BLN’s annual recurring revenue (ARR) growth decelerated slightly in FY2025. For example, in FY2024, BLN grew ARR by around 30%, while that number declined to 27% in FY2025. In addition, the company’s product revenue (monitoring device hardware) showed a surprising decline of around 14% in the most recent quarter. With that said, we think this reflects normal volatility in the business environment, and one quarter does not yet make a trend.
A large portion of BLN’s growth story is also tied to the company’s software revenue, and investors have not favored software stocks as a sector recently. However, we think BLN’s software revenue is not at risk due to its close linkage to the hardware portion of the business. Overall, we think BLN is a HOLD for now, and we would consider adding to the position if the company can re-accelerate product revenue or ARR.