Bridgeline's HawkSearch and Znode Partner to Bring AI-Powered Search & Product Discovery to Enterprise B2B eCommerce ELEMENT--Back to the NewsroomBridgeline's HawkSearch and Znode Partner to Bring AI-Powered Search & Product Discovery to Enterprise B2B eCommerceWOBURN, MA / ACCESS Newswire/ March 25, 2026 / Bridgeline Digital, Inc. (NASDAQ:BLIN), a leader in AI-powered marketing technology, today announced a partnership between HawkSearch and Znode to help manufacturers and distributors elevate onsite searc ...

HawkSearch by Bridgeline Wins Industrial Distribution Customer to Deliver, AI-Powered, On-Site Search ELEMENT--Back to the NewsroomHawkSearch by Bridgeline Wins Industrial Distribution Customer to Deliver, AI-Powered, On-Site SearchWOBURN, MASSACHUSETTS / ACCESS Newswire/ March 18, 2026 / Bridgeline Digital, Inc. (NASDAQ:BLIN), a leader in AI-powered marketing technology, announced today that a leading industrial distributor has selected HawkSearch to power its on-site search.HawkSearch was chosen after a t ...

Core Insights - Bridgeline Digital, Inc. has announced that a leading B2B global industrial and medical gas provider has selected HawkSearch to enhance its eCommerce search capabilities [1] - The implementation aims to improve product findability, merchandising control, and personalized customer journeys across multiple languages [1] - HawkSearch's features include advanced merchandising tools, AI-driven visual and concept search, and a Salesforce connector for a federated search solution [1] Company Overview - Bridgeline Digital focuses on helping companies increase online revenue by enhancing traffic, conversion rates, and average order value [1] - The company emphasizes its commitment to delivering intelligent and flexible search solutions for enterprises managing complex product data and multilingual requirements [1]

Revenue Performance - Total revenue for the first quarter of fiscal 2026 was $3.9 million, an increase from $3.8 million in the same period last year[10] - Subscription revenue reached $3.2 million, up 4% from $3.0 million in the prior year, accounting for 81% of total revenue[10] - Total net revenue for the three months ended December 31, 2025, was $3,913,000, representing an increase of 3.2% from $3,791,000 in the same period of 2024[25] - Subscription revenue increased to $3,155,000, up from $3,048,000, reflecting a growth of 3.5% year-over-year[25] Core Products and Customer Metrics - Core products revenue grew by 17% year-over-year, now representing 63% of subscription revenue[3] - Annual Recurring Revenue (ARR) per customer for core subscriptions increased to $33,000 from $25,000 in the prior year[5] - Net Revenue Retention (NRR) for core products was 107% in the first quarter of fiscal 2026[5] - The company sold 13 new subscription contracts totaling $1.2 million in contract value, contributing over $370,000 in ARR[5] Profitability and Loss - Operating loss for the quarter was $0.2 million, improved from a loss of $0.5 million in the same period last year[10] - The net loss for the quarter was $86,000, significantly improved from a net loss of $634,000 in the same quarter of 2024[25] - Adjusted EBITDA for the quarter was $122,000, compared to a loss of $193,000 in the prior year, showing a positive turnaround[27] - The company reported a basic net loss per share of $0.01, an improvement from a loss of $0.06 per share in the previous year[25] Operating Expenses and Margins - Operating expenses decreased to $2.8 million from $3.0 million in the same period last year[10] - Total operating expenses decreased to $2,759,000 from $3,046,000, a reduction of 9.4% year-over-year[25] - Gross margin for the quarter was 66%, slightly down from 67% in the prior year[10] - Gross profit for the quarter was $2,588,000, compared to $2,535,000 in the prior year, indicating a slight increase of 2.1%[25] Shareholder Equity and Liabilities - Total stockholders' equity as of December 31, 2025, was $9,554,000, slightly down from $9,568,000 at September 30, 2025[23] - Total liabilities and stockholders' equity amounted to $15,736,000, an increase from $15,326,000 in the previous quarter[23] Product Development - HawkSearch launched several new features, including the Spark UX platform and AI Content Extractor, enhancing user experience and product discovery[5] Share Metrics - The number of weighted average shares outstanding increased to 12,049,722 from 10,417,609, reflecting a growth of 15.7%[25]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $3.9 