Bridgeline Digital (BLIN) AI Stock Analysis

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Bridgeline Digital

(NASDAQ:BLIN)

Rating:48Neutral

Price Target:

$1.50

▲(2.04%Upside)

Bridgeline Digital faces significant financial performance challenges with declining revenues and net losses, impacting the overall score negatively. Technical analysis indicates a bearish trend, while valuation is poor due to a negative P/E ratio. Despite positive highlights from the earnings call, such as strategic investments and sales growth in core products, these are overshadowed by flat overall revenue and increased expenses.

Bridgeline Digital (BLIN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$17.52M

Dividend YieldN/A

Average Volume (3M)48.58K

Price to Earnings (P/E)―

Beta (1Y)0.18

Revenue Growth1.30%

EPS Growth75.93%

CountryUS

Employees51

SectorTechnology

Sector Strength95

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)-0.06

Shares Outstanding11,916,588

10 Day Avg. Volume80,823

30 Day Avg. Volume48,575

Financial Highlights & Ratios

PEG Ratio0.36

Price to Book (P/B)1.52

Price to Sales (P/S)0.00

P/FCF Ratio-2.29K

Enterprise Value/Market Cap0.87

Enterprise Value/Revenue0.21

Enterprise Value/Gross Profit1.85

Enterprise Value/Ebitda-2.81

Forecast

1Y Price Target

$1.50

Price Target Upside2.04% Upside

Rating ConsensusHold

Number of Analyst Covering0

Bridgeline Digital Business Overview & Revenue Model

Company DescriptionBridgeline Digital (BLIN) is a digital engagement company that focuses on providing innovative software solutions to help businesses optimize their online presence and drive digital engagement. The company operates within the software and technology sector, offering a suite of products that include content management, marketing automation, and e-commerce tools. Bridgeline Digital's core offerings are designed to empower businesses to enhance their digital marketing strategies, improve customer interactions, and increase conversion rates through a unified platform.

How the Company Makes MoneyBridgeline Digital generates revenue primarily through the sale of its software solutions, which are offered via subscription-based models. The company's key revenue streams include licensing fees for its proprietary software platforms, such as the Bridgeline Unbound platform, which integrates content management, e-commerce, and marketing automation capabilities. Additionally, Bridgeline Digital earns income from professional services, including implementation, training, and support services to help clients fully leverage their digital marketing tools. The company also forms partnerships with other technology providers and digital agencies to expand its reach and enhance its product offerings, contributing to its overall earnings.

Bridgeline Digital Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q2-2025)

% Change Since: -18.78%|

Next Earnings Date:Aug 13, 2025

Earnings Call Sentiment Neutral

Bridgeline Digital demonstrated strong sales performance for its HawkSearch products and made strategic investments in marketing to fuel future growth. However, the overall revenue growth remained flat due to declines in noncore revenue, and the company faced increased operating expenses and net losses.

Q2-2025 Updates

Positive Updates

Strong Sales for HawkSearch Products

Bridgeline signed 20 licensed sales in Q2 FY '25, adding $1.7 million in new contracts and $700,000 in annual recurring revenue, with a sales cycle of 120 days and a 19% win rate on qualified leads.

Capital Raise for Marketing Expansion

A $2.2 million capital raise was completed to expand sales and marketing, with plans to double ad spend and increase lead generation.

Core Revenue Growth

Core products, which represent 60% of subscription revenue, showed double-digit growth with net revenue retention of 113%.

HawkSearch Product Development

Launch of Smart Conversation and Smart Response features, enhancing the AI capabilities of HawkSearch.

Partnerships and Global Expansion

HawkSearch partnered with Shopware and Groove Commerce, expanding its reach in global and B2B markets.

Increase in Subscription and License Revenue

Subscription and license revenue increased to $3.1 million from $3.0 million in the prior-year period.

Improved Gross Margins

Overall gross profit margin improved to 68% from 66% in the prior-year period.

Negative Updates

Flat Total Revenue

Total revenue was $3.9 million, only a slight increase from $3.8 million in the prior-year period, due to declines in noncore revenue.

Increased Operating Expenses

Operating expenses increased to $3.4 million from $3 million in the prior-year period, including additional marketing spend and restructuring expenses.

Net Loss and Negative Adjusted EBITDA

Net loss was $700,000, worse than the $600,000 net loss in the prior-year period. Adjusted EBITDA was negative $239,000 compared to negative $83,000 in March '24.

Company Guidance

During the Bridgeline Digital Second Quarter 2025 Earnings Call, the company provided detailed guidance on their financial performance and strategic initiatives. Bridgeline reported $3.9 million in total revenue for the quarter, with subscription and license revenue making up 79% of this figure, reflecting a 3% increase from the previous year. The company signed 20 new licensed sales, adding $1.7 million in new contracts and $700,000 in annual recurring revenue, with a sales cycle of 120 days and a 19% win rate on qualified leads. Year-to-date, Bridgeline has booked $4.2 million in contracts, with $1.6 million in annual recurring revenue. The company raised $2.2 million to expand sales and marketing, which is expected to impact Q4 bookings and Q1 FY '26 revenue. Bridgeline's core revenue, led by HawkSearch and WooRank, accounts for over 60% of subscription revenue and achieved double-digit growth with a net revenue retention rate of 113%. Despite noncore revenue declines, Bridgeline expects core growth to outpace these declines by FY '26. The company also highlighted enhancements to its Hawk AI features and strategic partnerships, positioning itself as a leader in AI-powered e-commerce search solutions.

