Bridgeline Digital, Inc.
For the period ended Mar 31, 2026. Filed May 15, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 15, 2026
BLIN$0.62-7.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-12.
0001437749-26-003978
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001437749-26-017162
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 109 previous paragraphs and 135 current paragraphs.
76 unchanged; 23 reworded; 28 added; 8 removed; 2 previous and 8 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
Subscription revenue of $3.1 million for the three months ended March 31, 2026 remained consistent with the three months ended March 31, 2025.
Current report
Subscription revenue of $6.3 million for the six months ended March 31, 2026 increased by $0.2 compared to $6.1 million for the six months ended March 31, 2025.
Current report
Subscription revenue as a percentage of total revenue was 80% and 79% for the three months ended March 31, 2026 and 2025, respectively.
Current report
Subscription revenue as a percentage of total revenue of 80% for both the six months ended March 31, 2026 and the six months ended March 31, 2025.
Current report
Services revenue of $0.8 million for the three months ended March 31, 2026 remained consistent with the three months ended March 31, 2025.
Current report
Services revenue of $1.6 million for the six months ended March 31, 2026 remained consistent with the six months ended March 31, 2025.
Current report
Services revenue as a percentage of total revenue of 20% for both the six months ended March 31, 2026 and the six months ended March 31, 2025.
Current report
Total cost of revenue of $2.7 million for the six months ended March 31, 2026 increased from $2.5 million for the six months ended March 31, 2025.
Current report
Cost of subscription revenue of $2.0 million for the six months ended March 31, 2026 increased from $1.8 million for the six months ended March 31, 2025.
Current report
Cost of services revenue of $0.4 million for the three months ended March 31, 2026 remained consistent with the three months ended March 31, 2025.
Current report
Cost of services revenue of $0.8 million for the six months ended March 31, 2026 remained consistent with the six months ended March 31, 2025.
Current report
The cost of services revenue as a percentage of total services revenue was 49% and 48% for the six months ended March 31, 2026 and 2025, respectively.
Current report
Gross profit of $5.1 million for the six months ended March 31, 2026 decreased from $5.2 million for the six months ended March 31, 2025.
Current report
Sales and marketing expenses of $1.1 million for the three months ended March 31, 2026 remained consistent with the three months ended March 31, 2025.
Current report
Sales and marketing expenses of $2.1 million for the six months ended March 31, 2026 remained consistent with the six months ended March 31, 2025.
Current report
Sales and marketing expense as a percentage of total revenue was 27% for each of the six months ended March 31, 2026 and 2025.
Current report
The consistency with the prior comparable periods is primarily attributable to lower personnel costs and higher lead generation costs.
Current report
General and administrative expenses of $0.8 million for the three months ended March 31, 2026 remained consistent with the three months ended March 31, 2025.
Current report
General and administrative expense as a percentage of total revenue was 19% and 20% for the three months ended March 31, 2026 and 2025, respectively.
Current report
General and administrative expenses of $1.5 million for the six months ended March 31, 2026 decreased from $1.6 million for the six months ended March 31, 2025.
Current report
General and administrative expense as a percentage of total revenue was 19% and 20% for the six months ended March 31, 2026 and 2025, respectively.
Current report
Research and development expenses of $1.7 million for the six months ended March 31, 2026 decreased from $2.2 million for the six months ended March 31, 2025.
Current report
Research and development expenses as a percentage of total revenue was 21% and 28% for the six months ended March 31, 2026 and 2025, respectively.
Current report
Depreciation and amortization expenses of $0.4 million for the six months ended March 31, 2026 remained consistent with the six months ended March 31, 2025.
Current report
Restructuring and acquisition related expenses were $59 thousand for the three months ended March 31, 2026 compared to $0.2 million for the three months ended March 31, 2025.
Current report
Restructuring and acquisition related expenses were $84 thousand for the six months ended March 31, 2026 compared to $0.2 million for the six months ended March 31, 2025.
Current report
The loss from operations was $ (0.6) million and $ (1.3) million for the six months ended March 31, 2026 and 2025, respectively.
Current report
Interest expense and other, net, was $(6) thousand for the six months ended March 31, 2026 and was $(9) thousand for the six months ended March 31, 2025.
