Company: BL
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050628
Chunk: 192

Company: BLACKLINE, INC.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 192
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500 $7,307 $8,193 112%

We are subject to federal and state income taxes in the U.S. and taxes in foreign jurisdictions. For the quarter and nine months ended September 30, 2025, our annual estimated effective tax rate differed from the U.S. federal statutory rate of 21% primarily as a result of non-deductible officer compensation, stock-based compensation shortfalls, foreign taxes, and changes in our valuation allowance for income taxes.

For the quarters ended September 30, 2025 and 2024, we recorded $4.7 million and $2.1 million in income tax expense, respectively. For the nine months ended September 30, 2025 and 2024, we recorded $15.5 million and $7.3 million in income tax expense, respectively. The increase in income tax expense for the quarter and nine months ended September 30, 2025 compared to the quarter and nine months ended September 30, 2024, resulted primarily from non-deductible officer compensation and stock-based compensation shortfalls, along with changes in the mix of profitable foreign jurisdictions, partially offset by the current quarter’s release of existing valuation allowance with respect to BlackLine K.K. deferred tax assets.

On July 4, 2025, the legislation formally titled “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” and commonly referred to as the “One Big Beautiful Bill” (“OBBB”) was enacted. The OBBB adjusted a number of provisions affecting businesses, including the immediate expensing of domestic research and development costs, limitations on deductions for interest expense, and accelerated fixed asset depreciation. The OBBB provisions did not have a material impact on our effective tax rate, but several timing provisions are expected to result in significant 2025 cash tax savings.

Liquidity and Capital Resources

At September 30, 2025, our principal sources of liquidity were an aggregate of $804.2 million of cash and cash equivalents and marketable securities, which primarily consist of short-term, money market mutual funds, U.S. treasury securities, and commercial paper.

We believe our existing cash and cash equivalents, investments in marketable securities, and cash from operations will be sufficient to meet our working capital needs, capital expenditures, financing obligations, and share repurchases for at least the next 12 months.

Contractual Obligations and Commitments 

Convertible senior