BlackLine (BL) AI Stock Analysis

• Market Cap: $2.67B
• Dividend Yield: N/A
• Average Volume (3M): 782.54K
• Price to Earnings (P/E): 41.0
• Beta (1Y): 0.95
• Revenue Growth: 7.36%
• EPS Growth: -40.62%
• Country: US
• Employees: 1,830
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.51
• Shares Outstanding: 59,486,668
• 10 Day Avg. Volume: 1,157,488
• 30 Day Avg. Volume: 782,542
• PEG Ratio: 0.12
• Price to Book (P/B): 8.45
• Price to Sales (P/S): 5.78
• P/FCF Ratio: 20.00
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 4.77
• Enterprise Value/Gross Profit: 6.34
• Enterprise Value/Ebitda: 30.71
• 1Y Price Target: $58.70
• Price Target Upside: 30.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $49.00 ▲(9.18% Upside)

The score is primarily supported by improving profitability, strong gross margins, and solid free cash flow, plus constructive guidance and booking momentum. Offsetting factors are weak technical trend signals, premium valuation (high P/E with no dividend support), and added uncertainty from the activist board challenge.

Positive Factors

High gross margins and strong free cash flow

Sustained gross margins (consistently above 75% per income statement) and solid free cash flow provide durable operating leverage. This supports ongoing R&D, platform investment, and debt servicing, improving long-term resilience and optionality even through economic cycles.

Recurring SaaS model with accelerating enterprise bookings

A subscription-based recurring revenue model combined with a sharp increase in new enterprise bookings and much larger deal sizes improves revenue visibility and customer lifetime value. Larger enterprise deals create stickier relationships and greater upsell potential, supporting durable growth.

Product and geographic expansion, AI integration, and partner wins

Strategic moves—AI agent acquisition, local cloud region with Google Cloud, and partner-led enterprise wins—strengthen product differentiation, compliance/localization and go-to-market reach. These structural enhancements boost platform competitiveness and long-term addressable market expansion.

Negative Factors

High leverage on the balance sheet

Material reliance on debt increases financial risk and limits capital flexibility for organic investment, M&A, or shareholder returns. In adverse macro conditions higher leverage raises refinancing and interest exposure, constraining strategic choices over the medium term.

User attrition and planned churn from strategic deemphasis

Automation-driven user attrition and deliberate exits from lower-margin segments reduce net revenue retention and customer diversification. This structural churn requires sustained new bookings and upsells to offset lost recurring revenue and can depress growth durability until replacement rates normalize.

Activist nomination and board governance uncertainty

An activist nomination creates governance uncertainty and potential strategic disruption. Proxy contests can distract management, slow execution of medium-term initiatives, and introduce the prospect of strategic alternatives, which may delay consistent long-term value creation.

BlackLine Business Overview & Revenue Model

Company Description

BlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations worldwide. It offers financial close management solutions, such as account reconciliations that provides a centralized workspace for users to collaborate on account reconciliations; transaction matching that analyzes and reconciles high volumes of individual transactions; and task management to create and manage processes and task lists. The company's financial close management solutions also include journal entry that allows users to generate, review, and post manual journal entries; variance analysis that monitors and identifies anomalous fluctuations in balance sheet and income statement account balances; consolidation integrity manager that manages the automated system-to-system tie-out process that occurs during the consolidation phase of the financial close; and compliance, an integrated solution that facilitates compliance-related initiatives, consolidates project management, and provides visibility over control self-assessments and testing. In addition, it offers accounts receivable automation solutions, which include cash application, credit and risk management, collections management, disputes and deductions, team and task management, and AR intelligence solutions. Further, the company provides intercompany workflow that stores permissions by entity and transaction type thereby ensuring both the initiator and the approver of the intercompany transaction are authorized to conduct business; intercompany processing, which records an organization's intercompany transactions; and netting and settlement that generates a real-time settlement matrix, which shows the balance of transactions. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises, and mid-market companies across various industries. BlackLine, Inc. was incorporated in 2001 and is headquartered in Woodland Hills, California.

How the Company Makes Money

BlackLine generates revenue primarily through subscription fees for its software-as-a-service (SaaS) offerings. The company operates on a recurring revenue model, wherein clients pay for access to its platform on an annual or multi-year basis. Key revenue streams include subscription revenues from its various products, such as BlackLine Financial Close, BlackLine Account Reconciliations, and BlackLine Intercompany Hub. Additionally, BlackLine may earn revenue from professional services related to implementation, training, and support. Strategic partnerships with other technology and consulting firms further enhance its market reach and contribute to its earnings.

BlackLine Financial Statement Overview

Summary

Strong gross margins and improving profitability with solid free cash flow generation, but high leverage and some volatility in operating efficiency constrain the score.

