Blackbaud (NASDAQ: BLKB) boosts Q1 profit and reaffirms 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Blackbaud reported solid first quarter 2026 results, combining steady growth with much stronger profitability and cash generation. GAAP revenue reached $281.1 million, up 4.2% year over year, with recurring revenue of $276.5 million representing 98.3% of total revenue.
GAAP income from operations rose to $51.4 million with an 18.3% margin, while non-GAAP operating margin improved to 29.6%. GAAP diluted EPS increased to $0.67, and non-GAAP diluted EPS reached $1.14. Non-GAAP adjusted EBITDA was $98.7 million with a 35.1% margin.
Cash generation strengthened sharply: GAAP operating cash flow was $51.5 million and non-GAAP free cash flow was $37.0 million. The company reaffirmed its 2026 guidance, including GAAP revenue of $1.173–$1.179 billion and non-GAAP free cash flow of $280–$290 million, and highlighted a large remaining share repurchase authorization. Blackbaud also launched its first Agent for Good Development Agent AI solution for social impact customers.
Positive
- Profitability and EPS inflection: GAAP income from operations rose to $51.4 million with an 18.3% margin, and GAAP diluted EPS climbed to $0.67 from $0.09, indicating a much more profitable business versus the prior year quarter.
- Stronger cash generation and capital returns: Non-GAAP free cash flow improved to $37.0 million from a prior-period deficit, while $878 million remains under the repurchase program, with planned 2026 buybacks of 5–10% of shares outstanding.
Negative
- None.
Insights
Blackbaud pairs modest Q1 growth with sharply higher margins, cash flow and reaffirmed 2026 guidance.
Blackbaud delivered Q1 2026 revenue of $281.1M, up 4.2%, almost entirely recurring at 98.3%. The key story is profitability: GAAP operating margin climbed to 18.3%, and non-GAAP operating margin to 29.6%, reflecting operating discipline.
Non-GAAP adjusted EBITDA reached $98.7M with a 35.1% margin, and GAAP net income improved to $31.1M, or $0.67 diluted EPS, versus $0.09 a year ago. Free cash flow swung to $37.0M from a prior-period deficit, supporting the capital return program.
Management reaffirmed 2026 guidance, including GAAP revenue of $1.173–$1.179B, non-GAAP adjusted EBITDA of $430–$438M, non-GAAP EPS of $5.15–$5.25, and free cash flow of $280–$290M. With $878M remaining under its repurchase authorization and a plan to buy back 5–10% of shares outstanding, execution on growth, margins, and cash conversion in subsequent quarters will be central to sustaining this profile.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 GAAP revenue: $281.1M
Q1 2026 GAAP net income: $31.1M
Q1 2026 GAAP diluted EPS: $0.67
+5 more
8 metrics
Q1 2026 GAAP revenue
$281.1M
Up 4.2% year over year; quarter ended March 31, 2026
Q1 2026 GAAP net income
$31.1M
Quarter ended March 31, 2026
Q1 2026 GAAP diluted EPS
$0.67
Up $0.58 per share versus Q1 2025
Q1 2026 non-GAAP adjusted EBITDA
$98.7M
Adjusted EBITDA margin 35.1% for the quarter
Q1 2026 non-GAAP free cash flow
$37.0M
Free cash flow margin 13.2% for Q1 2026
2026 GAAP revenue guidance
$1.173–$1.179B
Full-year 2026 guidance reaffirmed
Remaining repurchase authorization
$878M
Available under stock repurchase program as of March 31, 2026
Q1 2026 recurring revenue
$276.5M
Represents 98.3% of total Q1 2026 revenue
Key Terms
non-GAAP adjusted EBITDA, Rule of 40, non-GAAP free cash flow, non-GAAP organic recurring revenue, +1 more
5 terms
non-GAAP adjusted EBITDA financial
"Non-GAAP adjusted EBITDA was $98.7 million, up $6.6 million, with non-GAAP adjusted EBITDA margin of 35.1%"
Non-GAAP adjusted EBITDA is a measure of a company's profitability that shows earnings before interest, taxes, depreciation, and amortization, with certain adjustments made to exclude irregular or non-recurring expenses and income. It provides a clearer picture of ongoing operational performance by filtering out items that might distort the core business results. Investors use it to better compare how well different companies are performing without the noise of one-time events.
