BlackLine (BL) investor relations material

Executive summary

• Revenue for Q2 2026 grew 9.2% year-over-year to $187.8M–$188M, driven by AI adoption, platform pricing, and new customer bookings.

• Non-GAAP operating margin reached 23.3%, with non-GAAP net income of $42.9M and GAAP net income of $16.5M.

• Free cash flow for Q2 was $36.5M–$37M; trailing twelve months free cash flow was $149M.

• AI and platform offerings are driving longer deal cycles but larger, multi-year contracts and rapid adoption among enterprise customers.

• Customer base reached 4,260, with a focus on enterprise and mega-enterprise segments and a marginal decline in total customer count.

Financial highlights

• Total revenue: $187.8M–$188M, up 9–9.2% year-over-year; ARR reached $719M, up 6%.

• Non-GAAP gross margin was 80.4%; GAAP gross margin was 76.0%.

• Non-GAAP net income: $42.9M ($0.61/share); GAAP net income: $16.5M ($0.27/share).

• Operating cash flow: $45M; free cash flow: $36.5M.

• Dollar-based net revenue retention: 102–102.4%.

Outlook and guidance

• Q3 2026 GAAP revenue guidance: $193M–$195M; non-GAAP operating margin: 24.5–25.5%.

• FY 2026 GAAP revenue guidance: $765M–$769M; non-GAAP operating margin: 24.1–24.6%.

• FY 2026 non-GAAP net income: $177M–$182M ($2.47–$2.54/share).

• Target model projects 13–16% revenue growth and 26–30% operating margin over 3–5 years.

• Management expects continued focus on higher-quality, long-term revenue through enterprise customer prioritization.