Removed paragraphs (8)
Previous report
Subscription revenue of $3.2 million for the three months ended December 31, 2025 increased by $0.1 compared to $3.1 million for the three months ended December 31, 2024.
Previous report
Subscription revenue as a percentage of total revenue of 81% for the three months ended December 31, 2025 increased from 80% for the three months ended December 31, 2024.
Previous report
Services revenue of $0.8 million for the three months ended December 31, 2025 increased slightly compared to $0.7 million for the three months ended December 31, 2024.
Previous report
Services revenue as a percentage of total revenue of 19% for the three months ended December 31, 2025 decreased from 20% for the three months ended December 31, 2024.
Previous report
Cost of services revenue of $0.3 million for the three months ended December 31, 2025 a slight decrease from $0.4 million for the three months ended December 31, 2024.
Previous report
General and administrative expenses of $0.7 million for the three months ended December 31, 2025 decreased from $0.8 million for the three months ended December 31, 2024.
Previous report
The decrease for the three months ended December 31, 2025 was primarily attributable to lower personnel costs.
Previous report
Restructuring and acquisition related expenses were $25 thousand for the three months ended December 31, 2025 compared to $10 thousand for the three months ended December 31, 2024.
Reworded paragraphs (23)
Previous wording
We currently have over 2,000 active customers. For the three months ended December 31, 2025 and 2024, no customer exceeded 10% of our revenue.
Current wording
We currently have over 2,000 active customers. For the three and six months ended March 31, 2026 and 2025, no customer exceeded 10% of our revenue.
Previous wording
Results of Operations for the Three Months Ended December 31, 2025 compared to the Three Months Ended December 31, 2024
Current wording
Results of Operations for the Three and Six Months Ended March 31, 2026*** compared to the Three and Six Months Ended March 31, 2025***
Previous wording
Total net revenue for each of the three months ended December 31, 2025 and 2024, was $3.9 million and $3.8 million, respectively. We had net loss of $(0.1) million and $(0.6) million for the three months ended December 31, 2025 and 2024, respectively. Included in the net loss for the three months ended December 31, 2025 and 2024, was a gain of $90 thousand and a loss of $(114) thousand as a result of the change in fair value of certain warrant liabilities, respectively. Basic and diluted loss per share attributable to common shareholders was $ (0.01) and $ (0.06) for the three months ended December 31, 2025 and 2024, respectively.
Current wording
Total net revenue for each of the three months ended March 31, 2026 and 2025, was $3.9 million. We had net loss of $(0.4) million and $(0.7) million for the three months ended March 31, 2026 and 2025, respectively. Included in the net loss for the three months ended March 31, 2026 and 2025, was a gain of $5 thousand and $25 thousand as a result of the change in fair value of certain warrant liabilities, respectively. Basic and diluted loss per share attributable to common shareholders was $ (0.04) and $ (0.10) for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
General and administrative expense as a percentage of total revenue was 18% and 21% for the three months ended December 31, 2025 and 2024, respectively.
Current wording
Services revenue as a percentage of total revenue was 20% and 21% for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Revenue for Bridgeline’s Core products was $2.4 million for the three months ended December 31, 2025 (representing 60% of total revenue), an increase from $2.0 million in the three months ended December 31, 2024 (representing 54% of total revenue). Bridgeline revenue for the three months ended December 31, 2025 increased compared to the three months ended December 31, 2024, with growth in Core products, led by HawkSearch, offset by lower revenue in certain legacy products. Core revenue for the 12 months ended December 31, 2025 grew by 17% compared to the 12 months ended December 31, 2024.
Current wording
Revenue for Bridgeline’s Core products was $2.4 million for the three months ended March 31, 2026 (representing 61% of total revenue), an increase from $2.3 million in the three months ended March 31, 2025 (representing 59% of total revenue). Bridgeline revenue for the three months ended March 31, 2026 increased compared to the three months ended March 31, 2025, with growth in Core products, led by HawkSearch, offset by lower revenue in certain legacy products.
Previous wording
Total cost of revenue of $1.3 million for the three months ended December 31, 2025 remained consistent with $1.3 million for the three months ended December 31, 2024.
