Canada's Blackline Safety Q4 revenue misses estimates

Overview

• Connected safety firm's Q4 revenue missed analyst expectations

• Company achieved sixth consecutive quarter of positive Adjusted EBITDA

• Company launched G8 connected safety wearable, shipments start February 2026

Outlook

• Blackline Safety expects initial G8 shipments to begin in February 2026

Result Drivers

• SERVICE REVENUE GROWTH - Service revenue increased 30% year-over-year, driven by strong demand in industrial turnaround and maintenance markets

• GROSS MARGIN IMPROVEMENT - Gross margin improved to 67% in Q4, reflecting favorable service mix and operating leverage

• PRODUCT REVENUE DECLINE - Product revenue declined 14% in Q4 due to global trade uncertainties and U.S. government shutdown impacting purchase timing

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy"

• Wall Street's median 12-month price target for Blackline Safety Corp is C$9.00, about 26.8% above its January 14 closing price of C$7.10

• The stock recently traded at 187 times the next 12-month earnings vs. a P/E of 180 three months ago

Press Release: ID:nBw4pPzQCa

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