Bridgeline Announces Financial Results for the Fourth Quarter of Fiscal 2025

WOBURN, MASSACHUSETTS / ACCESS Newswire / December 18, 2025 / Bridgeline Digital, Inc. (NASDAQ:BLIN), a frontrunner in AI-powered advertising and marketing know-how, right now introduced monetary outcomes for its fiscal 2025 fourth quarter, which ended September 30, 2025.

“Our Core merchandise, led by the HawkSearch suite and it’s AI merchandise, grew by 16% and had 117% Web Income Retention, which demonstrates buyer satisfaction and demand for our AI-powered product discovery,” stated Ari Kahn, Bridgeline’s President and Chief Government Officer. “We start fiscal 2026 with a 65% bigger gross sales pipeline, #1 rating in Gartner’s Vital Capabilities Report for B2B Search Use Case, and 58% of our income now coming from our Core merchandise.”

Monetary Highlights – Fourth Quarter of Fiscal 12 months 2025

• Complete income, which is comprised of SaaS Subscription and Companies income, was $3.9 million for the quarter ended September 30, 2025, a rise from each the prior quarter and the prior 12 months.

• Subscription income of $3.1 million elevated 4% from $3.0 million within the prior 12 months.

• Companies income of $0.7 million for the quarter ended September 30, 2025 decreased from $0.8 million within the prior 12 months.

Monetary Highlights – Fiscal 12 months 2025

• Complete income of $15.4 million for the 12 months ended September 30, 2025 elevated from $15.4 million within the prior 12 months.

• Subscription income of $12.4 million elevated from $12.1 million within the prior 12 months.

• Companies income of $3.0 million for the 12 months ended September 30, 2025 decreased from $3.2 million within the prior 12 months.

• Bridgeline’s Core merchandise, led by HawkSearch, grew by 16% to $8.9 million in fiscal 2025 (representing 58% of whole income) from $7.7 million in fiscal 2024 (representing 50% of whole income). Bridgeline income was flat in fiscal 2025 in comparison with fiscal 2024, with progress in Core merchandise, led by HawkSearch, offset by decrease income in sure legacy merchandise.

Gross sales Highlights

• Within the fourth quarter of fiscal 12 months 2025, Bridgeline bought 18 new subscription contracts for $1.25M in whole contract worth, including over $350,000 in Annual Recurring Income.

• For fiscal 12 months 2025, Bridgeline bought 83 new subscription contracts for $6.9M in whole contract worth, including over $2.4M in Annual Recurring Income, a rise of over 18% from fiscal 2024.

• Bridgeline’s gross sales cycle lowered from over 160 days in fiscal 2024 to 92 days in fiscal 2025.

• Bridgeline’s common subscription ARR per sale elevated by 35% from $18,500 in fiscal 2024 to $25,000 in fiscal 2025.

• Core merchandise Web Income Retention (“NRR”) was 117% for the 12 months ended September 30, 2025.

• Demand for HawkSearch remained robust throughout B2B verticals with complicated catalogs, contributing to higher-value subscription bookings in the course of the quarter and supporting the Firm’s deal with recurring AI-driven income.

Product Highlights

• HawkSearch launched its Agentic AI product that features a knowledge lake for Superior Analytics and Agentic Analytics Assistant assist.

• We launched Enhanced Multilingual Search which expanded assist for non-English languages, bettering matching accuracy for Chinese language queries and mixed-language content material.

• Nested fields have been added as a brand new discipline sort to assist massive catalogs with particular stock, pricing, transport and different content material for big numbers of areas, together with assist for partial indexing at scale.

• Enhancements have been made to Visible Search, in order that a picture that’s uploaded is now displayed in Superior Rationalization, which gives merchandisers higher perception into outcomes from Visible Search.

Accomplice Highlights

• Unilog added the HawkSearch platform to their know-how accomplice ecosystem to energy superior search as an add-on possibility for his or her CX1 eCommerce platform. Unilog will combine HawkSearch with its CX1 CIMM2 eCommerce platform, including a robust new choice to its rising ecosystem of know-how companions. With the HawkSearch integration, Unilog clients can improve their digital storefronts with clever, AI-assisted search tailor-made to complicated catalogs and purchaser behaviors, bettering product discovery, engagement, and conversion.

