Bridgeline Digital (BLIN) AI Stock Analysis

• Market Cap: $10.83M
• Dividend Yield: N/A
• Average Volume (3M): 62.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: 0.16%
• EPS Growth: -36.86%
• Country: US
• Employees: 51
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 12,599,879
• 10 Day Avg. Volume: 45,642
• 30 Day Avg. Volume: 62,215
• PEG Ratio: -0.19
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -13.21
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 0.98
• Enterprise Value/Ebitda: -7.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $0.94 ▼(-4.49% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held back primarily by ongoing losses and negative free cash flow despite strong TTM revenue growth and solid gross margins, with additional overhang from the Nasdaq bid-price notice. Offsetting these risks, the earnings call indicated improving operating momentum (positive adjusted EBITDA, expanding ARR and product adoption) and the stock shows modest near-term technical strength, though longer-term trend indicators remain weak and valuation support is limited due to negative earnings.

Positive Factors

Strong TTM Revenue Growth & Gross Margin

Sustained ~79% TTM revenue growth combined with a ~66% gross margin indicates a structurally attractive unit economics that support scaling. High product margins enable reinvestment in R&D and sales while protecting profit potential as ARR converts to recurring revenue over the medium term.

Rising ARR and Higher Average Subscription Value

Improving ARR and higher average subscription per customer reflect better monetization and customer value expansion. These metrics (107% NRR, rising ARRs) suggest durable recurring revenue growth, stronger customer economics, and higher lifetime value that support profitable scaling over multiple quarters.

Low Financial Leverage

Very low debt relative to equity provides structural financial flexibility: lower interest burden, capacity to raise capital if needed, and room for targeted investments or M&A without immediate solvency stress, which is vital while the company converts revenue growth into positive cash flow.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flow (~-$1.3M TTM) is a structural constraint: it limits self-funded growth, raises reliance on external financing, and can force trade-offs between investing in product momentum and conserving liquidity until operating cash flow sustainably turns positive.

Ongoing Net Losses

Continued net losses and a ~-16% net margin mean returns on equity remain negative and shareholders face dilution risk if capital raises are needed. Until losses convert to consistent profits, management must balance growth investments with profitability discipline, limiting long-term return prospects.

Nasdaq Minimum Bid-Price Notice / Listing Risk

A Nasdaq bid-price deficiency is a structural governance and liquidity risk: prolonged noncompliance can lead to delisting, reduced institutional interest, and constrained capital access. Addressing it may require dilutive actions or sustained operational improvements to restore market confidence.

Bridgeline Digital Business Overview & Revenue Model

Company Description

Bridgeline Digital (BLIN) is a technology company that specializes in providing digital experience solutions, primarily in the areas of web content management, e-commerce, and digital marketing. The company offers a suite of products and services designed to help businesses create, manage, and optimize their digital presence. Bridgeline's core offerings include its iAPPS platform, which integrates content management and marketing automation tools, allowing organizations to enhance customer engagement and improve online performance.

How the Company Makes Money

Bridgeline Digital generates revenue through a combination of subscription fees, licensing of its iAPPS platform, and professional services. The subscription model allows clients to pay recurring fees for access to the software and ongoing support. Additionally, the company earns revenue from consulting services that assist clients in implementing and customizing their digital solutions. Key revenue streams include renewals from existing customers, new customer acquisitions, and upselling additional features or services. Strategic partnerships with other technology providers and agencies also contribute to Bridgeline's earnings by expanding its market reach and enhancing its service offerings.

Bridgeline Digital Financial Statement Overview

Summary

Strong TTM revenue growth (+79%) and solid gross margin (~66%) are positives, and leverage is low (debt-to-equity ~0.06). However, profitability remains negative (EBIT/EBITDA/net income all negative; net margin ~-16%) and cash burn persists (TTM operating cash flow and free cash flow about -$1.3M), limiting flexibility until cash flow turns sustainably positive.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up sharply (about +79% growth), and gross margin remains solid at roughly 66%, suggesting a healthy product/service margin profile. However, profitability is still weak: EBIT, EBITDA, and net income are all negative in TTM, with a net margin around -16%. While losses are far smaller than the heavy loss year in 2023, the company has not yet converted the improved revenue trajectory into sustainable earnings.

Balance Sheet

The balance sheet looks conservatively levered, with very low debt relative to equity in TTM (debt-to-equity ~0.06) and a meaningful equity base versus total assets. The key weakness is shareholder returns: return on equity remains negative in TTM due to ongoing net losses, which can pressure equity over time if profitability does not improve.

