Company: BL
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050628
Chunk: 267

Company: BLACKLINE, INC.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 267
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 our 2026 Notes and the repayment of our 2024 Notes in August 2024. Refer to “Note 8 - Convertible Senior Notes” in our unaudited condensed consolidated financial statements for additional information. 

Gain on extinguishment of convertible senior notes

 Quarter Ended September 30,ChangeNine Months Ended September 30,Change 20252024$%20252024$% (in thousands, except percentages)Gain on extinguishment of convertible senior notes$— $— $— N/M$— $65,112 $(65,112)(100%)

The gain on extinguishment of convertible senior notes during the nine months ended September 30, 2024 resulted from the partial repurchase of our 2026 Notes in May 2024. Refer to “Note 8 - Convertible Senior Notes” for additional information.

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Provision for income taxes 

Quarter Ended September 30,ChangeNine Months Ended September 30,Change20252024$%20252024$%(in thousands, except percentages)Provision for income taxes$4,653 $2,101 $2,552 121%$15,500 $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, 202