Bridgeline Digital (BLIN) Q3 2026 earnings summary

Executive summary

• Achieved record-tying nine new customer wins and 19 new subscription contracts, totaling $1.7 million in contract value and $370,000 in annual recurring revenue for Q3 FY2026.

• 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 for the second consecutive year, reinforcing product leadership in complex commerce environments.

• AI-powered marketing technology provider with SaaS and perpetual licensing models, serving over 2,000 customers globally.

Financial highlights

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

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

• Net loss for Q3 was $0.5 million, improved from $0.8 million year-over-year; nine-month net loss was $1.0 million, improved from $2.2 million.

• Adjusted EBITDA was -$102,000 for Q3, an improvement from -$330,000 in the prior year period.

• Basic and diluted loss per share was $(0.04) for the quarter and $(0.08) for the nine months.

Outlook and guidance

• Core revenue 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.

• Company aims to remain cash neutral in 2027, balancing growth investments with cash management, and does not plan to focus on bottom-line profitability in the near term.

• Management expects future revenues and cash flows to supplement working capital and support revenue growth, with tight control over discretionary spending for fiscal 2026.