# Blackline (BL.US)

Canonical: https://gigainvestors.com/s/BL

Analysis as of: 2026-10-16T07:26:58.431Z. Financial observations: FY2013–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $30.51 per share; close as of 2026-10-15.

Estimated value: low $23.29 per share, central $29.48 per share, high $33.09 per share. Buy at or below the central value $29.48 per share. Valuation as of 2026-10-16T07:26:58.431Z; scenarios are not confidence intervals.

Expected annual return: 9.7% at the stated quote. About 9.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 6

- Operating margin variation: 1.58×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.20×

- FY2018: -0.13×

- FY2019: -0.10×

- FY2020: -0.06×

- FY2021: -0.09×

- FY2022: -0.11×

- FY2023: 0.02×

- FY2024: 0.03×

- FY2025: 0.05×

- LTM to Jun 2026: 0.06×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -73.3%

- ROIC, second-lowest year: -386.5%

- Typical minus recent gross margin: 0.8 pp

- Typical gross margin (annual median): 76.0%

- Recent gross margin (lower of latest and 3-year median): 75.2%

- Years with nonpositive capital: 2

- Capital spending / revenue: 4.8%

- ROIC including acquisitions, ten-year median: -9.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -143.8%

- FY2017: -148.6%

- FY2018: -386.5%

- FY2019: -392.5%

- FY2020: -189.9%

- FY2021: -2.1%

- FY2022: -2.9%

- FY2023: 78.2%

- FY2024: 65.3%

- FY2025: 76.0%

### economics: pass

- Owner earnings / net income, 5-yr: 2.30×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $216M

- Net income, five-year total: $94M

- Return on incremental invested capital: 486.7%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.8 pp

- Working capital / revenue, final three-year average: 27.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.97×

- FY2022: 0.57×

- FY2023: 1.43×

- FY2024: 1.30×

- FY2025: 2.41×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -148.6% vs 76.0%

- Per-share earnings: -0.73 to 0.73 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.0%

- Ordinary dilution, 5-year annual growth: 3.0%

- Market cap gain: $1.9B

- Cumulative retained earnings: $63M

- Diluted shares, 10-year annual growth: 5.0%

- Diluted shares, 5-year annual growth: 3.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $1.46

- Per-share value, starting three-year median: -$0.73

- Per-share value, ending three-year median: $0.73

- Buybacks concentrated in cheaper years (correlation): 0.52

- Average buyback yield: 1.1%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $368M

- Cumulative net income, 10 years: -$90M

- ROIC, first three-year median: -148.6%

- ROIC, last three-year median: 76.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.92

- FY2017: -$0.73

- FY2018: -$0.52

- FY2019: -$0.59

- FY2020: -$0.83

- FY2021: -$1.97

- FY2022: -$0.49

- FY2023: $0.73

- FY2024: $2.19

- FY2025: $0.37

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -8.2%

- Receivables to sales index (DSRI): 1.14×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 54.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.92×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.55×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.2%

- FY2017: -10.1%

- FY2018: -8.9%

- FY2019: -6.1%

- FY2020: -9.1%

- FY2021: -10.7%

- FY2022: -4.4%

- FY2023: -3.5%

- FY2024: -1.6%

- FY2025: -8.2%

## Holders

- [Glenn Welling](https://gigainvestors.com/ENG): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 76% since Oct 2021 · sales +4.6%

Story as of 2026-10-16T09:58:24.527Z; price observation 2026-10-15.

Price needs cash profits to grow 7.1% a year for ten years

- 2025-08-05: Earnings call transcript: BlackLine Q2 2025 beats revenue forecast, stock rises ([investing.com](https://www.investing.com/news/transcripts/earnings-call-transcript-blackline-q2-2025-beats-revenue-forecast-stock-rises-93CH-4171716))

### Sales · FY2025–2026

sales +4.6%; source https://www.sec.gov/Archives/edgar/data/1666134/000162828026011915/bl-20251231.htm; observed 2026-02-26.

