Bridgeline Digital Reports 3% Revenue Growth to $3.9 Million with Improved Net Loss

Bridgeline Digital, Inc. reported a total net revenue of $3.9 million for the three months ended December 31, 2025, reflecting a 3% increase from $3.8 million in the same period of the previous year. The company's subscription revenue rose to $3.2 million, up from $3.1 million, while services revenue slightly increased to $0.8 million from $0.7 million. Despite the revenue growth, Bridgeline Digital recorded a net loss of $86,000, a significant improvement compared to a net loss of $634,000 in the prior year. The basic and diluted net loss per share was $(0.01), compared to $(0.06) for the same period in 2024.

In terms of operational performance, Bridgeline Digital's gross profit for the quarter was $2.6 million, yielding a gross profit margin of 66%, slightly down from 67% in the previous year. The total cost of revenue remained stable at $1.3 million, with subscription costs increasing marginally due to higher server expenses. Operating expenses decreased to $2.8 million from $3.0 million, primarily driven by lower research and development costs, which fell to $0.8 million from $1.1 million. The company also reported a gain of $90,000 from the change in fair value of warrant liabilities, contrasting with a loss of $114,000 in the prior year.

Bridgeline Digital continues to expand its customer base, currently serving over 2,000 active customers, with no single customer accounting for more than 10% of total revenue. The company has maintained a focus on its core products, which generated $2.4 million in revenue for the quarter, representing 60% of total revenue and a 20% increase from the previous year. The company’s strategic initiatives include maintaining tight control over discretionary spending and exploring potential securities offerings, with approximately $47.7 million available for issuance under its effective registration statement.

The company’s balance sheet as of December 31, 2025, showed total assets of $15.7 million, up from $15.3 million at the end of the previous fiscal year. Current liabilities increased to $5.2 million from $5.0 million, while total stockholders' equity slightly decreased to $9.6 million. Bridgeline Digital's management remains optimistic about future revenue growth, citing a solid cost structure and the potential for increased cash flows to support operations and product development. The company is committed to enhancing its product offerings and expanding its market presence, particularly in North America and internationally.