Bridgeline Digital, Inc. Annual Report - How They Did This Year

This year, Bridgeline Digital, Inc. saw some notable shifts, particularly in its capital structure and how its customer relationships are spread out.

Share Structure and Financing

The number of common shares available to investors grew quite a bit this year. As of September 30, 2025, there were 12,224,399 common shares outstanding. That's a 17.34% jump from the 10,417,609 shares reported a year earlier. This increase happened because the company raised money in March 2025 through a Registered Direct Offering and a Private Placement. When a company issues more shares, it generally means they're bringing in capital, but it also means your existing shares represent a slightly smaller piece of the company (this is called dilution).

On top of that, Bridgeline also issued 1,414 new Series C Convertible Preferred Stock during the year, as there were none outstanding previously. There was also a small increase in Series A Preferred Stock, from 3 shares to 5 shares.

Customer Relationships

One positive trend we've seen is a reduction in how much the company relies on any single big customer. The percentage of both total sales and money owed to the company (accounts receivable) from one large customer decreased. For the fiscal year ending September 30, 2025, only 1.3% of sales and accounts receivable came from a single customer. This is a good improvement from 4.0% in the previous year, suggesting the company's revenue streams are becoming more diversified and less risky.

Key Takeaways

• Capital Structure Shift: The company significantly increased its common shares outstanding by 17.34% and issued new Series C Preferred Stock, indicating capital raising activities. This also means existing common shares represent a smaller percentage of the company.
• Improved Customer Diversification: Bridgeline Digital reduced its reliance on any single large customer, with the percentage of sales and accounts receivable from one customer dropping from 4.0% to 1.3%. This suggests a more diversified and potentially less risky revenue base.