Bridgeline Digital, Inc. operates as a marketing technology company in the United States, Canada, and internationally. The company offers HawkSearch, a site ...
Bridgeline Digital, Inc. is a technology company headquartered in Woburn, Massachusetts, that specializes in AI-driven marketing and eCommerce solutions. The company's portfolio includes HawkSearch, an AI-powered site search and personalization platform; Celebros Search, which uses natural language processing for eCommerce; Woorank, an SEO audit tool; and platforms like Unbound and ...Bridgeline Digital, Inc. is a technology company headquartered in Woburn, Massachusetts, that specializes in AI-driven marketing and eCommerce solutions. The company's portfolio includes HawkSearch, an AI-powered site search and personalization platform; Celebros Search, which uses natural language processing for eCommerce; Woorank, an SEO audit tool; and platforms like Unbound and OrchestraCMS for web content management and digital experience. Bridgeline also provides digital engagement services such as web design, development, and hosting. It serves verticals including associations, credit unions, eCommerce retailers, franchises, health services, industrial distributors, and manufacturers. As of the latest data, the company has 40 full-time employees and a market cap of approximately $13.7 million. Bridgeline was incorporated in 2000 under the name Bridgeline Software, Inc. and went public in 2007. Financially, the company has faced challenges, with negative profit margins and cash flow, but it continues to focus on growth through AI and eCommerce solutions. Key leadership includes CEO Ari Kahn, who has been at the helm since 2016, and CFO Thomas Windhausen. The company emphasizes aiding clients like HP and Caterpillar in enhancing online revenue through digital transformation.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$15.4M
+0.2%
+0.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-2.5M
-28.4%
-8.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+66.6%
-2.0%
+8.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-15.8%
-20.0%
-27.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-16.4%
-28.2%
-8.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-1.1M
-41.3%
+395.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-7.3%
-41.1%
+395.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
4.8%
-30.2%
+37.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.70x
+12.0%
-8.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon, and welcome to Bridgeline Digital's Third Quarter 2026 Earnings Call. Please note, this conference is being recorded. I will now turn the conference over to your host, Tom Windhausen, CFO. The floor is yours.
Thomas Windhausen: Thank you. Thank you very much, and good afternoon, everyone. Thanks for joining us today. My name is Tom Windhausen, I'm the Chief Financial Officer of Bridgeline Digital, Inc. I'm pleased to welcome you today to our fiscal 2026 third quarter conference call. On the call today is Mr. Ari Kahn, Bridgeline's President and CEO. He'll begin the call with a discussion of our business highlights. And then I'll update you on our financial results for the quarter, and we'll conclude by taking some questions. Before we begin, I'd like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements, and those are based upon current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including, without limitation, those identified in the Risk Factors section of our most recent annual report on Form 10-K, our most recent 10-Q filing and the company's other filings with the Securities and Exchange Commission. Such factors may be updated from time to time in our filings with the SEC, which are available on our website. We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events or otherwise. Be advised that today's results should not be viewed as an indication of future performance. This call will also include references to certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures to our most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the Investor Relations portion of our website. I'd now like to turn the call over to Mr. Ari Kahn, Bridgeline's President and CEO. Ari?
Roger Kahn: Thank you, Tom, and good afternoon, everyone. Before I review the quarter, I want to briefly frame what Bridgeline does and why our strategy matters. Bridgeline is a MarTech marketing technology software company that helps businesses grow online revenue by delivering more traffic to their websites, converting more visitors of those websites into purchasers and increasing the average order for each purchase. Our software supports both B2C and B2B businesses, and we're particularly strong with manufacturers and distributors that manage complex catalogs and sophisticated digital commerce requirements. As Bridgeline has evolved, certain products have shown such great promise that we drive most of our R&D and marketing investments towards them. Collectively, we call these products …
