📊 BL Key Takeaways
Is Blackline, Inc.. (BL) a Good Investment?
BlackLine demonstrates strong balance sheet fundamentals with excellent gross margins (76%) and robust free cash flow generation ($44.2M, 24.1% margin), but faces significant operational headwinds including declining net income (-10% YoY) and alarming EPS deterioration (-73.1%) despite modest 7.2% revenue growth. The combination of thin operating margins (3.4%), poor capital returns (ROE 2.7%, ROA 0.6%), and slowing growth suggests structural profitability challenges that require resolution before improved ratings are justified.
BlackLine shows solid fundamental quality through high gross margins, strong free cash flow generation, and a healthy balance sheet with substantial cash and modest leverage. However, revenue growth is only moderate and the sharp decline in diluted EPS alongside low operating and net margins suggests profitability remains vulnerable and not yet consistently scaling with revenue.
Blackline, Inc.. Key Strengths (BL)
- Exceptional gross margin of 76% indicates strong product value and pricing power in software market
- Fortress balance sheet with $242M cash, only 0.22x debt-to-equity, and solid liquidity (1.70x current ratio)
- Strong free cash flow generation ($44.2M) with 24.1% FCF margin and minimal capex requirements (1.1% of revenue)
- High gross margin of 75.2% supports strong underlying software economics
- Free cash flow generation is robust at $161.49M, or a 23.1% FCF margin
- Financial health is solid with $390.03M in cash, low debt/equity of 0.20x, and strong interest coverage of 17.4x
BL Stock Risks: Blackline, Inc.. Investment Risks
- Net income declining 10% YoY while revenue grows only 7.2% indicates deteriorating cost control and operational leverage
- Catastrophic EPS decline of 73.1% YoY signals severe profitability compression despite positive revenue growth
- Operating margin of only 3.4% is dangerously thin for software company, leaving minimal buffer for market disruptions
- Abysmal capital returns (ROE 2.7%, ROA 0.6%) indicate inefficient asset deployment and shareholder value destruction
- Modest 7.2% revenue growth for SaaS provider suggests market saturation, competitive pressure, or execution challenges
- Diluted EPS fell 73.1% year over year, indicating weak bottom-line conversion and possible dilution or margin pressure
- Operating margin of 3.6% and net margin of 3.5% are thin for a software business
- Revenue growth of 7.2% is modest and may not be strong enough to drive major margin expansion without tighter cost control
Key Metrics to Watch
- Operating margin trend and path to 10%+ target (critical inflection point)
- Year-over-year revenue growth acceleration/deceleration (currently decelerating at 7.2%)
- EPS trajectory and reconciliation of why earnings declined 73% while revenue grew 7%
- Operating margin trend
- Revenue growth rate
Blackline, Inc.. (BL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 24.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
BL Profit Margin, ROE & Profitability Analysis
BL vs Technology Sector: How Blackline, Inc.. Compares
How Blackline, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Blackline, Inc.. Stock Overvalued? BL Valuation Analysis 2026
Based on fundamental analysis, Blackline, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Blackline, Inc.. Balance Sheet: BL Debt, Cash & Liquidity
BL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Blackline, Inc..'s revenue has grown significantly by 65% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.81 reflects profitable operations.
BL Revenue Growth, EPS Growth & YoY Performance
BL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $166.9M | $6.1M | $0.10 |
| Q3 2025 | $165.9M | $5.3M | $0.09 |
| Q2 2025 | $160.5M | $8.3M | $0.13 |
| Q1 2025 | $157.5M | $6.1M | $0.10 |
| Q3 2024 | $150.7M | $11.9M | $0.19 |
| Q2 2024 | $144.6M | $18.8M | $0.22 |
| Q1 2024 | $139.0M | $10.8M | $0.17 |
| Q3 2023 | $134.3M | $11.9M | $0.19 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Blackline, Inc.. Dividends, Buybacks & Capital Allocation
BL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Blackline, Inc.. (CIK: 0001666134)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BL
What is the AI rating for BL?
Blackline, Inc.. (BL) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BL's key strengths?
Claude: Exceptional gross margin of 76% indicates strong product value and pricing power in software market. Fortress balance sheet with $242M cash, only 0.22x debt-to-equity, and solid liquidity (1.70x current ratio). ChatGPT: High gross margin of 75.2% supports strong underlying software economics. Free cash flow generation is robust at $161.49M, or a 23.1% FCF margin.
What are the risks of investing in BL?
Claude: Net income declining 10% YoY while revenue grows only 7.2% indicates deteriorating cost control and operational leverage. Catastrophic EPS decline of 73.1% YoY signals severe profitability compression despite positive revenue growth. ChatGPT: Diluted EPS fell 73.1% year over year, indicating weak bottom-line conversion and possible dilution or margin pressure. Operating margin of 3.6% and net margin of 3.5% are thin for a software business.
What is BL's revenue and growth?
Blackline, Inc.. reported revenue of $183.2M.
Does BL pay dividends?
Blackline, Inc.. does not currently pay dividends.
Where can I find BL SEC filings?
Official SEC filings for Blackline, Inc.. (CIK: 0001666134) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BL's EPS?
Blackline, Inc.. has a diluted EPS of $0.13.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BL's fundamental grade?
Based on our AI fundamental analysis in June 2026, Blackline, Inc.. has a B grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BL stock overvalued or undervalued?
Valuation metrics for BL: ROE of 2.7% (sector avg: 22%), net margin of 4.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is BL's AI grade for 2026?
Our dual AI analysis gives Blackline, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BL's free cash flow?
Blackline, Inc..'s operating cash flow is $46.3M, with capital expenditures of $2.1M. FCF margin is 24.1%.
How does BL compare to other Technology stocks?
Vs Technology sector averages: Net margin 4.4% (avg: 18%), ROE 2.7% (avg: 22%), current ratio 1.70 (avg: 2.5).