Connected Gas Detection Crosses Into Recurring-Revenue Territory

Blackline Safety reported second-quarter fiscal 2026 revenue of $44.3 million on 10 June, up 23% year on year, with an overall gross margin of 66% against 63% a year earlier. Annual recurring revenue reached $93.0 million, up 24%, and adjusted EBITDA was $2.5 million against $1.0 million in the prior-year quarter.

The product behind the growth is the G8 connected safety wearable, launched in January 2026 and rolling out commercially through the quarter. It combines gas detection with lone-worker protection, a dedicated push-to-talk button, a remote speaker microphone, and precise location for emergency response. The G8 won Best IoT Connected Device and the company's cloud monitoring platform won Best Software in the Occupational Health and Safety Industrial Hygiene Awards. Across its history the connected fleet has reported over 336 billion data points and initiated over 8 million emergency alerts.

The financial shape is the part worth reading. Annual recurring revenue growing at 24% means customers are paying per-device subscriptions rather than buying hardware once, which is the signal that connected personal protective equipment has moved from pilot purchases to infrastructure with a budget line.

There is a deployment consequence too. The G8's cellular coverage explicitly removes the on-site gateway infrastructure that previous generations of connected gas detection required, which changes the site survey and network design an integrator has to do — and removes a category of equipment that had to be powered, mounted and maintained in exactly the hazardous areas where doing so is most awkward.

One thing to flag in any multi-year platform commitment: the company entered an agreement on 8 April 2026 to be acquired by Francisco Partners for up to $9.50 per share, with a shareholder vote held on 15 June and closing expected around the end of the second quarter. Consolidation is a normal risk in this segment and worth naming when a customer is standardising on a platform for a decade.