BlackLine Inc (BL.O): 2Q26 Recap: Further Deal Delays yet Guide Maintained

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05 Aug 2026 06:10:04 ET │ 17 pages

BlackLine Inc (BL.O)

2Q26 Recap: Further Deal Delays yet Guide Maintained

CITI'S TAKE

BL reported a softer 2Q26 driven by AI related deal delays ($8M impact) and

some fx headwinds (primarily forward looking metrics) yet noted some shift

in AI related fears with customers largely deciding to move forward with

purchase decisions rather than building themselves. FX was a headwind

with key forward looking metrics largely sustaining growth in cc (RPO flat,

ARR down 1pt). Despite the deal delays, BL maintained the ‘26 guide (raised

in cc) and reiterated confidence in an acceleration into ’27 with multiple

levers to drive further upside to growth related to platform adoption, AI, and

new product attach. We are lowering ests on further deal slippage as we

lower our TP to $45 based on ~3x ’27 EV/rev to account for further risk.

What happened — BL reported another challenging quarter as deal delays

continued with FX also impacting reported results. Revenue beat by $0.8M (0.4%

vs. 1.2% last Q) with a $2.4M EBIT beat yet a ($6.1M) billings miss. Forward looking

metrics were mixed with ARR growth slowing to 6% y/y (7% cc, ~1pt decel) yet FX adj

new ARR was similar to prior quarters (we est $14M). BL had $8M of deals slip from

2Q (half already closed) as customers assess how to leverage AI within their finance

org, leading to longer sales cycles with more technical sign offs needed yet BL has

seen some movement including customers moving forward with purchase decisions

instead of building themselves.

n

Buy

Price (04 Aug 26 16:00)

US$33.12

Target price

US$45.00↓

from US$53.00

Expected share price return

35.9%

Expected dividend yield

0.0%

Expected total return

35.9%

Market Cap

US$1,943M

Price Performance

(RIC: BL.O, BB: BL US)

Despite the challenges, BL maintained the CY26 guide, raising by $1M on a cc basis

(incremental $1M fx headwind in 2H) and raising margin slightly by 10bps. The

company remains confident in the acceleration opportunity into 4Q with new

platform pricing adoption tracking well (expect 25% by year end) and plans with

agents attached already at $20M of ARR.

…