BlackLine, Inc.

Total revenue was $187.8 million, up 9.2% year over year, with subscription revenue up 9% and professional services revenue up 11%. ARR grew to $719 million, up 6% or about 7% excluding FX, calculated billings grew 6%, and RPO increased 17% to over $1.1 billion while current RPO grew 11%. Non-GAAP gross margin was 80.4%, non-GAAP subscription gross margin was 83%, non-GAAP operating margin was 23.3% versus 22.1% a year ago, non-GAAP net income was $42.9 million, and adjusted EPS was $0.61. Operating cash flow was $45 million and free cash flow was $36.5 million. For Q3, BlackLine guided to revenue of $193 million to $195 million, non-GAAP operating margin of 24.5% to 25.5%, and non-GAAP EPS of $0.62 to $0.65. For full-year 2026, it kept revenue guidance at $765 million to $769 million, operating margin at 24.1% to 24.6%, and EPS at $2.47 to $2.54.

Owen Ryan framed the quarter as strong on discipline and durability, but unusually affected by AI-driven scrutiny and longer evaluations in the enterprise. He said customers are increasingly asking about AI governance, data sovereignty, security, and control environments, which is extending close timelines even when buying intent is clear. He also emphasized that BlackLine’s Studio360 and Finance Control Console are designed to provide the governance layer that CFOs, auditors, and regulators require, and said the company is winning larger, longer-term strategic relationships.

Patrick Villanova highlighted steady financial performance despite timing shifts, citing $187.8 million of revenue, 80.4% gross margin, 23.3% operating margin, $42.9 million of non-GAAP net income, and $36.5 million of free cash flow. He said stronger free cash flow margins are expected in the second half, supporting full-year free cash flow growth of approximately 20%. He also noted $528 million in cash, cash equivalents and marketable securities versus $667 million of debt, repurchased 1.2 million shares for $38 million, and said the board added $100 million to the buyback authorization, bringing total capacity to about $280 million.

Analysts focused on two themes: how BlackLine is reducing friction around AI adoption and whether the longer sales cycles are stabilizing. Management said it is spending more time with audit firms, regulators, customers, and implementation partners to prove BlackLine’s “glass box” approach, where AI actions are transparent, governed, and auditable. On deal timing, Owen Ryan said enterprise cycles are typically 9 months to a year and are now about 40 to 45 days longer on average, while Patrick Villanova said the company is getting better at closing slipped deals after quarter-end, with the window shortening.