Symbol supply: The Motley Idiot.
Date
Would possibly 14, 2026
Name individuals
- President and Leader Government Officer — Ari Kahn
- Leader Monetary Officer — Thomas Windhausen
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Takeaways
- File new brand gross sales — Nineteen offers closed, the perfect quantity for any quarter in corporate historical past, totaling $2.8 million in overall contract worth and $1.2 million in annual routine earnings.
- Gross sales pipeline expansion — “Our pipe grew through 82% in comparison to Q2 of fiscal 2025, with over 500 certified leads and greater than $5 million in ARR to pressure ongoing earnings expansion.”
- Moderate sale value build up — Moderate ARR in step with new SaaS visitor reached $44,000, up from $30,000 sequentially and $21,000 the prior 12 months.
- Skilled products and services agreements — Over $1 million in new skilled products and services contracts signed.
- Buyer web earnings retention — Core merchandise completed a web earnings retention charge of 107% all the way through the length.
- Subscription earnings combine — Subscription earnings made up 80% of overall earnings, with $3.1 million identified, flat in comparison to the prior 12 months.
- HawkSearch contribution — HawkSearch’s AI merchandise accounted for 65% of subscription earnings as opposed to 61% in Q2 final 12 months.
- Gross margin — General gross margin was once 64%, consisting of 69% on subscription earnings and 47% on products and services earnings.
- Working bills — Working bills declined to $2.9 million, down from $3.4 million within the year-ago length.
- Internet loss relief — Internet loss narrowed to $0.4 million from $0.7 million within the prior 12 months length.
- Adjusted EBITDA development — Adjusted EBITDA for the length was once -$43,000 as opposed to -$239,000 in Q2 2025.
- Money and receivables — The steadiness sheet mirrored $1.4 million in money and $1.4 million in receivables as of March 31, 2026.
- General debt — General debt fell to EUR 182,000 (about $209,000) with a three.2% rate of interest and fundamental bills due thru 2028.
- Warrants and choices — 8 hundred twenty-nine thousand warrants have been exceptional (together with 167,000 at $2.85 expiring in Would possibly 2026 and 592,000 at $2.51 expiring in November 2026), in addition to 2.2 million choices.
- Release of Hawk AI Buying groceries Assistant — The corporate presented an AI-powered buying groceries assistant in particular considering B2B complexity and customized suggestions in response to each and every visitor’s contracts and vending laws.
- Partnership with Znode — Introduced a partnership to supply AI-powered seek and vending options for Znode’s B2B e-commerce platform shoppers.
- Awards and popularity — HawkSearch earned more than one 2026 honors from Data-Tech Analysis Staff, together with Chief in Endeavor Seek and best rating in product catalog, UX, and contours in response to verified person comments.
- Enlargement of govt crew — Appointment of Kelly Maltman as SVP of Advertising and marketing, tasked with using pipeline and gross sales expansion.
- Advertising and marketing funding affect — Ari Kahn mentioned, “This quarter is without delay the results of that [prior year’s] lift. We raised the cash, name it, April 1. That is roughly what came about in 2025. This actually bodes smartly for our talent from a advertising group to generate leads that convert from our talent as a generation corporate to create merchandise that there’s call for for and resolve real-world issues.”
Abstract
Bridgeline Virtual (BLIN +0.42%) reported its maximum a success quarter for brand new brand acquisitions, with sharply emerging moderate deal values and transparent advantages from its prior capital lift materializing in pipeline and gross sales momentum. Control highlighted the release of its Hawk AI Buying groceries Assistant, positioning the corporate’s product suite as differentiated for advanced B2B e-commerce environments. Working bills progressed, and web loss narrowed in comparison to the former 12 months, whilst the gross sales pipeline’s enlargement and a 20% shut charge on top of the range leads have been emphasised as key drivers for ongoing expansion.
- HawkSearch’s higher percentage inside subscription earnings and up to date trade accolades might heighten visitor self assurance in core choices.