million, up from $3.8 million in the prior year period [12] - Subscription revenue was $3.2 million, compared to $3.0 million in the prior year, representing 81% of total revenue [12] - Gross profit increased to $2.6 million from $2.5 million in the prior year, with a gross profit margin of 66% [13] - Net loss reduced to $100,000 from a loss of $600,000 in the prior year, with positive adjusted EBITDA of $122,000 compared to a negative $193,000 [14] Business Line Data and Key Metrics Changes - Core products accounted for 60% of total revenue, growing 17% to $2.4 million from $2.0 million last quarter [6] - HawkSearch represented 63% of subscription revenue, increasing to $2 million from $1.9 million last quarter [6] - Average annual recurring revenue (ARR) per customer increased by 12% to $28,000 from $25,000 last quarter [7] Market Data and Key Metrics Changes - New customer acquisition continued to grow, with 13 new licenses sold this quarter, totaling $1.2 million in contract value [7] - More than half of new license sales included AI products, indicating strong demand for AI capabilities [7] - HawkSearch was ranked number one in Gartner's 2025 Critical Capabilities Report, highlighting its competitive position in the market [8] Company Strategy and Development Direction - The company aims to increase core products to over 70% of overall revenue this year, driving faster and more profitable growth [11] - Investments in AI and product innovation are expected to enhance customer satisfaction and retention [11] - The focus remains on revenue growth, product innovation, customer success, and delivering shareholder value [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, with expectations for HawkSearch to achieve a 20% growth rate this year [49] - The total addressable market remains unchanged, with a strong pipeline of new customers and opportunities for add-on growth within existing customers [52] - The competitive landscape has not significantly changed, with the company differentiating itself through advanced analytics and AI capabilities [46] Other Important Information - The company had cash of $1.5 million and total assets of $15.7 million as of December 31, 2025 [14][15] - Operating expenses decreased to $2.8 million from $3 million in the prior year [13] Q&A Session Summary Question: Clarification on ARR figures - The ARR per new customer increased to $28,000, up 12% from the previous quarter, and overall revenue per customer is now $33,000 [21][31] Question: Impact of increasing average package on market reach - The total addressable market remains large, and customers are now more willing to invest in AI add-ons [40][44] Question: Changes in competitive landscape - The same top competitors are present, but the company is differentiating through its analytics and data lake capabilities [46][47] Question: Expectations for future growth rates - The company expects continued growth, aiming for a 20% growth rate for HawkSearch this year [49] Question: Stability of gross margin - The combined gross margin is expected to remain in the mid-60s range, with subscription margins around 70% [64][72]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $3.9 million, up from $3.8 million in the prior year period [12] - Subscription revenue was $3.2 million, compared to $3.0 million in the prior year, representing 81% of total revenue [12] - Services revenue increased to $758,000 from $743,000 in the prior year [12] - Gross profit rose to $2.6 million from $2.5 million, with a gross profit margin of 66% [13] - Net loss improved to $100,000 from a loss of $600,000 in the prior year [14] - Adjusted EBITDA was positive at $122,000, compared to a negative $193,000 in the prior year [14] Business Line Data and Key Metrics Changes - Core products accounted for 60% of total revenue, growing 17% to $2.4 million from $2.0 million [6] - HawkSearch represented 63% of subscription revenue, increasing to $2 million from $1.9 million [6] - Average ARR per customer increased by 12% to $28,000 from $25,000 [7] - Average subscription per customer rose to $33,000 from $30,000 [7] Market Data and Key Metrics Changes - New customer acquisition continued to grow, with 13 new licenses sold, totaling $1.2 million in contract value [7] - More than half of new license sales included AI products [7] - HawkSearch was ranked number 1 in Gartner's 2025 Critical Capabilities Report, indicating strong market positioning [8] Company Strategy and Development Direction - The company aims to increase HawkSearch and