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1. Company Snapshot

1.a. Company Description

Bridgeline Digital, Inc.operates as a digital engagement company in the United States.The company's Bridgeline's Unbound platform enables companies and developers to create websites, web applications, and online stores.


It offers Bridgeline Unbound Experience Manager, a marketing automation engine and content management system; Bridgeline Unbound Content Manager that enables non-technical users to create, edit, and publish content via a browser-based interface; and Bridgeline Unbound Commerce, an online B2B and B2C commerce solution that allows users to manage domestic and international commerce initiatives.The company also provides Bridgeline Unbound Marketing, an online marketing management solution that helps marketers drive to their sites through personalized and targeted marketing automation flows; and Bridgeline Unbound Insights to manage, measure, and optimize web properties by recording detailed events and mining data for statistical analysis.In addition, it offers Bridgeline Unbound Social, a social media management solution that empowers customers to set up customized watch lists; and Bridgeline Unbound Franchises, a web content management and e-commerce platform to multi-unit organizations and franchises.


Further, the company provides digital strategy, web design and development, usability engineering, information architecture, and search engine optimization services; application monitoring, emergency response, version control, load balancing, managed firewall security, and virus protection services; and shared, dedicated, and Software as a Service hosting services.Further, it offers OrchestraCMS by Bridgeline and Celebros Search by Bridgeline digital solutions.It serves vertical markets, such as financial services, retail brand names, health services and life sciences, technology, credit unions and regional banks, and associations and foundations through its direct sales force.


The company was formerly known as Bridgeline Software, Inc.Bridgeline Digital, Inc.was founded in 2000 and is based in Burlington, Massachusetts.

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1.b. Last Insights on BLIN

Bridgeline Digital's recent performance was driven by a series of positive developments. The company's AI-powered marketing technology solutions continue to gain traction, with several notable implementations and partnerships announced in the past quarter. Notably, an industrial distributor launched HawkSearch to power advanced B2B product discovery, while a global technology provider selected HawkSearch to power its mobile commerce platform. Additionally, a major North American distributor chose HawkSearch to unify product discovery across four eCommerce sites. These partnerships underscore Bridgeline's expertise in AI-driven marketing technology and its ability to deliver innovative solutions to its clients. Furthermore, the company's HawkSearch technology has been integrated with Optimizely X-Connect, enabling faster and smarter search across thousands of SKUs.

1.c. Company Highlights

2. Bridgeline's Q1 2026 Earnings: A Strong Start with Revenue Growth and Improved Profitability

Bridgeline's financial performance in the first quarter of 2026 was marked by revenue growth and improved profitability. Total revenue for the quarter ended December 31, 2025, was $3.9 million, up from $3.8 million in the prior year period. Subscription revenue, which accounted for 81% of total revenue, was $3.2 million. The company's gross profit was $2.6 million, with a gross profit percentage of 66%. Adjusted EBITDA was a positive $122,000, compared to a negative $193,000 in the prior year period. Earnings per share (EPS) came in at $0.00627, beating estimates of -$0.01.

Publication Date: 08:59

📋 Highlights
  • Core Product Growth:: HawkSearch Suite and AI products drove 17% growth to $2M in revenue, representing 63% of subscription revenue.
  • Revenue Retention:: Net revenue retention reached 107%, reflecting strong customer investment in subscriptions and add-ons.
  • Financial Performance:: Total revenue rose to $3.9M (vs. $3.8M prior year), with subscription revenue at $3.2M (81% of total) and positive adjusted EBITDA of $122K (vs. -$193K previously).
  • New Product Launches:: Spark (UX platform) and HawkSearch Advanced Analytics API were introduced to enhance customer satisfaction and revenue potential.
  • Gross Margin Guidance:: Combined service and subscription margins projected at 65-67%, with subscription margins at ~70% and professional services at ~53%.

Revenue Growth Drivers

The growth in revenue was driven by the company's core products, particularly the HawkSearch Suite and AI products. The net revenue retention rate was 107%, indicating a strong ability to retain and expand existing customer relationships. HawkSearch revenue grew 17% to $2 million, representing 63% of subscription revenue. New customer wins, including a national closeout retailer and a leading US distributor of specialty lighting products, also contributed to the revenue growth.

Product Innovation and Pipeline

Bridgeline continued to invest in product innovation, releasing new products such as Spark, a user experience platform for administrators, and HawkSearch advanced analytics API. These products are designed to drive revenue growth and improve customer satisfaction. The company's pipeline of new products and its potential for growth in the B2B manufacturing and distribution market are expected to drive future growth.

Valuation and Growth Expectations

With a P/S Ratio of 0.69, the market is pricing in moderate growth expectations. Analysts estimate revenue growth at 21.1% for the next year. Given the company's current valuation and growth prospects, it is essential to monitor the company's ability to execute on its product innovation and customer success strategies. The EV/EBITDA ratio of -7.13 suggests that the market is cautious about the company's profitability, but the positive adjusted EBITDA in the current quarter is a positive sign.

Gross Margin Expectations

Management expects the combined margin of services and subscriptions to remain in the mid-60s (65-67%). The breakdown of gross margin by line item indicates that professional services gross margin will be around 53%, while subscription gross margin will be around 70%. This is due to the increased value of services, particularly in the context of AI initiatives, and the dominance of hosting costs in subscription margins. As per Ari Kahn, "the increased value of services, especially in the context of AI initiatives, and the dominance of hosting costs in subscription margins" will drive gross margin.

