Blackbaud (NASDAQ:BLKB) Announces Earnings Results

Blackbaud (NASDAQ:BLKB) announced its earnings results on Wednesday. The technology company reported $1.33 earnings per share for the quarter, beating analysts’ consensus estimates of $1.23 by $0.10, Briefing.com reports. Blackbaud had a net margin of 12.41% and a return on equity of 176.76%. The business had revenue of $290.60 million during the quarter, compared to the consensus estimate of $292.23 million. During the same quarter last year, the firm earned $1.21 earnings per share. The business’s revenue for the quarter was up 3.3% on a year-over-year basis. Blackbaud updated its FY 2026 guidance to 5.150-5.250 EPS.

Here are the key takeaways from Blackbaud’s conference call:

• Blackbaud reaffirmed its 2026 outlook at the upper half of its guidance ranges, with EPS and free cash flow expected at or above the high end. Q2 adjusted EPS rose 9% to $1.33, while free cash flow increased 46% year over year to $75 million.
• Q2 organic revenue grew 3% to $291 million and adjusted EBITDA reached $110 million, or approximately a 38% margin. Management cited strong bookings, improved win rates, new-logo momentum, and longer contract terms as supporting future growth.
• Blackbaud reported encouraging early customer results from its Development Agent, including above-industry reply and open rates and higher-than-average attributable gift sizes. Four additional AI agents are planned, although management does not expect meaningful AI revenue contribution in 2026.
• Results are expected to remain heavily weighted toward the second half, particularly Q4, partly due to the rollout of a platform fee on certain online transactions. A contractual recurring-revenue renewal cohort approximately 40% larger than last year is also expected to pressure reported gross dollar retention in the near term, though management expects it to recover to 91%–92% by the end of 2027.

Blackbaud Stock Performance

Shares of BLKB stock traded down $2.17 during mid-day trading on Thursday, reaching $40.02. 459,061 shares of the company’s stock traded hands, compared to its average volume of 656,165. Blackbaud has a 12 month low of $25.58 and a 12 month high of $70.94. The firm has a 50 day moving average price of $29.92 and a two-hundred day moving average price of $39.23. The company has a debt-to-equity ratio of 33.66, a quick ratio of 0.74 and a current ratio of 0.74. The firm has a market capitalization of $1.84 billion, a PE ratio of 13.56, a price-to-earnings-growth ratio of 1.28 and a beta of 1.01.

Trending Headlines about Blackbaud

Here are the key news stories impacting Blackbaud this week:

• Positive Sentiment: Blackbaud reported second-quarter adjusted earnings of $1.33 per share, exceeding the $1.23 analyst consensus and improving from $1.21 a year earlier. Blackbaud Surpasses Q2 Earnings Estimates
• Positive Sentiment: Management reaffirmed fiscal 2026 revenue guidance of approximately $1.173 billion to $1.179 billion and expects to finish in the upper half of its ranges for revenue, adjusted EBITDA, non-GAAP EPS and free cash flow. Full-year EPS guidance of $5.15-$5.25 is above the $4.87 consensus estimate. Blackbaud Announces Second-Quarter Results
• Positive Sentiment: Recurring revenue increased 3.3% year over year to $285.3 million, representing 98.2% of total revenue. The company also generated $91.1 million in operating cash flow and had roughly $850 million remaining under its share-repurchase authorization. Blackbaud Q2 Revenue Rises
• Neutral Sentiment: Management emphasized continued development of AI-powered products and solutions for the social-impact sector, which could support longer-term growth, although the earnings materials did not indicate a major near-term revenue contribution. Blackbaud Q2 Earnings Call Highlights
• Negative Sentiment: Revenue of $290.6 million rose only 3.3% year over year and fell slightly short of the $292.2 million analyst estimate. That muted top-line performance may be outweighing the adjusted EPS beat and positive cash-flow results in the market’s reaction. Blackbaud Q2 2026 Earnings Call Transcript
• Negative Sentiment: Recent reported insider activity showed sales by several executives and no purchases over the past six months, a potentially negative sentiment signal, although such transactions may reflect personal liquidity needs rather than a change in business expectations.

Insider Buying and Selling

In related news, CFO Chad Anderson sold 6,205 shares of Blackbaud stock in a transaction on Monday, June 1st. The stock was sold at an average price of $31.31, for a total transaction of $194,278.55. Following the transaction, the chief financial officer directly owned 62,869 shares in the company, valued at approximately $1,968,428.39. The trade was a 8.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.01% of the company’s stock.

Hedge Funds Weigh In On Blackbaud

Several large investors have recently added to or reduced their stakes in BLKB. Pacer Advisors Inc. lifted its position in shares of Blackbaud by 23.9% in the fourth quarter. Pacer Advisors Inc. now owns 6,133 shares of the technology company’s stock valued at $388,000 after acquiring an additional 1,183 shares in the last quarter. Invesco Ltd. increased its stake in Blackbaud by 2.4% during the fourth quarter. Invesco Ltd. now owns 106,070 shares of the technology company’s stock worth $6,716,000 after acquiring an additional 2,465 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its holdings in Blackbaud by 26.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 6,583 shares of the technology company’s stock valued at $417,000 after buying an additional 1,369 shares during the period. EP Wealth Advisors LLC purchased a new position in shares of Blackbaud during the 4th quarter worth about $252,000. Finally, Fuller & Thaler Asset Management Inc. lifted its stake in Blackbaud by 14.3% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 400,735 shares of the technology company’s stock worth $25,375,000 after purchasing an additional 50,235 shares during the last quarter. Hedge funds and other institutional investors own 94.21% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Robert W. Baird set a $54.00 price target on Blackbaud in a report on Thursday. Weiss Ratings downgraded shares of Blackbaud from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, July 23rd. Raymond James Financial reissued an “outperform” rating and issued a $55.00 target price on shares of Blackbaud in a report on Wednesday. Stifel Nicolaus decreased their price objective on shares of Blackbaud from $45.00 to $30.00 and set a “hold” rating for the company in a report on Friday, July 10th. Finally, Zacks Research downgraded Blackbaud from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $48.50.

Blackbaud Company Profile

Blackbaud, Inc is a leading provider of cloud software, services and data intelligence solutions designed specifically for the social good community. The company’s main offerings include fundraising and relationship management platforms, financial management systems, grant and award management tools, and advanced analytics. Its flagship products—such as Raiser’s Edge NXT, Blackbaud Financial Edge NXT and Blackbaud NetCommunity—help nonprofit organizations, educational institutions, healthcare providers and foundations streamline donor engagement, optimize financial operations and measure program impact.

Founded in 1981 and headquartered in Charleston, South Carolina, Blackbaud has grown from a small technology startup into a global specialist in nonprofit software.