BlackLine (BL) Q4 2025 earnings summary

Executive summary

• Achieved record bookings in Q4 and full-year 2025, with Q4 revenue of $183.2M (up 8.1% year-over-year) and annual recurring revenue of $702M (up nearly 10%).

• Non-GAAP operating and net income margins reached 25% in Q4 2025, with non-GAAP net income of $45.2M ($0.63/share).

• Platform adoption, strategic products, and AI innovation drove bookings growth and a 23% increase in remaining performance obligations to $1.1B.

• Enterprise customer cohort maintained a 95% revenue renewal rate and 107% net revenue retention in Q4.

• Launched new Verity AI agents, completed Studio360 scale-up, and acquired WiseLayer to accelerate AI capabilities.

Financial highlights

• Q4 2025 GAAP revenue was $183.2M (up 8.1% year-over-year); full-year 2025 GAAP revenue was $700.4M (up 7.2%).

• Q4 non-GAAP operating margin was 24.7%; non-GAAP net income margin was 25%.

• Q4 non-GAAP gross margin was 79.5%; full-year non-GAAP gross margin was 79.3%.

• Q4 operating cash flow was $26.7M; free cash flow was $19.9M. FY 2025 free cash flow totaled $134.9M.

• Returned $235M to shareholders in 2025 via share repurchases.

Outlook and guidance

• Q1 2026 GAAP revenue expected at $180–$182M (8–9% growth); non-GAAP operating margin 18.5–19.5%.

• Full-year 2026 GAAP revenue guidance: $764–$768M (9.1–9.6% growth); non-GAAP operating margin 23.7–24.3%.

• Non-GAAP net income for 2026 expected at $172–$180M ($2.37–$2.48/share).

• Target model projects total revenue growth of 13–16% over the next 3–5 years, with gross margin approaching 85%.

• Platform pricing adoption expected to reach 25–35% of eligible customers by year-end 2026.