We're seeing some good things around our customers' interest in our AI capabilities. You can sort of see some of the additional confidence. And I know, I think while I was reading one of your notes where you've got some proof points that you've seen in the market, but our customers are really responding positively. Our implementation partners have really been invaluable in helping us continue to iterate and improve what we're bringing into the marketplace. And I think that's all showing up really well in what our customers are looking for. And I do think you're starting to see, you know, a little bit more confidence in firms like Blackline and what we bring. And I don't want to say that the fever is completely broken where everybody wanted to build something themselves that we saw in the first half of the year. But the fever has come down dramatically more. And I think as we, certainly for us, can articulate our value proposition on a build versus a buy, that shows up pretty well. And so I think we feel pretty good about what we're trying to do in the back half of the year. Patrick, anything you want to add to that?
Yeah, I guess to put some data behind that too, Steve, and it's good to hear from you. Even looking back in March at some of the deals that slipped in and the time it took to close them subsequent to March, and then looking again at June 30 at a different list of slipped deals, and we've already closed half of them. So we're getting, we're all collectively, to Owen's point, getting smarter about this. We're getting more diligent. We're short-circuiting some of the, you know, to use his words, some of the questions that are coming. So we're seeing, while we're still seeing some deal slippage, we're getting better at closing them after the quarter. And that window is shortening. That time frame is shortening.
Okay. No, that's very clear there. um and then maybe just in terms of you know top of funnel and and opportunities coming through um how is that maybe progressing and as we think about the ai opportunity and people assessing um you know went through those assessments yeah does that have any any impact um in terms of the the opportunities you might be might be seen coming through at this time Yeah.
So I don't have the July data, but through the end of June, our pipeline has never been more robust. It's skewing more towards mega enterprise and enterprise than it is mid-market. That's more of a global phenomena than just, say, a North American phenomena from what I've seen. And so you're starting to see things moving through, continuing to see things moving through the pipeline. So I think we feel really good and confident about the top of the funnel. I think for us, again, now is the issue in the back half of the year, is to continue to find ways to accelerate those closes, those close dates. And I think, you know, the team is doing all the things that they should be doing. Obviously, it takes a few people to work through this on the customer side as well. But I think, you know, from a pipeline perspective, the positioning we have, particularly, you know, in the enterprise and the mega enterprise space, you know, we like where we're at. And so, again, I think it gives us, you know, quiet confidence as we head into the back half of the year.
Okay, perfect. Good to hear. Thanks for taking the questions. Thanks, Steve.
Operator
Our next question comes from Rob Oliver of Baird. Your line is now open.
I know you said that in looking at those longer-term contracts, you know, coming in here, particularly with new customers where you're having a lot of success with the new model, how are you accounting for the agentic elements? How are customers accounting for those consumption-based elements around some of your products? And, you know, how do you get comfort around that contribution? And then I have a – Rob, thank you.
I appreciate the question. So, Rob, you're absolutely right that the RPO story right now with 17% year-over-year growth is a great story. It's not just indicative in terms of that we're landing larger deals, that our average deal size is up 24% year-over-year, but we're landing longer-term deals as well. Customers want to be part of the finance transformation, and then existing customers that have been with us for years, they're renewing for longer periods of time. They're inspired, they're interested, they're intrigued by the product offerings that we have out there. I can say this, that in that 17%, there's not a material amount in terms of future agentic revenue. But all of our customers that are signing new right now, we are discussing that with them. As we said in the prepared remarks, we saw a 4x increase in the number of customers on Verity. And we have now proof points in terms of monetization of our agentic revenue. So that only represents a tailwind for us, and that RPO number will only grow with that tailwind into the future.
And then it appears to be SAP Solex, which could be a potential unlock here for existing customers. But I know you said you're not forcing customers onto the new model, so a lot of cajoling happening. Can you maybe talk a little bit about, you know, as you're meeting with customers, you've got some very loyal long-term customers, what some of the pushback points are right now. Are those renewals or negotiations being brought to RFPs? Are there any additional tensions that are coming in around that process with some of your kind of strong multi-year customer relationships as they consider the new model?
Yeah, I think thanks, Rob, Patrick, and I. I'll tag team this a little bit. But so, no, we don't have our customers going out for RFPs, so that's not really the issue. You're right that there is some things around Solex that make this a little bit unique, but we try to sort of talk about, you know, the eligible pool for going to platform versus the part that's not. I think there's a couple things that certainly come out. One is our customers, if they're pretty well adopted, there's always this push of, well, how much more am I going to get out of this? Show us more, you know, proof point on your roadmap. show us other examples and so it's sometimes just taking a little bit longer to win over their their hearts and minds if you will from what we've seen and then sometimes it's just you know where these customers are on their own journey and all their other competing priorities and so even though they might want to you know increase their commitment to black line because of some of the other things they're doing in their their technology shop they're not going to take advantage of that yet so they're just sitting there saying we don't need this right now. While I don't love that answer, I respect and understand that that's some of the things that they think through. Patrick, you're also dealing with this every day with Stuart and the team as well. Anything to add?
