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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 Digital's Q4 Fiscal 2025 Earnings: A Strong Performance

Bridgeline Digital reported total revenue of $3.9 million for Q4 fiscal 2025, with subscription revenue accounting for $3.1 million and services revenue at $700,000. The company's gross profit was $2.5 million, with an overall gross profit margin of 66%. The net loss was $400,000, and adjusted EBITDA was minus $169,000. The actual EPS loss came in at $-0.03, beating estimates of $-0.06. The company's core products, led by HawkSearch Suite and its AI products, continued to drive growth, reaching 58% of total revenue.

Publication Date: Dec -23

📋 Highlights
  • Core Products Dominance:: HawkSearch Suite and AI products accounted for 58% of total revenue ($8.9M) and over 60% of subscription revenue ($7.4M) with 75% gross margin.
  • Strong Sales Efficiency:: Average sales cycle reduced from 160 to 92 days, with average ARR per sale rising 35% to $25,000, and 16% CAGR in core products.
  • Revenue Growth & Retention:: Fiscal 2025 saw 83 licenses sold ($6.9M TCV, $2.4M ARR), an 18% increase over 2024, alongside 117% net revenue retention.
  • Strategic Partnerships:: New integrations with Salesforce AppExchange and Unilog, targeting B2B manufacturing/distribution, show early traction with pipeline expansion.
  • Financial & Operational Momentum:: 65% larger 2026 sales pipeline, $1.6M cash balance, and Gartner recognition highlight growth potential despite $400K net loss and -$169K adjusted EBITDA.

Core Products Drive Growth

The company's core products achieved 117% net revenue retention and 16% CAGR, with HawkSearch's average sales cycle reducing from 160 days to 92 days, and average ARR per sale growing by 35% to $25,000. The company sold 83 licenses in fiscal 2025, with a total contract value of $6.9 million and ARR of $2.4 million, an 18% increase over fiscal 2024. The integration of HawkSearch with Salesforce AppExchange is gaining traction, and the partnership with Unilog is expected to be impactful.

Sales and Marketing Strategy

The company's sales and marketing spend was $1.1 million in the September quarter, which is expected to be the rate moving forward. The company has a sales team structure that includes 2 BDRs, 2 BDEs, and a VP of Sales, as well as a customer success team. The company feels good about its current investment in sales and plans to reevaluate the spend level at the end of 2026. Analysts estimate next year's revenue growth at 19.0%, indicating a positive outlook for the company.

Valuation Metrics

Looking at the company's valuation metrics, the P/S Ratio is 0.77, indicating that the stock may be reasonably valued. The EV/EBITDA ratio is -5.96, which is expected given the company's current loss-making position. The ROE is -25.79%, and the ROIC is -21.51%, reflecting the company's current investment phase. As the company grows and becomes profitable, these metrics are expected to improve.

3. NewsRoom

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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

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Bridgeline Digital (NASDAQ:BLIN) Stock Price Passes Below 200-Day Moving Average – Here’s Why

Jan -14

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

0.92$

Current Price

0.92$

Potential

-0.00%

Expected Cash-Flows