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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 Q3 2025 Earnings: A Mixed Bag

Bridgeline Digital reported Q3 2025 revenue of $3.8 million, slightly down from $3.9 million in Q3 2024. The company's subscription revenue stood at $3.1 million (81% of total revenue), while services revenue was $700,000 (19%). Gross profit was $2.5 million with a 66% margin. The net loss widened to $800,000 compared to $300,000 in the prior year, and adjusted EBITDA turned negative to -$330,000 from +$3,000. Earnings per share (EPS) was -0.07, missing estimates of -0.05.

Publication Date: Sep -11

📋 Highlights
  • Financial Overview: Q3 2025 revenue $3.8M vs $3.9M, net loss -$800K vs -$300K, adjusted EBITDA -$330K vs $3K
  • Product Growth: Hawk Search 60% of revenue, 114% net retention, $6M year-to-date contract bookings
  • Customer Expansion: 20 new clients, 30 license sales, 60% revenue from existing customers with 60% expansion pipeline
  • Strategic Moves: Marketing spend doubled to $500K/quarter, sales cycle reduced to 112 days from 125
  • Balance Sheet: $2.1M cash, $348K debt, $16.1M assets; no customers >5% revenue in Hawk Search

Financial Performance and Valuation

The company's financial performance was mixed, with revenue decline and widening net loss. However, the stock's valuation metrics provide some insight into what's priced in. The P/S Ratio stands at 1.05, while the EV/EBITDA ratio is -8.38, indicating that the market expects improvement in earnings. The ROE and ROIC are both negative, at -25.79% and -21.51%, respectively.

Product Highlights and Customer Growth

Hawk Search, the company's core product, drove 60% of total revenue and grew at a double-digit rate. The product secured a #1 Gartner ranking in B2B search, driven by AI capabilities like Model Contacts Protocol (MCP). New clients included a Fortune 100 tech firm and a top electrical distributor. The company added 20 new customers and 30 license sales, with net revenue retention for Hawk Search hitting 114%.

Marketing Spend and Strategic Moves

The company doubled its marketing spend to $500,000 quarterly, accelerating lead generation and shortening sales cycles to 112 days. Existing customers accounted for 60% of new bookings, with expansion revenue outpacing new customer acquisition. Strategic events and partnerships, such as the Insight25 virtual summit, boosted lead quality.

Outlook and Conclusion

Thomas Windhausen, CFO, projects 2026 growth in core areas like AI and B2B search, with the next update scheduled for December 2025. The company's focus on licenses and partners handling implementation is expected to drive growth, while keeping professional services revenue flat.

3. NewsRoom

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Major International Material Handling Provider Selects HawkSearch to Enhance Search & Product Discovery

Dec -03

Source: accessnewswire.com

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HawkSearch Powers Advanced Product Discovery for National Distributor to JanSan and Food Service Professionals

Nov -11

Source: accessnewswire.com

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New Strong Sell Stocks for Oct. 31st

Oct -31

Source: zacks.com

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New Strong Sell Stocks for Oct. 22

Oct -22

Source: zacks.com

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HawkSearch Selected to Power Advanced Search Capabilities for Leading Plastics & Industrial Supplier

Oct -16

Source: accessnewswire.com

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HawkSearch Selected to Power Advanced Search for Large Healthcare Provider

Oct -07

Source: accessnewswire.com

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Major Architectural Décor Provider Selects HawkSearch to Enhance Product Discovery

Sep -17

Source: accessnewswire.com

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Unilog Partners with HawkSearch to Power Advanced Search for eCommerce

Sep -11

Source: accessnewswire.com

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: 5.9/10

Value: 4.1

Growth: 5.1

Quality: 6.0

Yield: 4.0

Momentum: 8.5

Volatility: 7.7

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EverCommerce

A-Score: 4.6/10

Value: 4.3

Growth: 7.9

Quality: 4.3

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

1-Year Total Return ->

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LiveRamp

A-Score: 4.5/10

Value: 3.2

Growth: 6.8

Quality: 6.4

Yield: 0.0

Momentum: 6.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Bridgeline Digital

A-Score: 4.5/10

Value: 8.4

Growth: 4.7

Quality: 4.9

Yield: 0.0

Momentum: 7.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
AvePoint

A-Score: 4.5/10

Value: 3.0

Growth: 6.3

Quality: 6.0

Yield: 0.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Repay

A-Score: 3.9/10

Value: 9.2

Growth: 5.1

Quality: 4.3

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

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

1.04$

Current Price

1.04$

Potential

-0.00%

Expected Cash-Flows