Rule of 40 financial
"Rule of 40 score was 39.3%."
The "rule of 40" is a simple guideline used by investors to assess the health of a company's growth and profitability. It adds a company's growth rate to its profit margin; if the total is 40% or higher, the company is generally considered to be performing well. This helps investors quickly gauge whether a company is balancing rapid growth with solid profits, much like checking if a car’s speed and fuel efficiency together are within a safe and efficient range.
non-GAAP free cash flow financial
"Non-GAAP free cash flow was $37.0 million, an increase of $49.3 million"
Non-GAAP free cash flow is a company’s reported cash generated from operations after paying for routine investments in property and equipment, adjusted by management to exclude or include certain items that aren’t part of standard accounting rules. Investors watch it as a practical measure of the cash a business has available for dividends, stock buybacks, debt repayment or reinvestment — like a household’s usable savings after adjusting for one-time or unusual expenses — but calculations vary between firms, so comparisons require caution.
non-GAAP organic recurring revenue financial
"Non-GAAP organic recurring revenue increased 5.0%."
Inline XBRL regulatory
"Inline XBRL Instance Document - the Instance Document does not appear in the interactive data file"
Inline XBRL is a file format for financial filings that embeds machine-readable data tags directly inside the human-readable report, so the same document can be read by people and parsed by software. For investors it makes extracting, comparing and verifying financial numbers faster and more reliable—like a grocery list where each item also has a barcode—reducing manual errors and speeding up analysis.
Earnings Snapshot
Revenue: $281.1M · Guidance included
Q1 2026
Revenue
$281.1M
+4.2% YoY
GAAP net income
$31.1M
GAAP diluted EPS
$0.67
+$0.58 per share YoY
Non-GAAP diluted EPS
$1.14
+$0.19 per share YoY
Non-GAAP adjusted EBITDA
$98.7M
Guidance
Blackbaud reaffirmed 2026 guidance: GAAP revenue $1.173–$1.179B, non-GAAP adjusted EBITDA $430–$438M, non-GAAP diluted EPS $5.15–$5.25, and non-GAAP free cash flow $280–$290M.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 29, 2026
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(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer ID Number) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (843 ) 216-6200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities Registered Pursuant to Section 12(b) of the Act: | ||||||||
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 29, 2026, Blackbaud, Inc. (the "Company") issued a press release reporting unaudited financial results for the quarter ended March 31, 2026. A copy of this press release is attached hereto as Exhibit 99.1.
The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description | |||||||
99.1 | Press release dated April 29, 2026 reporting unaudited financial results for the quarter ended March 31, 2026. | |||||||
101.INS | Inline XBRL Instance Document - the Instance Document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BLACKBAUD, INC. | ||||||||||||||
Date: | April 29, 2026 | /s/ Chad M. Anderson | ||||||||||||
Chad M. Anderson | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
(Principal Financial and Accounting Officer) | ||||||||||||||
| Exhibit 99.1 | ||||||||
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| PRESS RELEASE | ||||||||
Blackbaud Announces 2026 First Quarter Results
Company Launches Its First Agent for GoodTM Agentic AI Solution for the Social Impact Sector
Charleston, S.C. (April 29, 2026) — Blackbaud (NASDAQ: BLKB), the leader in AI for social impact, today announced financial results for its first quarter ended March 31, 2026.
"We’re off to a strong start in 2026, and our execution continues to reinforce Blackbaud’s clear leadership in the social impact software market,” said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. “With more than 70 new AI capabilities embedded across our products, we have now taken the next step and launched the first of many planned new agentic AI solutions, the Development Agent. Early demand has been exceptional, customer interest is high, and momentum is building. This strong first quarter reinforces our confidence in our AI-powered roadmap and positions Blackbaud well for 2026 and beyond as we pursue our aspirational goals."
First Quarter 2026 Results Compared to First Quarter 2025 Results:
•GAAP total revenue was $281.1 million, up 4.2% and non-GAAP organic revenue increased 4.2%.
•GAAP recurring revenue was $276.5 million, up 5.0% and represented 98.3% of total revenue. Non-GAAP organic recurring revenue increased 5.0%.