Bridgeline Digital Financial Statement Overview

Summary

Bridgeline Digital is experiencing operational challenges with declining revenues and consistent net losses which negatively impact profitability. The balance sheet shows low leverage and reasonable equity stability, but declining asset values are concerning. Recent improvements in cash flow management, evidenced by positive free cash flow, are positive signs, but overall profitability remains a challenge.

Income Statement

Neutral

Bridgeline Digital shows a declining revenue trend with a negative net income and EBIT, indicating operational challenges. The gross profit margin remains healthy at around 66% for TTM, but the net profit margin is negative, which highlights profitability issues. Revenue has decreased over the last three years, with a slight improvement in the most recent TTM compared to 2023 fiscal year.

Balance Sheet

Neutral

The company maintains a strong equity position with a debt-to-equity ratio of 0.03 in TTM, indicating low leverage and a stable financial structure. However, total assets and stockholders' equity have decreased over the past years. The equity ratio is relatively strong at 61.42% for TTM, suggesting stability despite declining assets.

Cash Flow

Neutral

Free cash flow has improved recently, turning positive in the TTM period, which is a positive sign. The operating cash flow to net income ratio indicates challenges in converting income into cash. Despite historical fluctuations, the recent positive free cash flow suggests improvements in cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.36M	15.88M	16.82M	13.26M	10.91M
Gross Profit	10.43M	10.87M	11.70M	8.73M	6.40M
EBITDA	-979.00K	-880.00K	-282.00K	835.00K	1.31M
Net Income	-1.96M	-9.44M	2.15M	-6.69M	326.00K
Balance Sheet
Total Assets	15.60M	17.63M	27.51M	34.97M	10.66M
Cash, Cash Equivalents and Short-Term Investments	1.39M	2.38M	2.86M	8.85M	861.00K
Total Debt	689.00K	1.09M	1.61M	2.41M	382.00K
Total Liabilities	5.60M	6.17M	7.16M	17.39M	6.30M
Stockholders Equity	10.01M	11.46M	20.35M	17.58M	4.36M
Cash Flow
Free Cash Flow	-794.00K	252.00K	-329.00K	-1.10M	-498.00K
Operating Cash Flow	-765.00K	277.00K	-134.00K	-989.00K	-498.00K
Investing Cash Flow	-29.00K	-25.00K	-195.00K	-4.52M	0.00
Financing Cash Flow	-209.00K	-649.00K	-5.48M	13.47M	1.05M

Bridgeline Digital Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.47

Price Trends

50DMA

1.51

Negative

100DMA

1.57

Negative

200DMA

1.50

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

47.23

Neutral

STOCH

19.79

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLIN, the sentiment is Negative. The current price of 1.47 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.51, and below the 200-day MA of 1.50, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.23 is Neutral, neither overbought nor oversold. The STOCH value of 19.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLIN.

Bridgeline Digital Risk Analysis

Bridgeline Digital disclosed 26 risk factors in its most recent earnings report. Bridgeline Digital 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

Bridgeline Digital Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$34.85B	5.63	-12.19%	2.01%	5.91%	-17.91%
VRAR	56 Neutral	$33.69M	―	-40.76%	―	-12.30%	76.19%
BLIN	48 Neutral	$17.52M	―	-19.92%	―	1.30%	75.93%
DTSS	48 Neutral	$15.31M	―	-501.24%	―	141.65%	60.23%
RVYL	39 Underperform	$7.32M	―	-309.32%	―	-23.82%	56.13%
BNAI	35 Underperform	$14.76M	―	-254.58%	―	―	-20.33%

* Technology Sector Average

Performance Comparison

BLIN

Bridgeline Digital

1.47

0.58

65.17%

DTSS

Datasea

1.95

-0.32

-14.10%

RVYL

Ryvyl

0.29

-1.65

-85.05%

BNAI

Brand Engagement Network

0.35

-1.46

-80.66%

VRAR

Glimpse Group

1.44

0.61

73.49%

Bridgeline Digital Corporate Events

Executive/Board Changes

Brandon Ross Joins Bridgeline Digital’s Board of Directors

Neutral

Feb 14, 2025

On February 10, 2025, Michael Taglich resigned from the Board of Directors of Bridgeline Digital, Inc., with his departure not due to any disagreements with the company. Subsequently, on February 14, 2025, Brandon Ross was appointed to the Board as a Class III Director to fill the vacancy. Ross, a seasoned investment banker with over 30 years in financial services, has a significant background in handling public and private offerings, making him a strategic addition to Bridgeline Digital’s board.

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.Date of analysis: Jul 30, 2025