Bridgeline Reports Record Fourth-Quarter and Fiscal 2026 Sales for HawkSearch AI eCommerce Platform

Fiscal 2026 sales included 37 purchases by existing customers, representing $1.0M in annual recurring revenue.

Rhea-AI Summary

Bridgeline Digital (BLIN) reported record fiscal 2026 customer acquisitions, adding 38 new customers during the year through its eCommerce business. Together with 37 sales to existing customers, annual sales represented nearly $8M in total contract value and $2.2M in annual recurring revenue. Average new-customer subscription revenue per sale rose 35% from fiscal 2025.

The fourth quarter added 12 new customers, versus nine in the prior quarter, marking a third consecutive quarterly record. New customers represented more than $1.4M in contract value and $400K in annual recurring revenue; 11 existing-customer sales added $200K in annual recurring revenue. Average new-customer subscription revenue per sale rose 53% quarter over quarter. Bridgeline expects fiscal 2026 Core products to deliver double-digit growth and net revenue retention above 105%. Year-end cash was approximately $1.0M, with less than $200K in legacy bank debt.

11 points · 0 major

PositiveiHow this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point38 new customers in fiscal 2026 generated $3.9M in total contract value and $1.2M in annual recurring revenue. 35% of market cap
• Moderate point37 existing-customer sales in fiscal 2026 generated $4.0M in total contract value and $1.0M in annual recurring revenue. 36% of market cap
• Moderate pointAverage new-customer subscription revenue per sale increased 35% from fiscal 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Core products are expected to achieve double-digit growth and net revenue retention above 105% for fiscal 2026.
• Moderate pointHawkSearch revenue was nearly $10M, including $8M in multiyear subscriptions.
• Moderate pointLegacy products generate more than $5M in revenue and $3M in gross profit, supporting HawkSearch investment.

5 minor points

• Minor point12 fourth-quarter new customers, versus nine the prior quarter, marked a third consecutive quarterly acquisition record.
• Minor pointFourth-quarter new-customer sales represented more than $1.4M in total contract value and $400K in annual recurring revenue.
• Minor point11 fourth-quarter existing-customer sales generated $750K in total contract value and $200K in annual recurring revenue.
• Minor pointAverage new-customer subscription revenue per sale increased 53% quarter over quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Customer wins currently average one per week; Bridgeline expects that rate to grow in 2027.

Negative

• Minor pointLegacy bank debt remained below $200K at fiscal 2026 year-end, bearing approximately 3.5% annual interest.

News Explained

Core products accounted for 89% of fiscal 2026 sales, while legacy products generated more than $5 million in revenue and more than $3 million in gross profit, which the company says supports continued HawkSearch investment; it expects Core products to represent 61% of total revenue and 64% of subscription revenue.

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Market move: BLIN +6.06% vs previous close. FY26 sales report

$0.87 – $0.95 Day Range

$11.72M Market Cap

On Oct 6, the day this news came out, the latest delayed price for BLIN is 6.06% above the previous close. Our momentum scanner has recorded 2 alerts for this stock so far that day. The latest delayed price is $0.93.

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Key Figures

Fourth-quarter new customers: 12 customers Fourth-quarter new-customer TCV: More than $1.4M Fourth-quarter new-customer ARR: More than $400K +5 more

Fourth-quarter new customers

12 customers

Fiscal 2026 fourth quarter

Fourth-quarter new-customer TCV

More than $1.4M

Fiscal 2026 fourth quarter

Fourth-quarter new-customer ARR

More than $400K

Fiscal 2026 fourth quarter

Fiscal-year new customers

38 customers

Fiscal 2026

Fiscal-year sales

75 sales

New and existing customers, fiscal 2026

Fiscal-year TCV

Nearly $8M

Fiscal 2026 sales

Fiscal-year ARR

$2.2M

Fiscal 2026 sales

ARPU increase

35%

Fiscal 2026 versus fiscal 2025

Key Terms

tcv, arr, arpu, nrr

4 terms

tcv financial

"more than $1.4M in TCV and $400K in ARR"