•GAAP income from operations was $51.4 million, with GAAP operating margin of 18.3%, an increase of 1,100 basis points.
•Non-GAAP income from operations was $83.4 million, with non-GAAP operating margin of 29.6%, an increase of 120 basis points.
•GAAP net income was $31.1 million, with GAAP diluted earnings per share of $0.67, up $0.58 per share.
•Non-GAAP net income was $52.6 million, with non-GAAP diluted earnings per share of $1.14, up $0.19 per share.
•Non-GAAP adjusted EBITDA was $98.7 million, up $6.6 million, with non-GAAP adjusted EBITDA margin of 35.1%, an increase of 100 basis points.
•Rule of 40 score was 39.3%.
•GAAP net cash provided by operating activities was $51.5 million, an increase of $50.1 million, with GAAP operating cash flow margin of 18.3%, an increase of 1,780 basis points.
•Non-GAAP free cash flow was $37.0 million, an increase of $49.3 million, with non-GAAP free cash flow margin of 13.2%, an increase of 1,770 basis points.
"We began 2026 with disciplined execution against our operating plan, while continuing to invest in innovation to support both performance today and the opportunities ahead,” said Chad Anderson, executive vice president and CFO, Blackbaud. “The quarter reflects the strength of our financial model—driving growth, expanding margins, improving EPS, and generating strong free cash flow. We continued our purposeful capital allocation strategy, repurchasing approximately 4.5% of our shares outstanding at the end of 2025 inclusive of net share settlement of employee stock compensation, while maintaining financial flexibility. This combination of execution, reinvestment, and disciplined capital deployment underpins our ability to deliver long‑term value."
An explanation of all non-GAAP financial measures referenced in this press release, including the Rule of 40, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
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Recent Company Highlights
•Blackbaud launched its first Agent for Good™, the Development Agent, which is the first-ever expert agent to be embedded in a dedicated social impact platform and is designed to help personalize donor engagement and grow giving at scale. The Development Agent is available to Raiser’s Edge NXT® customers in the U.S., with availability internationally and in other products to follow.
•Blackbaud highlighted customer outcomes that underline the real-world impact of its solutions and showcase the differentiated power of Blackbaud’s specialized domain expertise.
•Chief Data and AI Officer Carrie Cobb shared how Blackbaud is approaching responsible AI, through engagement, shared learning, and cross‑sector leadership.
•As the presenting sponsor of the Association of Fundraising Professionals (AFP) ICON conference, Blackbaud shared how it is ushering the sector into a new era of social impact, equipping fundraisers with purpose-built, responsible AI tools that help them navigate increasing complexity, meet donor expectations, and accelerate their outcomes.
•At its annual Corporate Social Impact Summit, Blackbaud convened hundreds of corporate and social good leaders for thought‑provoking sessions from industry experts and an exclusive preview of upcoming innovation across the YourCause® from Blackbaud® platform, including advancements in AI capabilities, faster donation processing, and social impact reporting.
•The company announced open registration for bbcon, its annual technology conference, taking place in Columbus, Ohio, Sept. 29–Oct. 1 this year, with global events following in London and Sydney.
Visit www.blackbaud.com/newsroom for more information about Blackbaud’s recent highlights.
Financial Outlook
Blackbaud today reaffirmed its 2026 full year financial guidance:
•GAAP revenue of $1.173 billion to $1.179 billion
•Non-GAAP adjusted EBITDA of $430 million to $438 million
•Non-GAAP diluted earnings per share of $5.15 to $5.25
•Non-GAAP free cash flow of $280 million to $290 million
Included in its 2026 full year financial guidance are the following updated assumptions:
•Non-GAAP annualized effective tax rate is expected to be approximately 24.5%
•Interest expense for the year is expected to be approximately $62 million to $66 million
•Diluted weighted average shares outstanding for the year are expected to be approximately 45.0 million to 46.0 million
•Capital expenditures for the year are expected to be approximately $60 million to $70 million, including approximately $52 million to $62 million of capitalized software development costs
Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and
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other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.
Stock Repurchase Program
As of March 31, 2026, Blackbaud had approximately $878 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in December 2025. Based on our current plans, we expect total repurchases during 2026 to represent between 5.0% and 10.0% of our outstanding common stock as of December 31, 2025.
