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BlackLine
(NASDAQ:BL)
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Rating:67Neutral
Price Target:
$36.00
▲(25.26% Upside)
Action:Reiterated
Date:08/05/26
The score is supported primarily by strong cash generation and improving profitability, reinforced by an earnings update showing healthy backlog (RPO growth) and reiterated guidance. These positives are tempered by balance-sheet leverage risk, a still-weak long-term technical trend versus the 200-day average, and a demanding valuation (high P/E with no dividend yield provided).
Positive Factors
Strong free cash flow generation
Consistent, sizable operating and free cash flow from the subscription model provides durable financial flexibility. It supports reinvestment in product, steady buybacks, and debt reduction capacity over time, and underpins earnings quality and operational resiliency through cycles.
Negative Factors
Elevated financial leverage
Material leverage constrains strategic optionality: it limits capacity for large M&A, accelerates sensitivity to margin shocks, and reduces flexibility for sustained buybacks. Even with improved earnings, the capital structure remains a durable risk if growth or margins weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, sizable operating and free cash flow from the subscription model provides durable financial flexibility. It supports reinvestment in product, steady buybacks, and debt reduction capacity over time, and underpins earnings quality and operational resiliency through cycles.
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
$1.83B
Dividend YieldN/A
Average Volume (3M)1.05M
Price to Earnings (P/E)54.3
Beta (1Y)0.69
Revenue Growth8.62%
EPS Growth-58.32%
CountryUS
Employees1,850
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.59
Shares Outstanding58,125,270
10 Day Avg. Volume915,655
30 Day Avg. Volume1,050,803
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$34.50Price Target Upside20.04% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)2.48
Revenue Forecast (FY)$766.79M
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:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call communicated strong underlying demand, meaningful product momentum around AI-enabled Agentic offerings, improving contract quality (RPO up 17%, deal sizes +24%, multiyear commitments up to 56%) and healthy profitability/cash generation. Offsetting these positives are near-term headwinds from elongated enterprise sales cycles driven by AI governance and security reviews (about $8M of slipped deals), FX pressure (~$2M–$3M), and early-stage monetization of Agentic revenue. Management maintained full-year guidance, highlighted product validation and platform adoption, and expects the deal timing issues to shorten and contribute as tailwinds into 2027.Positive Updates
Revenue Growth
Total revenue of $187.8 million, up 9.2% year-over-year; subscription revenue up 9% and professional services revenue up 11%.
Negative Updates
Deal Timing / Elongated Sales Cycles
Approximately $8 million of opportunities expected to close in Q2 slipped due to elongated enterprise deal timelines driven by deeper AI governance, security and compliance reviews. Management estimates enterprise deals are elongated roughly 40–45 days on average, with some longer.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $187.8 million, up 9.2% year-over-year; subscription revenue up 9% and professional services revenue up 11%.
Read all positive updates
Company Guidance
