Blackbaud Q3 revenue rises 4.1%; reaffirms outlook
As of September 30, 2026, $832 million remained in Blackbaud’s repurchase program; management expects 2026 repurchases to represent 7% to 10% of its December 31, 2025 common stock.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Blackbaud reported third-quarter 2026 revenue of $292.6 million, up 4.1% from a year earlier, and GAAP net income of $46.1 million. Non-GAAP adjusted EBITDA was $111.1 million, up $11.4 million; GAAP diluted earnings per share was $1.02, up $0.04. For the first nine months, GAAP net income was $112.6 million versus $78.3 million, while operating cash flow was $284.2 million versus $207.5 million.
Blackbaud reaffirmed 2026 guidance and expects to finish in the upper half of all four ranges: 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, and non-GAAP free cash flow of $280 million to $290 million. As of September 30, 2026, $832 million remained in its stock repurchase program; management expects 2026 repurchases to represent 7% to 10% of common stock outstanding as of December 31, 2025. Blackbaud said Lantern will be embedded in Platform for Good starting in 2027.
3 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter adjusted EBITDA increased $11.4 million to $111.1 million.
- Moderate pointNine-month net income was $112.6 million, compared with $78.3 million in 2025.
- Moderate pointNine-month operating cash flow was $284.2 million, compared with $207.5 million in 2025.
Negative
- None.
Filing Explained
Between
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, or exhibit attachments filed with this report.
Key Figures
GAAP revenue: $292.6 million
GAAP net income: $46.1 million
GAAP diluted earnings per share: $1.02 per share
+5 more
8 metrics
GAAP revenue
$292.6 million
Third quarter 2026; up 4.1% from the third quarter of 2025
GAAP net income
$46.1 million
Third quarter 2026; compared with $47.5 million in the third quarter of 2025
GAAP diluted earnings per share
$1.02 per share
Third quarter 2026; up $0.04 per share from the third quarter of 2025
Non-GAAP adjusted EBITDA
$111.1 million
Third quarter 2026; up $11.4 million from the third quarter of 2025
GAAP net cash provided by operating activities
$141.7 million
Third quarter 2026; increased $2.5 million from the third quarter of 2025
Non-GAAP free cash flow
$126.0 million
Third quarter 2026; increased $2.8 million from the third quarter of 2025
GAAP revenue guidance
$1.173 billion to $1.179 billion
Full year 2026
Stock repurchase program remaining
Approximately $832 million
As of September 30, 2026
Key Terms
Rule of 40, Non-GAAP adjusted EBITDA, non-GAAP free cash flow, capitalized software development costs, +1 more
5 terms
Rule of 40 financial
"Rule of 40 score was 42.1%"
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 adjusted EBITDA financial
"Non-GAAP adjusted EBITDA was $111.1 million"
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.
non-GAAP free cash flow financial
"Non-GAAP free cash flow is defined as operating cash flow less capital expenditures"
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.
capitalized software development costs financial
"capitalized software development costs"
Costs for creating or enhancing internal-use or sold software that a company records as an asset on the balance sheet instead of expensing immediately. Like treating the purchase of a long-lasting tool as an investment rather than a one-time bill, these costs are spread out as non-cash depreciation over future periods. Investors watch this because it boosts current profits and reported assets, changing growth and margin comparisons and sometimes masking true cash profitability.
restricted cash financial
"Cash, cash equivalents and restricted cash"
Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.
Earnings Snapshot
GAAP revenue: $292.6 million · Guidance included
Third quarter ended September 30, 2026
GAAP revenue
$292.6 million
Up 4.1% from the third quarter of 2025
GAAP net income
$46.1 million
Compared with $47.5 million in the third quarter of 2025
Non-GAAP adjusted EBITDA
$111.1 million
Up $11.4 million from the third quarter of 2025
GAAP diluted earnings per share
$1.02 per share
Up $0.04 per share from the third quarter of 2025
Guidance
For full year 2026, Blackbaud expects to finish in the upper half of all four ranges: 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; and non-GAAP free cash flow of $280 million to $290 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were BLKB's third-quarter 2026 revenue and earnings?
