Bridgeline Digital Reports Q2 2026 Revenue of $3.9 Million, Net Loss Improves

Bridgeline Digital, Inc. reported its financial results for the second quarter of fiscal year 2026, revealing total net revenues of $3.9 million for the three months ended March 31, 2026, a slight increase from $3.875 million in the same period last year. For the six months ended March 31, 2026, revenues totaled $7.83 million, compared to $7.67 million in the prior year. The company experienced a net loss of $432,000 for the quarter, an improvement from a loss of $730,000 in the same quarter of 2025. The loss per share attributable to common shareholders was $0.04, compared to $0.10 in the previous year.

The company’s subscription revenue, which constitutes a significant portion of its total revenue, remained stable at $3.1 million for the three months ended March 31, 2026, compared to $3.052 million in the same period last year. For the six-month period, subscription revenue increased to $6.273 million from $6.1 million. However, service revenue saw a decline, totaling $799,000 for the quarter, down from $823,000 in the prior year, and $1.557 million for the six months, slightly lower than $1.566 million in the previous year.

Bridgeline Digital has made strategic moves to enhance its product offerings and operational efficiency. The company continues to focus on its core products, which generated $2.4 million in revenue for the three months ended March 31, 2026, up from $2.3 million in the same period last year. The growth in core products, particularly HawkSearch, has been a key driver, although some legacy products have seen reduced revenue. The company reported having over 2,000 active customers, with no single customer exceeding 10% of total revenue.

Operationally, Bridgeline Digital has maintained a tight control over expenses, with total operating expenses decreasing to $2.946 million for the quarter, down from $3.361 million in the same period last year. The company has also reported a reduction in research and development costs, which fell to $873,000 from $1.11 million year-over-year. The company’s cash and cash equivalents stood at $1.373 million as of March 31, 2026, down from $1.626 million at the end of the previous fiscal year.

Looking ahead, Bridgeline Digital remains focused on maintaining a cost-effective structure to support future revenue growth. The company has indicated plans to potentially offer up to $50 million in debt or equity securities to bolster its financial position. Management believes that future revenues and cash flows will enhance working capital, although they acknowledge the ongoing challenges of achieving profitability in a competitive market.