We came across a bullish thesis on BlackLine, Inc. on r/valueinvesting by Exciting-Context6012. In this article, we will summarize the bulls’ thesis on BL. BlackLine, Inc.’s share was trading at $52.65 as of Janaury 16th. BL’s trailing P/E was 47.86 according to Yahoo Finance.
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BlackLine, Inc. (BL) is a public enterprise software company focused on financial close and accounting automation, but its equity has come under sustained pressure since 2022 due to slowing revenue growth, margin concerns, and a materially compressed valuation multiple. This operational stagnation has created the backdrop for an activist-driven investment opportunity centered on Engaged Capital, which is seeking to force a sale of the company.
Engaged has been openly critical of BlackLine’s board and management for failing to pursue strategic alternatives, most notably for rejecting an acquisition proposal from SAP at $66 per share, representing approximately 27% upside from current trading levels. The activist campaign escalated meaningfully in late 2025, beginning with a public letter demanding an immediate strategic review, followed by a Section 220 books-and-records request amid claims of board opacity and non-cooperation.
Management’s subsequent decision to reduce board size—effectively eliminating one of the contested seats—has been framed by Engaged as an entrenchment tactic, further hardening the standoff. In January 2026, Engaged formally nominated four independent directors ahead of the upcoming proxy vote, signaling its intent to take the fight directly to shareholders. The probability of a sale outcome is reinforced by several factors: multiple shareholder letters historically calling for a transaction, BlackLine’s deep commercial ties with SAP (which accounts for roughly 25% of revenue through partnership), and SAP’s repeated acquisition interest over time.
With management appearing resistant, resolution is likely to come via a proxy contest at the March annual meeting. If Engaged secures board representation, a sale process becomes highly probable, positioning the stock for a sharp rerating toward prior bid levels and offering a clearly defined, catalyst-driven upside skew.
Previously, we covered a bullish thesis on Paylocity Holding Corporation (PCTY) by Francesco Ferrari in April 2025, which highlighted the company’s low volatility profile, strong long-term CAGR, and consistent revenue growth. PCTY’s stock price has depreciated by approximately 23.85% since our coverage due to multiple compression amid broader software weakness. Exciting-Context6012 shares a similar view but emphasizes activist-driven value creation and a potential sale catalyst.
