BlackLine (BL) AI Stock Analysis

• Market Cap: $3.19B
• Dividend Yield: N/A
• Average Volume (3M): 688.44K
• Price to Earnings (P/E): 41.5
• Beta (1Y): 1.04
• Revenue Growth: 7.99%
• EPS Growth: -28.47%
• Country: US
• Employees: 1,830
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.51
• Shares Outstanding: 61,887,825
• 10 Day Avg. Volume: 577,868
• 30 Day Avg. Volume: 688,438
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 5.52
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: 33.37
• 1Y Price Target: $62.91
• Price Target Upside: 21.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 61 Neutral
• Price Target: $57.00 ▲(10.44% Upside)

BlackLine's overall stock score is driven by stable financial performance and neutral technical indicators. The company's high leverage and declining cash flow are significant risks, while the high P/E ratio suggests overvaluation. Despite strong earnings call highlights, the lack of dividend yield and valuation concerns weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth and strong operating margins indicate robust financial health and effective cost management, supporting long-term business sustainability.

Strategic Partnerships

Strategic partnerships, especially with major firms like SAP, enhance market reach and integration capabilities, driving future growth and competitive advantage.

New Pricing Model

Successful adoption of a new pricing model increases deal sizes and customer value, indicating effective strategic shifts and potential for increased revenue.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, especially if revenue growth does not keep pace with debt obligations.

Declining Cash Flow

Decreasing free cash flow may impact the company's ability to invest in growth opportunities and maintain liquidity, posing a risk to long-term stability.

Mid-Market Customer Churn

While focusing on larger accounts can be beneficial, losing mid-market customers could reduce revenue diversity and increase dependency on fewer, larger clients.

BlackLine Business Overview & Revenue Model

Company Description

BlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations worldwide. It offers financial close management solutions, such as account reconciliations that provides a centralized workspace for users to collaborate on account reconciliations; transaction matching that analyzes and reconciles high volumes of individual transactions; and task management to create and manage processes and task lists. The company's financial close management solutions also include journal entry that allows users to generate, review, and post manual journal entries; variance analysis that monitors and identifies anomalous fluctuations in balance sheet and income statement account balances; consolidation integrity manager that manages the automated system-to-system tie-out process that occurs during the consolidation phase of the financial close; and compliance, an integrated solution that facilitates compliance-related initiatives, consolidates project management, and provides visibility over control self-assessments and testing. In addition, it offers accounts receivable automation solutions, which include cash application, credit and risk management, collections management, disputes and deductions, team and task management, and AR intelligence solutions. Further, the company provides intercompany workflow that stores permissions by entity and transaction type thereby ensuring both the initiator and the approver of the intercompany transaction are authorized to conduct business; intercompany processing, which records an organization's intercompany transactions; and netting and settlement that generates a real-time settlement matrix, which shows the balance of transactions. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises, and mid-market companies across various industries. BlackLine, Inc. was incorporated in 2001 and is headquartered in Woodland Hills, California.

How the Company Makes Money

BlackLine primarily generates revenue through a subscription-based model, where customers pay for access to its software solutions on a recurring basis. This model allows the company to secure predictable and stable revenue streams. Key revenue streams include subscription fees for its various financial management products, professional services for implementation and training, and ongoing customer support. Additionally, BlackLine has established strategic partnerships with major financial and technology firms, which can lead to increased sales opportunities and integrations that enhance its offerings, further contributing to its earnings.

BlackLine Financial Statement Overview

Summary

BlackLine shows solid revenue growth and profitability, with a strong gross profit margin. However, high leverage and declining free cash flow pose risks. The return on equity is impressive, but the high debt-to-equity ratio and decreasing cash flow growth rate require careful monitoring.

Income Statement

BlackLine has demonstrated consistent revenue growth with a TTM increase of 1.74% and a strong gross profit margin of 75.29%. However, the net profit margin has slightly decreased from 24.67% in 2024 to 23.60% in TTM, indicating some pressure on profitability. The EBIT and EBITDA margins have also declined, suggesting increased operational costs or other expenses impacting earnings.

Balance Sheet

The company's debt-to-equity ratio remains high at 2.21 in TTM, indicating significant leverage, which poses a risk if earnings do not continue to grow. However, the return on equity has improved to 40.15%, reflecting better utilization of equity to generate profits. The equity ratio is relatively low, suggesting a heavy reliance on debt financing.

