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Bridgeline Digital (BLIN)
NASDAQ:BLIN

Bridgeline Digital (BLIN) AI Stock Analysis

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BLIN

Bridgeline Digital

(NASDAQ:BLIN)

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Neutral 43 (OpenAI - 4o)
Rating:43Neutral
Price Target:
$0.92
▼(-5.92% Downside)
Bridgeline Digital's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant financial challenges, including persistent losses and negative cash flows, which are reflected in a low financial performance score. The technical indicators suggest a bearish trend, further weighing down the stock's attractiveness. Valuation concerns, highlighted by a negative P/E ratio and lack of dividend yield, also contribute to the low score. While the earnings call provided some positive insights, these were not enough to offset the broader financial and technical challenges.
Positive Factors
Product Innovation
The introduction of six new AI-driven products enhances Bridgeline's competitive edge, potentially increasing market share and customer retention.
Strategic Partnerships
Strategic partnerships with major players like Salesforce can significantly enhance market reach and accelerate sales, supporting long-term growth.
Revenue Retention and Growth
High net revenue retention and strong CAGR indicate robust customer loyalty and potential for sustained revenue growth in core product lines.
Negative Factors
Financial Loss
Ongoing financial losses highlight challenges in achieving profitability, which could hinder long-term financial stability and investment capacity.
Cash Flow Issues
Persistent negative cash flows indicate operational inefficiencies, potentially impacting the company's ability to invest in growth opportunities.
Legacy Product Decline
The decline in legacy products could offset gains from new offerings, posing a risk to overall revenue stability and growth potential.

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

Bridgeline Digital Business Overview & Revenue Model

Company DescriptionBridgeline 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 MoneyBridgeline 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 Earnings Call Summary

Earnings Call Date:Dec 18, 2025
(Q4-2025)
|
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in the HawkSearch product line, with substantial gains in revenue, customer retention, and market recognition. However, the call also noted challenges related to legacy product declines and financial losses, as well as the need for a larger marketing budget to sustain growth. Overall, positive achievements in product performance and strategic partnerships were tempered by these financial and operational challenges.
Q4-2025 Updates
Positive Updates
HawkSearch Revenue Growth
HawkSearch Suite accounted for 58% of total revenue, reaching $8.9 million, and over 60% of subscription revenue at $7.4 million with 75% gross margin. It achieved a 117% net revenue retention and a 16% CAGR for core products.
Top Ranking by Gartner
HawkSearch was ranked #1 by Gartner for the B2B search use case in their 2025 Critical Capabilities report.
Sales Cycle and Contract Value Improvement
HawkSearch's average sales cycle reduced from 160 days to 92 days, and the average ARR per sale grew by 35% from $18,500 to $25,000.
Partnerships and Market Expansion
Partnerships with Unilog and integration with Salesforce's AppExchange expanded the total addressable market for HawkSearch, facilitating easier adoption and potentially accelerating sales.
New Product Innovations
Six new AI-powered products were launched, contributing to expansion within existing customers and winning new customers. The products include Smart Search, Smart Response, Smart Agents, Multisite Management, Rapid UI, and Advanced Analytics.
Negative Updates
Legacy Products Decline
Core product growth was dampened by the decline of legacy products, although this dampening is expected to end in 2026.
Financial Loss
Net loss for the fiscal quarter ended September 2025 was $400,000, unchanged from the prior year, and adjusted EBITDA was minus $169,000 compared to $5,000 positive in the prior year.
Limited Marketing Budget
The primary challenge identified was the need for increased marketing budget to ensure saturation in the market and to maximize HawkSearch's market presence.
Company Guidance
During the Bridgeline Digital Fourth Quarter 2025 Earnings Call, significant guidance was provided regarding the company's financials and operational strategies. HawkSearch Suite, the company's core product, accounted for 58% of total revenue, totaling $8.9 million, and 60% of subscription revenue at $7.4 million, with a 75% gross margin. The company achieved a 117% net revenue retention rate and a 16% compound annual growth rate (CAGR) for its core products. The average sales cycle for HawkSearch was reduced from 160 days in fiscal 2024 to 92 days in fiscal 2025. Furthermore, the average annual recurring revenue (ARR) per sale increased by 35% from $18,500 to $25,000. Bridgeline Digital sold 83 licenses with a total contract value of $6.9 million, generating $2.4 million in ARR, marking an 18% increase over fiscal 2024. The call also highlighted partnerships with Unilog and Salesforce, which are expected to expand the total addressable market and accelerate sales cycles. The company injected $2 million in capital to enhance marketing efforts, resulting in a 65% larger sales pipeline. Additionally, Bridgeline Digital released six new AI-driven products during the year, further cementing its leadership in AI product discovery. Despite a net loss of $400,000 for the quarter, the company ended with a 66% overall gross profit margin and looks forward to continued growth in fiscal 2026, with an increased marketing budget of $500,000 per quarter.