Blackbaud reported $292.6 million in revenue and $46.1 million in GAAP net income for the quarter ended September 30, 2026. GAAP diluted earnings per share was $1.02, while non-GAAP diluted earnings per share was $1.36.
What 2026 financial guidance did BLKB reaffirm?
Blackbaud expects to finish in the upper half of its ranges for all four metrics: 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, and non-GAAP free cash flow of $280 million to $290 million.
When will BLKB's Lantern model be embedded in its platform?
Blackbaud said Lantern will be embedded in Platform for Good starting in 2027 and will begin powering select Raiser’s Edge NXT and Agents for Good capabilities.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): October 28, 2026
 | ||||||||
(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 October 28, 2026, Blackbaud, Inc. (the "Company") issued a press release reporting unaudited financial results for the quarter ended September 30, 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 October 28, 2026 reporting unaudited financial results for the quarter ended September 30, 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: | October 28, 2026 | /s/ Chad M. Anderson | ||||||||||||
Chad M. Anderson | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
(Principal Financial and Accounting Officer) | ||||||||||||||
| Exhibit 99.1 | ||||||||
 | ||||||||
| PRESS RELEASE | ||||||||
Blackbaud Announces 2026 Third Quarter Financial Results
Blackbaud Expands AI Leadership Through Numerous Innovation Announcements
at bbcon User Conference
Charleston, S.C. (October 28, 2026) — Blackbaud (NASDAQ: BLKB), the world's leading provider of AI-powered solutions for social impact, today announced financial results for its third quarter ended September 30, 2026.
"Innovation continues to drive our clear market leadership and a widening competitive moat," said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. "As demonstrated at our recent bbcon conference in September, we continue to make significant investments in AI, empowering our customers to deepen constituent relationships, raise more money and operate more efficiently. For investors, we believe Blackbaud is a sound investment choice that has the potential to create shareholder value—a belief that is supported by our strong 2026 year-to-date financial results and accelerating pace of innovation. I continue to be excited about the company's momentum in the near, mid and long term."
Third Quarter 2026 Results Compared to Third Quarter 2025 Results:
•GAAP total revenue was $292.6 million, up 4.1% and non-GAAP organic revenue increased 4.1%.
•GAAP recurring revenue was $287.0 million, up 4.1% and represented 98.1% of total revenue. Non-GAAP organic recurring revenue increased 4.1%.
•GAAP income from operations was $60.0 million, with GAAP operating margin of 20.5%, an increase of 110 basis points.
•Non-GAAP income from operations was $94.6 million, with non-GAAP operating margin of 32.3%, an increase of 240 basis points.
•GAAP net income was $46.1 million, with GAAP diluted earnings per share of $1.02, up $0.04 per share.
•Non-GAAP net income was $61.2 million, with non-GAAP diluted earnings per share of $1.36, up $0.26 per share.
•Non-GAAP adjusted EBITDA was $111.1 million, up $11.4 million, with non-GAAP adjusted EBITDA margin of 38.0%, an increase of 260 basis points.
•Rule of 40 score was 42.1%.
•GAAP net cash provided by operating activities was $141.7 million, an increase of $2.5 million, with GAAP operating cash flow margin of 48.4%, a decrease of 110 basis points.
•Non-GAAP free cash flow was $126.0 million, an increase of $2.8 million, with non-GAAP free cash flow margin of 43.1%, a decrease of 70 basis points.
| ||||||||
"Blackbaud continues to be well-positioned for long-term success," said Chad Anderson, executive vice president and CFO, Blackbaud. "Our strong results reflect our execution discipline, ongoing productivity improvements, and balance sheet optimization. We remain committed to providing investors an attractive financial model balanced across growth in revenues, earnings, and cash flows, along with a prudent and purposeful capital allocation strategy. Year-to-date we have repurchased more than 7% of our common stock outstanding since the end of 2025 while also reducing our leverage ratio from 2.7x in Q1 to 2.3x in Q3. We have a lot to be proud of and a lot more to look forward to in Q4 2026 and beyond."
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.
Recent Company Highlights
•At bbcon 2026:
◦Blackbaud introduced Platform for Good™, its unified operating system for social impact, bringing the company’s products, data, AI, workflows and ecosystem together on a shared architecture to help organizations identify opportunities, expand capacity and move from information to action with greater confidence. Blackbaud also announced a broad portfolio of innovations across fundraising, marketing, financial management and education designed to strengthen the connected value of the platform.