Cash Flow

Operating cash flow is strong, but the free cash flow has decreased by 1.69% in TTM, indicating potential challenges in maintaining cash reserves. The operating cash flow to net income ratio is 0.30, showing that cash generation from operations is lower compared to net income, which could impact liquidity if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	674.33M	653.34M	590.00M	522.94M	425.71M	351.74M
Gross Profit	508.26M	491.37M	443.20M	393.55M	327.83M	282.76M
EBITDA	111.55M	183.80M	116.51M	1.25M	-13.29M	5.50M
Net Income	88.00M	161.17M	52.83M	-29.39M	-115.16M	-46.91M
Balance Sheet
Total Assets	1.79B	1.83B	2.10B	1.94B	1.82B	1.11B
Cash, Cash Equivalents and Short-Term Investments	857.42M	885.91M	1.20B	1.08B	1.20B	542.62M
Total Debt	921.41M	916.60M	1.41B	1.40B	1.13B	418.54M
Total Liabilities	1.34B	1.34B	1.81B	1.81B	1.46B	678.91M
Stockholders Equity	414.05M	446.67M	260.88M	111.87M	325.04M	422.07M
Cash Flow
Free Cash Flow	174.65M	188.71M	99.02M	25.83M	56.83M	35.31M
Operating Cash Flow	178.80M	190.84M	126.61M	56.01M	80.09M	54.73M
Investing Cash Flow	3.99M	924.44M	-62.48M	-395.62M	-506.94M	173.59M
Financing Cash Flow	-340.74M	-500.14M	6.15M	1.44M	599.24M	18.86M

BlackLine Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BL, the sentiment is Negative. The current price of 51.61 is below the 20-day moving average (MA) of 53.61, below the 50-day MA of 53.10, and below the 200-day MA of 53.93, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 16.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BL.

BlackLine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTA	65 Neutral	$3.23B	―	-3.95%	―	17.09%	48.66%
NCNO	64 Neutral	$3.04B	―	-3.15%	―	13.24%	-12.97%
GTM	63 Neutral	$3.32B	39.84	5.22%	―	-0.54%	626.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BL	61 Neutral	$3.19B	41.52	23.79%	―	7.99%	-28.47%
ASAN	51 Neutral	$3.22B	―	-80.55%	―	9.74%	22.36%
ALIT	46 Neutral	$1.76B	―	-29.09%	4.89%	-19.48%	-398.43%

BlackLine Corporate Events

BlackLine Increases Stock Buyback Program by $200 Million

On September 4, 2025, BlackLine, Inc.’s board of directors approved an increase of $200 million to its stock buyback program, raising the total authorization to $400 million. The board also removed the program’s expiration date, previously set for March 31, 2027. To date, the company has repurchased 3,448,206 shares valued at $179 million. The program allows for repurchases through open market or privately negotiated transactions, subject to market conditions and legal requirements, and can be modified or suspended at the company’s discretion.

BlackLine Announces Leadership Transition with New CEO

On August 5, 2025, BlackLine, Inc. announced a leadership transition where Therese Tucker, Co-CEO and Founder, will step down from her Co-CEO role effective October 1, 2025, to focus on her responsibilities as Founder. Owen Ryan will continue as the sole CEO and Chairman, while David Henshall has been appointed as Lead Independent Director, replacing Tom Unterman. This transition is part of BlackLine’s strategy to enhance its leadership team and support its long-term strategic goals. The changes are expected to strengthen BlackLine’s market position and drive continued innovation and growth.

BlackLine Appoints Gregory Hughes to Board

On July 25, 2025, BlackLine appointed Gregory Hughes to its Board of Directors, enhancing its expertise in enterprise software and strategic growth. Hughes, a seasoned executive with a history of leading significant transformations at companies like Veritas Technologies, will contribute to BlackLine’s growth and innovation strategy alongside recent board addition Sam Balaji. This move is expected to strengthen BlackLine’s leadership in financial operations and support its ongoing momentum as a category leader.

BlackLine Appoints Sam Balaji to Board of Directors

On June 13, 2025, BlackLine, Inc. appointed Saranga ‘Sam’ Balaji to its Board of Directors, bringing his extensive experience in enterprise software, AI, and cybersecurity from his 28-year tenure at Deloitte, where he served as Global CEO of Deloitte Consulting. Balaji’s appointment is expected to bolster BlackLine’s strategic growth, deepen partnerships, and enhance its platform’s capabilities, particularly in AI-driven digital finance transformation.