Blackbaud Inc

Latest Results (22.11.2025):

Blackbaud Inc's third quarter of 2025 (Q3 2025) results show resilient operating performance: GAAP total revenue was $281.1 million (down 1.9% year-over-year, largely due to the divestiture of EVERFI) while non‑GAAP organic revenue grew 5.2%. Profitability and cash generation improved materially — GAAP operating margin widened to 19.4% and non‑GAAP adjusted EBITDA margin reached 35.4% — and the company reiterated full‑year 2025 guidance while raising its adjusted free cash flow outlook.

Top-line

GAAP total revenue: $281.1M (−1.9% YoY; decline driven by EVERFI divestiture). Non‑GAAP organic revenue grew 5.2%. GAAP recurring revenue was $275.8M (−1.5% YoY) and represented 98.1% of total revenue; non‑GAAP organic recurring revenue rose 5.5%.

Profitability

GAAP income from operations: $54.6M with GAAP operating margin 19.4% (up 500 basis points). Non‑GAAP income from operations: $84.0M with non‑GAAP operating margin 29.9% (up 240 basis points). Non‑GAAP adjusted EBITDA was $99.7M (up $4.6M) with a 35.4% margin (up 220 bps).

Earnings per share & net income

GAAP net income: $47.5M; GAAP diluted EPS $0.98 (up $0.63 vs prior year). Non‑GAAP net income: $53.2M; non‑GAAP diluted EPS $1.10 (up $0.11 vs prior year).

Cash flow

GAAP net cash provided by operating activities: $139.2M (up $35.3M) with a GAAP operating cash flow margin of 49.5% (up 1,320 bps). Non‑GAAP free cash flow: $123.2M (up $34.9M) with a 43.8% margin (up 1,300 bps). Non‑GAAP adjusted free cash flow: $125.1M (up $27.5M) with a 44.5% margin (up 1,040 bps).

Capital allocation & balance sheet actions

Year‑to‑date share repurchases exceeded 5% of outstanding common stock; $514M remained available under the repurchase program as of September 30, 2025. Leverage ratio reduced from 2.9x in Q1 to 2.4x in Q3 (per management commentary).

Guidance (Full‑Year 2025)

Company reiterated FY2025 GAAP revenue guidance of $1.120B–$1.130B, non‑GAAP adjusted EBITDA margin of 35.4%–36.2%, and non‑GAAP diluted EPS of $4.30–$4.50. Blackbaud raised non‑GAAP adjusted free cash flow guidance to $195M–$205M. Updated assumptions include ~24.5% tax rate, $66M–$70M interest expense, ~48.5–49.5M diluted shares, and $55M–$65M capex (including $50M–$60M capitalized software).

Other items of note

Rule of 40 score was 40.6%. Management highlighted product innovation (major new embedded AI capabilities announced at bbcon 2025) and operational improvements as drivers of performance. The company also disclosed a prior‑period noncash tax valuation allowance correction that reduced previously reported income tax benefit by $15.5M and resulted in revisions to certain prior periods presented in the release.