Business Description

Overview Bridgeline Digital is an AI-powered marketing technology company that offers a suite of products that help companies grow online revenue by driving more visitors to their websites, converting more visitors to purchasers, and increasing average order value per purchaser. Bridgeline’s software is available through a cloud-based Software as a Service (“SaaS”) model. Additionally, Bridgeline’s software is available via a perpetual licensing business model, in which the software can reside on premises at the customer’s facility, or manage-hosted by Bridgeline. Bridgeline Digital was incorporated under the laws of the State of Delaware on August 28, 2000. The Company’s corporate headquarters is located in Woburn, Massachusetts. The Company maintains regional field offices serving the following geographical locations: Garden City, NY; Rosemont, IL; Atascadero, CA; Ontario, Canada; and Brussels, Belgium. The Company has four wholly-owned subsidiaries: Bridgeline Digital Pvt. Ltd., located in Bangalore, India; Bridgeline Digital Canada, Inc., located in Ontario, Canada; Hawk Search Inc. located in Rosemont, Illinois and Bridgeline Digital Belgium BV, located in Brussels, Belgium. Developments HawkSearch was ranked #1 in the 2025 Gartner® Critical Capabilities Report for the B2B Search Use Case. Bridgeline launched multiple new Artificial Intelligence (“AI”) product enhancements this year, including Agentic AI, Generative AI (“GenAI”), Retrieval Augmented Generation (“RAG”), Large Language Models (“LLMs”) and Small Language Models. Bridgeline’s tailored approach to AI (versus a general non-configurable approach) allows the Company's customers to adjust the look and tuning of their website, and the assistance of AI Agents helps to reduce overhead costs by automating backend work and grow online revenue. Bridgeline also allows its customers to select their own AI foundation models, do fine tuning, and even use different models for different parts of their eCommerce site. Bridgeline has the following nine (9) AI-powered products in its Hawk AI suite: ● Smart Search – AI search using Large Language Models and Retrieval Augment Generation (“RAG”). o Concept Search – Empower shoppers to find products by describing their goals in any language. o Image Search – Empower shoppers to find products by describing what a product looks like. o Visual Search – Empower shoppers to find products using images from a camera. ● Smart Response – Generative AI to create an interactive shopping experience. o Smart Answer – Provide answers to questions asked by shoppers. o Smart Summary – Provide a concise summary of complex product information to shoppers. o Smart Facets – AI powered hierarchical categorization of products based on shopper search queries. ● Smart Agents – Agentic AI o Merchandising Assistant – Collaborative AI to help Bridgeline’s customers grow online revenue with AI Agents. o Search Assistant – AI agent to help shoppers automate purchases from HawkSearch powered websites. o Analytics Assistant – AI agents to generate reports for merchandisers to tune their HawkSearch implementation. 4 Table of Contents Products and Services Subscription Bridgeline’s software is available through a cloud-based SaaS model. Bridgeline's software is either manage hosted by Bridgeline, or available under a perpetual licensing business model, in which the software can reside on premises at the customer’s facility. This software is reported as Subscription in the accompanying consolidated financial statements. Bridgeline offers enterprise site search solutions with its HawkSearch and Celebros Search products. ● HawkSearch is an AI-powered site search, recommendation, and personalization software application for marketers to enhance an online customer's product discovery. HawkSearch leverages artificial intelligence, machine learning and merchandising features to deliver accurate, relevant and personalized results and recommendations from multiple data sources. HawkSearch’s Keyword Search and Merchandising allows site visitors to search product catalogs and content using keywords and allows markets to improve search results with synonyms, unit of measure conversions, and trending products. HawkSearch’s Smart Search allows site visitors to search by image upload or phone camera, textual image description, and concept (aka Natural Language Processing) through Retrieval Augmented Generation to get relevant results.…