• Salesforce clients can now entry HawkSearch straight from the AppExchange, launch the connector, and instantly improve their eCommerce expertise, driving fast enhancements in income.

Buyer Highlights

• Do It Greatest has been a long-standing Hawksearch buyer, and with their current acquisition of True Worth {Hardware}, they’re making substantial investments in Hawksearch. Do It Greatest now powers seek for 175,000 merchandise with real-time stock and pricing for 3,000 retailer areas, which is deliberate to develop to over 9,000 shops in 2026 because the True Worth shops are powered.

• A prime equipment retailer launched a search platform improve the place HawkSearch now powers OpenSearch, Good Search, and superior visible seek for the equipment retailer. AI-driven analytics give the retailer insights to enhance merchandising and advertising and marketing methods in actual time.

• A significant architectural décor supplier chosen HawkSearch to energy its product discovery. The choice was pushed by our superior capabilities, together with Visible Search, which permits consumers to search out merchandise based mostly on visible attributes that is probably not captured in conventional knowledge fields.

• A big healthcare supplier selected HawkSearch to energy search on their new Shopware eCommerce website. The choice was pushed by our superior capabilities to personalize experiences for purchasers, providing tailor-made entitlements and restrictions in addition to AI-driven instruments similar to Good Search and Good Response.

• A number one plastics and industrial provider chosen HawkSearch to pilot a collection of superior AI-powered search capabilities, together with Good Search, Good Response, and Conversational Search. They are going to use a Unified Search expertise that mixes Idea Search and Picture Search, with conventional key phrase search, to assist customers discover merchandise via each pure language queries and visible inputs.

• A nationwide distributor and options supplier of janitorial/sanitation, foodservice, and industrial packaging merchandise launched HawkSearch on the Optimizely Configured Commerce platform, the place HawkSearch is natively built-in because the premier, superior website search and merchandising answer. The deployment transforms how clients work together with the distributor’s in depth catalog, utilizing AI-driven context recognition to search out merchandise and sources based mostly on intent fairly than actual key phrases, lowering the time it takes to find the precise gadgets throughout complicated, multi-category inventories.

• A significant worldwide supplier within the materials dealing with trade chosen HawkSearch and can leverage the superior internet crawler to extract and enrich product attributes from detailed descriptions, enhancing the shopper expertise with extra correct and related search outcomes.

Monetary Outcomes – Fourth Quarter of Fiscal 12 months 2025

• Complete income, which is comprised of Subscription and Companies income, was $3.9 million for the quarter ended September 30, 2025, as in comparison with $3.9 million for a similar interval in 2024.

• Subscription income, which is comprised of SaaS licenses, upkeep and internet hosting income, was $3.1 million for the quarter ended September 30, 2025, as in comparison with $3.0 million for a similar interval in 2024. As a proportion of whole income, Subscription income was 81% of whole income for the quarter ended September 30, 2025, as in comparison with 78% for a similar interval in 2024.

• Companies income was $0.7 million for the quarter ended September 30, 2025, in comparison with $0.8 million for a similar interval in 2024. As a proportion of whole income, Companies income accounted for 19% of whole income for the quarter ended September 30, 2025, as in comparison with 22% for a similar interval in 2024.

• Price of income was $1.3 million for the quarter ended September 30, 2025, as in comparison with $1.2 million for a similar interval in 2024. Gross revenue was $2.5 million for the quarter ended September 30, 2025, as in comparison with $2.7 million for a similar interval in 2024.

• Gross margin was 66% for the quarter ended September 30, 2025, as in comparison with 69% for a similar interval in 2024. Subscription gross margin was 69% for 3 months ended September 30, 2025, as in comparison with 72% for a similar interval in 2024. Companies gross margin was 50% for the three months ended September 30, 2025, as in comparison with 58% for a similar interval in 2024.

• Working bills have been $3.0 million for the quarter ended September 30, 2025, as in comparison with $3.1 million for a similar interval in 2024.