Total Contract Value (TCV) is the full dollar amount of a contract or customer agreement over its entire term, including one-time fees and recurring payments. For investors, TCV gives a quick sense of how much future revenue a company has locked in—like knowing the price of a multi-year subscription rather than just the monthly bill—and helps assess the size and durability of a company’s sales pipeline and growth prospects.

arr financial

"more than $1.4M in TCV and $400K in ARR"

ARR, or Annual Recurring Revenue, is the predictable income a business expects to earn each year from ongoing customer subscriptions or contracts. It’s like a steady paycheck that shows the company's ability to generate consistent revenue over time, helping investors assess its stability and growth potential. ARR provides a clear picture of how well a company is performing in building long-term customer relationships.

arpu financial

"Fourth-quarter ARPU increased 53% from the prior quarter."

ARPU, or Average Revenue Per User, measures how much money a company earns, on average, from each of its customers over a set period. It helps investors understand how effectively a business is generating income from its customer base, similar to calculating how much each customer spends at a store. Higher ARPU often indicates stronger sales per customer and better revenue performance.

nrr financial

"expects its Core products to achieve double-digit growth and NRR above 105%"

Net Revenue Retention (NRR) measures how much recurring revenue a company keeps from its existing customers over a set period after accounting for upgrades, downgrades, and churn. Think of it like checking whether a group of regular customers are spending more, the same, or less than before; a number above 100% means growth from the existing base and signals healthy, sustainable revenue, while a low NRR warns investors of shrinking core income.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WOBURN, MA / ACCESS Newswire / October 6, 2026 / Bridgeline Digital, Inc. (NASDAQ:BLIN), a leader in AI-powered product discovery and eCommerce solutions, today announced record quarterly and annual sales, led by its HawkSearch AI eCommerce platform.

Fiscal 2026 Sales

Bridgeline recorded its third consecutive quarterly record for new customer acquisitions in the fourth quarter of fiscal 2026, adding 12 new customers, an average of one per week. These new customers represented more than $1.4M in TCV and $400K in ARR, surpassing the prior quarter's record of nine new customers. Bridgeline also completed 11 sales to existing customers, representing an additional $200K in ARR. Fourth-quarter ARPU increased 53% from the prior quarter.

Fiscal 2026 was also a record year for new customer acquisition, with 38 new customers. In addition, 37 existing customers purchased additional products from Bridgeline. These 75 sales represented nearly $8M in TCV and $2.2M in ARR. ARPU increased 35% from fiscal 2025.

Fourth Quarter Sales Highlights

• Record quarter for new customer acquisitions

• 12 new customers with $1.4M TCV and over $400K ARR

• 11 sales to existing customers with $750K TCV and $200K ARR

• 53% increase in ARPU

Fiscal 2026 Sales Highlights

• Record year for new customer acquisitions

• 38 new customers with $3.9M TCV and $1.2M ARR

• 37 sales to existing customers with $4.0M TCV and $1.0M ARR

• 35% increase in ARPU

Fiscal 2026 Core Products

Bridgeline expects its Core products to represent 61% of total revenue and 64% of subscription revenue for fiscal 2026. HawkSearch accounted for 89% of all sales during the fiscal year.

The company expects Core products to achieve double-digit growth and NRR above 105% for fiscal 2026.

Bridgeline continues to support its legacy products, which generate more than $5M in revenue and $3M in gross profit, supporting continued investment in HawkSearch.

Fourth Quarter Core Highlights

• 96% of all sales were Core Products

• 63% of total revenue and 65% of subscription revenue are expected to be Core

• 2 new AI product releases

Fiscal 2026 Core Highlights

• 89% of all sales were Core Products

• 61% of total revenue and 64% of subscription revenue are expected to be Core

• 5 new AI product releases

The company ended fiscal 2026 with approximately $1.0M in cash and less than $200K in legacy bank debt, bearing interest at an annual rate of approximately 3.5%.

