BlackLine (BL) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 95.8
• Beta (1Y): 0.98
• Revenue Growth: 7.36%
• EPS Growth: -40.62%
• Country: US
• Employees: 1,830
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.63
• Shares Outstanding: 59,486,668
• 10 Day Avg. Volume: 1,478,919
• 30 Day Avg. Volume: 1,295,883
• PEG Ratio: -1.59
• Price to Book (P/B): 9.92
• Price to Sales (P/S): 4.71
• P/FCF Ratio: 20.42
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 3.98
• Enterprise Value/Gross Profit: 5.29
• Enterprise Value/Ebitda: 26.40
• 1Y Price Target: $57.70
• Price Target Upside: 59.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 2.35
• Revenue Forecast (FY): $760.82M

• Rating: 53 Neutral
• Price Target: $44.00 ▲(21.72% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is held back primarily by weak technicals (bearish trend and negative momentum) and a stretched valuation (very high P/E with no dividend). Financial performance is mixed—strong cash generation and gross margins, but leverage and earnings stability remain concerns. The latest earnings call was a relative positive with strong bookings/RPO and margin progress, but guidance implies only ~9% revenue growth and ongoing churn/mix headwinds; activist involvement adds incremental uncertainty.

Positive Factors

Recurring SaaS Revenue

BlackLine’s subscription‑based SaaS model and historically strong gross margins create durable recurring revenue and predictable cash inflows. Multi‑year contracts, platform pricing and renewals increase visibility, support steady investment in product and enable scalable upsell economics over time.

Strong Cash Generation

Consistent operating cash flow and high free cash flow conversion provide financial flexibility. Robust FCF supports product investment, buybacks and planned debt retirement without relying on external financing, reducing execution risk and enabling strategic optionality during cyclical slowdowns.

Enterprise Expansion & Platform Adoption

Record bookings, rising platform adoption and larger enterprise deals signal improving deal economics. Higher NRR and platform pricing adoption increase customer lifetime value, reduce churn sensitivity and make revenue growth more durable as the company captures more wallet share inside larger accounts.

Negative Factors

Elevated Leverage

Debt remains elevated for a software business, constraining flexibility and raising refinancing and interest expense risk. A near‑term 2026 note maturity concentrates execution risk; until leverage is meaningfully reduced, capital allocation and strategic moves may be limited by debt service priorities.

Thin & Volatile Net Profitability

Despite strong gross margins, trailing net margins are thin and have swung materially, indicating operating expense variability and one‑offs. This volatility undermines earnings durability, leaves less room to fund growth from operating profits, and raises sensitivity to adverse revenue or margin pressure.

Customer Mix Shift & Retention Headwinds

A deliberate upmarket shift has left customer count flat and produced lower‑mid‑market churn and mix pressure. That dynamic limits top‑line breadth, increases reliance on fewer large deals with longer sales cycles, and raises concentration and renewal execution risk over the medium term.

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 revenue acceleration and consistently high gross margins, plus solid operating and free cash flow conversion. Offsetting this are thin/volatile net profitability and a still-aggressive leverage profile (debt-to-equity ~2.8x) despite improvement.

Income Statement

TTM (Trailing-Twelve-Months) revenue accelerated sharply (about +200%), while gross margin stayed strong and consistent around the mid-70% range across the full period. Profitability, however, is mixed: the company is now profitable at the EBIT and net income level, but TTM net margin is low (~3.5%) and is far below 2024’s unusually high net margin, suggesting earnings volatility and/or one-time impacts in prior periods. Overall, the top-line and gross profitability profile is strong, but the durability of bottom-line profitability looks less stable.

Balance Sheet

Leverage is the key constraint. Debt remains high relative to equity (TTM debt-to-equity ~2.8x), improving meaningfully from very elevated levels in 2022–2023 but still aggressive for a software business. Equity has also moved around materially over time, and returns on equity fell sharply in TTM versus 2024, reflecting weaker earnings power recently. The balance sheet trajectory is improving, but leverage and variability in shareholder returns keep risk elevated.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow (~$170M) and free cash flow (~$153M) are solid and free cash flow remains high relative to net income (roughly 90%), indicating good earnings quality. The main weakness is momentum—TTM free cash flow declined about 10% versus the prior period, and operating cash flow relative to revenue remains moderate. Still, the business demonstrates consistent ability to convert revenue into cash, supporting financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	700.43M	653.34M	590.00M	522.94M	425.71M
Gross Profit	526.78M	491.37M	443.20M	393.55M	327.83M
EBITDA	105.57M	183.80M	116.51M	1.25M	-10.79M
Net Income	24.52M	161.17M	52.83M	-29.39M	-115.16M
Balance Sheet
Total Assets	1.76B	1.83B	2.10B	1.94B	1.82B
Cash, Cash Equivalents and Short-Term Investments	778.21M	885.91M	1.20B	1.08B	1.20B
Total Debt	940.26M	916.60M	1.41B	1.40B	1.13B
Total Liabilities	1.39B	1.34B	1.81B	1.81B	1.46B
Stockholders Equity	332.33M	446.67M	260.88M	111.87M	325.04M
Cash Flow
Free Cash Flow	161.49M	188.71M	99.02M	25.83M	56.83M
Operating Cash Flow	169.57M	190.84M	126.61M	56.01M	80.09M
Investing Cash Flow	-425.29M	924.44M	-62.48M	-395.62M	-506.94M
Financing Cash Flow	-240.11M	-500.14M	6.15M	1.44M	599.24M

BlackLine Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.15
• 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 36.15 is below the 20-day moving average (MA) of 44.09, below the 50-day MA of 51.29, and below the 200-day MA of 53.62, indicating a bearish trend. The MACD of -4.33 indicates Positive momentum. The RSI at 22.90 is Positive, neither overbought nor oversold. The STOCH value of 6.65 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	66 Neutral	$2.01B	16.61	7.76%	―	1.47%	1077.70%
INTA	66 Neutral	$1.83B	-75.89	-5.41%	―	17.11%	-19.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCNO	59 Neutral	$1.88B	-84.70	-2.04%	―	12.14%	-19.29%
BL	53 Neutral	$2.21B	95.78	6.29%	―	7.36%	-40.62%
ASAN	51 Neutral	$1.80B	-7.99	-102.48%	―	9.47%	16.97%
ALIT	44 Neutral	$698.49M	-0.20	-114.93%	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.