Is BlackLine Stock a Turnaround Bet After This Fund's New $20 Million Stake?

Company Overview - BlackLine provides cloud-based software that automates accounting and finance workflows for enterprise and mid-market clients [1][6] - The company operates a SaaS business model, generating recurring revenue primarily through direct sales of subscription-based solutions [9] - As of February 17, 2026, BlackLine's market capitalization is $2.31 billion, with a revenue of $700.43 million and a net income of $24.52 million [4] Recent Developments - On February 17, 2026, Potrero Capital Research disclosed a new position in BlackLine, acquiring 370,557 shares valued at approximately $20.49 million [2][8] - This new stake accounts for 6.9% of Potrero's reportable assets under management (AUM) as of December 31, 2025 [8] - BlackLine shares were priced at $37.34, reflecting a decline of 27.6% over the past year, underperforming the S&P 500 by 39.2 percentage points [8] Financial Performance - In the fourth quarter, BlackLine's revenue rose 8% to $183.2 million, while full-year revenue increased by 7% to $700.4 million [10] - Non-GAAP operating margin expanded to 24.7% in the fourth quarter from 18.1% a year earlier [10] - Remaining performance obligation climbed 23.5% to $1.1 billion, with a dollar-based net revenue retention rate of 105% [10] Future Outlook - Management is guiding for revenue of up to $768 million in 2026 and non-GAAP net income of up to $180 million [11] - The concentrated investment by Potrero Capital Research suggests confidence in BlackLine's potential for margin expansion and growth in bookings [7][11]