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BlackLine
(NASDAQ:BL)
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Rating:60Neutral
Price Target:
$27.00
▼(-14.31% Downside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by solid cash generation and high gross margins, alongside an upbeat outlook and raised FY2026 guidance. Offsetting these positives are a debt-heavy balance sheet, a weak technical trend (price below major moving averages with negative MACD), and a high P/E that limits valuation support.
Positive Factors
Strong free cash flow
Sustained free cash flow (~$165M TTM) provides durable financial flexibility: it funds R&D and AI investments, supports debt paydown or buybacks, and cushions operating volatility. Reliable cash conversion underpins reinvestment and capital allocation over the next several quarters.
Negative Factors
Elevated leverage
A debt-heavy capital structure (debt/equity ~2.25) constrains financial flexibility and increases interest/covenant sensitivity. High leverage reduces ability to fund opportunistic M&A or large buybacks and raises refinancing risk if earnings remain volatile over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained free cash flow (~$165M TTM) provides durable financial flexibility: it funds R&D and AI investments, supports debt paydown or buybacks, and cushions operating volatility. Reliable cash conversion underpins reinvestment and capital allocation over the next several quarters.
Read all positive factors
BlackLine Key Performance Indicators (KPIs)
Any
Revenue by Geography
Reveals how revenue is distributed across domestic and international markets, helping investors assess potential for overseas expansion, regulatory or macro risks, and whether growth is broad-based or tied to a few key regions.
Reveals how revenue is distributed across domestic and international markets, helping investors assess potential for overseas expansion, regulatory or macro risks, and whether growth is broad-based or tied to a few key regions.
Data provided by:
The Fly
The FlyBlackLine (BL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.75B
Dividend YieldN/A
Average Volume (3M)1.53M
Price to Earnings (P/E)68.2
Beta (1Y)0.73
Revenue Growth8.12%
EPS Growth-82.54%
CountryUS
Employees1,843
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.44
Shares Outstanding58,660,915
10 Day Avg. Volume1,362,506
30 Day Avg. Volume1,534,528
Financial Highlights & Ratios
PEG Ratio-1.63
Price to Book (P/B)9.92
Price to Sales (P/S)4.71
P/FCF Ratio20.42
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue2.82
Enterprise Value/Gross Profit3.74
Enterprise Value/Ebitda19.14
Forecast
1Y Price Target
$41.33Price Target Upside31.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.48
Revenue Forecast (FY)$766.83M
BlackLine Business Overview & Revenue Model
Company Description
BlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations in the United States and internationally. It offers financial close and consolidation solutions, such as account reconciliations that provi...
How the Company Makes Money
BlackLine primarily makes money by selling access to its cloud software platform on a subscription basis (software-as-a-service). Customers pay recurring fees to use BlackLine’s applications/modules—often packaged or sold as product suites—aimed a...
BlackLine Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line growth, improving profitability, meaningful AI-driven product adoption, larger deal sizes, and expanding RPO—demonstrating clear momentum behind the platform and Verity agent strategy. Key operational highlights include strong gross and operating margins, rising strategic product mix, and measurable AI-driven customer outcomes. Headwinds exist from lower mid-market churn, lumpy platform migration cadence, limited near-term consumption revenue, modest FX and timing items, and regional geopolitical uncertainties; however, management has baked these factors into guidance and provided a credible path to higher platform penetration and margins. Overall, the positive operational and commercial trends significantly outweigh the contained headwinds.Positive Updates
Revenue Growth and ARR Expansion
Total revenue of $183 million, up 10% year-over-year; ARR reached $712 million, up 9% year-over-year, reflecting continued bookings momentum.
Negative Updates
Lower Mid-Market Churn Headwind
Lower mid-market churn continued to weigh on overall renewal metrics; revenue renewal rate was 93% with enterprise renewals at 96%; management expects this headwind to diminish as the at-risk pool is finite and shrinking but it is baked into guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and ARR Expansion
Total revenue of $183 million, up 10% year-over-year; ARR reached $712 million, up 9% year-over-year, reflecting continued bookings momentum.
