Press Release: Blackline Safety Announces Q2 2026 Results and Provides Update on Francisco Partners Transaction

Dow Jones06-10
   --  Total revenue increased 23% year-over-year to $44.3 million 
 
   --  Gross margin improved to 66% compared to 63% last year 
 
   --  Adjusted EBITDA was $2.5 million compared to $1.0 million last year 
 
   --  Annual Recurring Revenue ("ARR") grew 24% year-over-year to $93.0 
      million 
CALGARY, Canada--(BUSINESS WIRE)--June 10, 2026-- 

Blackline Safety Corp. ("Blackline", the "Company", "we" or "our") (TSX: BLN), a global leader in connected safety technology, announces that it has filed its interim condensed consolidated financial statements and management's discussion and analysis ("MD&A") for the three- and six-months ended April 30, 2026.

Financial Highlights

 
                           Three-Months Ended          Six-Months Ended 
                                April 30,                  April 30, 
(CAD thousands, except                          %                          % 
per share amounts)         2026     2025   Change     2026     2025   Change 
----------------------  -------  -------  -------  -------  -------  ------- 
  Product revenue        16,976   14,054       21   30,933   31,853      (3) 
  Service revenue        27,317   21,886       25   52,208   41,762       25 
----------------------  -------  -------  -------  -------  -------  ------- 
  Total revenue          44,293   35,940       23   83,141   73,615       13 
----------------------  -------  -------  -------  -------  -------  ------- 
  Gross profit           29,092   22,701       28   54,370   45,120       21 
  Gross margin 
   percentage (1)           66%      63%               65%      61% 
----------------------  -------  -------  -------  -------  -------  ------- 
  Total expenses (2)     32,154   25,244       27   60,263   47,702       26 
  Total expenses as a 
   percentage of 
   revenue(1)               73%      70%               72%      65% 
----------------------  -------  -------  -------  -------  -------  ------- 
  Net loss              (3,126)  (3,704)     (16)  (5,944)  (4,834)       23 
  Loss per common 
   share - Basic and 
   diluted               (0.04)   (0.04)       --   (0.07)   (0.06)       17 
----------------------  -------  -------  -------  -------  -------  ------- 
  EBITDA(1)               (930)    (301)    (209)  (1,561)    1,755       NM 
  EBITDA per common 
   share(1) - Basic 
   and diluted           (0.01)       --       NM   (0.02)     0.02       NM 
----------------------  -------  -------  -------  -------  -------  ------- 
  Adjusted EBITDA(1)      2,529    1,040      143    4,234    2,557       66 
  Adjusted EBITDA per 
   common share(1) - 
   Basic and diluted       0.03     0.01      200     0.05     0.03       67 
----------------------  -------  -------  -------  -------  -------  ------- 
  (1) Refer to "Non-GAAP and Supplementary Financial Measures" at the end of 
  this document for further detail. 
  (2) Total expenses includes $3 million of Transaction related costs. 
  NM -- Not meaningful 
 

G8 Product Update

During the quarter, Blackline continued the commercial rollout of its new G8 connected safety wearable. Industry recognition for the Company's connected safety platform has been strong, with G8 receiving the "Best IoT Connected Device" award in the Occupational Health & Safety (OH&S) Industrial Hygiene Awards, while Blackline Live$(TM)$, the Company's cloud-connected monitoring platform, was recognized as "Best Software." Together, these awards highlight the strength of Blackline's integrated connected safety ecosystem.

Customer response to G8 since its January launch has been encouraging, with early adopters providing positive feedback on usability, communication capabilities and field performance. Customers have highlighted G8's expanded connectivity coverage in areas that previously required additional infrastructure, the dedicated Push-to-Talk button and remote speaker microphone that enhance field communication and response coordination, improved audio quality, a larger and brighter display with intuitive navigation, precise location capabilities that support faster emergency response, and ease of deployment with minimal training requirements. Customers have also noted practical benefits from the integrated flashlight, particularly in low-light and confined-space work environments.

Francisco Partners Transaction

On April 8, 2026, Blackline Safety entered into a definitive arrangement agreement pursuant to which an affiliate of Francisco Partners Management, L.P. will acquire all of the issued and outstanding shares of the Company for total consideration of up to $9.50 per share, comprising $9.00 per share in cash at closing plus one contingent value right ("CVR") of up to $0.50 per share (the "Transaction"). A special meeting of shareholders is scheduled to be held on June 15, 2026 to approve the plan of arrangement. Subject to receipt of shareholder, court and all remaining regulatory approvals, the Transaction is currently expected to close sometime in late calendar Q2 or early calendar Q3.

The Company's financial statements, MD&A and related filings are available under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's investor relations website at www.blacklinesafety.com.

About Blackline Safety: Blackline Safety is a technology leader driving innovation in the industrial workforce through IoT (Internet of Things). With connected safety devices and predictive analytics, Blackline enables companies to drive towards zero safety incidents and improved operational performance. Blackline provides wearable devices, personal and area gas monitoring, cloud-connected software and data analytics to meet demanding safety challenges and enhance overall productivity for organizations with customers in more than 75 countries. Armed with cellular and satellite connectivity, Blackline provides a lifeline to tens of thousands of people, having reported over 336 billion data-points and initiated over eight million emergency alerts. For more information, visit BlacklineSafety.com and connect with us on Facebook, X (formerly Twitter), LinkedIn and Instagram.

Non-GAAP and Supplementary Financial Measures

This press release presents certain non-GAAP and supplementary financial measures, including key performance indicators used by management typically used by the Company's competitors in the software-as-a-service industry, as well as non-GAAP ratios to assist readers in understanding the Company's performance. These measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Management uses these non-GAAP and supplementary financial measures, as well as non-GAAP ratios and key performance indicators to analyze and evaluate operating performance. Blackline also believes the non-GAAP and supplementary financial measures defined below are commonly used by the investment community for valuation purposes, and are useful complementary measures of profitability, and provide metrics useful in Blackline's industry. Throughout this news release, the following terms are used, which do not have a standardized meaning under GAAP.

Key Performance Indicators

The Company recognizes service revenues ratably over the term of the service period under the provisions of agreements with customers. The terms of agreements, combined with high customer retention rates, provide the Company with a significant degree of visibility into near-term revenues. Management uses several metrics, including the ones identified below, to measure the Company's performance and customer trends, which are used to prepare financial plans and shape future strategy. Key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies. See also "Supplementary Financial Measures" below.

"Annual Recurring Revenue" is the total annualized value of recurring service amounts (ultimately recognized as software services revenue) of all service contracts at a point in time. Annualized service amounts are determined solely by reference to the underlying contracts, adjusting for the varying revenue recognition treatments under IFRS 15 Revenue from Contracts with Customers. It excludes one-time fees, such as for rentals, non-recurring professional services, and assumes that customers will renew the contractual commitments on a periodic basis as those commitments come up for renewal, unless such renewal is known to be unlikely. We believe that ARR provides visibility into future cash flows and is a fair measure of the performance and growth of our service contracts.

Non-GAAP Financial Measures

A non-GAAP financial measure: (a) depicts the historical or expected future financial performance, financial position or cash of the Company; (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most comparable financial measure presented in the primary consolidated financial statements; (c) is not presented in the primary financial statements of the Company; and (d) is not a ratio. Non-GAAP financial measures presented and discussed in this news release are as follows:

"EBITDA" is useful to securities analysts, investors and other interested parties in evaluating operating performance by presenting the results of the Company which excludes the impact of certain non-cash or non-operational items. EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization.

(MORE TO FOLLOW) Dow Jones Newswires

June 10, 2026 07:17 ET (11:17 GMT)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment