Calgary, Canada — Blackline Safety Corp. ("Blackline", the "Company", "we" or "our") (TSX: BLN), a global leader in connected safety technology, today reported its fiscal fourth quarter and year-end financial results for the period ended October 31, 2025.
Management Commentary
Blackline delivered another strong quarter and capped off a record fiscal year, driven by continued expansion of its high-margin recurring service revenue and disciplined execution across the business. "Fiscal 2025 was a milestone year for Blackline, with revenue reaching a record $150.5 million and Annual Recurring Revenue climbing to $84.5 million," said Cody Slater, CEO and Chair of Blackline Safety Corp. "These results reflect sustained global demand for our connected safety solutions and the strength of our hardware-enabled SaaS business model."
"In the fourth quarter, Net Dollar Retention remained strong at 128%, demonstrating that customers are expanding deployments and deepening reliance on Blackline’s connected safety platform across their fleets," added Slater. "The fourth quarter also saw positive Adjusted EBITDA of $2.2 million leading to full-year fiscal 2025 Adjusted EBITDA of $6.1 million compared to a loss of $2.4 million last year. This marks Blackline’s first full year of positive Adjusted EBITDA."
Earlier this week, Blackline announced the launch of the G8, our next-generation connected safety wearable and the most advanced device the Company has introduced to date. Building on G7’s proven track-record, G8 combines advanced gas detection, lone worker protection, and real-time communication in a single rugged, intrinsically safe device, with live data streamed to the cloud through Blackline Live to enhance situational awareness and response. "G8 has expanded connectivity, an enhanced full-color display, integrated communications capabilities, and a future-ready architecture designed to support ongoing software updates, analytics, and digital worksite integrations so workers can stay connected without needing multiple devices," commented Slater. Initial commercial shipments are expected to begin in February 2026.
"Innovation has been at the core of Blackline’s strategy since the introduction of our first connected gas detection device eight years ago. This focus has resulted in an award-winning portfolio of safety solutions that has defined the connected safety market we pioneered and built from the ground up. The launch of the G8 represents the next leap in innovation, extending our leadership as we continue to protect and optimize the industrial workforce," concluded Slater.
(1) This news release presents certain non-GAAP and supplementary financial measures, including key performance indicators used by management and typically used by companies in the software-as-a-service industry, as well as non-GAAP ratios to assist readers in understanding the Company’s performance. Further details on these measures and ratios are included in the “Key Performance Indicators,” and “Non-GAAP and Supplementary Financial Measures” sections of this news release.
Financial Highlights
Key Annual Financial Information
For the fiscal year ended October 31, 2025, total revenue increased by 18% year-over-year to $150.5 million. Service revenue increased 30% to $90.5 million, while product revenue increased 4% to $60.0 million. In North America, the Company grew U.S. revenue by 16% year-over-year while revenue in Canada grew by 22%. European revenue increased by 19% relative to last year while the Rest of World grew by 21%, supported by expansion in the Middle East including our recently announced multi-year purchase agreement with one of the world’s leading energy producers, the Abu Dhabi National Oil Company (ADNOC).
Gross margin for fiscal 2025 improved to 63%, compared to 58% in fiscal 2024. Product gross margin improved to 38%, while service gross margin expanded to 80%, reflecting the scalability and high margin nature of Blackline’s recurring service model.
Total expenses for the year were 67% of revenue, consistent with the prior year. Adjusted EBITDA improved significantly to positive $6.1 million, compared to a loss of $2.4 million in the prior year. Net loss for the year was $8.7 million, compared to a loss of $12.6 million in the prior year.
As of October 31, 2025, Blackline reported $46.6 million in cash and short-term investments. The Company had available capacity on its senior secured operating facility, including its accordion feature, of $29.8 million as of October 31, 2025, for a total available liquidity of $76.4 million up from $60.4 million at the end of fiscal 2024.
Key Fourth Quarter Financial Information
Total revenue for the fiscal fourth quarter increased 10% year-over-year to $39.3 million, primarily driven by a 30% increase in service revenue to $25.5 million. Product revenue declined 14% to $13.8 million, reflecting continued customer caution amid global trade and macroeconomic uncertainty and the US government shutdown, which impacted the timing of purchases within our fire and hazmat sector. Within the service segment, software revenue grew 26% to $21.5 million, while rental revenue increased 55% to $4.0 million, driven by strong demand in industrial turnaround and maintenance markets.
Gross margin in the fourth quarter improved to a record high 67%, up from 61% in the prior-year quarter, reflecting favorable service mix and operating leverage. Service margins remained strong reaching a record 82%, while product margins rebounded to 40% from 35% in the third quarter.
Total quarterly operating expenses represented 68% of revenue excluding a one-time charge recorded in General and Administrative expenses and foreign exchange. Within this, General and Administrative expenses accounted for 20%, Sales and Marketing for 32% and Product Research and Development costs represented 16%. The one-time charge relates to a US sales tax assessment for prior periods.
Adjusted EBITDA was $2.2 million in the fourth quarter, marking the sixth consecutive quarter of positive Adjusted EBITDA. Blackline’s improved performance reflects continued top-line growth, expanding margins, and disciplined cost management. Net loss for the quarter was $0.6 million, compared to a loss of $0.1 million in the prior year comparative quarter.