Yeah, Rob, I would add, you know, in terms of our existing customer base and the uptake of the platform, that headwind was more of a 2025 story, and we saw that dissipate by the end of 2025. Right now, as the story has gone from unlimited users to product-led, the level of intrigue and interest is increasing notably. That's why we feel so confident that we're going to get to 25% of eligible ARR by the end of this year, and we're exactly where we want to be as of June 30th. So the model is holding together, the forecast is holding together. It's proving out to be true, and we continue to see that acceleration in the existing base as Jeremy and his team release more and more products, solutions, and agents within the platform that our customers are interested in, our existing customers.
Operator
Thank you. Our next question comes from Patrick Walravens of Citizens. Your line is now open.
Oh, great. Owen, can you talk a little bit more about what exactly you guys mean by a sovereign cloud? I mean, it was a company, not a country, right? and just what are the requirements there and how many of these kinds of opportunities are out there? Yeah, I'm going to let Jeremy take the lead on this one. Go ahead, Jeremy, please.
So sovereign cloud really refers to the need to have data sovereignty. So customers we're increasingly seeing wanting their data to be fully within the borders of a country. And so sovereign cloud deployments allow us to deploy our solution into that environment, ensure that no data leaves, ensuring that AI solutions and other software are fully hosted in that environment. You can think of it like FedRAMP and other federal markets, but for other countries and other regions of the world. Okay. And are there a lot of these? I would say the appetite has increased due to geopolitical events, and so you're seeing increasing desires to have control over data. It has been a trend over several years. That has been increasing over several years. The other is around AI models. AI model selection, which is why we are model agnostic, has also been a topic for discussion where people want to be able to understand where their data is used, ensure it doesn't leave their country, to meet compliance requirements in other areas. So you'll see this in a lot of regulated industries.
And then if I could follow up, and hopefully this is related, but in the prepared remarks, there was a comment about meeting with lots of CEOs, and there was a comment there about, and the Frontier Labs building the models. What's the nature of those meetings and conversations? Well, it's basically, if you think about it, when you're thinking about the conversations around build versus buy, obviously the Frontier Labs, they provide the tokens, the opportunity to build things, and what we bring, obviously, is all the institutional knowledge of how this works. And so I think we're seeing the opportunity to help drive more speed to value for customers, the ability to reduce risk as customers are trying to do this, helping them figure out the best way to get the best return in the most cost-effective way, because I think the Frontier Labs think about what they do is they provide that sort of raw material that can be used in creating of agents. and what we do is help create the right way to build those agents in a very controlled and governed way and do that with customers directly as well as with our large system integrator partners and we expect as well to be dealing with our VPO partners. But that's just part of it. Jeremy and I have been doing these conversations together. Jeremy, anything you want to add?
Yeah, I think a large part of where AI adoption is going is really in finance and accounting, there are critical workloads that need to have controls, governance, and auditability. You need to be able to reproduce those outputs on requests for auditors. They need to be immutable. And I think if you look at what these frontier models provide, they provide part of that equation, but they don't provide the auditability. They don't provide the governance. They don't provide those controls. And that's where we come in. And so those partnerships are critical to unlock more AI adoption in the office of the CFO in finance and accounting.
Okay, that's helpful. Thanks, Pat.
Operator
Thank you. Our next question comes from Alex Sklar of Raymond James. Your line is now open.
Hi, thanks for taking the question. This is John on for Alex. I know it's been touched on quite a bit, but maybe, oh, and on the sales cycles, what do you think can change heading into the second half to maybe close some of those deals? I know you just pulled out broader complexity leading to the elongation, but any more commonality, maybe geographical differences or customer size dynamics that you're seeing differences in elongation with sales cycles? I have a quick follow-up.
Well, the elongation is definitely concentrated higher up in the market. So the bigger the company, the more people in the room, the more questions, the more checks and hurdles that we're working our way through. And as I think about whether it's North America, Europe, Japan, the rest of Asia pack, I'm not sure that we're seeing anything really different materially certainly between Japan or amongst me between Japan Europe and North America I think those standards are continuing to be very very high as to what we have to meet and so I think a lot of this Alex is us continuing to work and educate the buyers about you know how again it works within black line and then I was just getting smarter to accelerate our ability to respond to those questions both holistically, whether it's by industry or geography, to your point, or comparable size. I mean, there's just a whole bunch of things that we're learning each and every time. And as we learn things in the field, we bring it back to the center and then try to get it back out to our team so they can be that much more effective and efficient as they're working with prospective customers and existing customers.
