Blackline Safety (BLN) Q1 2026 earnings summary

Executive summary

• Achieved seventh consecutive quarter of positive adjusted EBITDA and 36th consecutive quarter of year-over-year revenue growth, with Q1 revenue of $38.8 million, up 3% year-over-year.

• Launched the G8, the most significant product platform in company history, with strong early customer feedback and global traction.

• Service revenue and annual recurring revenue (ARR) reached record highs, with ARR at $90.5 million, up 28% year-over-year.

• Adjusted EBITDA was $1.7 million, up 12% year-over-year, marking the seventh consecutive positive quarter.

• Net Dollar Retention was 126%, above 125% for 11 consecutive quarters, reflecting robust upsell and renewal activity.

Financial highlights

• Q1 revenue was $38.8 million, up 3% year-over-year, with service revenue up 25% to $24.9 million and software services up 22% to $22.1 million.

• Rental revenue rose 64% to $2.8 million; product revenue declined 22% to $14.0 million due to deferred orders ahead of the G8 launch.

• Gross profit was $25.3 million, up 13% year-over-year; gross margin improved to 65% from 60%, with service gross margin at 81% and product gross margin at 37%.

• Net loss was $2.8 million, impacted by foreign exchange losses of $1.5 million.

• Operating expenses (excluding FX losses) were $26.6 million, or 68% of revenue; total expenses were $28.1 million, or 72% of revenue.

Outlook and guidance

• Expect hardware growth to return and accelerate as G8 shipments ramp up, with strong sales pipeline and expanding G8 adoption.

• Anticipate product gross margin variability in the next quarters before returning to target of 40%+.

• Management expects continued expansion of recurring revenue and further margin improvements as software services grow.

• Initial G8 shipments scheduled to begin in March, with pipeline shifting toward G8.

• EXO 8 area monitor gaining traction globally, especially in Fire & Hazmat and Emergency Response sectors.