Bridgeline Announces Financial Results for the Third Quarter of Fiscal 2025

WOBURN, MA / ACCESS Newswire / August 14, 2025 / Bridgeline Digital, Inc. (NASDAQ:BLIN), a leader in AI-powered marketing technology, today announced financial results for its fiscal 2025 third quarter, which ended June 30, 2025.

"HawkSearch is ranked #1 in the 2025 Gartner® Critical Capabilities Report in the B2B Search Use Case," said Ari Kahn, Bridgeline's President and Chief Executive Officer. "Thanks to our latest AI-powered products in the HawkSearch suite, we are seeing double-digit growth for that product line, which now accounts for over 60% of Bridgeline's revenue and will continue to grow."

Financial Highlights - Third Quarter of Fiscal Year 2025

• Total revenue, which is comprised of SaaS Subscription and license and Services revenue, was $3.8 million for the quarter ended June 30, 2025, a decrease from $3.9 million in the prior year period.

• Subscription and licenses revenue of $3.1 million increased 4% from $3.0 million in the prior year period.

• Services revenue of $0.7 million for the quarter ended June 30, 2025 decreased from $0.9 million in the prior year period.

• Both total revenue from our Core products and subscription and licenses revenue from our Core products grew by over 10% CAGR.

• Our Core product Net Revenue Retention ("NRR") was 114% for the quarter ended June 30, 2025.

Financial Highlights - First 9 Months of Fiscal Year 2025

• Total revenue of $11.5 million for the 9 months ended June 30, 2025 slightly increased from $11.5 million in the prior year period.

• Subscription and licenses revenue of $9.2 million increased from $9.1 million in the prior year period.

• Services revenue of $2.3 million for the 9 months ended June 30, 2025 decreased from $2.4 million in the prior year period.

Sales Highlights

• Bridgeline has focused resources and proceeds from the 2^nd quarter capital raise towards sales and marketing to accelerate new customer acquisitions.

• In the third quarter of fiscal year 2025, Bridgeline sold 16 new subscription contracts for $1.7M in total contract value, adding over $600,000 in Annual Recurring Revenue.

• Bridgeline continues to build this momentum within the third quarter of fiscal 2025 with new contracts with Venue Marketplace, Adentra and Crest Fasteners, and we plan to build on this momentum by deepening our presence in B2B industries through targeted AI campaigns and events in the remainder of 2025 and into next year.

Product Highlights

• HawkSearch has been ranked #1 in the 2025 Gartner® Critical Capabilities Report in the B2B Search Use Case.

• The new HawkSearch MCP (Model Context Protocol) enables AI Agents to partner with merchandisers to manage HawkSearch, while offering merchandisers granular control over search results through natural language prompts.

• HawkSearch's latest release introduced AI Workbench and Advanced Analytics, enabling merchandisers to customize Smart Response and Smart Search prompts without developer support. The update delivers deeper visibility into search performance and seamless integration with business intelligence tools.

Partner Highlights

• 400 registrants joined Insight25, Bridgeline's inaugural HawkSearch Virtual Summit. Guest speakers from BigCommerce, HP, Luminos Labs, Xngage, Ivystone, Prestwick House, and Crescent Electric showcased HawkSearch's role in powering the next wave of AI innovation for B2B eCommerce.

• HawkSearch co-hosted an exclusive partner event at B2B Online in Chicago with Pimberly, BigCommerce, Cronix, BlueSnap, Distributor Data Solutions (DDS), Xngage, and Logicbroker. The event reinforced HawkSearch's deep partner ecosystem and strategic role in powering connected commerce solutions across B2B industries.

• HawkSearch Showcased AI-powered B2B search in a joint webinar with Cronix and Shopware, highlighting how HawkSearch drives the customer journey from discovery to order.

Customer Highlights

• Fortune 100 tech company signed a strategic retainer agreement with HawkSearch to optimize global ecommerce search across high‑volume, multi-region sites, reinforcing HawkSearch's role in enterprise-scale digital transformation.

