Bridgeline Digital (BLIN) Q4 2025 earnings summary

Executive summary

• HawkSearch Suite and AI products contributed 58% of total revenue ($8.9M) and 60% of subscription revenue ($7.4M) with a 75% gross margin in fiscal 2025.

• Gartner ranked HawkSearch #1 for B2B search use case in 2025, validating product leadership.

• Net revenue retention reached 117% with less than 4% churn, driven by customer renewals, expansions, and adoption of new AI products.

• Sales pipeline entering fiscal 2026 is 65% larger, with 28 new customers added in fiscal 2025, contributing $2M in contract value and $700K in ARR.

• Partnerships with Unilog and Salesforce expand addressable market and accelerate sales cycles.

Financial highlights

• Q4 and Q1 fiscal 2025 total revenue was $3.9M, flat year-over-year; full-year revenue was $15.4M, also flat compared to 2024.

• Subscription revenue for Q4 2025 was $3.1M (81% of total), up from $3M in the prior year; services revenue was $700K, down from $800K year-over-year.

• Gross profit was $2.5M with a 66% overall margin in Q1; full-year gross margin was 67%.

• Net loss was $400K in Q4 and Q1, unchanged from the prior year; full-year net loss widened to $2.5M from $2.0M in 2024.

• Adjusted EBITDA for FY2025 was $(0.9)M, compared to $(0.2)M in FY2024.

Outlook and guidance

• Fiscal 2026 expected to see accelerated growth as legacy product decline abates and HawkSearch drives over 60% of total revenue.

• Marketing spend doubled to $500K per quarter to saturate sales pipeline and will be maintained through 2026.

• Salesforce and Unilog partnerships expected to drive further growth, with Salesforce AppExchange impact ramping up in Q2 and beyond.

• Entering fiscal 2026 with a significantly larger sales pipeline and continued focus on AI-driven recurring revenue.