Bridgeline Digital, Inc. (NASDAQ:BLIN) reported record quarterly and annual sales for fiscal 2026, with its HawkSearch AI eCommerce platform accounting for 89% of sales during the fiscal year. The company added 12 new customers in the fourth quarter and said fiscal 2026 was its strongest year for new customer acquisition.
#Fourth-quarter customer sales
Bridgeline said it secured 12 new customers in the fourth quarter of fiscal 2026, representing more than $1.4M in Total Contract Value (TCV) and $400K in Annual Recurring Revenue (ARR). The company also completed 11 sales to existing customers, contributing an additional $200K in ARR and $750K in TCV.
The company described the quarter as its third consecutive quarterly record for new customer acquisitions. Fourth-quarter Average Revenue per Unit (ARPU), which Bridgeline defines as average new customer subscription ARR per sale, increased 53% from the prior quarter.
#Fiscal 2026 sales performance
Across fiscal 2026, Bridgeline added 38 new customers, while 37 existing customers purchased additional products. The 38 new-customer sales represented $3.9M in TCV and $1.2M in ARR. Sales to existing customers represented $4.0M in TCV and $1.0M in ARR.
Across both groups, the company reported 75 sales representing nearly $8M in TCV and $2.2M in ARR. Fiscal-year ARPU increased 35% from fiscal 2025.
#Core products and HawkSearch
Core Products accounted for 96% of fourth-quarter sales and 89% of fiscal-year sales. Bridgeline expects Core Products to represent 63% of total revenue and 65% of subscription revenue for the fourth quarter, and 61% of total revenue and 64% of subscription revenue for fiscal 2026.
The company said Core Product revenue includes subscription licence and services revenue from HawkSearch, WooRank licences for HawkSearch customers, and AccessiBe. Bridgeline also reported two new AI product releases in the fourth quarter and five during fiscal 2026.
Bridgeline said its legacy products generate more than $5M in revenue and $3M in gross profit, supporting continued investment in HawkSearch. The company expects Core Products to achieve double-digit growth and NRR above 105% for fiscal 2026. Net Revenue Retention includes cross-sales and net renewal subscription revenue from expansion less contraction.
#Management comments and financial position
Ari Kahn, Bridgeline’s President and CEO, said HawkSearch has nearly $10M in revenue, including $8M in high-margin, multiyear subscriptions. He also said the platform delivered double-digit growth, consecutive quarterly sales records, $7M in Core TCV during the year and 38 new-customer wins.
Kahn said initial contracts from new customers were 35% higher than last year and that net revenue retention of 105% reflected continued customer investment in the platform. He added that the current customer win rate is one per week and that the company expects it to grow in 2027.
Bridgeline ended fiscal 2026 with approximately $1.0M in cash and less than $200K in legacy bank debt. The debt bears interest at an annual rate of approximately 3.5%.
#Forward-looking risks
Bridgeline said its expectations and other statements about future performance are subject to risks and uncertainties. These include the company’s ability to retain and upgrade customers, attract new customers, increase recurring revenue, manage growth and achieve or maintain profitability.
The company also cited product demand, competition, rapid technological changes, data-security and privacy breaches, financial-market instability, potential disruption to employee productivity from remote work, risks related to acquisitions, volatility in the market price of its common stock, its ability to maintain its NASDAQ Capital Market listing and the effectiveness of its internal controls. Bridgeline said these and other risks could cause actual results to differ materially and adversely from forward-looking statements.
#Key Takeaways
- Bridgeline added 12 new customers in the fourth quarter of fiscal 2026 and 38 during the full fiscal year.
- Sales to new and existing customers represented nearly $8M in TCV and $2.2M in ARR during fiscal 2026.
- HawkSearch accounted for 89% of Bridgeline’s fiscal-year sales.
- Fourth-quarter ARPU rose 53% from the prior quarter, while fiscal-year ARPU increased 35% from fiscal 2025.
- The company ended fiscal 2026 with approximately $1.0M in cash and less than $200K in legacy bank debt.
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