◦Blackbaud also unveiled Lantern™, the first domain-specific language model purpose-built to optimize fundraising intelligence. Developed through a strategic collaboration with Databricks, Lantern is built on Blackbaud’s four decades of experience in fundraising workflows, decisions, and results, so it understands the rhythms of fundraising and can illuminate opportunities that might otherwise go unseen. Starting in 2027, Lantern will be embedded within the Platform for Good and will begin powering select Blackbaud Raiser’s Edge NXT® and Agents for Good™ capabilities.
◦In addition, Blackbaud shared updates on its expanding family of Agents for Good, including advancements to the Development Agent and the introduction of the Data Health Agent, a continuous data steward designed to detect and address data issues through review-and-approve workflows. Blackbaud also previewed agentic experiences for finance and education.
◦BILL and Blackbaud announced a strategic partnership to simplify the accounts payable process for nonprofit and education finance teams, embedding BILL’s business payments network and payment-processing capabilities into Blackbaud Financial Edge NXT® Payment Assistant™. The connected experience is designed to support finance teams from invoice and approval through payment and reconciliation, reducing manual work within the financial management workflow.
•Blackbaud expanded the availability of Expedited Giving and Expedited Giving+ within its YourCause® from Blackbaud® solutions, accelerating how corporate and employee donations reach nonprofits. Expedited Giving delivers donations 90% faster than the industry average, while Expedited Giving+ is the industry’s fastest option, enabling direct-to-nonprofit donations in near real time leveraging Blackbaud Integrated Payments.
•Blackbaud announced new integrations with Microsoft 365 Copilot and Intuit Mailchimp, connecting Raiser’s Edge NXT to preferred technologies and giving users more ways to work, with best-in-class experiences.
2
| ||||||||
Visit www.blackbaud.com/newsroom for more information about Blackbaud’s recent highlights.
Financial Outlook
Blackbaud today reaffirmed its 2026 full year financial guidance and expects to finish in the upper half of the range across all four key metrics:
•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 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 September 30, 2026, Blackbaud had approximately $832 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in December 2025. Based on our current plans, and stock repurchases to date, we expect total repurchases during 2026 to represent between 7% and 10% of our outstanding common stock as of December 31, 2025.
Conference Call Details
What: Blackbaud's 2026 Third Quarter Conference Call
When: October 28, 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
3
| ||||||||
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.
Investor Contact
IR@blackbaud.com
Media Contact
media@blackbaud.com
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.
4
| ||||||||
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.
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 workforce transition costs; acquisition and disposition-related costs; and Security Incident-related costs.
5
Blackbaud, Inc.
Consolidated Balance Sheets
(Unaudited)
| (dollars in thousands, except per share amounts) | September 30, 2026 | December 31, 2025 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 35,734 | $ | 38,914 | ||||
| Restricted cash | 428,166 | 720,061 | ||||||
Accounts receivable, net of allowance of $6,529 and $5,876 at September 30, 2026 and December 31, 2025, respectively | 76,214 | 80,517 | ||||||
| Customer funds receivable | 3,918 | 1,308 | ||||||