Okay, thanks. That was a helpful caller there. And I wanted to ask on the mid-market winds you've been facing, are we getting close to a point where those dynamics begin to reverse? And can you remind us what's sort of embedded in the outlook, and do you still expect to be through this dynamic as we exit 2026?
Alex, just so you cut off briefly there, you're referring to the mid-market. So, Alex, everything is playing out as we expect it as it relates to the mid-market, the lower mid-market, just to be clear. You know, we track that cohort of customers very carefully over the last three years. We see that built into the outlook, or it is built into the outlook for the remainder of 2026, and we see that rate of churn amongst the lower mid-market dissipating or slowing down as we exit 2026. So it is playing out as we forecast it or as we have been monitoring it, And that is built into the guide and for next year and beyond.
Operator
Thank you. Our next question comes from Lucky Shriner of DA Davidson. Your line is now open.
Great. Thanks for taking my question. I wanted to ask about acquisition of WiseLayer and how we should think about how their more complex agent capabilities and able to handle those more challenging judgment-based tasks are trending so far with customers, given your commentary around AI scrutiny from customers in terms of the deal cycle and how we should think about that moving forward. Thanks.
I think a couple things, and again, Charmaine and I are tag teaming this. So first of all, I don't think we could be any more pleased with the acquisition of Wisely. I think their team has been a phenomenal addition to the organization. You know, I think on the go-to-market side of this, and I'll let Jeremy, you know, ask Jeremy to talk about the product side. You know, it takes a couple cycles to work your way through learning what the customers are looking for. I know one of the big improvements we wanted to make was linking the accruals capabilities to our journal solution, which was very important. We learned in the enterprise space as we were moving forward. the pipeline for that part of our business has grown quite nicely in the second quarter as our own teams get more comfortable with its capabilities but also as the wise layer team has a little bit of time to breathe and get out in the market and do some of the things that that we were asking them to do so net net we have a board meeting this week I think we're gonna tell the board we're very pleased with the acquisition so far not satisfied with what we think we can still do but overall positive but Jeremy you want to talk about the product side?
On the product side, the Wiselayer team has been a great catalyst. Being able to seed those agentic AI capabilities and expand them throughout our portfolio, they have helped accelerate that, not just in the capabilities themselves, but also how we work and how we write code. In terms of their capabilities, it's also been great to be able to marry up their agentic capabilities in the accrual space with our mature capabilities and controls like journaling. Those two combined give people the confidence that these agentic capabilities can be done safely, provide real ROI, but we also get the benefit of fast time to value from accruals and those agentic implementations in addition to the existing mature black line capabilities that we've now integrated them together with.
Great. I appreciate that. Maybe the last one for me, just on the enterprise renewal rate ticking down slightly to 95%. Was that mainly just from the pushed deals? Were there some FX headwinds in there? And with those deals now closing, should we expect that to bounce back next quarter? Thanks.
No, that metric, just to be clear, is not impacted by FX, the 95% renewal rate. There's a little bit of rounding there, 95 versus 96, but we have modeled that out over the next year, and we feel very confident that it'll be at the mid to upper 90s for the foreseeable future. So we feel very confident in that metric. We like where it is. And just to be clear, the slip deals would impact DBNRR, but would not impact GRR or the revenue or the renewal rate.
Operator
Thank you. Our next question comes from Tomer Zilberman of Bank of America. Your line is now open.
Hey, guys. Maybe wanted to ask a similar question along the lines of the deal slippage. I think you said earlier that half of the deals that slipped in Q2 now closed in Q3. But if I look at the guidance for Q3 and the implied guide for 4Q, the results are largely in line with street expectations. So I guess the question is, what's the timing between the closing of the deals and when you actually see them start showing up in the results? And do you think that as you continue to close the other half of the deal is that that could provide potential upside to back half expectations this year, or would that be more of an opportunity for 2027?
Thanks for the question. So the story there in terms of the guide for Q3 and the remainder of the year is largely FX. Back in May, when we were bridging to our original guide that we laid out at the beginning of the year in February, we calculated or identified about a $1 to $2 million revenue headwind. Since May, based upon where FX rates were at the end of the quarter, there's about another $1 million FX headwind as a result of the strengthening of the U.S. dollar given several market factors. Our guide that we laid out in February was able to absorb that FX headwind, which is a testament to our underlying performance and what we're doing in the market. But to your question, there is an element there that these slip deals, whether they're a month or two months or so, you do lose a month or two of revenue. But that is a subset or a minor part of the story as compared to FX. And then lastly, as these deals close throughout the remainder of 2026 in Q3, that absolutely is a tailwind for 2027 because then you get the full revenue impact next year.
Operator
I am showing no further questions at this time. I would like to now turn it back to Owen Ryan, Chief Executive Officer of BlackLine.
Thank you, Operator, and thank you, everybody, for listening today. We truly appreciate your interest in Blackline, and we look forward to talking to you soon.
Operator
Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.