Conference Call Details
What: Blackbaud's 2026 First Quarter Conference Call
When: April 29, 2026
Time: 8:00 a.m. (Eastern Time)
Live Call: 1-877-407-3088 (US/Canada)
Webcast: Blackbaud's Investor Relations Webpage
About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world's leading provider of AI-powered solutions for social impact. Serving nonprofits, educational institutions, companies committed to corporate social responsibility and individual change makers, Blackbaud propels impact at scale with the sector’s most intelligent solutions for fundraising and engagement, education solutions, financial management and CSR and grantmaking. With the deepest expertise powered by the world’s largest philanthropic data set, the most connected workflows, and the most powerful impact network, Blackbaud's solutions are building a future where resources are unleashed at the speed of need. Blackbaud has been recognized by Fast Company, Newsweek, Quartz, Forbes and more for AI innovation, responsible leadership and workplace excellence. Blackbaud has operations in the United States, Australia, Canada, Costa Rica, India and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com, or follow us on X/Twitter, LinkedIn, Instagram, and Facebook.
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Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the predictability of our financial condition and results of operations. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; risks related to the development, deployment, regulation, security, market adoption and perception of artificial intelligence technologies; cybersecurity and data protection risks and related liabilities; potential litigation involving us; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from Blackbaud's investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Trademarks
All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.
Non-GAAP Financial Measures
Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. Blackbaud uses non-GAAP financial measures internally in analyzing its operational performance. Accordingly, Blackbaud believes these non-GAAP measures are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance and trends and in comparing its financial results from period-to-period with other companies in Blackbaud's industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies.
The non-GAAP financial measures discussed above exclude the impact of certain transactions that Blackbaud believes are not directly related to its operating performance in any particular period, but are for its long-term benefit over multiple periods. Blackbaud believes these non-GAAP financial measures reflect its ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.
While Blackbaud believes these non-GAAP measures provide useful supplemental information, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.
Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment. Blackbaud believes non-GAAP free cash flow provides a useful measure of the company's operating performance. Non-GAAP free cash flow is not intended to represent and should not be viewed as the amount of residual cash flow available for discretionary expenditures.
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In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis, non-GAAP organic recurring revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies, if any, acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period. In addition, each of these measures excludes prior period revenue associated with divested businesses, if any. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business’ organic revenue growth and revenue run-rate.
Rule of 40 is defined as non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. Non-GAAP adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision (benefit); depreciation; amortization of intangible assets from business combinations; amortization of software development costs; stock-based compensation expense; Global Capabilities Center ("GCC") workforce transition costs; acquisition and disposition-related costs; and Security Incident-related costs.
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Blackbaud, Inc.
Consolidated Balance Sheets
(Unaudited)
| (dollars in thousands, except per share amounts) | March 31, 2026 | December 31, 2025 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 34,096 | $ | 38,914 | ||||
