Bridgeline Digital (NASDAQ:BLIN) Posts Earnings Results, Beats Estimates By $0.03 EPS

Bridgeline Digital (NASDAQ:BLIN) issued its quarterly earnings results on Thursday. The software maker reported ($0.03) EPS for the quarter, beating 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 net margin of 16.37% and a negative return on equity of 25.11%.

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 Down 2.5%

Shares of NASDAQ:BLIN opened at $0.96 on Friday. The business’s 50 day moving average is $1.13 and its 200 day moving average is $1.33. The stock has a market cap of $11.57 million, a P/E ratio of -3.68 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 quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 0.02.

Hedge Funds Weigh In On Bridgeline Digital

An institutional investor recently bought a new position in Bridgeline Digital stock. Citadel Advisors LLC acquired a new stake in shares of Bridgeline Digital, Inc. (NASDAQ:BLIN) during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 31,069 shares of the software maker’s stock, valued at approximately $41,000. Citadel Advisors LLC owned 0.26% of Bridgeline Digital as of its most recent SEC filing. 15.08% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on BLIN. Zacks Research raised Bridgeline Digital from a “strong sell” rating to a “hold” rating in a research note on Wednesday, November 19th. Weiss Ratings restated a “sell (d-)” rating on shares of Bridgeline Digital in a report on Wednesday, October 8th. Finally, Westpark Capital reaffirmed a “buy” rating and issued a $4.62 price objective on shares of Bridgeline Digital in a research report on Friday. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $4.62.

About Bridgeline Digital

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.