Bridgeline Digital (BLIN) Q3 2026 earnings summary

Executive summary

• Achieved record new customer wins in Q3 FY2026, with nine new customers and ten expansions, totaling $1.7M in contract value and $370K in ARR, highlighting strong sales momentum and pipeline growth.

• Core product revenue, led by HawkSearch, grew 13% year-over-year for the trailing 12 months, now representing 62% of total revenue and 66% of subscription revenue.

• HawkSearch ranked #1 for B2B search in Gartner's 2026 Critical Capabilities Report for the second consecutive year, reinforcing product leadership in complex commerce environments.

• AI-powered innovations such as Smart Search, Shopping Assistant, and Analytics Assistant are driving differentiation and customer demand, with the Aura AI Agent Platform expanding product discovery and commerce workflows.

• The company serves over 2,000 customers globally with SaaS and perpetual licensing models.

Financial highlights

• Q3 FY2026 total revenue was $3.9M, up from $3.8M year-over-year; subscription revenue steady at $3.1M, services revenue increased to $0.8M from $0.7M.

• Gross profit for Q3 was $2.5M, with a gross margin of 64% (down from 66% YoY); subscription gross margin at 69%, services at 47%.

• Net loss for Q3 FY2026 was $(0.5)M, improved from $(0.8)M YoY; nine-month net loss was $(1.0)M, improved from $(2.2)M.

• Adjusted EBITDA for Q3 FY2026 was $(0.1)M, an improvement from prior year.

• Cash and cash equivalents at quarter-end were $1.5M; total debt outstanding was $187K at 3.5% interest.

Outlook and guidance

• Core revenue is expected to exceed 70% of total revenue and 75% of subscription revenue next year, with double-digit CAGR anticipated for both core and overall revenue.

• Management anticipates continued growth in recurring revenue and customer base, supported by ongoing marketing investments and an AI-driven product roadmap.

• Company aims to remain cash neutral in 2027, balancing growth investments with cash management, and will maintain tight control over discretionary spending.