core products to over 70% of overall revenue this year [11] - Focus on product innovation, customer success, and delivering shareholder value [16] - Investments in AI and a clean product architecture enable rapid product releases [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and success in 2026, with expectations for revenue growth and product innovation [16] - The total addressable market remains unchanged, with a strong focus on B2B manufacturing and distribution [40][52] - Anticipated growth rates for HawkSearch are expected to reach 20% this year [50] Other Important Information - Cash at the end of Q1 2026 was $1.5 million, with total assets of $15.7 million [14][15] - The company has no significant debt or contingent payments remaining from previous transactions [14] Q&A Session Summary Question: Clarification on ARR figures - Management confirmed that the average ARR per new customer is $28,000, up from $25,000, and overall revenue per customer is now $33,000 [21][31] Question: Impact of increasing average package on market reach - Management stated that the total addressable market has not changed, and customers are now more willing to adopt AI add-ons [40][44] Question: Competitive landscape changes - Management noted that top competitors remain the same, but differentiation is achieved through analytics and a data lake for customer data [46][47] Question: Expectations for future growth rates - Management expects continued growth in ARR and HawkSearch, with a solid pipeline of new customers [50][52] Question: Marketing spend effectiveness - Management indicated that marketing dollars are being spent effectively, with plans to invest more in successful campaigns [58][61] Question: Stability of gross margin - Management expects gross margins to remain stable in the mid-60s range, with subscription margins around 70% [64][72]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $3.9 million, up from $3.8 million in the prior year period [13] - Subscription revenue was $3.2 million, compared to $3.0 million in the prior year, representing 81% of total revenue [13] - Services revenue increased to $758,000 from $743,000 in the prior year [14] - Gross profit was $2.6 million, an increase from $2.5 million in the prior year, with a gross profit margin of 66% [14] - Net loss narrowed to $100,000 from a loss of $600,000 in the prior year, with positive adjusted EBITDA of $122,000 compared to negative $193,000 previously [16] Business Line Data and Key Metrics Changes - Core products accounted for 60% of total revenue, growing 17% to $2.4 million from $2.0 million last quarter [6] - HawkSearch represented 63% of subscription revenue, generating $2 million, up from $1.9 million last quarter [6] - Average ARR per customer increased by 12% to $28,000 from $25,000 last quarter [7] - Average subscription per customer rose to $33,000 from $30,000 last quarter [7] Market Data and Key Metrics Changes - New customer acquisition continued to grow, with 13 new licenses sold, totaling $1.2 million in contract value [7] - More than half of new license sales included AI products, indicating strong demand for AI capabilities [8] - HawkSearch was ranked number 1 in Gartner's 2025 Critical Capabilities Report, highlighting its competitive position in the market [9] Company Strategy and Development Direction - The company aims for HawkSearch and core products to exceed 70% of overall revenue this year, driving faster, more profitable growth [12] - Continued focus on product innovation, customer success, and delivering shareholder value is emphasized [18] - The company is targeting B2B manufacturing and distribution markets, which are seen as rapidly maturing with technology adoption [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, with expectations for HawkSearch growth to reach 20% this year [51] - The total addressable market remains unchanged, with increased adoption of AI products among existing customers [42] - The company is differentiating itself through analytics and a data lake that enhances AI capabilities for customers [49] Other Important Information - Cash at the end of Q1 2026 was $1.5 million, with total assets of $15.7 million and liabilities of $6.2 million [16][17] - The company has no significant debt or contingent payments remaining from previous transactions [16] Q&A Session Summary Question: Clarification on ARR figures - Management confirmed that the average ARR per new customer is $28,000, up from $25,000, and overall revenue per customer is now $33,000, up