Bridgeline Digital Financial Statement Overview

Summary
Bridgeline Digital faces significant financial challenges, particularly in achieving profitability and positive cash flows. While revenue growth is modest and the company maintains low leverage, persistent losses and negative cash flows highlight operational inefficiencies. The company needs to focus on improving profitability and cash generation to enhance financial stability.
Income Statement
45
Neutral
Bridgeline Digital has shown a slight revenue growth of 5.2% in the latest year, but profitability remains a concern with a negative net profit margin of -18.52% and negative EBIT and EBITDA margins. The gross profit margin is relatively strong at 66.57%, indicating good control over direct costs. However, the consistent negative net income over the years highlights ongoing challenges in achieving profitability.
Balance Sheet
55
Neutral
The company maintains a low debt-to-equity ratio of 0.03, indicating minimal leverage and a conservative capital structure. However, the return on equity is negative at -29.78%, reflecting inefficiencies in generating returns for shareholders. The equity ratio is stable, suggesting a solid asset base relative to equity.
Cash Flow
40
Negative
Cash flow remains a critical issue, with negative operating and free cash flows. The free cash flow to net income ratio is slightly above 1, indicating that cash flow issues are not entirely due to poor earnings. However, the negative operating cash flow to net income ratio suggests operational challenges in converting income into cash.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue15.38M15.38M15.36M15.88M16.82M13.26M
Gross Profit10.35M10.24M10.43M10.87M11.70M8.73M
EBITDA-1.73M-2.23M-831.00K-711.00K-282.00K835.00K
Net Income-2.58M-2.85M-1.96M-9.44M2.15M-6.69M
Balance Sheet
Total Assets16.15M15.33M15.60M17.63M27.51M34.97M
Cash, Cash Equivalents and Short-Term Investments2.10M1.63M1.39M2.38M2.86M8.85M
Total Debt514.00K290.00K689.00K1.09M1.61M2.57M
Total Liabilities6.20M5.76M5.60M6.17M7.16M17.39M
Stockholders Equity9.95M9.57M10.01M11.46M20.35M17.58M
Cash Flow
Free Cash Flow-559.00K-1.12M-794.00K252.00K-329.00K-1.10M
Operating Cash Flow-542.00K-1.10M-765.00K277.00K-134.00K-989.00K
Investing Cash Flow-17.00K-18.00K-29.00K-25.00K-195.00K-4.52M
Financing Cash Flow1.46M1.36M-209.00K-649.00K-5.48M13.47M

Bridgeline Digital Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.98
Price Trends
50DMA
1.11
Negative
100DMA
1.25
Negative
200DMA
1.41
Negative
Market Momentum
MACD
-0.04
Negative
RSI
40.00
Neutral
STOCH
19.49
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 0.98 is below the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.11, and below the 200-day MA of 1.41, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 19.49 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
49
Neutral
$6.24M-0.21-218.30%-24.72%53.60%
46
Neutral
$17.49M-6.64-19.02%16.60%70.20%
43
Neutral
$11.69M-3.61-25.73%0.16%-36.86%
40
Underperform
$7.19M-1.88-93.31%68.56%89.48%
39
Underperform
$6.49M-0.11-993.23%-44.25%82.71%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BLIN
Bridgeline Digital
0.93
-0.50
-34.97%
DTSS
Datasea
0.84
-1.32
-61.11%
RVYL
Ryvyl
0.16
-1.22
-88.41%
BNAI
Brand Engagement Network
1.20
-6.90
-85.19%
VRAR
Glimpse Group
0.81
-2.27
-73.70%
FAASF
DigiAsia
0.01
-0.81
-98.78%

Bridgeline Digital Corporate Events

Executive/Board ChangesShareholder Meetings
Bridgeline Digital Holds Annual Meeting, Elects Directors
Neutral
Sep 19, 2025

On September 16, 2025, Bridgeline Digital, Inc. held its Annual Meeting of Stockholders, where 56.2% of eligible shares were represented. Key outcomes included the election of directors Kenneth Galaznick and Michael Ketslakh, approval of the 2025 Stock Incentive Plan, an advisory vote on executive compensation, and the ratification of PKF O’Connor Davies, LLP as the independent accounting firm for the fiscal year ending September 30, 2025.

The most recent analyst rating on (BLIN) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Bridgeline Digital stock, see the BLIN Stock Forecast page.

Bridgeline Digital’s Earnings Call: Growth Amidst Challenges
Sep 1, 2025

In the recent earnings call, Bridgeline Digital presented a mixed sentiment, highlighting both achievements and challenges. The company showcased strong performance and growth in its Hawk Search product, with significant contract and ARR growth, recognized market leadership, and successful marketing initiatives. However, these positive aspects were counterbalanced by flat overall revenue growth, a decline in services revenue, and an increased net loss, resulting in a more balanced sentiment overall.

Bridgeline Digital Reports Q2 2025 Earnings with Increased Liquidity
Aug 15, 2025

Bridgeline Digital, Inc. is an AI-powered marketing technology company that provides a suite of products designed to enhance online revenue through increased website traffic, improved conversion rates, and higher average order values. The company operates primarily in the software industry, offering its solutions through both a cloud-based SaaS model and a perpetual licensing model.

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: Dec 22, 2025