"HawkSearch's value as an AI-powered platform with a growing customer base and strong customer expansion is demonstrated by its numbers," said Ari Kahn, Bridgeline's President and CEO. "HawkSearch has nearly $10M in revenue, including $8M in high-margin, multiyear subscriptions. The platform delivered double-digit growth and consecutive quarterly sales records, with $7M in Core TCV this year and 38 new-customer wins. Initial contracts from new customers were 35% higher than last year, and net revenue retention of 105% demonstrates continued customer investment in the platform. Our current customer win rate is one per week, and we expect that to grow in 2027."

Other Terms

Core Product revenue includes all subscription license and services revenue from HawkSearch, WooRank licenses for HawkSearch customers, and AccessiBe.

Net Revenue Retention ("NRR") is calculated by dividing current-period trailing-twelve-month subscription revenue, including cross-sales and net renewal subscription revenue from expansion less contraction, by subscription revenue for the preceding trailing-twelve-month period.

Average Revenue per Unit ("ARPU") represents average new customer subscription ARR per sale.

Total Contract Value ("TCV") is the total subscription value through the life of the contract's term plus all contracted professional services and setup fees.

Safe Harbor for Forward-Looking Statements

Statement under the Private Securities Litigation Reform Act of 1995

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These statements appear in a number of places and include statements regarding the intent, belief or current expectations of Bridgeline Digital, Inc. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions, including, but not limited to, business operations and the business of our customers, suppliers and partners; our ability to retain and upgrade current customers, increasing our recurring revenue, our ability to attract new customers, our revenue growth rate; our history of net loss and our ability to achieve or maintain profitability, instability in the financial markets, including the banking sector; our liability for any unauthorized access to our data or our users' content, including through privacy and data security breaches; any decline in demand for our platform or products; changes in the interoperability of our platform across devices, operating systems, and third party applications that we do not control; competition in our markets; our ability to respond to rapid technological changes, extend our platform, develop new features or products, or gain market acceptance for such new features or products, particularly in light of potential disruptions to the productivity of our employees resulting from remote work; our ability to manage our growth or plan for future growth, and our acquisition of other businesses and the potential of such acquisitions to require significant management attention, disrupt our business, or dilute stockholder value; the volatility of the market price of our common stock, the ability to maintain our listing on the NASDAQ Capital Market; or our ability to maintain an effective system of internal controls as well as other risks described in our filings with the Securities and Exchange Commission. Any of such risks could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. Bridgeline Digital, Inc. assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by applicable law.

About Bridgeline
Bridgeline helps companies accelerate online revenue by improving traffic, conversion rates, and average order value through AI-powered commerce technology. Its HawkSearch platform delivers advanced search, personalization, and merchandising capabilities for B2B and B2C enterprises across high-growth industries.

Learn more at: www.bridgeline.com and www.hawksearch.com

Contact:
Kelly Maltman
SVP of Marketing
Bridgeline Digital
press@bridgeline.com

SOURCE: Bridgeline Digital

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much sales value did Bridgeline generate in fiscal 2026?

Bridgeline's 75 fiscal 2026 sales represented nearly $8M in total contract value and $2.2M in annual recurring revenue. These included 38 new customers and 37 existing customers purchasing additional products.

What share of Bridgeline's fiscal 2026 revenue is expected to come from Core products?

Bridgeline expects Core products to represent 61% of total revenue and 64% of subscription revenue for fiscal 2026. For the fourth quarter, the expected shares are 63% and 65%, respectively. Core products accounted for 89% of annual sales and 96% of fourth-quarter sales.

How does Bridgeline define Core product revenue?

Core product revenue includes subscription license and services revenue from HawkSearch, WooRank licenses for HawkSearch customers, and AccessiBe.

How does Bridgeline calculate net revenue retention?

Bridgeline calculates net revenue retention by dividing current trailing-twelve-month subscription revenue by subscription revenue for the preceding trailing-twelve-month period. The current-period measure includes cross-sales and net renewal subscription revenue from expansion less contraction.

What does total contract value mean in Bridgeline's sales figures?

Total contract value includes the total subscription value over the contract's term plus all contracted professional services and setup fees. It is distinct from annual recurring revenue, which measures recurring revenue on an annual basis.