Bridgeline Digital Inc

Bridgeline's capital structure is characterized by a low debt-to-equity ratio of 0.06, indicating a conservative leverage profile. The company holds $1.3 million in cash and equivalents, but its operating cash flow is negative at -$982,000, and free cash flow is -$308,000, suggesting ongoing cash burn despite a strong equity base of $10.5 million. The price-to-book ratio of 1.19 and price-to-tangible-book ratio of 1.19 reflect a market valuation in line with tangible asset value, with no significant intangible premium.

Profitability metrics are weak, with a net loss of $602,000 and an operating loss of $519,000, translating to a return on equity of -5.73% and return on assets of -3.7%. These figures fall below the typical performance of the Software industry, where positive returns and gross margins above 60% are common. The company's gross profit margin of 66.3% is relatively strong, but this is offset by high operating expenses and a negative net income.

Geographically, Bridgeline's revenue is concentrated in North America, with no material exposure to other regions disclosed in the financial snapshot. The company operates in a single business segment focused on digital experience solutions, with no material diversification across product lines or customer bases.

Looking ahead, Bridgeline's revenue is expected to remain under pressure, with no clear growth trajectory evident from the current financials. The company's operating cash flow and free cash flow remain negative, and no significant capital expenditures are planned, with capex at -$5,000. Analysts have assigned a mean recommendation of 2.00, indicating a "buy" rating, but this is based on a single "buy" vote with no other strong buy or hold ratings.

Risk factors include the company's negative net income and operating cash flow, which could limit its ability to fund operations without external financing. However, the risk assessment indicates low dilution and liquidity risk, with no immediate filing-based flags detected. The company's low debt load and strong equity position provide some buffer against short-term financial stress, but the negative earnings trend remains a concern.

Recent filings and transcripts do not highlight any material events or strategic shifts, and the company's financial performance remains consistent with its recent history of losses and cash burn. No significant changes in business strategy or capital structure have been disclosed in the latest available data.

Long-term debt decreased significantly to $326,000 in FY2025, reflecting a low leverage band and reduced financial risk.

Cash conversion ratio of 1.63 exceeds the software cohort median of 0.92, indicating superior operational efficiency.

Revenue stabilized with a 0.2% year-over-year increase in FY2025, suggesting potential bottoming after previous declines.

Dilution, liquidity, and credit risks are all rated low, providing a stable foundation for future growth.

Capex to revenue ratio is above the 75th percentile of the software cohort, indicating strong investment in growth.

Current ratio of 0.70 indicates potential short-term liquidity constraints despite low overall liquidity risk.

Revenue $3.9M, +3,2% YoY; Operating income +66,5% YoY.

• ▍Revenue $3.9M, +3,2% YoY
• ▍Operating income +66,5% YoY
• ▍Net income +86,4% YoY
• ▍Free cash flow +119,9% YoY
• ▍Net margin -2.2%

Revenue $3.9M, +0,2% YoY; Operating income 0,0% YoY.

• ▍Revenue $3.9M, +0,2% YoY
• ▍Operating income 0,0% YoY
• ▍Net income +15,5% YoY
• ▍Free cash flow +22,3% YoY
• ▍Net margin -9.4%

Revenue $3.8M, −2,3% YoY; Operating income −79,9% YoY.

• ▍Revenue $3.8M, −2,3% YoY
• ▍Operating income −79,9% YoY
• ▍Net income −158,7% YoY
• ▍Free cash flow −405,1% YoY
• ▍Net margin -20.5%

Revenue $3.9M, +1,9% YoY; Operating income −43,5% YoY.

• ▍Revenue $3.9M, +1,9% YoY
• ▍Operating income −43,5% YoY
• ▍Net income −21,3% YoY
• ▍Free cash flow −179,6% YoY
• ▍Net margin -18.8%

Revenue $3.8M; Operating income -$511.0k.

• ▍Revenue $3.8M
• ▍Operating income -$511.0k
• ▍Net margin -16.7%

Revenue $3.9M; Operating income -$482.0k.

• ▍Revenue $3.9M
• ▍Operating income -$482.0k
• ▍Net margin -11.2%

Revenue $3.9M; Operating income -$383.0k.

• ▍Revenue $3.9M
• ▍Operating income -$383.0k
• ▍Net margin -7.7%

Revenue $3.8M; Operating income -$519.0k.

• ▍Revenue $3.8M
• ▍Operating income -$519.0k
• ▍Net margin -15.8%

Revenue $15.4M, +0,2% YoY; Operating income −20,2% YoY.

• ▍Revenue $15.4M, +0,2% YoY
• ▍Operating income −20,2% YoY
• ▍Net income −28,4% YoY
• ▍Free cash flow −130,5% YoY
• ▍Net margin -16.4%

Revenue $15.4M, −3,3% YoY; Operating income +79,6% YoY.

• ▍Revenue $15.4M, −3,3% YoY
• ▍Operating income +79,6% YoY
• ▍Net income +79,2% YoY
• ▍Free cash flow +88,6% YoY
• ▍Net margin -12.8%

Revenue $15.9M, −5,5% YoY; Operating income −422,7% YoY.

• ▍Revenue $15.9M, −5,5% YoY
• ▍Operating income −422,7% YoY
• ▍Net income −539,9% YoY
• ▍Free cash flow −324,3% YoY
• ▍Net margin -59.4%

Revenue $16.8M, +26,9% YoY; Operating income −73,2% YoY.

• ▍Revenue $16.8M, +26,9% YoY
• ▍Operating income −73,2% YoY
• ▍Net income +132,1% YoY
• ▍Free cash flow +146,5% YoY
• ▍Net margin 12.8%