $41,000. Citadel Advisors LLC owned approximately 0.26% of Bridgeline Digital at the end of the most recent quarter. Hedge funds and other institutional investors own 15.08% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on BLIN. Westpark Capital reaffirmed a “buy” rating and issued a $4.62 target price on shares of Bridgeline Digital in a report on Friday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Bridgeline Digital in a report on Wednesday, October 8th. Finally, Zacks Research upgraded shares of Bridgeline Digital from a “strong sell” rating to a “hold” rating in a research note on Wednesday, November 19th. One equities research 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’s stock. Based on data from MarketBeat.com, Bridgeline Digital presently has a consensus rating of “Hold” and a consensus price target of $4.62.

Bridgeline Digital Company Profile

Bridgeline Digital, Inc operates as a marketing technology company in the United States, Canada, and internationally. The company offers HawkSearch, a site search, recommendation, and personalization application for marketers, merchandisers, and developers; Celebros Search, a commerce-oriented site search product that provides natural language processing with artificial intelligence; and Woorank, a Search Engine Optimization (SEO) audit tool that generates an instant performance audit of the site's technical, on-page, and off-page SEO.