BlackLine 2025 Q3 Earnings Revenue Grows 7.5% as Net Income Declines 40.9%

BlackLine (BL) reported fiscal 2025 Q3 earnings on November 7, 2025, with revenue rising 7.5% to $178.29 million and net income falling 40.9% to $8.61 million. The results matched revenue estimates but missed expectations for profitability. Management revised full-year adjusted EPS guidance downward, citing challenges in transitioning to platform-based pricing and customer adoption delays.

Revenue

BlackLine’s total revenue increased by 7.5% year-over-year to $178.29 million, driven by a 45% rise in new customer bookings and a 4.4% year-on-year increase in billings. Subscription and support revenue accounted for the majority at $168.21 million, while professional services contributed $10.08 million, reflecting a 13.3% year-over-year growth.

Earnings/Net Income

The company’s EPS declined 67.9% to $0.09 in 2025 Q3 from $0.28 in 2024 Q3, with net income dropping to $8.61 million, down 40.9% from $14.57 million. The significant EPS contraction highlights challenges in aligning growth with profitability amid strategic shifts.

Post-Earnings Price Action Review

BlackLine’s stock edged up 2.59% during the latest trading day but dropped 6.41% during the most recent full trading week, climbing 5.56% month-to-date. The mixed performance reflects investor uncertainty over near-term profitability and strategic transitions.

CEO Commentary

Owen Ryan, CEO of BlackLine, emphasized progress in modernizing the technology stack, including near completion of a multi-year GCP migration. He noted delays in deal closures due to customer pauses in user additions, attributing this to evaluation of new platform pricing and AI offerings. Ryan highlighted confidence in long-term growth from Studio 360 and Verity AI, despite short-term attrition from seat count reductions.

Guidance

The company issued FY 2025 revenue guidance of $699–$701 million and EPS guidance of $2.08–$2.13. Q4 2025 revenue guidance was set at $182–$184 million, with EPS guidance of $0.58–$0.61. Management expects to overcome current headwinds by mid-2026, aligning with its platform pricing strategy.

Additional News

BlackLine faces investor pressure to explore a sale, with SAP reportedly interested in an acquisition. Ananym Capital and Tensile Capital have urged the board to consider strategic alternatives. Meanwhile, insider selling activity continued, with CAO Michelle Stalick and Director Thomas Unterman offloading shares. Analysts remain divided, with a consensus “Hold” rating and a target price of $61.55.