The company reiterated Q3 and full‑year guidance while highlighting strong underlying metrics: Q2 revenue was $187.8M (up 9.2%), ARR $719M (up ~6% or ~7% ex ~1 point FX), calculated billings +6%, trailing 12‑month billings +7%, RPO > $1.1B (+17%) with current RPO +11%, platform‑eligible ARR on platform >17% (mega enterprise >21%), new deal sizes +24% and multiyear renewals 56% (vs 45% a year ago); Q2 profitability and cash: non‑GAAP gross margin 80.4% (subscription 83%), non‑GAAP operating margin 23.3%, non‑GAAP net income $42.9M (adj EPS $0.61), operating cash flow $45M, free cash flow $36.5M (full‑year FCF growth ~20% expected), cash $528M vs $667M debt, repurchased 1.2M shares for $38M and added $100M to buyback capacity (total ≈$280M available) with ~100% of FCF expected for repurchases; Q3 guidance: GAAP revenue $193M–$195M (8.3%–9.4% growth), non‑GAAP operating margin 24.5%–25.5%, non‑GAAP net income $45M–$47M ($0.62–$0.65 on ~74.5M diluted shares); full‑year 2026 guidance: GAAP revenue $765M–$769M (9.2%–9.8% growth), non‑GAAP operating margin 24.1%–24.6%, non‑GAAP net income $177M–$182M ($2.47–$2.54 on ~74M shares); they expect to exit the year at double‑digit growth, see at least +2 points of incremental revenue next year from platform conversion and Agentic adoption, and noted an incremental FX headwind of roughly $1M concentrated in the back half.BlackLine Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 732.45M | 700.43M | 653.34M | 590.00M | 522.94M | 425.71M |
| Gross Profit | 553.20M | 526.78M | 491.37M | 443.20M | 393.55M | 327.83M |
| EBITDA | 100.22M | 105.57M | 183.80M | 116.51M | 1.25M | -10.79M |
| Net Income | 34.78M | 24.52M | 161.17M | 52.83M | -29.39M | -115.16M |
Balance Sheet | ||||||
| Total Assets | 1.47B | 1.76B | 1.83B | 2.10B | 1.94B | 1.82B |
| Cash, Cash Equivalents and Short-Term Investments | 527.76M | 778.21M | 885.91M | 1.20B | 1.08B | 1.20B |
| Total Debt | 690.74M | 940.26M | 916.60M | 1.41B | 1.40B | 1.13B |
| Total Liabilities | 1.15B | 1.39B | 1.34B | 1.81B | 1.81B | 1.46B |
| Stockholders Equity | 316.17M | 332.33M | 446.67M | 260.88M | 111.87M | 325.04M |
Cash Flow | ||||||
| Free Cash Flow | 170.32M | 161.49M | 188.71M | 99.02M | 25.83M | 56.83M |
| Operating Cash Flow | 181.77M | 169.57M | 190.84M | 126.61M | 56.01M | 80.09M |
| Investing Cash Flow | 76.94M | -425.29M | 924.44M | -62.48M | -395.62M | -506.94M |
| Financing Cash Flow | -474.25M | -240.11M | -500.14M | 6.15M | 1.44M | 599.24M |
BlackLine Technical Analysis
Positive
28.74
Price Trends
29.31
Positive
30.07
Positive
39.42
Negative
Market Momentum
0.32
Negative
56.93
Neutral
80.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BL, the sentiment is Positive. The current price of 28.74 is below the 20-day moving average (MA) of 30.62, below the 50-day MA of 29.31, and below the 200-day MA of 39.42, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 80.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.07B | -77.25 | -10.77% | ― | 14.62% | -120.98% | |
68 Neutral | $1.20B | 32.35 | 8.99% | ― | 2.98% | -48.40% | |
67 Neutral | $1.83B | 54.26 | 10.84% | ― | 8.62% | -58.32% | |
65 Neutral | $2.10B | 14.29 | 204.43% | ― | 0.67% | ― | |
64 Neutral | $4.12B | 90.83 | -123.75% | ― | 19.67% | ― | |
62 Neutral | $222.50M | -15.01 | -11.54% | ― | -4.27% | 1.47% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BL
BlackLine
31.92
-20.93
-39.60%
BLKB
Blackbaud
46.45
-18.66
-28.66%
WK
Workiva
75.39
-1.44
-1.87%
DFIN
Donnelley Financial Solutions
48.52
-6.09
-11.15%
INTA
Intapp
40.17
-1.73
-4.13%
EXFY
Expensify
2.50
0.76
43.68%
BlackLine Corporate Events
Business Operations and StrategyStock Buyback
BlackLine Expands Share Repurchase Authorization to $600 Million
Positive
Aug 4, 2026
On July 31, 2026, BlackLine’s board approved a $100 million increase to its stock buyback program, bringing total authorization to repurchase up to $600 million of common stock. As of August 3, 2026, the company had already bought back 7.2 m...
Business Operations and StrategyExecutive/Board Changes
BlackLine Signs Consulting Agreement With Founder Therese Tucker
Neutral
Aug 3, 2026
On July 31, 2026, BlackLine, Inc. entered into an executive consulting agreement with founder and board member Therese Tucker. The company, a provider of cloud-based financial automation software for corporate accounting and finance teams, will en...
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.