Bridgeline Digital Inc. Common Stock (BLIN)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable competitive advantages, honest accounting, and a margin of safety. Bridgeline is a $9.6 million market-cap software company with 40 employees selling search, personalization, and SEO tools. The numbers do not yet show a moat. In fiscal 2025, the year ended 2025-09-30, revenue was $15.4 million and net loss was $2.5 million; in fiscal 2024, ended 2024-09-30, revenue was also $15.4 million with a $2.0 million net loss. Revenue is stagnant, and losses persist. The latest filed quarter, fiscal Q3 2026 ended 2026-06-30, showed $3.9 million of revenue and a $468,000 net loss, or $0.04 per diluted share. That was better than the fiscal Q3 2025 quarter ended 2025-06-30, when the loss was $789,000. Free cash flow for the trailing twelve months is negative $362,000, a -3.8% FCF yield. FairStock's calculations show a P/E of -7.60, P/B of 1.07, ROE of -14.22%, ROCE of -5.45%, and low debt/equity of 0.11. The Altman Z-Score of -7.78 is a serious distress signal, though the Piotroski F-Score of 5/9 is middling. At $0.76 close on 2026-10-13, the market values the whole company at only about two-thirds of fiscal 2025 revenue and near book value. That looks statistically cheap, but negative earnings and cash flow mean there is no true margin of safety unless the turnaround becomes visible. FairStock labels it a TURNAROUND because it reports a loss in the latest year after earlier profits, and the investment case rests on narrowing losses and eventual profitability, not on present business quality.

In plain English: Bridgeline Digital sells software that helps businesses improve website search, recommendations, and search engine audits. The business is small and currently unprofitable, with sales that have been roughly flat and recent losses, so it looks weak on profits and cash generation. At $0.76 a share, the price looks low compared with its sales and book value, but because it is losing money and burning cash, it is not clearly cheap in the way a profitable bargain would be.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer