Bridgeline Digital, Inc. — financial distress indicators
Financial-health summary
Bridgeline Digital, Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 60/100). The main indicators are severe working-capital shortfall, losses in each of the last 3 years and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 89% and the market-implied (Merton) default probability is 0.0%. In its favour: cash on hand covers all debt (net-cash balance sheet).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Current ratio is 0.67 (current assets cover 67% of near-term obligations).
Cash-flow insolvency test: inability to pay debts as they fall due is the trigger for both U.S. involuntary petitions and Indian IBC default.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Operating cash flow negative in 2 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 2.04 → model probability 89%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Cash covers ~16 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Last price $0.76.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
📰 Recent news scan
- Bridgeline Reports Record Fourth-Quarter and Fiscal 2026 Sales for HawkSearch AI eCommerce PlatformYahoo Finance · 2026-10-06
- Global Industrial Supplier Deepens Commitment to Bridgeline with Hybrid Infrastructure Upgrade and Multi-Year Services AgreementYahoo Finance · 2026-09-17
- Leading Plumbing, HVAC and Municipal Products Distributor Selects HawkSearch for AI-Powered Product DiscoveryYahoo Finance · 2026-09-10
- Industrial Supplier Selects HawkSearch to Modernize Product Discovery for Complex Replacement Part SearchesYahoo Finance · 2026-09-01
- HawkSearch Wins Competitive Enterprise Evaluation with Advanced Personalization and EntitlementsYahoo Finance · 2026-08-27
- Leading eCommerce Retailer Expands Adoption of HawkSearch With Hybrid Search and AI Shopping AssistantYahoo Finance · 2026-08-20
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Bridgeline Digital, Inc.'s financial-health indicators show?
As of 2026-10-08, Bridgeline Digital, Inc.'s public financial data places it in the 'Weak' band with a distress score of 60/100, driven by severe working-capital shortfall, losses in each of the last 3 years and operations consume cash. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Bridgeline Digital, Inc.'s financial distress score?
60/100 ('Weak'). Ohlson O-score 2.04 (model 1-year failure probability 89%). Merton distance-to-default 3.33 σ (model default probability 0.0%).
What works in Bridgeline Digital, Inc.'s favour?
Cash on hand covers all debt (net-cash balance sheet).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other IT & Software companies with distress indicators
- Cyabra, Inc. (CYAB)Very weak 100/100
- Exyn Technologies, Inc. (EXYN)Very weak 100/100
- The OLB Group, Inc. (OLB)Very weak 100/100
- Roadzen, Inc. (RDZN)Very weak 100/100
- Rekor Systems, Inc. (REKR)Very weak 100/100
- Veea Inc. (VEEA)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.