Bridgeline Digital, Inc. SEC 10-Q Report

Bridgeline Digital, Inc., a leading provider of AI-powered marketing technology solutions, has released its Form 10-Q report for the second quarter of fiscal year 2025. The report highlights the company's financial performance and operational achievements for the three and six months ended March 31, 2025. Bridgeline Digital continues to focus on enhancing its product offerings and maintaining strong revenue streams despite facing operational challenges.

Financial Highlights

Total Net Revenue: Bridgeline Digital reported total net revenue of $3.9 million for the three months ended March 31, 2025, consistent with the same period in 2024. For the six months ended March 31, 2025, total net revenue was $7.7 million, a slight increase from $7.6 million in 2024.

Gross Profit: The company achieved a gross profit of $2.6 million for the three months ended March 31, 2025, up from $2.5 million in 2024, with a gross profit margin of 68% compared to 66% in the prior year. For the six months ended March 31, 2025, gross profit was $5.2 million, up from $5.1 million in 2024, maintaining a gross profit margin of 67%.

Loss from Operations: Bridgeline Digital reported a loss from operations of $(0.7) million for the three months ended March 31, 2025, compared to $(0.5) million in 2024. For the six months ended March 31, 2025, the loss from operations was $(1.3) million, compared to $(1.2) million in 2024.

Net Loss: The company reported a net loss of $(0.7) million for the three months ended March 31, 2025, compared to $(0.6) million in 2024. For the six months ended March 31, 2025, net loss was $(1.4) million, compared to $(1.2) million in 2024.

Basic and Diluted Net Loss Per Share: Basic and diluted net loss per share was $(0.10) for the three months ended March 31, 2025, compared to $(0.06) in 2024. For the six months ended March 31, 2025, basic and diluted net loss per share was $(0.16), compared to $(0.12) in 2024.

Business Highlights

Revenue Segments: Bridgeline Digital's revenue is derived from two main sources: subscription and perpetual licenses, and digital engagement services. Subscription and perpetual licenses accounted for 79% of total revenue for the three months ended March 31, 2025, consistent with the previous year. Digital engagement services made up 21% of total revenue, showing a slight increase in service volumes.

Geographical Performance: The company's revenue is primarily generated in the United States, which contributed $3.25 million for the three months ended March 31, 2025. International revenue, mainly from Canada, was $625 thousand for the same period.

Product Offerings: Bridgeline Digital offers a suite of AI-powered marketing technology products, including HawkSearch, Celebros Search, Woorank, Unbound, TruPresence, and OrchestraCMS. These products are designed to enhance online revenue by improving site search, SEO, digital marketing, and web content management.

Operational Strategy: The company continues to focus on maintaining tight control over discretionary spending and believes that future revenues and cash flows will support its working capital needs and revenue growth.

Future Outlook: Bridgeline Digital plans to offer and sell up to $50 million of its debt or equity securities to support its operations and growth initiatives. The company is also evaluating the impact of new accounting standards on its financial statements, which is expected to result in enhanced disclosures.

SEC Filing: Bridgeline Digital, Inc. [ BLIN ] - 10-Q - May. 15, 2025