Cash Flow

Cash generation is a concern: TTM operating cash flow and free cash flow are both negative (roughly -$1.3M each), indicating the business is still consuming cash despite the revenue rebound. Free cash flow growth is positive in TTM, but that improvement comes off a negative base and does not change the fact that ongoing cash burn persists; this raises reliance on liquidity management until operating cash flow turns sustainably positive.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	15.51M	15.38M	15.36M	15.88M	16.82M	13.26M
Gross Profit	10.29M	10.24M	10.43M	10.87M	11.70M	8.73M
EBITDA	-1.40M	-1.64M	-831.00K	-7.79M	-125.00K	1.34M
Net Income	-1.97M	-2.52M	-1.96M	-9.44M	2.15M	-6.69M
Balance Sheet
Total Assets	15.74M	15.33M	15.60M	17.63M	27.51M	34.97M
Cash, Cash Equivalents and Short-Term Investments	1.48M	1.63M	1.39M	2.38M	2.86M	8.85M
Total Debt	723.00K	460.00K	689.00K	1.09M	1.61M	2.57M
Total Liabilities	6.18M	5.76M	5.60M	6.17M	7.16M	17.39M
Stockholders Equity	9.55M	9.57M	10.01M	11.46M	20.35M	17.58M
Cash Flow
Free Cash Flow	-1.35M	-1.12M	-794.00K	252.00K	-329.00K	-1.10M
Operating Cash Flow	-1.32M	-1.10M	-765.00K	277.00K	-134.00K	-989.00K
Investing Cash Flow	-30.00K	-18.00K	-29.00K	-25.00K	-195.00K	-4.52M
Financing Cash Flow	1.35M	1.36M	-209.00K	-649.00K	-5.48M	13.47M

Bridgeline Digital Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.98
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLIN, the sentiment is Neutral. The current price of 0.98 is above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.85, and below the 200-day MA of 1.25, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 43.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BLIN.

Bridgeline Digital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BLIN	53 Neutral	$10.83M	-4.23	-25.73%	―	0.16%	-36.86%
BNAI	50 Neutral	$164.52M	-5.08	-218.30%	―	-24.72%	53.60%
RVYL	43 Neutral	$7.61M	-0.12	-993.23%	―	-44.25%	82.71%
DTSS	42 Neutral	$9.40M	-2.55	-93.31%	―	68.56%	89.48%
VRAR	42 Neutral	$14.33M	-3.81	-19.02%	―	16.60%	70.20%

Bridgeline Digital Corporate Events

Bridgeline Digital Receives Nasdaq Notice on Bid Price

On January 29, 2026, Bridgeline Digital, Inc. disclosed that it had received a notice from Nasdaq stating that the company’s common stock had failed to meet the exchange’s minimum bid price requirement of $1.00 per share for 30 consecutive business days ended January 28, 2026. The notice does not trigger an immediate delisting, and Bridgeline has until July 28, 2026, to regain compliance by maintaining a bid price of at least $1.00 for ten consecutive business days, with the possibility of an additional 180-day extension if it meets other Nasdaq listing standards and formally commits to remedying the deficiency, while the company evaluates its options to preserve its Nasdaq Capital Market listing.

The most recent analyst rating on (BLIN) stock is a Hold with a $0.81 price target. To see the full list of analyst forecasts on Bridgeline Digital stock, see the BLIN Stock Forecast page.

Bridgeline Digital Reports Q4 Results, Highlights AI Growth

On December 22, 2025, Bridgeline Digital reported financial results for its fourth quarter and full fiscal year ended September 30, 2025, showing flat annual revenue of $15.4 million year-over-year but a continued shift toward higher-margin subscription income, which grew to $12.4 million while services revenue declined. Core products, led by the HawkSearch platform, grew 16% to $8.9 million and rose to 58% of total revenue, supported by 117% net revenue retention, a 65% larger sales pipeline entering fiscal 2026, shorter sales cycles, higher average ARR per sale, and strong demand from B2B customers with complex catalogs. During fiscal 2025, Bridgeline signed 83 new subscription contracts with $6.9 million in total contract value and over $2.4 million in additional ARR, introduced new AI-driven capabilities such as Agentic AI, enhanced multilingual and visual search, deepened partnerships with Unilog and Salesforce, and expanded deployments with large customers in retail, healthcare, industrial supplies, and distribution, underscoring its strategic pivot toward recurring AI-driven revenue despite pressure on legacy product lines.

The most recent analyst rating on (BLIN) stock is a Hold with a $0.92 price target. To see the full list of analyst forecasts on Bridgeline Digital stock, see the BLIN Stock Forecast page.