- FY2017: $177M 

- FY2018: $228M 

- FY2019: $289M 

- FY2020: $352M 

- FY2021: $426M 

- FY2022: $523M 

- FY2023: $590M 

- FY2024: $653M 

- FY2025: $700M 

- FY2026: $732M 

### Gross margin · FY2025

gross margin 75.2%; source https://www.sec.gov/Archives/edgar/data/1666134/000162828026011915/bl-20251231.htm; observed 2026-02-26.

- FY2016: 75.5% 

- FY2017: 76.6% 

- FY2018: 77.7% 

- FY2019: 79.6% 

- FY2020: 80.4% 

- FY2021: 77.0% 

- FY2022: 75.3% 

- FY2023: 75.1% 

- FY2024: 75.2% 

- FY2025: 75.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 700.4 million.

- Source: https://www.sec.gov/Archives/edgar/data/1666134/000162828026011915/bl-20251231.htm (filed 2026-02-26); FY2025: revenue 700427000; grossProfit 526779000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); BL.US: BlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations in the United States and internationally. It offers financial close and consolidation solutions, such as account reconciliations that provides a centralized workspace for users to collaborate on account reconciliations; transaction matching, which analyzes and reconciles individual transactions; task management to create and manage processes and task lists; and financial reporting analytics that enables analysis and validation of financial data. The company also provides journal entry, which allows users to generate, review, and post manual journal entries; variance analysis that offers anomalous fluctuations in balance sheet and income statement account balances; compliance, an integrated solution that facilitates compliance-related initiatives, consolidates project management, and provides visibility over control self-assessments and testing; and smart close for SAP solution. In addition, it offers credit and risk, collection, dispute and deduction, and team and task management, as well as AR intelligence, electronic invoicing and payment, and cash application solutions. Further, the company provides intercompany create functionality that stores permissions and business logic exceptions by entity, service, and transaction type; intercompany balance and resolve, which records an organization's intercompany transactions; and netting and settlement that enables open intercompany transactions, which integrate with treasury systems. Additionally, it offers implementation, optimization, live and web-based training, and support services. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises, and mid-market companies across various industries. The company was incorporated in 2001 and is headquartered in Woodland Hills, California.

### Why customers stay

Margins ranged from 75.1% to 75.2% during 2023–25; it lost 73.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 75.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 75.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1666134/000162828026011915/bl-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 75.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,-1.43757293007293],[2017,-1.4861512045930139],[2018,-3.8646401049352352],[2019,-3.9252377560106857],[2020,-1.898730062832286],[2021,-0.020913128249566725],[2022,-0.029339755997787445],[2023,0.781788280120531],[2024,0.6528829558662956],[2025,0.7596492456330731]]; median -0.7334563430353588. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 75% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1666134/000162828026011915/bl-20251231.htm (filed 2026-02-26); Gross margin observations: [[2021,0.7700972032341569],[2022,0.7525806118507357],[2023,0.7511966182821579]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 3 of 10 years; bought back USD 235.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 27597000; owner earnings 75335000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 2126000; owner earnings 209393000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1666134/000162828026011915/bl-20251231.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 8074000; owner earnings 59114133.03004733. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,456879000],[2020,0],[2021,20448000],[2022,0],[2023,15029000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1666134/000162828026011915/bl-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 235543000 USD.

### Are managers owners

Insiders own 9.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); BL.US SharesStats.PercentInsiders = 9.461 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 7.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.08882622145170449. Price 30.51; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.5510732152098377 → FY2025 0.8967420553396843. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $22.75 per share