• One of the nation's largest electrical distributors selected HawkSearch to power AI search across more than seventy storefronts, integrating with Sitecore and Salesforce Commerce Cloud for a unified product and content experience.

• A top five U.S. electrical distributor expanded its HawkSearch license to power hundreds of ecommerce portals. The distributor relies on HawkSearch's multi-engine infrastructure to test and deploy personalized experiences at scale.

• Ivystone Group launched HawkSearch across five ecommerce sites with Multi-Engine Management, Concept Search, Recommendations, and Merchandising to improve intent-matching and customer engagement.

• A leading JanSan Distributor renewed and expanded its partnership with HawkSearch to improve conversion and average order value with semantic search and personalized product recommendations.

Financial Results - Third Quarter of Fiscal Year 2025

• Total revenue, which is comprised of Licenses and Services revenue, was $3.8 million for the quarter ended June 30, 2025, as compared to $3.9 million for the same period in 2024.

• Subscription and licenses revenue, which is comprised of SaaS licenses, maintenance and hosting revenue, was $3.1 million for the quarter ended June 30, 2025, as compared to $3.0 million for the same period in 2024. As a percentage of total revenue, Subscription and licenses revenue was 81% of total revenue for the quarter ended June 30, 2025, as compared to 77% for the same period in 2024.

• Services revenue was $0.7 million for the quarter ended June 30, 2025, compared to $0.9 million for the same period in 2024. As a percentage of total revenue, Services revenue accounted for 19% of total revenue for the quarter ended June 30, 2025, as compared to 23% for the same period in 2024.

• Cost of revenue was $1.3 million for the quarter ended June 30, 2025, as compared to $1.2 million for the same period in 2024. Gross profit was $2.5 million for the quarter ended June 30, 2025, as compared to $2.7 million for the same period in 2024.

• Gross margin was 66% for the quarter ended June 30, 2025, as compared to 69% for the same period in 2024. Subscription and licenses gross margin was 70% for three months ended June 30, 2025, as compared to 72% for the same period in 2024. Services gross margin was 50% for the three months ended June 30, 2025, as compared to 58% for the same period in 2024.

• Operating expenses were $3.2 million for the quarter ended June 30, 2025, as compared to $3.1 million for the same period in 2024.

• Operating loss for the quarter ended June 30, 2025 was $0.7 million, as compared to $0.4 million for the same period in 2024.

• Net loss for the quarter ended June 30, 2025, was $0.8 million, compared to a net loss of $0.3 million for the same period in 2024.

Financial Results - First 9 Months of Fiscal Year 2025

• Total revenue, which is comprised of Licenses and Services revenue, was $11.5 million for the nine months ended June 30, 2025, slightly higher than the $11.5 million for the same period in 2024.

• Subscription and licenses revenue, which is comprised of SaaS licenses, maintenance and hosting revenue was $9.2 million for the nine months ended June 30, 2025, as compared to $9.1 million for the same period in 2024. As a percentage of total revenue, Subscription and licenses revenue was 80% of total revenue for the nine months ended June 30, 2025, compared to 79% for the same period in 2024.

• Services revenue was $2.3 million for the nine months ended June 30, 2025, as compared to $2.4 million for the same period in 2024. As a percentage of total revenue, Services revenue accounted for 20% of total revenue for the nine months ended June 30, 2025, compared to 21% for the same period in 2024.

• Cost of revenue was $3.8 million for the nine months ended June 30, 2025, as compared to $3.7 million for the same period in 2024. Gross profit was $7.7 million for the nine months ended June 30, 2025, as compared to $7.8 million for the same period in 2024.

• Gross margin was 67% for the nine months ended June 30, 2025, as compared to 68% for the same period in 2024. Subscription and licenses gross margin were 71% for the nine months ended June 30, 2025, as compared to 72% for the same period in 2024. Services gross margin was 51% for the nine months ended June 30, 2025, as compared to 51% for the same period in 2024.

• Operating expenses were $9.6 million for the nine months ended June 30, 2025, as compared to $9.3 million for the same period in 2024.

