BlackLine (BL) investor relations material

Executive summary

• Revenue for Q2 2026 was $187.8M–$188M, up 9–9.2% year-over-year, driven by AI-driven platform adoption, product expansion, and new customer bookings.

• Net income attributable to the company was $16.5M for Q2 2026, nearly doubling from $8.3M in Q2 2025; non-GAAP net income was $42.9M with a 23%–23.3% margin.

• Free cash flow for Q2 2026 was $36.5M, with LTM free cash flow at $149M and a margin of 19%.

• Customer base reached 4,260, with a net revenue retention rate of 102% and a focus on enterprise and mega-enterprise customers.

• Deal cycles are lengthening due to increased AI-related scrutiny, but underlying demand and multi-year renewals remain strong.

Financial highlights

• Total revenue for Q2 2026: $187.8M–$188M, up 9–9.2% year-over-year; subscription revenue grew 9%, professional services 10–11%.

• Annual recurring revenue reached $719M, up 6% year-over-year; calculated billings grew 5.9–6%.

• Remaining performance obligation exceeded $1.1B, up 16.8–17%; current RPO (next 12 months) up 11%.

• Non-GAAP gross margin was 80.4%, with subscription gross margin at 83%.

• Non-GAAP net income was $42.9M ($0.61/share); free cash flow was $36.5M.

Outlook and guidance

• Q3 2026 GAAP revenue expected between $193M–$195M; non-GAAP operating margin 24.5%–25.5%.

• FY 2026 GAAP revenue guidance $765M–$769M (9.2%–9.8% growth); non-GAAP operating margin 24.1%–24.6%.

• Expect at least two points of incremental growth from platform conversion and agentic adoption, with double-digit growth exiting 2026 and further acceleration in 2027.

• FX headwinds expected to impact revenue by $2–$3M for the year.

• Target model projects 13–16% total revenue growth over the next 3–5 years, with gross margin at ~85% and operating margin at 26–30%.