WOBURN, MASSACHUSETTS — December 18, 2025 — Leads & Copy —
Bridgeline Digital, Inc. (NASDAQ:BLIN) has released its financial results for the fiscal 2025 fourth quarter, which ended September 30, 2025. The company, a provider of AI-powered marketing technology, announced that its Core products, led by the HawkSearch suite and its AI products, experienced 16% growth and a 117% Net Revenue Retention rate.
Ari Kahn, Bridgeline’s President and Chief Executive Officer, noted that the company begins fiscal 2026 with a 65% larger sales pipeline, the #1 ranking in Gartner’s Critical Capabilities Report for B2B Search Use Case, and 58% of its revenue now derived from its Core products.
Total revenue for the quarter ended September 30, 2025, which includes SaaS Subscription and Services revenue, reached $3.9 million, an increase from both the prior quarter and the prior year. Subscription revenue amounted to $3.1 million, a 4% increase from $3.0 million in the prior year. Services revenue totaled $0.7 million, a decrease from $0.8 million in the prior year.
For the fiscal year 2025, total revenue was $15.4 million, consistent with the prior year. Subscription revenue increased to $12.4 million from $12.1 million in the prior year, while services revenue decreased to $3.0 million from $3.2 million.
Bridgeline’s Core products, spearheaded by HawkSearch, grew by 16% to $8.9 million in fiscal 2025, representing 58% of total revenue, compared to $7.7 million in fiscal 2024, which represented 50% of total revenue. Overall revenue remained flat year-over-year, as growth in Core products was offset by lower revenue in certain legacy products.
In the fourth quarter of fiscal year 2025, Bridgeline secured 18 new subscription contracts valued at $1.25M, adding over $350,000 in Annual Recurring Revenue. For the entire fiscal year, the company sold 83 new subscription contracts for $6.9M, adding over $2.4M in Annual Recurring Revenue, an 18% increase from fiscal 2024.
Bridgeline’s sales cycle was reduced from over 160 days in fiscal 2024 to 92 days in fiscal 2025, and the average subscription ARR per sale increased by 35% from $18,500 to $25,000.
HawkSearch released its Agentic AI product, which includes a data lake for Advanced Analytics and Agentic Analytics Assistant support. The company also launched Enhanced Multilingual Search, expanding support for non-English languages. Nested fields were added as a new field type to support large catalogs with specific inventory, pricing, shipping, and other content for numerous locations.
Unilog added the HawkSearch platform to its technology partner ecosystem to power advanced search as an add-on option for their CX1 eCommerce platform. Salesforce customers can now access HawkSearch directly from the AppExchange.
Do It Best, a long-standing Hawksearch customer, is making substantial investments in Hawksearch after acquiring True Value Hardware. HawkSearch now powers search for 175,000 products with real-time inventory and pricing for 3,000 store locations, with plans to expand to over 9,000 stores in 2026.
A top appliance retailer launched a search platform upgrade powered by HawkSearch, and a major architectural décor provider selected HawkSearch to power its product discovery. A large healthcare provider chose HawkSearch to power search on their new Shopware eCommerce site, and a leading plastics and industrial supplier selected HawkSearch to pilot a suite of advanced AI-powered search capabilities. A national distributor and solutions provider of janitorial/sanitation, foodservice, and industrial packaging products launched HawkSearch on the Optimizely Configured Commerce platform, and a major international provider in the material handling industry also selected HawkSearch.
Total revenue for the quarter ended September 30, 2025, remained consistent at $3.9 million compared to the same period in 2024. Subscription revenue increased to $3.1 million from $3.0 million, while Services revenue decreased to $0.7 million from $0.8 million.
Cost of revenue increased to $1.3 million, resulting in a gross profit of $2.5 million. Operating expenses were $3.0 million, leading to an operating loss of $0.5 million and a net loss of $0.4 million.
For the fiscal year, total revenue was $15.4 million, consistent with the prior year. Subscription revenue increased to $12.4 million from $12.1 million, while Services revenue decreased to $3.0 million from $3.2 million.
Cost of revenue increased to $5.1 million, resulting in a gross profit of $10.2 million. Operating expenses were $12.7 million, leading to an operating loss of $2.4 million and a net loss of $2.5 million.
Bridgeline Digital, Inc. held a conference call on December 18, 2025, to discuss these results. The call was hosted by Ari Kahn, President and CEO, and Thomas Windhausen, CFO.
Adjusted EBITDA, a Non-GAAP financial measure, is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, impairment of goodwill and intangible assets, non-cash warrant related income/expense, changes in fair value of contingent consideration, restructuring and acquisition-related costs, amortization of debt discounts, preferred stock dividends and any related tax effects.
Core Product revenue includes all subscription license and services revenue from HawkSearch, WooRank licenses for HawkSearch customers, and AccessiBe. Net Revenue Retention is measured as the current period trailing twelve months Monthly Recurring Revenue, including Cross Sales and Net Renewal MRR, all divided by trailing twelve months MRR for the previous period trailing twelve months.
Bridgeline is a marketing technology company that offers a suite of products designed to help companies grow online revenue.
Contact:
Bridgeline Digital, Inc.
Thomas Windhausen
Chief Financial Officer
twindhausen@bridgeline.com
Source: Bridgeline Digital
