Bridgeline Digital(BLIN) - 2025 Q4 - Annual Results

Revenue Performance - Total revenue for Q4 FY 2025 was $3.9 million, unchanged from Q4 FY 2024, with subscription revenue of $3.1 million, a 4% increase from $3.0 million in the prior year[6][10]. - For FY 2025, total revenue was $15.4 million, consistent with FY 2024, with subscription revenue increasing to $12.4 million from $12.1 million, representing 80% of total revenue[17]. - Bridgeline's Core products, led by HawkSearch, grew by 16% to $8.9 million in FY 2025, accounting for 58% of total revenue, up from 50% in FY 2024[6][2]. - The company sold 18 new subscription contracts in Q4 FY 2025, totaling $1.25 million in contract value, contributing over $350,000 in Annual Recurring Revenue[6]. - Subscription revenue for the twelve months ended September 30, 2025, reached $12,355,000, compared to $12,134,000 in 2024, reflecting a growth of 1.8%[28]. Profitability and Loss - Operating loss for Q4 FY 2025 was $0.5 million, consistent with the loss reported in Q4 FY 2024[10][11]. - Gross margin for Q4 FY 2025 was 66%, down from 69% in Q4 FY 2024, with subscription gross margin at 69% compared to 72% in the prior year[10]. - Gross profit for the three months ended September 30, 2025, was $2,542,000, down from $2,652,000 in 2024, indicating a decrease of 4.2%[28]. - The net loss for the three months ended September 30, 2025, was $365,000, an improvement from a net loss of $432,000 in the same period of 2024[28]. - Adjusted EBITDA for the three months ended September 30, 2025, was $(169,000), compared to $5,000 in 2024, indicating a decline in operational performance[30]. Operational Efficiency - The average subscription ARR per sale increased by 35% from $18,500 in FY 2024 to $25,000 in FY 2025[6]. - Net Revenue Retention for Core products was 117% for FY 2025, indicating strong customer satisfaction and demand[2]. - Bridgeline's sales cycle reduced from over 160 days in FY 2024 to 92 days in FY 2025, indicating improved sales efficiency[6]. Financial Position - Cash and cash equivalents as of September 30, 2025, increased to $1,626,000 from $1,390,000 in 2024, representing a growth of 16.9%[25]. - Total assets decreased to $15,326,000 as of September 30, 2025, from $15,602,000 in 2024, a decline of 1.8%[25]. - Total liabilities increased to $5,758,000 as of September 30, 2025, compared to $5,596,000 in 2024, reflecting an increase of 2.9%[26]. - The number of weighted average shares outstanding for the three months ended September 30, 2025, was 11,227,586, up from 10,417,609 in 2024, indicating an increase of 7.8%[28]. Product Development - The company launched new products including the Agentic AI product and Enhanced Multilingual Search, expanding its capabilities in AI-driven analytics and search[6].