| Prepaid expenses and other current assets | 86,064 | 89,290 | ||||||
| Total current assets | 630,096 | 930,090 | ||||||
| Property and equipment, net | 83,827 | 85,076 | ||||||
| Software development costs, net | 159,048 | 155,842 | ||||||
| Goodwill | 1,055,937 | 1,056,815 | ||||||
| Intangible assets, net | 87,413 | 106,654 | ||||||
| Other assets | 90,516 | 56,205 | ||||||
| Total assets | $ | 2,106,837 | $ | 2,390,682 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 38,404 | $ | 27,344 | ||||
| Accrued expenses and other current liabilities | 51,047 | 43,272 | ||||||
| Due to customers | 430,703 | 719,833 | ||||||
| Debt, current portion | 22,654 | 22,660 | ||||||
| Deferred revenue, current portion | 380,989 | 368,986 | ||||||
| Total current liabilities | 923,797 | 1,182,095 | ||||||
| Debt, net of current portion | 1,022,143 | 1,087,037 | ||||||
| Deferred tax liability | 25,100 | 21,981 | ||||||
| Deferred revenue, net of current portion | 3,674 | 2,778 | ||||||
| Other liabilities | 12,638 | 11,737 | ||||||
| Total liabilities | 1,987,352 | 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, 74,080,118 and 72,312,354 shares issued at September 30, 2026 and December 31, 2025, respectively; 45,102,406 and 46,705,325 shares outstanding at September 30, 2026 and December 31, 2025, respectively | 74 | 72 | ||||||
| Additional paid-in capital | 1,459,322 | 1,391,641 | ||||||
Treasury stock, at cost; 28,977,712 and 25,607,029 shares at September 30, 2026 and December 31, 2025, respectively | (1,471,199) | (1,316,224) | ||||||
| Accumulated other comprehensive income (loss) | 3,210 | (5,948) | ||||||
| Retained earnings | 128,078 | 15,513 | ||||||
| Total stockholders’ equity | 119,485 | 85,054 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,106,837 | $ | 2,390,682 | ||||
6
Blackbaud, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
| (dollars in thousands, except per share amounts) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Revenue | $ | 292,641 | $ | 281,143 | $ | 864,378 | $ | 833,109 | |||||||||
| Cost of revenue | 114,850 | 113,653 | 341,865 | 342,101 | |||||||||||||
| Gross profit | 177,791 | 167,490 | 522,513 | 491,008 | |||||||||||||
| Operating expenses | |||||||||||||||||
| Sales, marketing and customer success | 46,218 | 44,105 | 139,823 | 132,795 | |||||||||||||
| Research and development | 36,206 | 37,198 | 107,978 | 104,352 | |||||||||||||
| General and administrative | 34,828 | 31,044 | 99,538 | 120,579 | |||||||||||||
| Amortization of intangible assets | 588 | 570 | 1,762 | 1,670 | |||||||||||||
| Total operating expenses | 117,840 | 112,917 | 349,101 | 359,396 | |||||||||||||
| Income from operations | 59,951 | 54,573 | 173,412 | 131,612 | |||||||||||||
| Interest expense | (16,109) | (16,774) | (49,724) | (52,130) | |||||||||||||
| Other income, net | 2,597 | 3,245 | 6,977 | 6,468 | |||||||||||||
| Income before provision (benefit) for income taxes | 46,439 | 41,044 | 130,665 | 85,950 | |||||||||||||
| Income tax provision (benefit) | 371 | (6,448) | 18,100 | 7,669 | |||||||||||||
| Net income | $ | 46,068 | $ | 47,492 | $ | 112,565 | $ | 78,281 | |||||||||
| Earnings per share | |||||||||||||||||
| Basic | $ | 1.04 | $ | 1.00 | $ | 2.51 | $ | 1.63 | |||||||||
| Diluted | $ | 1.02 | $ | 0.98 | $ | 2.49 | $ | 1.61 | |||||||||
| Common shares and equivalents outstanding | |||||||||||||||||
| Basic weighted average shares | 44,267,816 | 47,680,002 | 44,858,491 | 47,961,631 | |||||||||||||
| Diluted weighted average shares | 44,961,588 | 48,498,285 | 45,245,216 | 48,634,027 | |||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||
| Foreign currency translation adjustment | $ | (106) | $ | (2,284) | $ | (1,703) | $ | 8,299 | |||||||||
| Unrealized gain (loss) on derivative instruments, net of tax | 4,241 | (622) | 10,861 | (12,628) | |||||||||||||