- The brand new partnership with Znode will increase Bridgeline’s addressable marketplace for B2B trade platforms and allows expanded cross-sell alternative for AI-powered vending equipment.
- Receivables matched money ranges at quarter-end, suggesting present collections are monitoring consistent with fresh gross sales quantity.
- Control affirmed that the lead pipeline is composed of objectively certified, metrics-driven alternatives, with a minimum of $1 million in ARR conceivable at present shut charges, and highlighted a gross sales cycle of 120-150 days.
Trade thesaurus
- General contract worth (TCV): The cumulative worth of a freelance, together with all routine and one-time charges around the contract’s time period.
- Annual routine earnings (ARR): A measure representing annualized earnings from subscription agreements energetic on the finish of the length.
- Internet earnings retention: The share of routine earnings retained from current shoppers, after accounting for enlargement, contraction, and churn.
- HawkSearch: Bridgeline’s AI-powered web site seek and vending platform, adapted for each B2B and B2C e-commerce shoppers.
- Znode: A B2B e-commerce platform for producers and vendors, now a spouse for Bridgeline’s HawkSearch generation.
Complete Convention Name Transcript
Ari Kahn, Bridgeline’s President and CEO, who will start the decision with a dialogue of our trade highlights. I’m going to replace you at the monetary effects, and we’re going to conclude with some questions.
Prior to we start, I might love to remind everybody that our remarks and responses in your questions nowadays might comprise forward-looking statements that can be founded upon the present expectancies of control that contain inherent dangers and uncertainties that would motive exact effects to fluctuate materially from the ones indicated, together with with out limitation, the ones known within the Chance Elements segment of our most up-to-date annual document on Shape 10-Ok and our most up-to-date 10-Q submitting within the corporate’s different filings with the Securities and Alternate Fee. Such elements could also be up to date every so often in our filings with the SEC, that are to be had on our website online.
We adopt no legal responsibility to publicly replace or revise our forward-looking statements because of new data, long run occasions, or differently. Be urged that nowadays’s effects must no longer be seen as a sign of long run efficiency.
The decision will even come with references to positive monetary measures that don’t seem to be calculated in line with in most cases permitted accounting rules or GAAP. We collectively refer to those as non-GAAP monetary measures and reconciliations of the non-GAAP monetary measures, probably the most related measures calculated and introduced in line with GAAP are to be had within the income unlock. I might now like to show the decision over to Ari Kahn, Bridgeline’s President and CEO. Ari.
Ari Kahn: Thanks, Thomas. Just right afternoon, everybody. I am satisfied to mention that we tripled final quarter’s gross sales and delivered probably the most new brand gross sales of any quarter within the corporate’s historical past. We gained 19 gross sales this quarter, just about $2 million every week, last $2.8 million in TCV with $1.2 million in annual routine earnings. We additionally signed over $1 million in skilled products and services agreements. The typical gross sales value took an enormous bounce this quarter to $44,000 in ARR in comparison to $30K final quarter and $21,000 a 12 months in the past in Q2 of FY 2025.
Above and past the rise in our new SaaS visitor moderate license value, our current shoppers purchased a mean of $28,000 in ARR for add-on merchandise like our AI Visible Seek.
The rise in gross sales value of is in large part because of the brand new AI add-ons that our shoppers are opting for, in addition to the truth that we are promoting to bigger firms with huge catalogs and internet visitors necessities. Along with new gross sales, we proceed to have exceptional visitor pleasure confirmed through our renewal charges and license expansions. This quarter, our core merchandise had a web earnings retention of 107%. Bridgeline’s core merchandise, led through HawkSearch’s suite of AI merchandise, now constitute 65% of the corporate’s subscription earnings, in comparison to 61% in Q2 final 12 months. This was once the most productive quarter ever for visitor acquisition.
Nearly all of our wins got here from B2B producers and vendors, a big overall addressable marketplace the place Gartner ranked HawkSearch primary of their Vital Features Document.