Read all positive updates
Company Guidance
BlackLine guided Q2 GAAP revenue of $186–188M (up 8.1%–9.3%), non‑GAAP operating margin of 21.5%–22.5%, and non‑GAAP net income of $40–42M (EPS $0.57–$0.59) on roughly 73.3M diluted shares; for full‑year 2026 it now expects GAAP revenue of $765–769M (up 9.2%–9.8%), non‑GAAP operating margin of 24%–24.5%, and non‑GAAP net income of $174–182M (EPS $2.42–$2.53) on about 74.4M diluted shares. Management said the outlook reflects continued revenue acceleration, includes a nominal amount of consumption revenue, factors a modest FX headwind of ~$1–2M for the balance of the year, notes Q1 contained a ~$1M one‑time benefit, and reiterated that at least 50% of ARR exiting 2026 is expected to be non‑seat‑based.BlackLine Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
45
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 716.65M | 700.43M | 653.34M | 590.00M | 522.94M | 425.71M |
| Gross Profit | 539.92M | 526.78M | 491.37M | 443.20M | 393.55M | 327.83M |
| EBITDA | 105.41M | 105.57M | 183.80M | 116.51M | 1.25M | -10.79M |
| Net Income | 26.59M | 24.52M | 161.17M | 52.83M | -29.39M | -115.16M |
Balance Sheet | ||||||
| Total Assets | 1.46B | 1.76B | 1.83B | 2.10B | 1.94B | 1.82B |
| Cash, Cash Equivalents and Short-Term Investments | 525.07M | 778.21M | 885.91M | 1.20B | 1.08B | 1.20B |
| Total Debt | 687.32M | 940.26M | 916.60M | 1.41B | 1.40B | 1.13B |
| Total Liabilities | 1.12B | 1.39B | 1.34B | 1.81B | 1.81B | 1.46B |
| Stockholders Equity | 305.95M | 332.33M | 446.67M | 260.88M | 111.87M | 325.04M |
Cash Flow | ||||||
| Free Cash Flow | 152.63M | 161.49M | 188.71M | 99.02M | 25.83M | 56.83M |
| Operating Cash Flow | 169.12M | 169.57M | 190.84M | 126.61M | 56.01M | 80.09M |
| Investing Cash Flow | 70.63M | -425.29M | 924.44M | -62.48M | -395.62M | -506.94M |
| Financing Cash Flow | -476.83M | -240.11M | -500.14M | 6.15M | 1.44M | 599.24M |
BlackLine Technical Analysis
Neutral
31.51
Price Trends
29.00
Positive
32.53
Negative
43.28
Negative
Market Momentum
-0.15
Negative
57.57
Neutral
87.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BL, the sentiment is Neutral. The current price of 31.51 is above the 20-day moving average (MA) of 27.90, above the 50-day MA of 29.00, and below the 200-day MA of 43.28, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 57.57 is Neutral, neither overbought nor oversold. The STOCH value of 87.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BL.
BlackLine Risk Analysis
BlackLine disclosed 55 risk factors in its most recent earnings report. BlackLine reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BlackLine Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.11B | -55.90 | -8.92% | ― | 15.90% | -91.64% | |
67 Neutral | $1.94B | 136.54 | 1.29% | ― | 9.58% | ― | |
62 Neutral | $881.21M | 7.65 | 8.36% | ― | 3.64% | 230.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.75B | 68.17 | 7.70% | ― | 8.12% | -82.54% | |
58 Neutral | $1.69B | -10.63 | -92.84% | ― | 9.47% | 31.43% | |
47 Neutral | $383.05M | -0.12 | -171.94% | 8.12% | -3.15% | -6679.57% |
* Technology Sector Average
BL
BlackLine
29.88
-27.28
-47.73%
GTM
ZoomInfo Technologies
2.99
-7.05
-70.22%
NCNO
nCino
17.75
-11.05
-38.37%
ASAN
Asana
7.34
-6.93
-48.56%
ALIT
Alight
14.26
-101.08
-87.64%
INTA
Intapp
27.39
-20.53
-42.84%
BlackLine Corporate Events
Executive/Board ChangesShareholder Meetings
BlackLine Shareholders Approve Board Declassification and Elections
Positive
May 8, 2026
BlackLine held its 2026 annual meeting of stockholders on May 7, 2026, as a virtual webcast, with 52,859,537 shares represented, constituting a quorum. Stockholders elected Class I directors Scott Davidson, David Henshall, and Therese Tucker to te...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.