| Restricted cash | 418,671 | 720,061 | ||||||
Accounts receivable, net of allowance of $5,924 and $5,876 at March 31, 2026 and December 31, 2025, respectively | 75,691 | 80,517 | ||||||
| Customer funds receivable | 7,605 | 1,308 | ||||||
| Prepaid expenses and other current assets | 106,158 | 89,290 | ||||||
| Total current assets | 642,221 | 930,090 | ||||||
| Property and equipment, net | 85,053 | 85,076 | ||||||
| Software development costs, net | 156,628 | 155,842 | ||||||
| Goodwill | 1,055,777 | 1,056,815 | ||||||
| Intangible assets, net | 99,279 | 106,654 | ||||||
| Other assets | 70,340 | 56,205 | ||||||
| Total assets | $ | 2,109,298 | $ | 2,390,682 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 46,884 | $ | 27,344 | ||||
| Accrued expenses and other current liabilities | 37,515 | 43,272 | ||||||
| Due to customers | 425,124 | 719,833 | ||||||
| Debt, current portion | 23,160 | 22,660 | ||||||
| Deferred revenue, current portion | 333,996 | 368,986 | ||||||
| Total current liabilities | 866,679 | 1,182,095 | ||||||
| Debt, net of current portion | 1,163,182 | 1,087,037 | ||||||
| Deferred tax liability | 27,333 | 21,981 | ||||||
| Deferred revenue, net of current portion | 6,054 | 2,778 | ||||||
| Other liabilities | 11,496 | 11,737 | ||||||
| Total liabilities | 2,074,744 | 2,305,628 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
Preferred stock; 20,000,000 shares authorized, none outstanding | — | — | ||||||
Common stock, $0.001 par value; 180,000,000 shares authorized, 74,015,631 and 72,312,354 shares issued at March 31, 2026 and December 31, 2025, respectively; 46,297,968 and 46,705,325 shares outstanding at March 31, 2026 and December 31, 2025, respectively | 74 | 72 | ||||||
| Additional paid-in capital | 1,415,521 | 1,391,641 | ||||||
Treasury stock, at cost; 27,717,663 and 25,607,029 shares at March 31, 2026 and December 31, 2025, respectively | (1,423,843) | (1,316,224) | ||||||
| Accumulated other comprehensive loss | (3,850) | (5,948) | ||||||
| Retained earnings | 46,652 | 15,513 | ||||||
| Total stockholders’ equity | 34,554 | 85,054 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,109,298 | $ | 2,390,682 | ||||
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Blackbaud, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
| (dollars in thousands, except per share amounts) | Three months ended March 31, | |||||||
2026 | 2025 | |||||||
| Revenue | $ | 281,140 | $ | 269,936 | ||||
| Cost of revenue | 114,581 | 114,815 | ||||||
| Gross profit | 166,559 | 155,121 | ||||||
| Operating expenses | ||||||||
| Sales, marketing and customer success | 47,349 | 44,644 | ||||||
| Research and development | 36,916 | 33,559 | ||||||
| General and administrative | 30,261 | 56,679 | ||||||
| Amortization of intangible assets | 588 | 534 | ||||||
| Total operating expenses | 115,114 | 135,416 | ||||||
| Income from operations | 51,445 | 19,705 | ||||||
| Interest expense | (16,036) | (16,945) | ||||||
| Other income, net | 2,396 | 2,105 | ||||||
| Income before provision for income taxes | 37,805 | 4,865 | ||||||
| Income tax provision | 6,666 | 542 | ||||||
| Net income | $ | 31,139 | $ | 4,323 | ||||
| Earnings per share | ||||||||
| Basic | $ | 0.68 | $ | 0.09 | ||||
| Diluted | $ | 0.67 | $ | 0.09 | ||||
| Common shares and equivalents outstanding | ||||||||
| Basic weighted average shares | 45,562,304 | 48,429,061 | ||||||
| Diluted weighted average shares | 46,351,379 | 49,445,079 | ||||||
| Other comprehensive income (loss) | ||||||||
| Foreign currency translation adjustment | $ | (1,480) | $ | 3,259 | ||||
| Unrealized gain (loss) on derivative instruments, net of tax | 3,578 | (6,692) | ||||||
| Total other comprehensive income (loss) | 2,098 | (3,433) | ||||||
| Comprehensive income | $ | 33,237 | $ | 890 | ||||
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Blackbaud, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
| Three months ended March 31, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 31,139 | $ | 4,323 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 20,551 | 21,647 | ||||||
| Net provision for credit losses and sales returns | 1,128 | 788 | ||||||
| Stock-based compensation expense | 23,880 | 22,170 | ||||||
| Deferred taxes | 4,257 | (221) | ||||||
| Amortization of deferred financing costs and discount | 486 | 699 | ||||||
| Other non-cash adjustments | — | (5,384) | ||||||
| Changes in operating assets and liabilities, net of acquisition and disposal of businesses: | ||||||||
