Bridgeline Reports $3.9M Q2 Revenue, Adds $875K ARR, NRR 107%

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Bridgeline Digital delivered Q2 revenue of $3.9 million and subscription revenue of $3.1 million, with core revenue mix rising to 61% of total and 65% of subscription revenue. The company added 19 subscription contracts totaling $2.8 million in total contract value, contributed $875k in ARR, doubled average ARR per new customer to $44k, and recorded 107% net revenue retention.

1. Financial Performance

In Q2 fiscal 2026, Bridgeline Digital posted total revenue of $3.9 million, matching the prior year period, while subscription revenue held steady at $3.1 million. Core revenue—comprising higher-margin AI and SaaS offerings—rose to 61% of total revenue and 65% of subscription revenue, up from the comparable quarter. For the first six months, total revenue increased to $7.8 million from $7.7 million a year earlier, and subscription revenue climbed to $6.3 million from $6.1 million.

2. Sales and ARR Growth

Bridgeline secured 19 new subscription contracts in the quarter, representing $2.8 million in total contract value and adding $875k in annual recurring revenue. The company doubled its average ARR per new customer to $44k, compared with $21k in the year-ago quarter, and achieved a net revenue retention rate of 107%, underscoring strong upsell and renewal dynamics within its HawkSearch customer base.

3. Product Innovations

During the quarter, Bridgeline launched three AI Assistants within its HawkSearch suite: the Hawk AI Shopping Assistant, which garnered over 100 initial webinar signups and enables real-time, personalized product recommendations; the Analytics Assistant, which produced immediate customer contracts by delivering plain-language insights from blended data sources; and the Merchandising Assistant, designed to streamline catalog optimization via conversational prompts and drive higher conversion rates.

4. Partnerships and Customer Wins

Bridgeline earned multiple 2026 honors from the Info-Tech Research Group, including Leader in Enterprise Search and Top Product Strategy, and forged a partnership with Znode to embed AI-powered search and personalization in B2B ecommerce. The company also closed diverse enterprise deals—from a global gas provider’s multi-site complex implementation to a home décor brand’s multi-site deployment—highlighting HawkSearch’s adaptability across verticals and significant expansion potential.

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