Company: BL
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050628
Chunk: 17

Company: BLACKLINE, INC.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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4, the Company recognized $0.9 million of interest expense related to the amortization of debt issuance costs and $2.4 million of coupon interest expense.The 2029 Notes were not convertible at September 30, 2025. It is the Company’s current intent to settle conversions of the 2029 Notes through “combination settlement”, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares, cash, or a combination for any further value.In connection with the offering of the 2029 Notes, the Company entered into privately-negotiated capped call transactions (the “2029 Capped Calls” and together with the 2026 Capped Calls (as defined below), the “Capped Calls”). There have been no changes to the condition of the 2029 Notes since December 31, 2024, and the 2029 Capped Calls were unchanged and still outstanding at September 30, 2025.2026 NotesAt September 30, 2025, the Company had $230.2 million aggregate principal amount of the 0.00% 2026 Notes (the “2026 Notes”) outstanding. The 2026 Notes consisted of the following (in thousands):September 30,2025December 31,2024Liability:Principal$230,196 $230,196 Unamortized debt issuance costs(389)(1,027)Net carrying amount(1)$229,807 $229,169 (1) Net carrying amount at September 30, 2025 presented within total current liabilities in the unaudited condensed consolidated balance sheets.The effective interest rate of the 2026 Notes, excluding the conversion option, was 0.37% at September 30, 2025.The Company carries the 2026 Notes at face value less unamortized debt issuance costs in the unaudited condensed consolidated balance sheets and presents the fair value for disclosure purposes only. The estimated fair value was determined based on the actual bids and offers of the 2026 Notes in an over-the-counter market on the last trading day of the period. The estimated fair value of the 2026 Notes, based on a market approach at September 30, 2025, was approximately $224.0 million, which represents a Level 2 valuation. During the quarters ended September 30, 2025 and 2024, the Company recognized interest expense related to the amortization of