| Total other comprehensive income (loss) | 4,135 | (2,906) | 9,158 | (4,329) | |||||||||||||
| Comprehensive income | $ | 50,203 | $ | 44,586 | $ | 121,723 | $ | 73,952 | |||||||||
7
Blackbaud, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
| Nine months ended September 30, | ||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 112,565 | $ | 78,281 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 62,595 | 64,652 | ||||||
| Net provision for credit losses and sales returns | 5,064 | 3,788 | ||||||
| Stock-based compensation expense | 67,682 | 71,079 | ||||||
| Deferred taxes | 4,892 | (16,682) | ||||||
| Amortization of deferred financing costs and discount | 1,861 | 1,940 | ||||||
| Other non-cash adjustments | 1,313 | (5,180) | ||||||
| Changes in operating assets and liabilities, net of acquisition and disposal of businesses: | ||||||||
| Accounts receivable | (817) | (2,422) | ||||||
| Prepaid expenses and other assets | (8,832) | (9,707) | ||||||
| Trade accounts payable | 11,750 | (3,233) | ||||||
| Accrued expenses and other liabilities | 13,242 | 2,033 | ||||||
| Deferred revenue | 12,929 | 22,991 | ||||||
| Net cash provided by operating activities | 284,244 | 207,540 | ||||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment | (7,320) | (4,805) | ||||||
| Capitalized software development costs | (38,635) | (40,268) | ||||||
| Cash used in disposition of business | — | (12,235) | ||||||
| Other investing activities | (8,675) | — | ||||||
| Net cash used in investing activities | (54,630) | (57,308) | ||||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of debt | 230,700 | 307,000 | ||||||
| Payments on debt | (307,760) | (316,922) | ||||||
| Employee taxes paid for withheld shares upon equity award settlement | (25,696) | (39,669) | ||||||
| Change in due to customers | (288,369) | (323,467) | ||||||
| Change in customer funds receivable | (2,692) | (1,676) | ||||||
| Purchase of treasury stock, including excise tax payments | (129,933) | (133,338) | ||||||
| Net cash used in financing activities | (523,750) | (508,072) | ||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | (939) | 5,768 | ||||||
| Net decrease in cash, cash equivalents and restricted cash | (295,075) | (352,072) | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 758,975 | 809,512 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 463,900 | $ | 457,440 | ||||
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) | September 30, 2026 | December 31, 2025 | ||||||
| Cash and cash equivalents | $ | 35,734 | $ | 38,914 | ||||
| Restricted cash | 428,166 | 720,061 | ||||||
| Total cash, cash equivalents and restricted cash in the statement of cash flows | $ | 463,900 | $ | 758,975 | ||||
8
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
| (dollars in thousands, except per share amounts) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| GAAP Revenue | $ | 292,641 | $ | 281,143 | $ | 864,378 | $ | 833,109 | |||||||||
| GAAP gross profit | $ | 177,791 | $ | 167,490 | $ | 522,513 | $ | 491,008 | |||||||||
| GAAP gross margin | 60.8 | % | 59.6 | % | 60.4 | % | 58.9 | % | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
Add: Stock-based compensation expense | 2,693 | 2,850 | 8,494 | 8,798 | |||||||||||||
Add: Amortization of intangibles from business combinations | 5,405 | 6,811 | 17,076 | 20,883 | |||||||||||||
Add: Employee severance | — | (18) | — | 284 | |||||||||||||
Add: Global workforce transition costs(1) | 1,014 | — | 1,556 | — | |||||||||||||
| Subtotal | 9,112 | 9,643 | 27,126 | 29,965 | |||||||||||||
| Non-GAAP gross profit | $ | 186,903 | $ | 177,133 | $ | 549,639 | $ | 520,973 | |||||||||
| Non-GAAP gross margin | 63.9 | % | 63.0 | % | 63.6 | % | 62.5 | % | |||||||||
