BlackLine, an accounting software company, lowered its 2026 revenue target after delayed customer decisions and a weaker services outlook reduced expected sales, with management assuming deal conversions will remain slow through year-end.
BlackLine said Nov. 5 it now expects revenue of $759.5 million to $761.5 million for 2026, down from $765 million to $769 million in its Aug. 4 forecast. Third-quarter revenue was $193.4 million, an 8.5% increase from a year earlier but close to the low end of the $193 million to $195 million range the company had given in August. The updated annual forecast was disclosed alongside third-quarter results in a company release.
Chief Financial Officer Patrick Villanova said on the Nov. 5 earnings call that several deals worth seven figures had received customer approval but remained open at quarter-end. He said the fourth-quarter plan reflects a slower decision pace seen in September and does not assume better close rates before year-end. Deals that slipped earlier this year were typically completed within weeks, but timelines have since extended into later quarters, the company said.
Professional services accounted for close to half of the reduction at the midpoint of the annual range, Villanova said. BlackLine’s services revenue rose 2% in the third quarter. The company is putting more staff time into unbilled adoption support, which it says is intended to reduce churn and attrition among enterprise customers. Systems integrators often lead large implementations, with BlackLine working as a subcontractor; those partner-led projects bring the company less services revenue.
Villanova also said revenue tied to use of BlackLine’s Agentic AI products fell short of expectations. Chief Executive Officer Owen Ryan said the company expects that revenue to build closer to midyear or later in 2027 than in the first half. Villanova said management was still working through when meaningful monetization would arrive. BlackLine plans to provide its 2027 outlook on its February earnings call.
