Bridgeline Digital — Fiscal 2026 Earnings Summary

Financial Performance

• Fiscal 2026 new customer acquisitions totaled 38 customers, generating nearly $8M in Total Contract Value (TCV) and $2.2M in Annual Recurring Revenue (ARR).
• Fiscal 2026 existing customer sales totaled 37, representing an additional $200K in ARR for the fourth quarter and $1.0M in ARR for the full year.
• Fourth-quarter new customer acquisitions reached 12 customers, adding $1.4M in TCV and over $400K in ARR.
• Average Revenue Per Unit (ARPU) increased 53% in the fourth quarter compared to the prior quarter and 35% in fiscal 2026 compared to fiscal 2025.
• Legacy products generated more than $5M in revenue and $3M in gross profit during fiscal 2026.
• The company ended fiscal 2026 with approximately $1.0M in cash and less than $200K in legacy bank debt at an annual interest rate of approximately 3.5%.
• HawkSearch revenue is nearly $10M, including $8M in high-margin, multiyear subscriptions.
• Net Revenue Retention (NRR) for fiscal 2026 was 105%.

Guidance and Future Outlook

• Bridgeline expects Core products to achieve double-digit growth for fiscal 2026.
• The company expects Core products to represent 61% of total revenue and 64% of subscription revenue for fiscal 2026.
• Management expects the current customer win rate of one per week to grow in 2027.
• Initial contracts from new customers were 35% higher than the prior year.

Business Segments and Product Lines

• HawkSearch accounted for 89% of all sales during fiscal 2026 and 96% of all sales in the fourth quarter.
• Core products are expected to represent 63% of total revenue and 65% of subscription revenue in the fourth quarter.
• Five new AI product releases were launched during fiscal 2026, and two new AI product releases were launched in the fourth quarter.
• Core Product revenue includes subscription license and services revenue from HawkSearch, WooRank licenses for HawkSearch customers, and AccessiBe.

Market and Competitive Landscape

• The press release does not provide specific market share data or detailed competitor comparisons.

Risks and Challenges

• Forward-looking statements are subject to risks including the company's history of net loss and ability to achieve profitability.
• Risks include potential data security breaches, unauthorized access to data, and privacy concerns.
• Challenges include the ability to retain and upgrade current customers, attract new customers, and maintain revenue growth rates.
• Other risks include instability in financial markets, changes in platform interoperability, competition, and the ability to manage growth or plan for future growth.
• Risks also include the potential for acquisitions to require significant management attention, disrupt business, or dilute stockholder value.

Management Commentary and Tone

• Ari Kahn, President and CEO, stated that HawkSearch's value is demonstrated by its growing customer base, strong customer expansion, and consecutive quarterly sales records.
• Management highlighted that the platform delivered double-digit growth and that the current customer win rate is one per week.
• The tone reflects confidence in the platform's ability to drive continued customer investment, evidenced by the 105% net revenue retention.

Other Key Points

• Bridgeline recorded its third consecutive quarterly record for new customer acquisitions in the fourth quarter of fiscal 2026.
• The company completed 11 sales to existing customers in the fourth quarter, representing $750K in TCV and $200K in ARR.
• Fiscal 2026 saw a record year for new customer acquisitions with 38 new customers and 37 existing customers purchasing additional products.
• The company continues to support legacy products to fund continued investment in HawkSearch.