Blackline Safety Corp.

Q4 revenue was $39.3 million, up 10% year over year, with gross profit of $26.3 million and gross margin of 67% versus 61% a year ago. Q4 service revenue rose 30% to $25.5 million, including software services revenue of $21.5 million and rental revenue of $4 million; product revenue was $13.8 million, down 14%. Q4 EBITDA was $1.4 million and adjusted EBITDA was $2.2 million. Full-year fiscal 2025 revenue was $150.5 million, up 18%, with service revenue up 30% to $90.5 million and product revenue up 4% to $60 million. Full-year gross margin improved to 63% from 58%, adjusted EBITDA was $6.1 million versus a loss of $2.4 million in fiscal 2024, and the company ended the year with $46.6 million in cash and short-term investments plus $29.8 million of accordion capacity for total available liquidity of $76.4 million. Management did not provide formal next-quarter or full-year financial guidance, but said Q1 could see some headwind from G8-related timing shifts, with strength expected from Q2 onward and into the second half of the year.

Cody Slater framed the quarter as evidence that Blackline’s hardware-enabled SaaS model is working, citing record ARR, strong NDR, and the sixth straight quarter of positive adjusted EBITDA. His tone was upbeat and confident, especially around the G8, which he called an inflection point and a platform that can expand use cases beyond safety into productivity and workflow apps. He also highlighted ADNOC as a major validation of the model and said international growth, especially in the Middle East, is becoming a meaningful driver.

Robin Kooyman emphasized the margin and cash improvements: gross margin rose to 67% in Q4 from 61%, service margin reached a record 82%, and full-year gross margin improved to 63% from 58%. She also noted that operating expenses were disciplined at 67% of revenue for the year, and that liquidity ended at $76.4 million, including $46.6 million in cash and short-term investments and $29.8 million of available accordion capacity. She said the one-time charge in G&A related to a prior-period U.S. sales tax assessment.

Analysts focused heavily on the G8 launch, asking about timing, the G7-to-G8 transition, manufacturing overlap, inventory, and whether service margins would rise materially. Management said G8 ships in late February, expects about a 2- to 3-quarter transition, and sees some near-term Q1 timing shift into Q2, with stronger traction through the second half. On margins, management said product gross margin could dip by a few points for a couple of quarters during the ramp, while service margins should be broadly similar near term, with more upside later from app-like services rather than push-to-talk alone.