| Accounts receivable | 3,613 | 4,770 | ||||||
| Prepaid expenses and other assets | (18,048) | (5,192) | ||||||
| Trade accounts payable | 19,258 | (4,651) | ||||||
| Accrued expenses and other liabilities | (3,186) | (8,134) | ||||||
| Deferred revenue | (31,619) | (29,427) | ||||||
| Net cash provided by operating activities | 51,459 | 1,388 | ||||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment | (1,668) | (688) | ||||||
| Capitalized software development costs | (12,798) | (12,970) | ||||||
| Cash used in disposition of business | — | (12,235) | ||||||
| Net cash used in investing activities | (14,466) | (25,893) | ||||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of debt | 139,900 | 216,200 | ||||||
| Payments on debt | (74,968) | (85,523) | ||||||
| Employee taxes paid for withheld shares upon equity award settlement | (25,112) | (37,948) | ||||||
| Change in due to customers | (294,090) | (320,248) | ||||||
| Change in customer funds receivable | (6,395) | (2,483) | ||||||
| Purchase of treasury stock, including excise tax payments | (82,103) | (100,030) | ||||||
| Net cash used in financing activities | (342,768) | (330,032) | ||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | (433) | 1,668 | ||||||
| Net decrease in cash, cash equivalents and restricted cash | (306,208) | (352,869) | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 758,975 | 809,512 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 452,767 | $ | 456,643 | ||||
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown above in the consolidated statements of cash flows:
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | ||||||
| Cash and cash equivalents | $ | 34,096 | $ | 38,914 | ||||
| Restricted cash | 418,671 | 720,061 | ||||||
| Total cash, cash equivalents and restricted cash in the statement of cash flows | $ | 452,767 | $ | 758,975 | ||||
8
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
| (dollars in thousands, except per share amounts) | Three months ended March 31, | |||||||
2026 | 2025 | |||||||
| GAAP Revenue | $ | 281,140 | $ | 269,936 | ||||
| GAAP gross profit | $ | 166,559 | $ | 155,121 | ||||
| GAAP gross margin | 59.2 | % | 57.5 | % | ||||
| Non-GAAP adjustments: | ||||||||
Add: Stock-based compensation expense | 3,087 | 2,698 | ||||||
Add: Amortization of intangibles from business combinations | 6,267 | 7,052 | ||||||
Add: GCC workforce transition costs(1) | 275 | — | ||||||
| Subtotal | 9,629 | 9,750 | ||||||
| Non-GAAP gross profit | $ | 176,188 | $ | 164,871 | ||||
| Non-GAAP gross margin | 62.7 | % | 61.1 | % | ||||
| GAAP income from operations | $ | 51,445 | $ | 19,705 | ||||
| GAAP operating margin | 18.3 | % | 7.3 | % | ||||
| Non-GAAP adjustments: | ||||||||
Add: Stock-based compensation expense | 23,880 | 22,170 | ||||||
Add: Amortization of intangibles from business combinations | 6,855 | 7,586 | ||||||
Add: GCC workforce transition costs(1) | 1,026 | — | ||||||
Add: Acquisition and disposition-related costs(2) | 147 | 25,132 | ||||||
Add: Security Incident-related costs | — | 2,180 | ||||||
| Subtotal | 31,908 | 57,068 | ||||||
| Non-GAAP income from operations | $ | 83,353 | $ | 76,773 | ||||
| Non-GAAP operating margin | 29.6 | % | 28.4 | % | ||||
| GAAP income before provision for income taxes | $ | 37,805 | $ | 4,865 | ||||
| GAAP net income | $ | 31,139 | $ | 4,323 | ||||
| Shares used in computing GAAP diluted earnings per share | 46,351,379 | 49,445,079 | ||||||
| GAAP diluted earnings per share | $ | 0.67 | $ | 0.09 | ||||
| Non-GAAP adjustments: | ||||||||
| Add: GAAP income tax provision | 6,666 | 542 | ||||||
| Add: Total non-GAAP adjustments affecting income from operations | 31,908 | 57,068 | ||||||
| Non-GAAP income before provision for income taxes | 69,713 | 61,933 | ||||||
Assumed non-GAAP income tax provision(3) | 17,080 | 15,174 | ||||||
| Non-GAAP net income | $ | 52,633 | $ | 46,759 | ||||
| Shares used in computing non-GAAP diluted earnings per share | 46,351,379 | 49,445,079 | ||||||
| Non-GAAP diluted earnings per share | $ | 1.14 | $ | 0.95 | ||||
(1)GCC workforce transition costs represent severance and other costs incurred in connection with the transition of certain roles to our Global Capability Center in Hyderabad, India.
(2)Includes charges of $24.3 million incurred during the three months ended March 31, 2025 related to the release from our lease for office space in Washington, DC.
