Blackline Safety Hits Record Revenue on SaaS Surge and Global Growth

CALGARY, AB – March 12, 2026 – Blackline Safety Corp. (TSX: BLN) today announced record first-quarter revenue of $38.8 million, marking an impressive 36th consecutive quarter of year-over-year growth. The results showcase the increasing success of the company's strategic shift toward a high-margin, software-as-a-service (SaaS) model, which successfully counteracted a temporary slowdown in product sales ahead of a major new device launch.

The Calgary-based leader in connected safety technology also reported a record first-quarter Adjusted EBITDA of $1.7 million, a 12% increase from the prior year. This marks the seventh straight quarter of positive Adjusted EBITDA, signaling a sustained move towards durable profitability.

"Blackline has delivered another strong quarter, achieving $38.8 million in first quarter revenue, surpassing our exceptionally strong first quarter last year," said Cody Slater, CEO and Chair of Blackline Safety. "This marks our 36th consecutive quarter of year-over-year revenue growth, demonstrating the durability of our industrial, worker-focused business model and the sustained global demand for connected safety solutions."

The Power of a Recurring Revenue Engine

The quarter’s financial strength was overwhelmingly driven by the company's service segment. Service revenue surged 25% year-over-year to $24.9 million, fueled by a 22% increase in software services and a substantial 64% jump in rental revenue. This performance underscores a successful transition to a more predictable, high-margin business model, a strategy increasingly favored by investors and analysts.

A key indicator of this success is the company's Annual Recurring Revenue (ARR), which climbed 28% to a record $90.5 million. This metric, which represents the annualized value of all service contracts, provides strong visibility into future revenue streams. Further bolstering this is a Net Dollar Retention (NDR) rate of 126%, the eleventh consecutive quarter this figure has surpassed 125%. An NDR above 100% indicates that existing customers are not only staying but are significantly increasing their spending on Blackline's platform, a testament to the technology's deep integration into their core safety operations.

This strategic shift is having a profound impact on profitability. Overall gross margin for the quarter hit a record 65%, up from 60% a year ago. The service segment's gross margin was even more impressive, reaching 81%. "Our continued margin expansion reflects the natural operating leverage in our business model as services become an increasingly larger portion of our revenue mix," Slater commented.

Innovation Drives Market Leadership

While service revenue soared, product revenue saw a 22% decline to $14.0 million. However, the company attributes this to two specific factors: an unusually strong prior-year quarter where U.S. customers accelerated purchases to get ahead of tariffs, and a strategic pause from some clients in anticipation of Blackline’s next-generation G8 wearable device.

The G8, announced in January with initial shipments beginning this month, is poised to become the company’s new flagship. Building on the proven G7 platform, the G8 integrates advanced multi-gas detection, lone worker monitoring, and push-to-talk communication into a single, rugged, cloud-connected device. The market's anticipation for the G8 highlights Blackline's reputation for cutting-edge innovation within the industrial safety sector, which is projected to grow to over $12 billion by 2032 as industries increasingly adopt IoT and data-driven safety solutions.

Meanwhile, the EXO 8 area monitor continues its strong market penetration. The device, which can monitor up to eight gases and detect gamma radiation, has been particularly successful in the Fire & Hazmat and Emergency Response sectors. Its advanced capabilities were recently showcased on a global stage, as Blackline's G7c wearables and EXO 8 monitors were used to protect athletes, staff, and spectators at the Winter Olympic Games in Italy.

A Diversified Global Growth Strategy

Blackline's Q1 results also underscore the success of its global diversification strategy, which has helped it navigate regional market fluctuations. The 'Rest of World' region was the quarter's standout performer, with revenue rocketing up 50% to $3.7 million. This growth was primarily fueled by the company's expansion into the United Arab Emirates and the scaling of a major, multi-year deployment with the Abu Dhabi National Oil Company (ADNOC).

Europe also delivered robust results, with revenue growing 14% to $10.4 million. This reflects continued market penetration in a region known for its stringent workplace safety regulations, a trend that drives demand for advanced, compliant safety systems. The company has supported this growth by recently opening new offices in Cologne, Germany, and Abu Dhabi, UAE, to bolster its operations across the EMEA region.

In North America, Canada saw modest 3% growth. The United States market reported an 8% decline in revenue compared to the prior year, but this was against the backdrop of the aforementioned tariff-related purchasing surge in Q1 2025. Blackline executives affirmed that underlying demand trends in the U.S. remain strong, supported by a healthy sales pipeline.

Financial Health and Market Outlook

Despite a reported net loss of $2.8 million for the quarter, this figure was largely impacted by a $1.5 million non-cash foreign exchange loss, compared to a gain in the prior year. The more telling metric of operational health, Adjusted EBITDA, showed a 12% improvement to $1.7 million, beating analyst expectations and reinforcing the company's path to sustainable profitability.

Blackline ended the quarter in a strong financial position, with $41.4 million in cash and total available liquidity of approximately $71.3 million, providing ample capital for continued investment in R&D and global sales expansion. Market analysts appear confident in this strategy, with a consensus "Strong Buy" rating on the company's stock and an average price target suggesting a significant upside from its current trading level.

As Blackline begins shipping its highly anticipated G8 device and continues to expand its global footprint, the company appears well-positioned to capitalize on the growing demand for connected safety solutions. Its proven ability to grow its high-margin recurring revenue base while simultaneously innovating its hardware offerings provides a powerful formula for navigating the dynamic global industrial market.