BlackLine, Inc. (BL): A Bull Case Theory
We came across a bullish thesis on BlackLine, Inc. on Show me the incentives...’s Substack. In this article, we will summarize the bulls’ thesis on BL. BlackLine, Inc.'s share was trading at $54.37 as of August 29th. BL’s trailing P/E was 42.15 according to Yahoo Finance.
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BlackLine, Inc. (BL), a $3 billion NASDAQ-listed enterprise software company specializing in automating financial close and accounting processes, is at an interesting inflection point. Founded in 2001 by Therese Tucker, the company generated ~$700 million in 2024 revenue with 7% quarterly growth, a 22% non-GAAP operating margin, and $857 million in cash against $894 million of debt. BlackLine has been repurchasing stock ($89 million YTD) while customer momentum builds, with 84 $1 million-plus customers up 24% year-over-year. Although founder Tucker is stepping down as Co-CEO effective October 2025, she remains on the board, while Owen Ryan will continue as sole CEO and Chairman.
More significantly, the board recently elevated David Henshall to Lead Independent Director. Henshall’s record is noteworthy: he previously served as CEO of Citrix (acquired for $16.5 billion), CFO of Rational Software (sold to IBM for $2.1 billion), and has held board roles at Aspen Technology, HashiCorp, Everbridge, New Relic, LogMeIn, and others—all of which were eventually acquired, often at multibillion-dollar valuations. His presence signals that BlackLine could be preparing for a strategic review or sale.
With major shareholders like Clearlake Capital (9.17%), BlackRock (13.75%), Vanguard (11.51%), and FMR (5.8%), the investor base is aligned with value-unlocking scenarios. Given the company’s strong operating profile, resilient cash flows, and a lead director known for shepherding companies through lucrative exits, BlackLine appears well-positioned to become a target for private equity buyers such as Thoma Bravo, Francisco Partners, Evergreen Coast, Clearlake, or TPG. At ~$48 per share, the setup offers compelling optionality.
Previously, we covered a bullish thesis on Paylocity Holding Corporation (PCTY) by Francesco Ferrari in April 2025, which highlighted its strong revenue growth, profitability, and low volatility. The company’s stock price has depreciated approximately by 2.58% since our coverage. This is because the thesis has not yet played out fully. Show me the incentives… shares a similar view on BlackLine, Inc. but emphasizes on strategic optionality.
BlackLine, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held BL at the end of the first quarter which was 34 in the previous quarter. While we acknowledge the potential of BL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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