(3)We use a non-GAAP effective tax rate of 24.5% when calculating non-GAAP net income and non-GAAP diluted earnings per share. We base this rate on our estimated annual GAAP income tax rate, adjusted for items excluded from GAAP income when calculating non-GAAP income and for significant nonrecurring tax adjustments. We review this non-GAAP tax rate annually to determine whether it remains appropriate for evaluating our financial performance. In conducting this review, we consider our GAAP annual effective tax rate, changes in tax legislation, non-GAAP adjustments, and shifts in the geographic mix of revenues and expenses. We also evaluate other factors that we deem significant. Because the tax treatment of non-GAAP adjustments differs from GAAP and because of our methodology for estimating the annual tax rate, the non-GAAP tax rate may differ from the GAAP tax rate and from our actual tax liabilities.
9
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
| (dollars in thousands) | Three months ended March 31, | |||||||
2026 | 2025 | |||||||
| GAAP revenue | $ | 281,140 | $ | 269,936 | ||||
| GAAP revenue growth | 4.2 | % | ||||||
Less: Non-GAAP revenue from divested businesses(1) | — | — | ||||||
Non-GAAP organic revenue(2) | $ | 281,140 | $ | 269,936 | ||||
| Non-GAAP organic revenue growth | 4.2 | % | ||||||
Non-GAAP organic revenue(2) | $ | 281,140 | $ | 269,936 | ||||
Foreign currency impact on non-GAAP organic revenue(3) | (2,240) | — | ||||||
Non-GAAP organic revenue on constant currency basis(3) | $ | 278,900 | $ | 269,936 | ||||
| Non-GAAP organic revenue growth on constant currency basis | 3.3 | % | ||||||
| GAAP recurring revenue | $ | 276,485 | $ | 263,325 | ||||
| GAAP recurring revenue growth | 5.0 | % | ||||||
Less: Non-GAAP recurring revenue from divested businesses(1) | — | — | ||||||
Non-GAAP organic recurring revenue(2) | $ | 276,485 | $ | 263,325 | ||||
| Non-GAAP organic recurring revenue growth | 5.0 | % | ||||||
Non-GAAP organic recurring revenue(2) | $ | 276,485 | $ | 263,325 | ||||
Foreign currency impact on non-GAAP organic recurring revenue(3) | (2,198) | — | ||||||
Non-GAAP organic recurring revenue on constant currency basis(3) | $ | 274,287 | $ | 263,325 | ||||
| Non-GAAP organic recurring revenue growth on constant currency basis | 4.2 | % | ||||||
(1)Non-GAAP revenue from divested businesses excludes revenue associated with divested businesses in the prior period. The exclusion of the prior period revenue is to present the results of the divested business with the results of the combined company for the same period of time in both the prior and current periods.
(2)Non-GAAP organic revenue and non-GAAP organic recurring revenue for the prior year periods presented herein may not agree to non-GAAP organic revenue and non-GAAP organic recurring revenue presented in the respective prior period quarterly financial information solely due to the manner in which non-GAAP organic revenue growth and non-GAAP organic recurring revenue growth are calculated.
(3)To determine non-GAAP organic revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, revenues from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period's quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Australian Dollar, British Pound, Canadian Dollar and Euro.