• Working loss for the quarter ended September 30, 2025 was $0.5 million, as in comparison with $0.5 million for a similar interval in 2024.

• Web loss for the quarter ended September 30, 2025, was $0.4 million, in comparison with a internet lack of $0.4 million for a similar interval in 2024.

Monetary Outcomes – Fiscal 12 months 2025

• Complete income, which is comprised of Subscription and Companies income, was $15.4 million for the 12 months ended September 30, 2025, a rise from $15.4 million for a similar interval in 2024.

• Subscription income, which is comprised of SaaS licenses, upkeep and internet hosting income was $12.4 million for the 12 months ended September 30, 2025, as in comparison with $12.1 million for a similar interval in 2024. As a proportion of whole income, Subscription income was 80% of whole income for the 12 months ended September 30, 2025, in comparison with 79% for a similar interval in 2024.

• Companies income was $3.0 million for the 12 months ended September 30, 2025, as in comparison with $3.2 million for a similar interval in 2024. As a proportion of whole income, Companies income accounted for 20% of whole income for the 12 months ended September 30, 2025, in comparison with 21% for a similar interval in 2024.

• Price of income was $5.1 million for the 12 months ended September 30, 2025, as in comparison with $4.9 million for a similar interval in 2024. Gross revenue was $10.2 million for the 12 months ended September 30, 2025, as in comparison with $10.4 million for a similar interval in 2024.

• Gross margin was 67% for the 12 months ended September 30, 2025, as in comparison with 68% for a similar interval in 2024. Subscription gross margin was 70% for the 12 months ended September 30, 2025, as in comparison with 72% for a similar interval in 2024. Companies gross margin was 51% for the 12 months ended September 30, 2025, as in comparison with 52% for a similar interval in 2024.

• Working bills have been $12.7 million for the 12 months ended September 30, 2025, as in comparison with $12.5 million for a similar interval in 2024.

• Working loss for the 12 months ended September 30, 2025, was $2.4 million, as in comparison with an working lack of $2.0 million for a similar interval in 2024.

• Web loss for the 12 months ended September 30, 2025, was $2.5 million, in comparison with a internet lack of $2.0 million for a similar interval in 2024.

Convention Name

Bridgeline Digital, Inc. will maintain a convention name right now, December 18, 2025, at 4:30 p.m. Japanese Time to debate these outcomes. The Firm’s President and Chief Government Officer, Ari Kahn, and Chief Monetary Officer, Thomas Windhausen, will host the decision, adopted by a question-and-answer interval. The main points of the convention name webcast and replay are as follows:

Bridgeline Digital Fourth Quarter 2025 Earnings Name
Thursday, December 18, 2025, at 4:30 p.m. ET
Webcast Registration: https://www.webcaster5.com/Webcast/Page/3079/53122

Non-GAAP Monetary Measures

This press launch incorporates references to Adjusted EBITDA, a Non-GAAP monetary measure.

Adjusted EBITDA is outlined as earnings earlier than curiosity, taxes, depreciation, amortization, stock-based compensation expense, impairment of goodwill and intangible belongings, non-cash warrant associated earnings/expense, modifications in truthful worth of contingent consideration, restructuring and acquisition-related prices, amortization of debt reductions, most well-liked inventory dividends and any associated tax results. Bridgeline makes use of Adjusted EBITDA as a supplemental measure of our efficiency that isn’t required by, or introduced in accordance with, accounting rules usually accepted in the USA (“GAAP”).

Bridgeline’s administration doesn’t contemplate Non-GAAP measures in isolation or as a substitute for monetary measures decided in accordance with GAAP. The principal limitation of Non-GAAP monetary measures is that they exclude important bills and earnings which might be required by GAAP to be recorded within the Firm’s monetary statements. As well as, they’re topic to inherent limitations as they mirror the train of judgments by administration about which bills and earnings are excluded or included in figuring out these Non-GAAP monetary measures. To compensate for these limitations, Bridgeline administration presents Non-GAAP monetary measures in reference to GAAP outcomes. Bridgeline urges buyers to evaluation the reconciliation of its Non-GAAP monetary measure to the comparable GAAP monetary measure, which is included on this press launch, and to not depend on any single monetary measure to guage Bridgeline’s monetary efficiency.

