BlackLine (BL) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $183.2 million, up 10% year-over-year, driven by platform and AI strategies, product expansion, and new bookings.

• Non-GAAP operating margin improved to 21.6%–22%, with net income margin at 20% and non-GAAP net income of $39.6–$40 million ($0.56 per share).

• Platform adoption accelerated, with 13% of eligible ARR on Studio360/platform pricing and 94% of new bookings on platform pricing.

• AI-driven Verity portfolio and new initiatives saw rapid adoption, with over two-thirds of customers using embedded AI tools and a 285% increase in adoption quarter-over-quarter.

• Strategic products represented 37% of Q1 sales, up from 27% a year ago, and enterprise customer quality improved with a 9% increase in $1M+ ARR customers.

Financial highlights

• Total revenue was $183.2 million, up 10% year-over-year; subscription revenue grew 10% to $173.7 million, services 11% to $9.4 million.

• ARR reached $712 million, up 9% year-over-year; RPO grew 18% to $1.1 billion.

• Net revenue retention was 105%; revenue renewal rate 93%, enterprise renewal rate 96%.

• Non-GAAP gross margin was 80.2%, subscription gross margin 83%, and free cash flow margin 20% ($35.8–$36 million).

• GAAP net income was $8.1 million ($0.13 per share); non-GAAP net income was $39.6–$40 million ($0.56 per share).

Outlook and guidance

• Q2 2026 GAAP revenue expected at $186–$188 million; non-GAAP operating margin 21.5–22.5%.

• Full-year 2026 GAAP revenue guided to $765–$769 million; non-GAAP operating margin 24–24.5%.

• Non-GAAP net income for 2026 expected at $174–$182 million, or $2.42–$2.53 per share.

• Guidance reflects strong RPO, multi-year renewals, and prudent macro assumptions.

• Target model projects 13–16% revenue growth and 26–30% operating margin over 3–5 years.