10
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
| (dollars in thousands) | Three months ended March 31, | |||||||
2026 | 2025 | |||||||
| GAAP net income | $ | 31,139 | $ | 4,323 | ||||
| Non-GAAP adjustments: | ||||||||
Add: Interest, net | 14,357 | 15,290 | ||||||
Add: GAAP income tax provision | 6,666 | 542 | ||||||
Add: Depreciation | 2,206 | 2,975 | ||||||
Add: Amortization of intangibles from business combinations | 6,855 | 7,586 | ||||||
Add: Amortization of software development costs(1) | 12,421 | 11,872 | ||||||
| Subtotal | 42,505 | 38,265 | ||||||
| Non-GAAP EBITDA | $ | 73,644 | $ | 42,588 | ||||
Non-GAAP EBITDA margin(2) | 26.2 | % | ||||||
| Non-GAAP adjustments: | ||||||||
Add: Stock-based compensation expense | $ | 23,880 | $ | 22,170 | ||||
Add: GCC workforce transition costs(3) | 1,026 | — | ||||||
Add: Acquisition and disposition-related costs(3) | 147 | 25,132 | ||||||
Add: Security Incident-related costs | — | 2,180 | ||||||
| Subtotal | 25,053 | 49,482 | ||||||
| Non-GAAP adjusted EBITDA | $ | 98,697 | $ | 92,070 | ||||
Non-GAAP adjusted EBITDA margin(4) | 35.1 | % | ||||||
Rule of 40(5) | 39.3 | % | ||||||
| Non-GAAP adjusted EBITDA | $ | 98,697 | $ | 92,070 | ||||
Foreign currency impact on Non-GAAP adjusted EBITDA(6) | (1,029) | 205 | ||||||
Non-GAAP adjusted EBITDA on constant currency basis(6) | $ | 97,668 | $ | 92,275 | ||||
| Non-GAAP adjusted EBITDA margin on constant currency basis | 35.0 | % | ||||||
Rule of 40 on constant currency basis(7) | 38.3 | % | ||||||
(1)Includes amortization expense related to software development costs, and amortization expense from capitalized cloud computing implementation costs.
(2)Measured by GAAP revenue divided by non-GAAP EBITDA.
(3)See additional details in the reconciliation of GAAP to Non-GAAP operating income above.
(4)Measured by non-GAAP organic revenue divided by non-GAAP adjusted EBITDA.
(5)Measured by non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. See Non-GAAP organic revenue growth table above.
(6)To determine non-GAAP adjusted EBITDA on a constant currency basis, non-GAAP adjusted EBITDA from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period's quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Australian Dollar, British Pound, Canadian Dollar and Euro.
(7)Measured by non-GAAP organic revenue growth on constant currency basis plus non-GAAP adjusted EBITDA margin on constant currency basis.
| (dollars in thousands) | Three months ended March 31, | |||||||
| 2026 | 2025 | |||||||
| GAAP net cash provided by operating activities | $ | 51,459 | $ | 1,388 | ||||
| GAAP operating cash flow margin | 18.3 | % | 0.5 | % | ||||
| Non-GAAP adjustments: | ||||||||
| Less: purchase of property and equipment | (1,668) | (688) | ||||||
| Less: capitalized software development costs | (12,798) | (12,970) | ||||||
| Non-GAAP free cash flow | $ | 36,993 | $ | (12,270) | ||||
| Non-GAAP free cash flow margin | 13.2 | % | (4.5) | % | ||||
11
FAQ
How did Blackbaud (BLKB) perform financially in Q1 2026?
Blackbaud delivered Q1 2026 revenue of $281.1 million, up 4.2% year over year, with recurring revenue of $276.5 million. GAAP net income was $31.1 million, and GAAP diluted EPS rose to $0.67, indicating significantly stronger profitability versus the prior year.
What were Blackbaud’s key profitability and margin metrics for Q1 2026?
Blackbaud reported GAAP income from operations of $51.4 million with an 18.3% operating margin. On a non-GAAP basis, income from operations was $83.4 million and operating margin was 29.6%. Non-GAAP adjusted EBITDA reached $98.7 million, yielding a 35.1% adjusted EBITDA margin.
How strong was Blackbaud’s Q1 2026 cash flow and free cash flow?
GAAP net cash provided by operating activities was $51.5 million in Q1 2026, with an operating cash flow margin of 18.3%. Non-GAAP free cash flow was $37.0 million, representing a 13.2% margin and a substantial improvement compared with the prior year’s negative free cash flow.
What 2026 full-year financial guidance did Blackbaud reaffirm?
Blackbaud reaffirmed 2026 guidance for GAAP revenue of $1.173–$1.179 billion, non-GAAP adjusted EBITDA of $430–$438 million, non-GAAP diluted EPS of $5.15–$5.25, and non-GAAP free cash flow of $280–$290 million, outlining its targeted growth and profitability profile.
What new AI product did Blackbaud launch alongside its Q1 2026 results?
Blackbaud launched its first Agent for Good, the Development Agent, an agentic AI solution embedded in its social impact platform. It is designed to personalize donor engagement and scale giving, initially available to Raiser’s Edge NXT customers in the U.S., with broader rollout planned.