| GAAP income from operations | $ | 59,951 | $ | 54,573 | $ | 173,412 | $ | 131,612 | |||||||||
| GAAP operating margin | 20.5 | % | 19.4 | % | 20.1 | % | 15.8 | % | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
Add: Stock-based compensation expense | 22,100 | 21,657 | 68,686 | 71,079 | |||||||||||||
Add: Amortization of intangibles from business combinations | 5,993 | 7,381 | 18,838 | 22,553 | |||||||||||||
Add: Employee severance | — | (242) | — | 1,905 | |||||||||||||
Add: Global workforce transition costs(1) | 5,439 | — | 8,439 | — | |||||||||||||
Add: Acquisition and disposition-related costs(2) | 237 | 383 | 1,250 | 25,779 | |||||||||||||
Add: Security Incident-related costs | 853 | 247 | 853 | 2,822 | |||||||||||||
Add: Impairment of capitalized software development costs | — | — | 1,056 | — | |||||||||||||
| Subtotal | 34,622 | 29,426 | 99,122 | 124,138 | |||||||||||||
| Non-GAAP income from operations | $ | 94,573 | $ | 83,999 | $ | 272,534 | $ | 255,750 | |||||||||
| Non-GAAP operating margin | 32.3 | % | 29.9 | % | 31.5 | % | 30.7 | % | |||||||||
| GAAP income before provision (benefit) for income taxes | $ | 46,439 | $ | 41,044 | $ | 130,665 | $ | 85,950 | |||||||||
| GAAP net income | $ | 46,068 | $ | 47,492 | $ | 112,565 | $ | 78,281 | |||||||||
| Shares used in computing GAAP diluted earnings per share | 44,961,588 | 48,498,285 | 45,245,216 | 48,634,027 | |||||||||||||
| GAAP diluted earnings per share | $ | 1.02 | $ | 0.98 | $ | 2.49 | $ | 1.61 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Add: GAAP income tax provision (benefit) | 371 | (6,448) | 18,100 | 7,669 | |||||||||||||
| Add: Total non-GAAP adjustments affecting income from operations | 34,622 | 29,426 | 99,122 | 124,138 | |||||||||||||
| Non-GAAP income before provision for income taxes | 81,061 | 70,470 | 229,787 | 210,088 | |||||||||||||
Assumed non-GAAP income tax provision(3) | 19,860 | 17,265 | 56,298 | 51,472 | |||||||||||||
| Non-GAAP net income | $ | 61,201 | $ | 53,205 | $ | 173,489 | $ | 158,616 | |||||||||
| Shares used in computing non-GAAP diluted earnings per share | 44,961,588 | 48,498,285 | 45,245,216 | 48,634,027 | |||||||||||||
| Non-GAAP diluted earnings per share | $ | 1.36 | $ | 1.10 | $ | 3.83 | $ | 3.26 | |||||||||
(1)Global workforce transition costs represent severance and other costs incurred in connection with actions under our global workforce strategy.
(2)Includes charges of $24.3 million incurred during the nine months ended September 30, 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 September 30, | Nine months ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| GAAP revenue | $ | 292,641 | $ | 281,143 | $ | 864,378 | $ | 833,109 | |||||||||
| GAAP revenue growth | 4.1 | % | 3.8 | % | |||||||||||||
Less: Non-GAAP revenue from divested businesses(1) | — | — | — | — | |||||||||||||
Non-GAAP organic revenue(2) | $ | 292,641 | $ | 281,143 | $ | 864,378 | $ | 833,109 | |||||||||
| Non-GAAP organic revenue growth | 4.1 | % | 3.8 | % | |||||||||||||
Non-GAAP organic revenue(2) | $ | 292,641 | $ | 281,143 | $ | 864,378 | $ | 833,109 | |||||||||
Foreign currency impact on non-GAAP organic revenue(3) | (237) | — | (3,167) | — | |||||||||||||
Non-GAAP organic revenue on constant currency basis(3) | $ | 292,404 | $ | 281,143 | $ | 861,211 | $ | 833,109 | |||||||||
| Non-GAAP organic revenue growth on constant currency basis | 4.0 | % | 3.4 | % | |||||||||||||
| GAAP recurring revenue | $ | 287,030 | $ | 275,802 | $ | 848,806 | $ | 815,406 | |||||||||
| GAAP recurring revenue growth | 4.1 | % | 4.1 | % | |||||||||||||
Less: Non-GAAP recurring revenue from divested businesses(1) | — | — | — | — | |||||||||||||
Non-GAAP organic recurring revenue(2) | $ | 287,030 | $ | 275,802 | $ | 848,806 | $ | 815,406 | |||||||||