Current wording
Total cost of revenue of $1.4 million for the three months ended March 31, 2026 increased from $1.3 million for the three months ended March 31, 2025.
Previous wording
Cost of subscription revenue of $1.0 million for the three months ended December 31, 2025 increased slightly from $0.9 million for the three months ended December 31, 2024.
Current wording
Cost of subscription revenue of $1.0 million for the three months ended March 31, 2026 increased from $0.9 million for the three months ended March 31, 2025.
Previous wording
The cost of subscription revenue as a percentage of subscription revenue was 31% and 29% for the three months ended December 31, 2025 and 2024, respectively.
Current wording
The cost of subscription revenue as a percentage of subscription revenue was 31% and 28% for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
The cost of services revenue as a percentage of total services revenue was 45% and 49% for the three months ended December 31, 2025 and 2024, respectively.
Current wording
The cost of services revenue as a percentage of total services revenue was 53% and 48% for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Gross profit of $2.6 million for the three months ended December 31, 2025 increased from $2.5 million for the three months ended December 31, 2024.
Current wording
Gross profit of $2.5 million for the three months ended March 31, 2026 decreased from $2.6 million for the three months ended March 31, 2025.
Previous wording
The gross profit margin was 66% and 67% for the three months ended December 31, 2025 and 2024, respectively.
Current wording
The gross profit margin was 64% and 68% for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Sales and marketing expense as a percentage of total revenue was 27% and 26% for the three months ended December 31, 2025 and 2024, respectively.
Current wording
Sales and marketing expense as a percentage of total revenue was 27% and 28% for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Research and development expenses of $0.8 million for the three months ended December 31, 2025 decreased from $1.1 million for the three months ended December 31, 2024.
Current wording
Research and development expenses of $0.9 million for the three months ended March 31, 2026 decreased from $1.1 million for the three months ended March 31, 2025.
Previous wording
Research and development expenses as a percentage of total revenue was 20% and 28% for the three months ended December 31, 2025 and 2024, respectively.
Current wording
Research and development expenses as a percentage of total revenue was 22% and 29% for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Depreciation and amortization expenses of $0.2 million for the three months ended December 31, 2025 remained consistent with $0.2 million for the three months ended December 31, 2024.
Current wording
Depreciation and amortization expenses of $0.2 million for the three months ended March 31, 2026 remained consistent with the three months ended March 31, 2025.
Previous wording
The loss from operations was $ (0.2) million and $ (0.5) million for the three months ended December 31, 2025 and 2024, respectively.
Current wording
The loss from operations was $ (0.4) million and $ (0.7) million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
The sum of interest expense and other, net, was less than $(1) thousand of income for the three months ended December 31, 2025 and was $(4) thousand of income for the three months ended December 31, 2024.
Current wording
Interest expense and other, net, was $(6) thousand for the three months ended March 31, 2026 and was $(5) thousand for the three months ended March 31, 2025.
Previous wording
We recognized a gain on the change in fair value of warrant liabilities of $0.1 million during the three months ended December 31, 2025 and recognized a loss related to the change in fair value of warrant liabilities of $(0.1) million for the three months ended December 31, 2024.
Current wording
We recognized a gain on the change in fair value of warrant liabilities of $5 thousand during the three months ended March 31, 2026 and recognized a gain related to the change in fair value of warrant liabilities of $25 thousand for the three months ended March 31, 2025.
Previous wording
The provision for income taxes was $5 thousand for each of the three months ended December 31, 2025 and December 31, 2024. The provision for income taxes consists of estimated liability for federal and state income taxes owed by us. Net operating loss (“NOL”) carryforwards are estimated to be sufficient to offset any potential taxable income for all periods presented. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. We maintain a valuation allowance against its net deferred tax assets.
Current wording
The provision for income taxes was $5 thousand for each of the three months ended March 31, 2026 and March 31, 2025. The provision for income taxes was $10 thousand for each of the six months ended March 31, 2026 and March 31, 2025. The provision for income taxes consists of estimated liability for federal and state income taxes owed by us. Net operating loss (“NOL”) carryforwards are estimated to be sufficient to offset any potential taxable income for all periods presented. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. We maintain a valuation allowance against its net deferred tax assets.