from $30,000 last quarter [23][34] Question: Impact of increasing package prices on customer acquisition - Management stated that the total addressable market has not changed, and customers are now more willing to invest in AI add-ons [42][46] Question: Competitive landscape changes - Management noted that top competitors remain the same, but differentiation is achieved through advanced analytics and AI capabilities [48][49] Question: Future growth expectations for ARR - Management expects continued growth in ARR, supported by a solid pipeline of new customers and opportunities for add-on sales [52][54] Question: Marketing spend effectiveness - Management indicated that marketing dollars are being spent effectively, with plans to increase investment in successful campaigns [61][64] Question: Stability of gross margins - Management expects gross margins to remain stable in the mid-60s range, with subscription margins around 70% and service margins in the low 50s [66][74]

Revenue Performance - Total net revenue for the three months ended December 31, 2025, was $3.9 million, a 3% increase from $3.8 million in the same period of 2024[118]. - Subscription revenue was $3.2 million for the three months ended December 31, 2025, representing 81% of total revenue, up from 80% in 2024[121]. - Core product revenue was $2.4 million for the three months ended December 31, 2025, representing 60% of total revenue, up from 54% in 2024[123]. Profitability and Loss - Gross profit for the three months ended December 31, 2025, was $2.6 million, with a gross profit margin of 66%, slightly down from 67% in 2024[129][130]. - The loss from operations improved to $(0.2) million for the three months ended December 31, 2025, compared to $(0.5) million in 2024, a 67% reduction[138]. - Adjusted EBITDA for the three months ended December 31, 2025, was $0.1 million, a significant improvement from $(0.2) million in the same period of 2024[142]. - Adjusted EBITDA for Q4 2025 was $122 thousand, compared to a loss of $193 thousand in Q4 2024[145]. - Net loss for Q4 2025 was $86 thousand, an improvement from a net loss of $634 thousand in Q4 2024[145]. Operating Expenses - Operating expenses decreased to $2.8 million for the three months ended December 31, 2025, from $3.0 million in 2024, a reduction of 9%[138]. - Research and development expenses decreased to $0.8 million for the three months ended December 31, 2025, from $1.1 million in 2024, a 26% decrease[134]. - The cost of subscription revenue as a percentage of subscription revenue increased to 31% for the three months ended December 31, 2025, compared to 29% in 2024[125]. Cash Flow and Financing - Cash used in operating activities was $(39) thousand for Q4 2025, a decrease from cash provided of $0.2 million in Q4 2024[146]. - Cash used in investing activities was $(17) thousand for Q4 2025, compared to $(5) thousand in Q4 2024[147]. - Cash used in financing activities was $(0.1) million for both Q4 2025 and Q4 2024, primarily for long-term debt payments[148]. - The company has approximately $47.7 million available for issuance under its Shelf Registration Statement as of December 31, 2025[150]. - The gross obligations for operating leases total $0.6 million, extending through fiscal 2031[152]. Strategic Focus - The company is maintaining tight control over discretionary spending for the 2026 fiscal year to support future revenue growth[149]. - The company has historically incurred operating losses and relies on cash from financing activities to fund operations and develop new products[149]. - There are no off-balance sheet arrangements or obligations with unconsolidated entities as of the reporting date[151]. Customer Base - Bridgeline Digital has over 2,000 active customers, with no single customer exceeding 10% of total revenue[117].

Core Insights - Bridgeline Digital, Inc. reported financial results for Q1 of fiscal 2026, ending December 31, 2025 [1] - The company's core products, particularly the HawkSearch suite, experienced a growth of 17% [1] - Core products now account for over 63% of the company's subscription revenue [1]

Core Viewpoint - Bridgeline Digital, Inc. is set to release its financial results for the first quarter of fiscal 2026 on February 12, 2026, after market close [1] Financial Results Announcement - The financial results will be announced after market close on February 12, 2026 [1] - A live conference call will be hosted by the Company's President and CEO, Ari Kahn, and CFO, Thomas Windhausen, at 4:30 p.m. on the same day [1]