BlackLine’s fourth quarter results met Wall Street’s revenue expectations, with management attributing performance to strong momentum in enterprise and mid-market segments, successful platform pricing adoption, and higher bookings from existing customers. CEO Owen Ryan emphasized the company’s shift toward larger, long-term customer contracts and noted that nearly three-quarters of new bookings came from installed base expansions. Ryan highlighted that BlackLine’s suite of solutions for the CFO is now gaining greater traction among large organizations, supported by a modernized go-to-market engine and a partner-first sales approach. The quarter also saw notable customer wins in sectors such as financial services, oil and gas, and technology, confirming BlackLine’s value proposition for complex, global organizations.
Is now the time to buy BL? Find out in our full research report (it’s free for active Edge members).
BlackLine (BL) Q4 CY2025 Highlights:
- Revenue: $183.2 million vs analyst estimates of $183 million (8.1% year-on-year growth, in line)
- Adjusted EPS: $0.63 vs analyst estimates of $0.59 (7.2% beat)
- Adjusted Operating Income: $45.18 million vs analyst estimates of $44.7 million (24.7% margin, 1.1% beat)
- Revenue Guidance for Q1 CY2026 is $181 million at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the upcoming financial year 2026 is $2.43 at the midpoint, beating analyst estimates by 3.4%
- Operating Margin: 3.7%, in line with the same quarter last year
- Customers: 4,394, down from 4,424 in the previous quarter
- Net Revenue Retention Rate: 105%, up from 103% in the previous quarter
- Annual Recurring Revenue: $702 million vs analyst estimates of $702 million (9.5% year-on-year growth, in line)
- Billings: $226.9 million at quarter end, up 9.5% year on year
- Market Capitalization: $2.30 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From BlackLine’s Q4 Earnings Call
- Chris Quintero (Morgan Stanley) asked about the drivers behind the strong increase in remaining performance obligations and large customer deals. CEO Owen Ryan pointed to longer contract terms and a focus on finance transformation journeys, while CFO Patrick Villanova highlighted product-led growth and bigger average selling prices.
- Steve Andrews (Citi) inquired about AI adoption rates and customer use cases. Ryan and CTO Jeremy Young explained that customers are adopting both generative and agentic AI capabilities, with the primary adoption barriers being internal policies, controls, and the need for auditability.
- Alex Sklar (Raymond James) questioned the percentage of customers on platform pricing and expectations for 2026. Villanova responded that platform pricing adoption is accelerating, with 25–35% expected by year-end, and noted that larger renewals will drive this trend.
- Patrick Walravens (Citizens) asked about BlackLine’s approach to creating shareholder value and openness to strategic options. Ryan emphasized the board’s focus on fiduciary responsibility and management’s commitment to delivering customer and shareholder benefits through operational performance.
- Adam Hotchkiss (Goldman Sachs) sought insight into how customer feedback and competitive intelligence are incorporated into product strategy. Ryan and Young described a process involving customer advisory boards, partner insights, and internal benchmarking to prioritize and fast-follow on new features.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the pace of customer migration to platform pricing and its impact on initial deal sizes, (2) the adoption and monetization of new Verity AI agents, and (3) improvement in overall customer retention rates as the company moves beyond lower mid-market churn. Progress in deepening SAP and partner ecosystem relationships, as well as further operating margin expansion, will also be key areas of focus.
BlackLine currently trades at $38.06, down from $44.33 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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