Blackline Stock Earnings Reports

BlackLine reported solid Q3 2025 results with revenue of ~$178M (+7.5%), ARR of $685M (+7.3%), strong margins (non-GAAP operating margin 21.4%) and record cash generation (operating cash flow $64M, free cash flow $57M). New customer bookings were a major bright spot (up ~45%) with average new deal size more than doubling; platform-based pricing (Studio360) accounted for ~75% of new customer bookings and is seeing international adoption. Management is completing foundational changes across leadership, go-to-market, product/tech and operations (GCP migration nearly complete; Snowflake partnership; faster matching and new connectors for Oracle/Workday/D365). They are positioning Verity (agentic/enterprise AI) as a trusted, auditable AI advantage built on proprietary historical financial/process data and ISO 42001 certification. Short-term dynamics: some existing customers paused seat adds while evaluating platform pricing and AI, and seat-based attrition from automation and a deliberate deemphasis of lower-end customers caused a modest headwind to net revenue retention; management expects this transition and related churn to largely abate by mid-2026. Q4 2025 guidance: GAAP revenue $182M–$184M; non-GAAP operating margin 24%–25%. Full-year 2025 guidance: revenue $699M–$701M; non-GAAP operating margin 22%–22.5%; non-GAAP net income $153M–$157M. Capital allocation: ~$113M repurchased in Q3 (2.1M shares), >$200M YTD. Management reiterated confidence in accelerating bookings and margins into 2026 (targeting at least Rule of 33 in 2026 and stronger progression thereafter), while noting execution risks, longer sales cycles for large enterprise deals and continued macro sensitivity.