Some fresh visitor wins integrated a number one international gasoline supplier deciding on HawkSearch to energy seek throughout 3 e-commerce websites in probably the most technically advanced implementation in HawkSearch’s historical past. The web site required multilingual seek, customer-specific pricing, entitlement-based get right of entry to, dimension-based seek, and multi-site control. A wholesale distributor decided on HawkSearch to energy 5 websites on its Oracle Trade platform with a transparent trail for HawkSearch to energy 8 in their websites as the connection expands. HawkSearch was once selected at the energy of its B2B features, together with key phrase control, entitlements, personalization, product suggestions, unit of measure, and analytics.
A countrywide commercial provider decided on HawkSearch to energy seek throughout its huge specification-driven catalog of steel and strong point fabrics with unified seek and thought seek, using their on-line earnings through making improvements to conversion charges and decreasing friction for specification-driven visitor searches. Any other necessary a part of our expansion technique is partnerships.
HawkSearch lends itself naturally to each company and device platform companions that generate gross sales. HawkSearch won more than one 2026 honors from the Data-Tech Analysis Staff, together with Chief in Endeavor Seek, Best Product Catalog, Best UX, Best Options throughout 8 further classes in response to verified person comments. With regards to partnerships, HawkSearch and Znode introduced a partnership bringing AI-powered seek, vending, and personalization to producers and vendors at the Znode B2B e-commerce platform, serving to patrons in finding their proper merchandise sooner, navigate higher catalogs extra simply, and make stronger conversion throughout more than one retailer and multi-portal reports. Companions are a large a part of our go-to-market technique, conventional advertising additionally drives leads for us.
We are presenting at in-person meetings an increasing number of like B2B On-line Chicago and webhosting visitor meetings to pressure gross sales. I am actually satisfied to announce that we not too long ago added a brand new SVP of Advertising and marketing to our crew, Kelly Maltman.
Kelly is a advertising exec with over a decade of enjoy main B2B device gross sales, and is operating carefully with our EVP of gross sales, Carl Prizzi, to develop our gross sales pipeline. Our pipe grew through 82% in comparison to Q2 of FY 2025, with over 500 certified leads and greater than $5 million in ARR to pressure ongoing earnings expansion. HawkSearch has been an AI-based product suite since lengthy ahead of the brand new wave of enormous language fashions and neural networks in AI which are making headlines nowadays. This has allowed us to temporarily undertake the most recent AI generation sooner than our competition are ready to. This quarter, we launched the Hawk AI Buying groceries Assistant.
B2C buying groceries assistants are beginning to seem, with Amazon Rufus and Walmart Sparky main the way in which.
Maximum B2C websites are development their buying groceries assistants off their beef up chatbot, which is designed to reply to questions on merchandise, however no longer designed to pressure on-line gross sales. HawkSearch’s complete product suite has at all times considering using on-line gross sales for our shoppers, and it empowers firms to outline vending laws to advertise merchandise that develop, with complete personalization, advice, and promotions at its core. The Hawk AI Buying groceries Assistant is constructed upon HawkSearch’s AI vending infrastructure to actually align it with a web-based retailer’s earnings targets. In the event you advertise a product in Hawk, the AI will robotically market it in Hawk’s Assistant and vice versa.
As a result of HawkSearch has complete B2B beef up, the Hawk AI Buying groceries Assistant is empowered to take care of the complexity of B2B on-line gross sales.
On a regular basis B2C ideas like pricing, catalog, and transport are extra advanced within the B2B international, as they are negotiated in step with visitor and buying groceries is carried out through groups. Every visitor has pre-negotiated contracts that outline which merchandise they may be able to get right of entry to, customized pricing, freight schedules, credit score strains, et cetera. The HawkSearch AI Buying groceries Assistant understands our shoppers’ B2B contracts and vending laws, so it may possibly make commercially clever suggestions adapted to each and every person visitor. Here is an instance of what the Buying groceries Assistant seems like in follow. Certainly one of our shoppers is a grasp B2B distributor for electronics. It has an enormous stock, and its shoppers also are B2B firms. Its shoppers are native vendors masking a smaller territory to offer person electricians.