- 2016-11: $26.94 per share

- 2016-12: $27.63 per share

- 2017-01: $27.18 per share

- 2017-02: $28.53 per share

- 2017-03: $29.76 per share

- 2017-04: $32.87 per share

- 2017-05: $33.76 per share

- 2017-06: $35.74 per share

- 2017-07: $38.77 per share

- 2017-08: $30.87 per share

- 2017-09: $34.12 per share

- 2017-10: $35.52 per share

- 2017-11: $36.67 per share

- 2017-12: $32.80 per share

- 2018-01: $33.23 per share

- 2018-02: $44.00 per share

- 2018-03: $39.21 per share

- 2018-04: $41.40 per share

- 2018-05: $41.62 per share

- 2018-06: $43.43 per share

- 2018-07: $42.70 per share

- 2018-08: $52.76 per share

- 2018-09: $56.47 per share

- 2018-10: $46.38 per share

- 2018-11: $42.87 per share

- 2018-12: $40.95 per share

- 2019-01: $47.58 per share

- 2019-02: $52.34 per share

- 2019-03: $46.32 per share

- 2019-04: $51.08 per share

- 2019-05: $51.41 per share

- 2019-06: $53.51 per share

- 2019-07: $44.60 per share

- 2019-08: $50.93 per share

- 2019-09: $47.81 per share

- 2019-10: $46.74 per share

- 2019-11: $53.82 per share

- 2019-12: $51.56 per share

- 2020-01: $61.17 per share

- 2020-02: $62.57 per share

- 2020-03: $52.61 per share

- 2020-04: $60.74 per share

- 2020-05: $74.30 per share

- 2020-06: $82.91 per share

- 2020-07: $88.91 per share

- 2020-08: $87.37 per share

- 2020-09: $89.63 per share

- 2020-10: $97.68 per share

- 2020-11: $122.90 per share

- 2020-12: $133.38 per share

- 2021-01: $129.62 per share

- 2021-02: $124.02 per share

- 2021-03: $108.40 per share

- 2021-04: $116.06 per share

- 2021-05: $103.97 per share

- 2021-06: $111.27 per share

- 2021-07: $114.39 per share

- 2021-08: $109.10 per share

- 2021-09: $118.06 per share

- 2021-10: $126.87 per share

- 2021-11: $110.05 per share

- 2021-12: $103.54 per share

- 2022-01: $91.87 per share

- 2022-02: $75.31 per share

- 2022-03: $73.22 per share

- 2022-04: $67.05 per share

- 2022-05: $73.22 per share

- 2022-06: $66.60 per share

- 2022-07: $63.22 per share

- 2022-08: $67.94 per share

- 2022-09: $59.90 per share

- 2022-10: $56.00 per share

- 2022-11: $67.69 per share

- 2022-12: $67.27 per share

- 2023-01: $71.80 per share

- 2023-02: $68.36 per share

- 2023-03: $67.15 per share

- 2023-04: $55.71 per share

- 2023-05: $52.07 per share

- 2023-06: $53.82 per share

- 2023-07: $58.08 per share

- 2023-08: $60.06 per share

- 2023-09: $55.47 per share

- 2023-10: $49.10 per share

- 2023-11: $57.85 per share

- 2023-12: $62.44 per share

- 2024-01: $58.68 per share

- 2024-02: $56.73 per share

- 2024-03: $64.58 per share

- 2024-04: $58.05 per share

- 2024-05: $47.72 per share

- 2024-06: $48.45 per share

- 2024-07: $47.52 per share

- 2024-08: $49.55 per share

- 2024-09: $55.14 per share

- 2024-10: $55.37 per share

- 2024-11: $62.01 per share

- 2024-12: $60.76 per share

- 2025-01: $63.85 per share

- 2025-02: $48.30 per share

- 2025-03: $48.42 per share

- 2025-04: $47.23 per share

- 2025-05: $55.93 per share

- 2025-06: $56.62 per share

- 2025-07: $53.78 per share

- 2025-08: $54.37 per share

- 2025-09: $53.10 per share

- 2025-10: $57.25 per share

- 2025-11: $56.99 per share

- 2025-12: $55.29 per share

- 2026-01: $46.47 per share

- 2026-02: $35.25 per share

- 2026-03: $37.00 per share

- 2026-04: $31.25 per share

- 2026-05: $29.40 per share

- 2026-06: $28.07 per share

- 2026-07: $31.40 per share

- 2026-08: $33.22 per share

- 2026-09: $26.53 per share

- 2026-10: $30.51 per share

## Annual estimated value (USD per share)

- FY2025: low $22.62 per share, central $27.84 per share, high $30.89 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1666134/000162828026011915/bl-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.