Our definition of Non-GAAP Adjusted EBITDA might differ from and subsequently is probably not comparable with equally titled measures utilized by different corporations, thereby limiting its usefulness as a comparative measure. On account of the constraints that Adjusted EBITDA has as an analytical software, buyers shouldn’t contemplate it in isolation, or as an alternative to evaluation of our working outcomes as reported underneath GAAP.

Different Phrases

Core Product income contains all subscription license and companies income from HawkSearch, WooRank licenses for HawkSearch clients, and AccessiBe.

Web Income Retention (“NRR”) is measured as the present interval trailing twelve months Month-to-month Recurring Income (“MRR”), together with Cross Gross sales and Web Renewal (enlargement much less contraction) MRR, all divided by trailing twelve months MRR for the earlier interval trailing twelve months.

Protected Harbor for Ahead-Wanting Statements

Assertion underneath the Personal Securities Litigation Reform Act of 1995

All statements included on this press launch, aside from statements or characterizations of historic reality, are forward-looking statements. These “forward-looking statements” inside the which means of the Personal Securities Litigation Reform Act of 1995, are based mostly on our present expectations, estimates and projections about our trade, administration’s beliefs, and sure assumptions made by us, all of that are topic to vary. Ahead-looking statements can typically be recognized by phrases similar to “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “might,” “will,” “ought to,” “would,” “may,” “potential,” “proceed,” “ongoing,” comparable expressions, and variations or negatives of those phrases. These statements seem in plenty of locations and embrace statements concerning the intent, perception or present expectations of Bridgeline Digital, Inc. These forward-looking statements should not ensures of future outcomes and are topic to dangers, uncertainties and assumptions, together with, however not restricted to, enterprise operations and the enterprise of our clients, suppliers and companions; our capability to retain and improve present clients, growing our recurring income, our capability to draw new clients, our income progress fee; our historical past of internet loss and our capability to attain or keep profitability, instability within the monetary markets, together with the banking sector; our legal responsibility for any unauthorized entry to our knowledge or our customers’ content material, together with via privateness and knowledge safety breaches; any decline in demand for our platform or merchandise; modifications within the interoperability of our platform throughout gadgets, working techniques, and third social gathering functions that we don’t management; competitors in our markets; our capability to answer speedy technological modifications, lengthen our platform, develop new options or merchandise, or acquire market acceptance for such new options or merchandise, significantly in mild of potential disruptions to the productiveness of our staff ensuing from distant work; our capability to handle our progress or plan for future progress, and our acquisition of different companies and the potential of such acquisitions to require important administration consideration, disrupt our enterprise, or dilute stockholder worth; the volatility of the market worth of our frequent inventory, the power to keep up our itemizing on the NASDAQ Capital Market; or our capability to keep up an efficient system of inside controls in addition to different dangers described in our filings with the Securities and Change Fee. Any of such dangers may trigger our precise outcomes to vary materially and adversely from these expressed in any forward-looking assertion. Bridgeline Digital, Inc. assumes no obligation to, and doesn’t at the moment intend to, replace any such forward-looking statements after the date of this launch, besides as required by relevant regulation.

About Bridgeline Digital

Bridgeline is a advertising and marketing know-how firm that gives a collection of merchandise that assist corporations develop on-line income by driving extra visitors to their web sites, changing extra guests to purchasers, and growing common order worth.

To be taught extra, please go to http://www.bridgeline.com or name (800) 603-9936.

Contact:

Bridgeline Digital, Inc.
Thomas Windhausen
Chief Monetary Officer
[email protected]

BRIDGELINE DIGITAL, INC.
CONSOLIDATED BALANCE SHEETS
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CONSOLIDATED STATEMENTS OF OPERATIONS
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RECONCILIATION OF GAAP TO NON-GAAP RESULTS
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SOURCE: Bridgeline Digital