| Non-GAAP organic recurring revenue growth | 4.1 | % | 4.1 | % | |||||||||||||
Non-GAAP organic recurring revenue(2) | $ | 287,030 | $ | 275,802 | $ | 848,806 | $ | 815,406 | |||||||||
Foreign currency impact on non-GAAP organic recurring revenue(3) | (227) | — | (3,095) | — | |||||||||||||
Non-GAAP organic recurring revenue on constant currency basis(3) | $ | 286,803 | $ | 275,802 | $ | 845,711 | $ | 815,406 | |||||||||
| Non-GAAP organic recurring revenue growth on constant currency basis | 4.0 | % | 3.7 | % | |||||||||||||
(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 September 30, | Nine months ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| GAAP net income | $ | 46,068 | $ | 47,492 | $ | 112,565 | $ | 78,281 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
Add: Interest, net | 13,865 | 14,403 | 43,874 | 46,136 | |||||||||||||
Add: GAAP income tax provision (benefit) | 371 | (6,448) | 18,100 | 7,669 | |||||||||||||
Add: Depreciation | 3,177 | 2,181 | 8,228 | 7,823 | |||||||||||||
Add: Amortization of intangibles from business combinations | 5,993 | 7,381 | 18,838 | 22,553 | |||||||||||||
Add: Amortization of software development costs(1) | 12,978 | 12,605 | 38,203 | 36,781 | |||||||||||||
| Subtotal | 36,384 | 30,122 | 127,243 | 120,962 | |||||||||||||
| Non-GAAP EBITDA | $ | 82,452 | $ | 77,614 | $ | 239,808 | $ | 199,243 | |||||||||
Non-GAAP EBITDA margin(2) | 28.2 | % | 27.7 | % | |||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||
Add: Stock-based compensation expense | $ | 22,100 | $ | 21,657 | $ | 68,686 | $ | 71,079 | |||||||||
Add: Employee severance | — | (242) | — | 1,905 | |||||||||||||
Add: Global workforce transition costs(3) | 5,439 | — | 8,439 | — | |||||||||||||
Add: Acquisition and disposition-related costs(3) | 237 | 383 | 1,250 | 25,779 | |||||||||||||
Add: Security Incident-related costs | 853 | 247 | 853 | 2,822 | |||||||||||||
Add: Impairment of capitalized software development costs | — | — | 1,056 | — | |||||||||||||
| Subtotal | 28,629 | 22,045 | 80,284 | 101,585 | |||||||||||||
| Non-GAAP adjusted EBITDA | $ | 111,081 | $ | 99,659 | $ | 320,092 | $ | 300,828 | |||||||||
Non-GAAP adjusted EBITDA margin(4) | 38.0 | % | 37.0 | % | |||||||||||||
Rule of 40(5) | 42.1 | % | 40.8 | % | |||||||||||||
| Non-GAAP adjusted EBITDA | $ | 111,081 | $ | 99,659 | $ | 320,092 | $ | 300,828 | |||||||||
Foreign currency impact on Non-GAAP adjusted EBITDA(6) | (76) | (512) | (1,267) | (1,403) | |||||||||||||
Non-GAAP adjusted EBITDA on constant currency basis(6) | $ | 111,005 | $ | 99,147 | $ | 318,825 | $ | 299,425 | |||||||||
| Non-GAAP adjusted EBITDA margin on constant currency basis | 38.0 | % | 37.0 | % | |||||||||||||
Rule of 40 on constant currency basis(7) | 42.0 | % | 40.4 | % | |||||||||||||
(1)Includes amortization expense related to software development costs, and amortization expense from capitalized cloud computing implementation costs.
(2)Measured by non-GAAP EBITDA divided by non-GAAP organic revenue.
(3)See additional details in the reconciliation of GAAP to non-GAAP operating income above.
(4)Measured by non-GAAP adjusted EBITDA divided by non-GAAP organic revenue.
(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) | Nine months ended September 30, | |||||||
| 2026 | 2025 | |||||||
| GAAP net cash provided by operating activities | $ | 284,244 | $ | 207,540 | ||||
| GAAP operating cash flow margin | 32.9 | % | 24.9 | % | ||||
| Non-GAAP adjustments: | ||||||||
| Less: purchase of property and equipment | (7,320) | (4,805) | ||||||
| Less: capitalized software development costs | (38,635) | (40,268) | ||||||
| Non-GAAP free cash flow | $ | 238,289 | $ | 162,467 | ||||
| Non-GAAP free cash flow margin | 27.6 | % | 19.5 | % | ||||
11