Income Statement

BlackLine's income statement shows a strong gross profit margin consistently above 75%, indicating efficient cost management. The net profit margin has improved significantly from negative to positive over the years, reflecting enhanced profitability. Revenue growth has been steady, with a notable increase in the TTM period. However, the EBIT and EBITDA margins have fluctuated, suggesting some volatility in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. However, the return on equity has improved, showing better utilization of equity. The equity ratio is relatively low, suggesting a higher reliance on debt financing. Overall, while there are improvements, the high leverage remains a concern.

Cash Flow

Cash flow analysis indicates strong free cash flow growth and a healthy free cash flow to net income ratio, suggesting efficient cash generation relative to profits. The operating cash flow to net income ratio is moderate, indicating a reasonable conversion of income into cash. Overall, cash flow management appears solid, but there is room for improvement in operating cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	686.71M	653.34M	590.00M	522.94M	425.71M	351.74M
Gross Profit	517.36M	491.37M	443.20M	393.55M	327.83M	282.76M
EBITDA	106.73M	183.80M	116.51M	1.25M	-10.79M	5.50M
Net Income	76.05M	161.17M	52.83M	-29.39M	-115.16M	-46.91M
Balance Sheet
Total Assets	1.70B	1.83B	2.10B	1.94B	1.82B	1.11B
Cash, Cash Equivalents and Short-Term Investments	804.18M	885.91M	1.20B	1.08B	1.20B	542.62M
Total Debt	920.21M	916.60M	1.41B	1.40B	1.13B	418.54M
Total Liabilities	1.34B	1.34B	1.81B	1.81B	1.46B	678.91M
Stockholders Equity	328.30M	446.67M	260.88M	111.87M	325.04M	422.07M
Cash Flow
Free Cash Flow	170.31M	188.71M	99.02M	25.83M	56.83M	35.31M
Operating Cash Flow	186.68M	190.84M	126.61M	56.01M	80.09M	54.73M
Investing Cash Flow	-289.46M	924.44M	-62.48M	-395.62M	-506.94M	173.59M
Financing Cash Flow	-202.69M	-500.14M	6.15M	1.44M	599.24M	18.86M

BlackLine Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BL, the sentiment is Negative. The current price of 44.88 is below the 20-day moving average (MA) of 51.89, below the 50-day MA of 55.09, and below the 200-day MA of 53.98, indicating a bearish trend. The MACD of -2.64 indicates Positive momentum. The RSI at 27.56 is Positive, neither overbought nor oversold. The STOCH value of 14.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BL.

BlackLine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTM	68 Neutral	$2.14B	21.69	6.51%	―	1.47%	1077.70%
INTA	66 Neutral	$2.05B	-87.12	-6.04%	―	17.11%	-19.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BL	61 Neutral	$2.67B	40.98	21.85%	―	7.36%	-40.62%
NCNO	59 Neutral	$2.16B	-99.58	-2.04%	―	12.14%	-19.29%
ASAN	51 Neutral	$2.16B	-9.76	-102.48%	―	9.47%	16.97%
ALIT	47 Neutral	$863.78M	―	-66.86%	8.12%	-12.37%	-754.18%

BlackLine Corporate Events

BlackLine Faces Activist Board Challenge from Engaged Capital

On February 2, 2026, BlackLine confirmed that activist investor Engaged Capital has nominated three director candidates for election to the company’s board at its yet-to-be-scheduled 2026 annual meeting, triggering a review by the board’s Nominating and Corporate Governance Committee in line with its established guidelines. The company emphasized its history of engagement with Engaged Capital, highlighted a refreshed strategy introduced in November 2024, and pointed to ongoing work by an independent strategic committee formed more than a year ago, while also signaling board refreshment through the planned reduction of board size from 12 to 11 following director Tom Unterman’s decision, announced in December 2025, not to seek re-election, leaving three Class I seats up for contest at the upcoming meeting.

The most recent analyst rating on (BL) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on BlackLine stock, see the BL Stock Forecast page.

BlackLine announces board transition as longtime director retires

On December 22, 2025, BlackLine announced that long-serving board member Tom Unterman, who has been on the board since 2010, intends to retire and will not stand for re-election at the company’s next annual meeting of stockholders in May 2026. Company leaders, including CEO and chairman Owen Ryan and founder and director Therese Tucker, credited Unterman with providing strategic oversight, mentorship and guidance that helped BlackLine evolve from a startup into a leader in Office of the CFO transformation, and noted that his departure marks the end of a significant era of board leadership. Unterman, who will continue to serve through the end of his current term, emphasized his confidence in BlackLine’s future, while the board signaled a modest governance shift by planning to reduce its size from 12 to 11 directors immediately after the 2026 director elections.

The most recent analyst rating on (BL) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on BlackLine stock, see the BL Stock Forecast page.

BlackLine Forms Strategic Committee for Future Guidance

On November 10, 2025, BlackLine, Inc. revealed that it has had an independent strategic committee of its board of directors in place for over a year. This committee, which includes David Henshall as Chairperson, Greg Hughes, and Tom Unterman, is likely to play a significant role in guiding the company’s strategic direction and decision-making processes.

The most recent analyst rating on (BL) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on BlackLine stock, see the BL Stock Forecast page.