• Operating loss for the nine months ended June 30, 2025, was $1.9 million, as compared to an operating loss of $1.5 million for the same period in 2024.

• Net loss for the nine months ended June 30, 2025, was $2.2 million, compared to a net loss of $1.5 million for the same period in 2024.

Conference Call

Bridgeline Digital, Inc. will hold a conference call today, August 14, 2025, at 4:30 p.m. Eastern Time to discuss these results. The Company's President and Chief Executive Officer, Ari Kahn, and Chief Financial Officer, Thomas Windhausen, will host the call, followed by a question-and-answer period. The details of the conference call webcast and replay are as follows:

Bridgeline Digital Third Quarter 2025 Earnings Call
Thursday, August 14, 2025, at 4:30 p.m. ET
Webcast Registration: https://www.webcaster4.com/Webcast/Page/3079/52815

Non-GAAP Financial Measures

This press release contains references to Adjusted EBITDA, a Non-GAAP financial measure.

Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, impairment of goodwill and intangible assets, non-cash warrant related income/expense, changes in fair value of contingent consideration, restructuring and acquisition-related costs, amortization of debt discounts, preferred stock dividends and any related tax effects. Bridgeline uses Adjusted EBITDA as a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP").

Bridgeline's management does not consider Non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of Non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these Non-GAAP financial measures. To compensate for these limitations, Bridgeline management presents Non-GAAP financial measures in connection with GAAP results. Bridgeline urges investors to review the reconciliation of its Non-GAAP financial measure to the comparable GAAP financial measure, which is included in this press release, and not to rely on any single financial measure to evaluate Bridgeline's financial performance.

Our definition of Non-GAAP Adjusted EBITDA may differ from and therefore may not be comparable with similarly titled measures used by other companies, thereby limiting its usefulness as a comparative measure. As a result of the limitations that Adjusted EBITDA has as an analytical tool, investors should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP.

Other Terms

Core Product revenue includes all subscription license and services revenue from HawkSearch, WooRank licenses for HawkSearch customers, and AccessiBe.

Net Revenue Retention ("NRR") is measured as the current period trailing twelve months Monthly Recurring Revenue ("MRR"), including Cross Sales and Net Renewal (expansion less contraction) MRR, all divided by trailing twelve months MRR for the previous period trailing twelve months.

Safe Harbor for Forward-Looking Statements

Statement under the Private Securities Litigation Reform Act of 1995

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These statements appear in a number of places and include statements regarding the intent, belief or current expectations of Bridgeline Digital, Inc. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions, including, but not limited to, business operations and the business of our customers, suppliers and partners; our ability to retain and upgrade current customers, increasing our recurring revenue, our ability to attract new customers, our revenue growth rate; our history of net loss and our ability to achieve or maintain profitability, instability in the financial markets, including the banking sector; our liability for any unauthorized access to our data or our users' content, including through privacy and data security breaches; any decline in demand for our platform or products; changes in the interoperability of our platform across devices, operating systems, and third party applications that we do not control; competition in our markets; our ability to respond to rapid technological changes, extend our platform, develop new features or products, or gain market acceptance for such new features or products, particularly in light of potential disruptions to the productivity of our employees resulting from remote work; our ability to manage our growth or plan for future growth, and our acquisition of other businesses and the potential of such acquisitions to require significant management attention, disrupt our business, or dilute stockholder value; the volatility of the market price of our common stock, the ability to maintain our listing on the NASDAQ Capital Market; or our ability to maintain an effective system of internal controls as well as other risks described in our filings with the Securities and Exchange Commission. Any of such risks could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. Bridgeline Digital, Inc. assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by applicable law.

About Bridgeline Digital

Bridgeline is a marketing technology company that offers a suite of products that help companies grow online revenue by driving more traffic to their websites, converting more visitors to purchasers, and increasing average order value.

To learn more, please visit www.bridgeline.com or call (800) 603-9936.

Contact:

Bridgeline Digital, Inc.
Thomas R. Windhausen
Chief Financial Officer
twindhausen@bridgeline.com

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SOURCE: Bridgeline Digital, Inc.