Bridgeline Digital reported total Q1 fiscal 2026 revenue of $3.9 million, up from the prior quarter and prior year. Subscription revenue rose to $3.2 million, a 4% increase, while services revenue climbed to $0.8 million. Core products contributed 60% of total revenue and 63% of subscription revenue, reflecting a 17% year-over-year gain.

During the quarter, the company sold 13 new subscription contracts totaling $1.2 million in contract value, adding $370,000 in Annual Recurring Revenue. Core subscription ARR per customer increased to $33,000 from $25,000 a year earlier, and net revenue retention reached 107%, underscoring strong customer loyalty and upsell potential.

Bridgeline introduced Spark, its next-generation UX platform, and added high-performance Contextual Fields supporting tens of thousands of values per field. The HawkSearch suite also launched an Advanced Analytics API, built-in barcode scanning, and an AI Content Extractor to auto-index unstructured content for smarter search and recommendations.

The company joined the National Association of Electrical Distributors as an Allied Partner and became a member of the Agentic Commerce Alliance. Key deployments include a national closeout retailer with 170 locations, a specialty lighting distributor, a Midwest wholesale distributor, and a multi-site wholesale supplier leveraging HawkSearch for AI-driven product discovery.