BlackLine (NASDAQ:BL) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

BlackLine (NASDAQ:BL) released its earnings results on Tuesday. The technology company reported $0.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.58 by $0.05, FiscalAI reports. BlackLine had a net margin of 3.50% and a return on equity of 17.50%. The firm had revenue of $183.18 million during the quarter, compared to the consensus estimate of $182.98 million. During the same period in the previous year, the firm earned $0.47 earnings per share. BlackLine’s revenue was up 8.1% compared to the same quarter last year. BlackLine updated its Q1 2026 guidance to 0.440-0.460 EPS and its FY 2026 guidance to 2.370-2.480 EPS.

Here are the key takeaways from BlackLine’s conference call:

• Strong bookings and contract visibility — BlackLine posted its strongest booking quarter and year with full‑year bookings growth of 22%, and RPO grew 23% to $1.1B, with nearly three‑quarters of Q4 bookings from existing customers, signaling longer multi‑year commitments.
• Platform and AI momentum — Platform pricing adoption accelerated (platform ARR at 11% of eligible ARR vs. 4% in Q3), nearly 20% of customers use AI features, and the company is rolling out Verity agents (Prepare early access, Collect in Q2, Accruals live) to drive bigger deals and future consumption revenue.
• Solid financials and shareholder actions — Q4 revenue was $183M (+8%) with ARR of $702M (~+10%), a 25% non‑GAAP operating margin, $235M of 2025 buybacks, and plans to retire 2026 notes using cash to reduce share count.
• Retention pressure from lower mid‑market shift — The company said Q4 was the peak of churn tied to its strategic move upmarket; overall revenue renewal rate was 92% (enterprise cohort higher), and management expects retention to improve through 2026.
• Partner and SAP ecosystem driving large deals — Every 2025 deal over $500k involved a partner, SolEx/SAP joint pipeline produced major wins and Studio 360 received full SAP qualification, supporting global expansion initiatives (including KSA).

BlackLine Trading Down 5.5%

NASDAQ BL opened at $41.90 on Thursday. The stock has a market cap of $2.49 billion, a P/E ratio of 104.75, a PEG ratio of 8.42 and a beta of 0.86. The company’s fifty day simple moving average is $53.57 and its 200-day simple moving average is $53.59. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 2.03. BlackLine has a 52 week low of $40.82 and a 52 week high of $59.57.

Hedge Funds Weigh In On BlackLine

A number of institutional investors have recently added to or reduced their stakes in BL. Swiss National Bank boosted its position in BlackLine by 1.3% in the 4th quarter. Swiss National Bank now owns 103,700 shares of the technology company’s stock valued at $5,734,000 after buying an additional 1,300 shares during the last quarter. Janney Montgomery Scott LLC acquired a new position in shares of BlackLine in the fourth quarter worth about $279,000. Franklin Resources Inc. boosted its holdings in BlackLine by 6.4% in the fourth quarter. Franklin Resources Inc. now owns 5,335 shares of the technology company’s stock valued at $295,000 after purchasing an additional 319 shares during the last quarter. CIBC Bancorp USA Inc. acquired a new stake in BlackLine during the 3rd quarter valued at approximately $295,000. Finally, Public Employees Retirement System of Ohio increased its holdings in BlackLine by 4.4% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 110,553 shares of the technology company’s stock worth $5,870,000 after purchasing an additional 4,664 shares during the last quarter. Institutional investors and hedge funds own 95.13% of the company’s stock.

Key Stories Impacting BlackLine

Here are the key news stories impacting BlackLine this week:

• Positive Sentiment: Q4 non‑GAAP results, record bookings and margin improvement validate the platform strategy; management highlighted Studio360 adoption, Verity AI and strategic moves that support medium‑term growth. BlackLine Announces Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Platform/AI transition highlighted in deep dive coverage — management argues platform pricing ARR, the WiseLayer acquisition and AI features (Verity) will drive higher long‑term ARR and retention. BL Q4 Deep Dive: Platform Model, Enterprise Focus, and AI Transition Drive Results
• Neutral Sentiment: Management hosted an earnings call and published transcripts/slide deck — commentary showed operational progress but contained cautious language about execution and timing, leaving room for differing analyst interpretations. BlackLine, Inc. (BL) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q1 guidance disappointed: management set Q1 FY26 non‑GAAP EPS of $0.44–$0.46 (well below Street expectations ~$0.55) and revenue guidance roughly flat to consensus — that near‑term softness is the main reason the stock is trading down. BlackLine (BL) stock trades down, here is why
• Negative Sentiment: GAAP net income and operating/free cash flow fell sharply year‑over‑year (GAAP net income plunged; operating cash flow and FCF down materially), which raises near‑term liquidity and valuation concerns despite non‑GAAP strength. BlackLine Inc. (BL) Releases Q4 2025 Earnings: Revenue Up but EPS Misses, Net Income Plummets
• Negative Sentiment: Analysts reacted: several firms trimmed forecasts/price targets or reiterated cautious ratings after the mixed print and soft Q1 guide, increasing near‑term selling pressure. These Analysts Slash Their Forecasts On BlackLine Following Q4 Results
• Negative Sentiment: Activist investor Engaged Capital has launched a proxy campaign targeting BlackLine’s board as shares lag some analyst valuations — adds governance risk and near‑term volatility. Engaged Capital Targets BlackLine Board As Shares Lag Analyst Valuations

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Piper Sandler upgraded BlackLine to a “hold” rating in a report on Monday, February 2nd. Rosenblatt Securities reaffirmed a “buy” rating and issued a $62.00 price objective on shares of BlackLine in a research note on Wednesday. Weiss Ratings reiterated a “hold (c)” rating on shares of BlackLine in a report on Monday, December 29th. Morgan Stanley restated an “overweight” rating and issued a $68.00 price target on shares of BlackLine in a report on Wednesday. Finally, DA Davidson reduced their price target on shares of BlackLine from $56.00 to $45.00 and set a “neutral” rating on the stock in a research report on Wednesday. Six equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $57.85.

About BlackLine

BlackLine, Inc is a leading provider of cloud-based software solutions designed to automate and modernize the finance and accounting function. The company’s flagship offering, the BlackLine Finance Controls and Automation Platform, enables organizations to streamline critical processes such as account reconciliations, journal entry management, intercompany accounting, and transaction matching. By delivering a centralized, real-time view of financial data, BlackLine helps companies improve operational efficiency, enhance compliance and strengthen internal controls.

Key products and services within the BlackLine platform include Account Reconciliation, Task Management, Transaction Matching, Journal Entry, and Intercompany Hub.