BlackLine (BL) Q4 2025 earnings summary

Executive summary

• Achieved record bookings in Q4 and for the full year, with Q4 2025 revenue of $183.2M, up 8.1% year-over-year, and annual recurring revenue reaching $702M, up nearly 10% year-over-year.

• Platform adoption accelerated, with 75% of new bookings leveraging the platform and strong momentum in enterprise and mega-enterprise segments.

• Expanded customer base among large enterprises, now serving 70% of the Fortune 100 and reaching 4,394 total customers at year-end 2025.

• AI adoption is rising, with nearly 20% of customers using AI features, new agentic AI offerings launched, and the acquisition of WiseLayer to strengthen AI capabilities.

• Launched Verity AI, completed Studio360 platform scale-up, and expanded global presence, including Saudi Arabia and FedRAMP Marketplace listing.

Financial highlights

• Q4 2025 GAAP revenue was $183.2M, up 8.1% year-over-year; full-year 2025 GAAP revenue was $700.4M, up 7.2%; subscription revenue was $663M, and services revenue was $37M.

• Annual recurring revenue (ARR) reached $702M, up nearly 10% year-over-year, with a 1.5-point FX benefit.

• Remaining performance obligations (RPO) grew 23% to $1.1B; Q4 billings reached $226.9M, up 9.5% year-over-year.

• Non-GAAP operating margin was 25% in Q4 2025; non-GAAP net income margin also 25%; Q4 non-GAAP net income was $45.2M ($0.63/share).

• Free cash flow for 2025 was $134.9M, with Q4 free cash flow at $19.9M.

Outlook and guidance

• Q1 2026 GAAP revenue expected at $180–$182M (8–9% growth); non-GAAP operating margin 18.5–19.5%.

• Full-year 2026 GAAP revenue guidance: $764–$768M (9.1–9.6% growth); non-GAAP operating margin 23.7–24.3%.

• Non-GAAP net income for 2026 expected at $172–$180M ($2.37–$2.48 per share on 75M shares).

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

• Bookings growth target for 2026 remains at 20%; platform pricing adoption expected to reach 25–35% of eligible customers by year-end 2026.