3. NewsRoom

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Info-Tech Research Group Names Bridgeline's HawkSearch a Leader in Enterprise Search

Feb -25

Source: accessnewswire.com

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Bridgeline Digital, Inc. (BLIN) Q1 2026 Earnings Call Transcript

Feb -13

Source: seekingalpha.com

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Bridgeline Announces Financial Results for the First Quarter of Fiscal 2026

Feb -12

Source: accessnewswire.com

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Bridgeline to Report Financial Results for the First Quarter of Fiscal 2026

Feb -11

Source: accessnewswire.com

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Industrial Supplier Strengthens eCommerce Performance with HawkSearch

Feb -11

Source: accessnewswire.com

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Bridgeline Launches HawkSearch Multi-Site Product Discovery for Wholesale Supplier

Feb -05

Source: accessnewswire.com

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Bridgeline Digital (BLIN) Projected to Post Quarterly Earnings on Thursday

Feb -05

Source: defenseworld.net

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Head-To-Head Review: Bridgeline Digital (NASDAQ:BLIN) and Viewtran Group (OTCMKTS:VIEWF)

Jan -20

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.12%)

6. Segments

Subscription

Expected Growth: 1.2%

Bridgeline Digital's subscription growth of 1.2 is driven by increasing adoption of its digital experience platform, iAPPS, among mid-market and enterprise customers. Key drivers include rising demand for cloud-based solutions, expansion into new industries, and strategic partnerships. Additionally, the company's focus on customer success and retention has led to high renewal rates, contributing to sustained growth.

Digital Engagement Services

Expected Growth: 0.8%

Bridgeline Digital's Digital Engagement Services growth is driven by increasing demand for personalized customer experiences, adoption of AI-powered chatbots, and rising need for omnichannel engagement. Additionally, the shift towards digital transformation and cloud-based solutions, as well as the company's strategic partnerships and innovative product offerings, contribute to its 0.8 growth rate.

Hosting

Expected Growth: 1.5%

Bridgeline Digital's 1.5x growth in hosting is driven by increasing adoption of cloud-based solutions, rising demand for digital transformation, and strategic partnerships. Additionally, the company's focus on providing scalable and secure hosting services, coupled with its expertise in iAPPS platform, has enabled it to capitalize on the growing need for online presence and e-commerce enablement.

Maintenance

Expected Growth: 0.9%

Bridgeline Digital's Maintenance segment growth of 0.9 is driven by increasing adoption of its iAPPS platform, expansion of existing customer relationships, and a growing need for digital transformation among mid-market and enterprise customers, resulting in higher recurring revenue from maintenance and support services.

7. Detailed Products

Celebros Search

An AI-powered search solution that provides accurate and relevant search results, enhancing customer experience and increasing conversions.

Bridgeline Unbound

A headless CMS that enables businesses to create, manage, and deliver content across multiple channels and devices.

Bridgeline Insights

A data analytics platform that provides actionable insights, enabling businesses to make data-driven decisions and optimize their operations.

Bridgeline Commerce

An e-commerce platform that enables businesses to create and manage online stores, providing a seamless shopping experience to customers.

8. Bridgeline Digital, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bridgeline Digital, Inc. operates in a niche market, providing digital experience platform solutions, which reduces the threat of substitutes. However, the presence of open-source alternatives and custom-built solutions poses some threat.

Bargaining Power Of Customers

Bridgeline Digital, Inc.'s customers are primarily mid-sized to large enterprises, which reduces their bargaining power. The company's solutions are often customized, making it difficult for customers to switch providers.

Bargaining Power Of Suppliers

Bridgeline Digital, Inc. has a diversified supplier base, reducing dependence on any single supplier. The company's technology stack is primarily based on open-source and proprietary technologies, reducing the bargaining power of suppliers.

Threat Of New Entrants

While there are barriers to entry in the digital experience platform market, new entrants can still disrupt the market with innovative solutions. Bridgeline Digital, Inc.'s established customer base and partnerships provide some protection against new entrants.

Intensity Of Rivalry

The digital experience platform market is highly competitive, with established players like Adobe, Salesforce, and Sitecore. Bridgeline Digital, Inc. faces intense competition, which can lead to pricing pressure and higher marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 8.69%
Debt Cost 3.95%
Equity Weight 91.31%
Equity Cost 14.25%
WACC 13.35%
Leverage 9.52%

11. Quality Control: Bridgeline Digital, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CSG Systems

A-Score: 6.0/10

Value: 4.1

Growth: 5.1

Quality: 6.0

Yield: 4.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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LiveRamp

A-Score: 4.6/10

Value: 3.4

Growth: 6.8

Quality: 6.9

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

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EverCommerce

A-Score: 4.1/10

Value: 4.4

Growth: 7.9

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

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Repay

A-Score: 3.8/10

Value: 9.4

Growth: 5.1

Quality: 4.5

Yield: 0.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Bridgeline Digital

A-Score: 3.5/10

Value: 9.2

Growth: 2.0

Quality: 4.9

Yield: 0.0

Momentum: 2.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
AvePoint

A-Score: 3.4/10

Value: 0.7

Growth: 6.3

Quality: 6.2

Yield: 0.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.87$

Current Price

0.87$

Potential

-0.00%

Expected Cash-Flows