With HawkSearch Buying groceries Assistant, an area distributor can log into the grasp distributor’s Buying groceries Assistant and make a question like, “I’ve 50 electricians as shoppers. My electricians construct two to 3 homes a 12 months, each and every one $750,000, roughly 5,000 sq toes. Give me a plan for stocking circuit breakers and panels in my warehouse.”
Our Buying groceries Assistant can then advise, “For the reason that you might be masking Southern Ohio the place AC is needed, you want 500 70-volt breakers, 600 100-amp breakers, et cetera,” It then suggests a 20% overage for backstop and surplus orders, wonder orders. It’ll say that because the distributor has a $10,000 credit score line, it recommends quarterly replenishment and so as to add 5,000 foot cable and package deal it with the breakers to extend its gross sales. The Buying groceries Assistant then asks if it must position the order.
That complete enjoy, the similar form of enjoy you may have with an clever shop clerk in an place of business, can now occur on-line at scale, computerized, and it occurs within the advanced B2B international the place pricing, catalog, the whole lot is customized negotiated on a per-customer foundation. We beef up that. HawkSearch helps that. HawkSearch is exclusive, and that is gonna pressure a ton of gross sales for our trade. The discussion that may proceed from this will configure the entire warehouse for our grasp distributor as a visitor for its shoppers, native vendors, and pressure their earnings. With new merchandise just like the Hawk AI Buying groceries Assistant, we predict to peer persisted acceleration in HawkSearch Suite.
Frankly, it is a nice time to be in advertising generation as a result of AI has empowered smaller companies like HawkSearch and Bridgeline to leapfrog higher incumbents and reset the panorama with inventions in AI, just like the AI Buying groceries Assistant.
With that, I’m going to flip it over to our Leader Monetary Officer, Thomas Windhausen, to percentage further main points. Thomas?
Thomas Windhausen: Thank you, Ari. I’m going to supply an replace on our monetary effects for the second one quarter of fiscal 2026, which ended on March thirty first, 2026. General earnings for the quarter finishing March thirty first, 2026 was once $3.9 million, an build up in comparison to $3.9 million within the prior 12 months length. After we take a look at our parts of earnings, we’re going to get started with subscription earnings, which is made out of SaaS licenses, upkeep, and webhosting. For the quarter finishing March thirty first, 2026, its earnings was once $3.1 million, additionally higher from $3.1 million within the prior 12 months length.
As a proportion of overall earnings, subscription earnings was once 80% for the quarter finishing March thirty first, 2026. Our products and services earnings was once $799,000 for the quarter ended March 2026, in comparison to $823,000 within the prior 12 months length, and that is the reason the 20%. That covers 20% of overall earnings. Our price of earnings was once $1.4 million within the quarter ended March 2026, in comparison to $1.3 million within the prior 12 months length, and our gross benefit was once $2.5 million for the quarter ended March 2026, in comparison to $2.6 million within the prior 12 months length. Our general gross margin was once 64% for the quarter ended March 2026, damaged down into subscription earnings of 69% and products and services gross margin of 47%.
Our running bills have been $2.9 million for the quarter ended March twenty sixth, down from $3.4 million within the prior 12 months length. Our web loss was once $0.4 million, down from $0.7 million within the prior 12 months length. In any case, our adjusted EBITDA for the quarter was once -$43,000 in comparison to a -$239,000 in March of 2025. Shifting to our steadiness sheet, at March thirty first, 2026, we had money of $1.4 million and receivables of $1.4 million. Our overall debt was once right down to EUR 182,000, about $209,000, with a weighted moderate rate of interest of three.2% in fundamental bills due thru 2028.