Previous wording
Cash used in operating activities was $(39) thousand for the three months ended December 31, 2025, compared to cash provided by operating activities of $0.2 million for the three months ended December 31, 2024. The change in cash used in operating activities, compared to the prior period, was primarily due to changes in non-cash items, including amortization, depreciation, stock-based compensation, and changes in fair value of warrant liabilities, and changes in accounts receivable, prepaids and other current assets, and accounts payable and accrued liabilities and deferred revenue.
Current wording
Cash used in operating activities was $(79) thousand for the six months ended March 31, 2026, compared to cash used in operating activities of $(0.2) million for the six months ended March 31, 2025. The change in cash used in operating activities, compared to the prior period, was primarily due to changes in non-cash items, including depreciation, and changes in fair value of warrant liabilities, and changes in accounts receivable, prepaids and other current assets, and accounts payable and accrued liabilities and deferred revenue.
Previous wording
There was $(17) thousand and $(5) thousand cash used in investing activities for the three months ended December 31, 2025 and 2024, respectively.
Current wording
There was $(44) thousand and $(7) thousand cash used in investing activities for the six months ended March 31, 2026 and 2025, respectively.
Previous wording
Cash used in financing activities was $(0.1) million for each of the three months ended December 31, 2025 and 2024, primarily related to payments of long-term debt.
Current wording
Cash used in financing activities was $(0.1) million for the six months ended March 31, 2026, compared to cash provided by financing activities of $1.6 million for the six months ended March 31, 2025. The change is primarily related to proceeds from the issuance of common stock and the redemption of Preferred Series C shares in the six months ended March 31, 2025.
Previous wording
We lease all of our office locations. The gross obligations for operating leases are $0.6 million, with obligations extending through fiscal 2031. Debt payments on our various debt obligations total $0.2 million, of which $0.1 million is expected to be paid in the next twelve months.
Current wording
We lease all of our office locations. The gross obligations for operating leases are $0.5 million, with obligations extending through fiscal 2031. Debt payments on our various debt obligations total $0.2 million, of which $0.1 million is expected to be paid in the next twelve months.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
Total net revenue for the six months ended March 31, 2026 and 2025, was $7.8 million and $7.7 million, respectively. We had net loss of $(0.5) million and $(1.4) million for the six months ended March 31, 2026 and 2025, respectively. Included in the net loss for the six months ended March 31, 2026 and 2025, was a gain of $95 thousand and a loss of $(89) thousand as a result of the change in fair value of certain warrant liabilities, respectively. Basic and diluted loss per share attributable to common shareholders was $ (0.04) and $ (0.16) for the six months ended March 31, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
Revenue for Bridgeline’s Core products was $4.8 million for the six months ended March 31, 2026 (representing 61% of total revenue), an increase from $4.3 million in the six months ended March 31, 2025 (representing 56% of total revenue). Bridgeline revenue for the six months ended March 31, 2026 increased compared to the six months ended March 31, 2025, with growth in Core products, led by HawkSearch, offset by lower revenue in certain legacy products.
Current report — wording carried from elsewhere
Core revenue for the 12 months ended March 31, 2026 grew by 14% compared to the 12 months ended March 31, 2025.
Current report — wording carried from elsewhere
The cost of subscription revenue as a percentage of subscription revenue was 31% and 29% for the six months ended March 31, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
The gross profit margin was 65% and 67% for the six months ended March 31, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
The decrease from the prior comparable periods is primarily attributable to lower personnel costs.
Current report — wording carried from elsewhere
Depreciation and amortization as a percentage of total revenue was 5% for each of the six months ended March 31, 2026 and 2025*.*
Current report — wording carried from elsewhere
We recognized a gain on the change in fair value of warrant liabilities of $95 thousand during the six months ended March 31, 2026 and recognized a loss related to the change in fair value of warrant liabilities of $(89) thousand for the six months ended March 31, 2025.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Our revenue is derived from two sources: (i) subscription and (ii) services.
Previous report — wording carried elsewhere
Sales and marketing expenses of $1.0 million for the three months ended December 31, 2025 increased from $1.0 million for the three months ended December 31, 2024.