Blackline’s Consolidated Financial Statements and Management’s Discussion and Analysis on Financial Condition and Results of Operations for the year ended October 31, 2025, are available on SEDAR+ under the Company’s profile at www.sedarplus.ca. All results are reported in Canadian dollars.
Planned Leave
Blackline Safety is also announcing that its Chief Financial Officer, Robin Kooyman, CFA, will be taking a planned leave of absence beginning February 2, 2026 in connection with maternity leave. Chris Curry, CPA, CA will be stepping in as Interim Chief Financial Officer effective February 2, 2026. Mr. Curry brings a wealth of experience with more than 25 years of finance and accounting experience within the energy industry. He joined Blackline Safety in March 2025 as Vice President, Finance & Accounting where he has led the finance, accounting, tax strategy, treasury, financial planning and analysis and risk management functions. Previously, Mr. Curry was a finance executive at several publicly traded energy companies and private equity funds. He has a Bachelor of Commerce degree from the University of Victoria and is a member of the Chartered Professional Accountants of Alberta.
Conference Call
A conference call and live webcast have been scheduled for 11:00 a.m. ET on Thursday, January 15, 2026. Participants should dial 1-833-821-3052 or 1-647-846-2509 at least 10 minutes prior to the conference time.
A live webcast will also be available at https://www.gowebcasting.com/14566.
Participants should join the webcast at least 10 minutes prior to the start time to register and install any necessary software.
A replay will be available after 2:00 p.m. ET on January 15, 2026 through February 15, 2026 by dialing 1-855-669-9658 (Canada/USA Toll Free) or 1-412-317-0088 (International Toll) and entering access code 3018523.
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 310 billion data-points and initiated over eight million emergency alerts. For more information, visit blacklinesafety.com and connect with us on Facebook, X, LinkedIn and Instagram.
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INVESTOR/ ANALYST CONTACT
Jason Zandberg, Director, Investor Relations
jzandberg@blacklinesafety.com
Telephone: +1-587-324-9184
MEDIA CONTACT
Jodi Stapley, Director, Brand
jstapley@blacklinesafety.com
Telephone: +1-587-355-5907
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, provides 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 from similar key performance indicators used by other companies. See also "Supplementary Financial Measures" below.
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:
Reconciliation of Non-GAAP Financial Measures
Non-GAAP Ratios
A non-GAAP ratio is a financial measure presented in the form of a ratio, fraction, percentage or similar representation and that has a non-GAAP financial measure as one or more of its components.
Non-GAAP ratios presented and discussed in this news release are as follows:
Supplementary Financial Measures
A supplementary financial measure: (a) is, or is intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company; (b) is not presented in the financial statements of the Company; (c) is not a non-GAAP financial measure; and (d) is not a non-GAAP ratio.
Supplementary financial measures presented and discussed in this news release is as follows:
Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to, among other things, the Company’s expectation that initial commercial shipments of the G8 are expected to begin in February 2026. Blackline provided such forward-looking statements in reliance on certain expectations and assumptions that it believes are reasonable at the time. The material assumptions on which the forward-looking information in this news release are based, and the material risks and uncertainties underlying such forward-looking information, include: expectations for strong demand for the Company's subscription-based services and expanding global customer base, increased device deployments, higher service penetration, and ongoing international expansion, with growth in ARR and subscription-based services expected to be further enhanced by the launch of its new G8 product, the scalability of the Company’s cloud-connected monitoring platform, improvements in manufacturing efficiencies, product mix, and pricing discipline, expectations and assumptions concerning business prospects and opportunities, spending and related budgets for customers in the industries the Company services, customer demands, the availability and cost of financing, labour and services, that Blackline will pursue growth strategies and opportunities in the manner described herein, and that it will have sufficient resources and opportunities for the same, that other strategies or opportunities may be pursued in the future, and the impact of increasing competition, business and market conditions; the accuracy of outlooks and projections contained herein; the continuation of USMCA and other applicable trade agreements; that future business, regulatory, and industry conditions will be within the parameters expected by Blackline, including with respect to prices, margins, demand, supply, product availability, supplier agreements, availability, and cost of labour and interest, exchange, and effective tax rates; projected capital investment levels, the flexibility of capital spending plans, and associated sources of funding; cash flows, cash balances on hand, and access to the Company’s credit facility being sufficient to fund capital investments; foreign exchange rates; near-term pricing and continued volatility of the market; accounting estimates and judgments; the ability to generate sufficient cash flow to meet current and future obligations; the Company’s ability to obtain and retain qualified staff and equipment in a timely and cost-efficient manner; the Company’s ability to carry out transactions on the desired terms and within the expected timelines; forecast inflation, including on the Company’s components for its products, regulatory changes, supply chain disruptions, macroeconomic conditions, U.S.-Canada tariffs, the impacts of the military conflict between Russia and Ukraine and between Israel and Hamas on the global economy; and other assumptions, risks, and uncertainties described from time to time in the filings made by Blackline with securities regulatory authorities. Although Blackline believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Blackline can give no assurance that they will prove to be correct. Forward-looking information addresses future events and conditions, which by their very nature involve inherent risks and uncertainties, including the risks set forth above and as discussed in Blackline’s Management’s Discussion and Analysis and Annual Information Form for the year ended October 31, 2025 and available on SEDAR+ at www.sedarplus.ca. Blackline’s actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Blackline will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide readers with a more complete perspective on Blackline’s future operations and such information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this press release and Blackline disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.