We haven’t any different debt or earn-outs from our earlier acquisitions. Our overall belongings at March thirty first, 2026 have been $15.3 million, with liabilities of $6.1 million. Shifting to the cap desk, at March thirty first, 2026, we had 12.6 million stocks exceptional, simply over 800,000 warrants, and a pair of.2 million choices. The 829,000 warrants encompass 167,000 warrants at $2.85, which expire in Would possibly 2026, and 592,000 warrants with a $2.51 workout value, which expire in November 2026. Bridgeline seems ahead to persisted expansion and luck in 2026 and past as we proceed our focal point on earnings expansion, product innovation, visitor luck, and turning in shareholder worth. Thanks for becoming a member of us at the name nowadays.
Presently, I’m going to percentage some questions that have been despatched prematurely. Our first query was once concerning the capital lift final 12 months, and the way is that using present gross sales? Ari?
Ari Kahn: K, that is me. All proper. This quarter that we simply closed was once the most productive quarter within the corporate’s historical past for successful new trademarks, and that is the reason precisely what our purpose was once after we raised capital on the finish of March 2025, to inject $2 million, put that into advertising, get our identify in the market with the entire nice generation that we have already got, let everyone learn about it, and win a number of offers. This quarter is without delay the results of that lift. We raised the cash, name it, April 1st. That is roughly what came about in 2025. 3 months to deploy the capital. You gotta join meetings and so on.
This will get you roughly to July 1st.
Give yourselves a 120-150 day gross sales cycle. Rapidly, you might be in January of this 12 months, the primary month of the quarter that we simply closed. This actually bodes smartly for our talent from a advertising group to generate leads that convert from our talent as a generation corporate to create merchandise that there’s call for for and resolve real-world issues. That is above and past what I am tremendous happy with, our visitor retention. Take into account, we additionally pressure a very good web earnings retention charge of 107%. That suggests our current shoppers renew their subscriptions and purchase the brand new stuff that we are innovating on a daily basis. We are producing leads. We are going to the suitable puts.
We know the way to deploy advertising capital, and our shoppers are tremendous satisfied.
Thomas Windhausen: Superb. Any other query got here in about pipeline. Let’s shape that as what does the pipeline seem like, and how briskly is it rising?
Ari Kahn: All proper. Smartly, we’ve just about doubled our pipeline since final 12 months. I believe it is an 82% year-over-year expansion, Q2 of FY 2026 as opposed to Q2 of FY 2025. Once I speak about our pipeline, I am speaking about certified leads. Certified leads don’t seem to be subjective qualification, the place a gross sales man feels just right this morning concerning the lead, and he may no longer really feel so just right about it subsequent day and so on. For us, we now have were given a metrics-driven advertising group that qualifies its leads in response to purpose conduct. Did the lead attend a webinar? Did they get a demo? Are they returning telephone calls, and do they have got a pulse, proper? Transparent, measurable issues that outline a lead objectively.
We’ve got were given 82% expansion of that, and that charge of, or that scale at which we are measuring, the 82% expansion, that is what we name an AQL. Our AQLs have a tendency to have a 20% shut charge. The AQL degree nowadays is 5 over 500 leads nowadays with just about $5.5 million in ARR. That lead pipeline on its own at a 20% charge has were given $1 million in ARR proper there in itself. With the gross sales cycle of 120-150 days and the truth that this pipeline is two times as giant because it was once final 12 months, and we measure it the similar means, I believe that actually places us in a wholesome place to proceed with the momentum that we have now.
K, is that it? All proper.
Thomas Windhausen: Yeah, there are not any different questions. That is it.
Ari Kahn: All proper. Just right. Just right. Smartly, I wish to thank everyone for becoming a member of us nowadays. We admire your persisted beef up and the beef up of our shoppers and companions as smartly. We’re actually thinking about this trade. It’s a thrilling time to be in AI, to be in advertising generation, and to be a rising corporate this is in an area this is increasing with numerous new generation. We look ahead to talking with you all once more on our 3rd quarter fiscal 2026 convention name this is going to be in April this summer time. Till then, be smartly, and thanks.
