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1. Company Snapshot

1.a. Company Description

Blackbaud, Inc.provides cloud software solutions to higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies, and individual change agents in the United States and internationally.The company offers fundraising and relationship management solutions, such as Blackbaud Raiser's Edge NXT and Blackbaud CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, JustGiving, and Blackbaud Guided Fundraising and Blackbaud Volunteer Network Fundraising; marketing and engagement solutions, including Blackbaud Luminate Online, Blackbaud Online Express, and Blackbaud School Website System; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid Management.


It also provides grant and award management solutions, consisting of Blackbaud Grantmaking and Blackbaud Award Management; organizational and program management, such as Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; social responsibility solutions, which includes YourCause GrantsConnect and YourCause CSRconnect; Blackbaud Merchant Services and Blackbaud Purchase Cards payment services; and Blackbaud's Intelligence for Good solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services.It sells its solutions and related services through its direct sales force.Blackbaud, Inc.


was founded in 1981 and is headquartered in Charleston, South Carolina.

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1.b. Last Insights on BLKB

Breaking News: Blackbaud Inc recently announced a $1 billion stock repurchase program, increased from $800 million, indicating a positive outlook for the company's financial health. Additionally, the company partnered with Anthropic to launch a fundraising connector for Claude for Nonprofits, showcasing its commitment to AI innovation. No recent earnings release was available. Analysts at William Blair recommend a buy, while those at Deutsche Bank and Morgan Stanley have a hold rating. Blackbaud's increased stock repurchase expectations for 2025 and AI roadmap advancements have garnered attention.

1.c. Company Highlights

2. Blackbaud's Q3 2025 Results Exceed Expectations

Blackbaud reported a strong Q3 2025, with revenue reaching $281 million, representing a 5.2% organic growth year-over-year. The adjusted EBITDA margin expanded to 35.4%, up more than 200 basis points year-over-year, driven by operational rigor and cost management. Non-GAAP diluted earnings per share was $1.10, beating estimates of $1.07, and representing an 11% increase year-over-year. Free cash flow was $125 million, demonstrating the company's ability to generate strong cash flows.

Publication Date: Nov -02

📋 Highlights
  • Revenue Growth:: Achieved $281 million in revenue with 5.2% organic YoY growth.
  • EBITDA Margin Expansion:: Adjusted EBITDA margin rose to 35.4%, a >200 bps YoY increase.
  • EPS Growth:: Non-GAAP diluted EPS grew 11% YoY to $1.10.
  • Free Cash Flow:: Generated $125 million in FCF, with guidance raised to $195–$205 million for 2025.
  • AI Innovation Impact:: Launched agentic AI suite (Agents for Good) with SaaS pricing, expected to drive margin expansion and new revenue streams.

Growth Drivers and Innovation

Blackbaud continues to drive growth through new logo acquisitions, innovation, and strengthening customer relationships. The company has made significant investments in AI capabilities, including the launch of its agentic AI suite, Agents for Good, at bbcon 2025. The Development Agent, a fundraising agent, is expected to provide a quick ROI for customers, with early adopters already seeing positive results. The company started selling its AI agents this quarter, with modest revenue expected this year and a ramp-up next year.

Guidance and Outlook

Blackbaud reiterated its 2025 guidance, with revenue projected in the range of $1.120 billion to $1.130 billion, representing organic growth at the midpoint of approximately 5% on a constant currency basis. The company increased its adjusted free cash flow guidance to $195 million to $205 million. Blackbaud prioritizes stock repurchase and expects to end 2025 with a weighted average diluted share count between 48.5 million and 49.5 million shares.

Valuation and Metrics

With a P/E Ratio of 0.06 and an EV/EBITDA of 0.08, the market appears to have already priced in significant growth expectations. The Free Cash Flow Yield is 7.36%, indicating a relatively attractive return for investors. As the company moves towards a Rule of 45, primary margin expansion levers include cost takeout opportunities, productivity improvements using AI, and new solutions such as the agentic AI development agent. Analysts estimate next year's revenue growth at 4.0%, which may be a reasonable expectation given the company's historical performance and industry trends.

3. NewsRoom

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Blackbaud Partners with Anthropic on Groundbreaking New Way to Experience the Power of Purpose-Built AI

Dec -02

Source: prnewswire.com

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Blackbaud Announces Reauthorized, Expanded and Replenished

Dec -02

Source: prnewswire.com

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Blackbaud Kicks Off GivingTuesday at Nasdaq

Dec -01

Source: prnewswire.com

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Blackbaud Showcases AI-Powered Innovation and Intelligent Workflows at Bi-annual Product Update Briefings

Nov -24

Source: prnewswire.com

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Geode Capital Management LLC Sells 3,420 Shares of Blackbaud, Inc. $BLKB

Nov -24

Source: defenseworld.net

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Campbell & CO Investment Adviser LLC Acquires 1,783 Shares of Blackbaud, Inc. $BLKB

Nov -17

Source: defenseworld.net

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Registration is Now Open for the 2026 Blackbaud K-12 User Conference

Nov -05

Source: prnewswire.com

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Blackbaud: Organic Growth Keeps Compressing

Oct -31

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.27%)

6. Segments

Social Sector

Expected Growth: 5%

Blackbaud's Social Sector growth is driven by increasing demand for cloud-based fundraising and donor management solutions, expansion into new markets, and strategic acquisitions. Additionally, the growing need for nonprofits to leverage data and analytics to drive social impact, and the rising importance of digital engagement and online giving platforms also contribute to this growth.

Corporate Sector

Expected Growth: 7%

Blackbaud's Corporate Sector growth is driven by increasing demand for cloud-based software solutions, expansion into new markets, and strategic acquisitions. The sector benefits from the growing need for corporate social responsibility and employee engagement, leading to higher adoption of Blackbaud's products and services, resulting in 7% growth.

7. Detailed Products

Raiser's Edge NXT

A cloud-based fundraising and donor management software designed for nonprofits to manage their fundraising efforts, track donations, and engage with donors.

Blackbaud CRM

A comprehensive customer relationship management system designed for nonprofits to manage their constituents, track interactions, and analyze data.

Financial Edge NXT

A cloud-based accounting and financial management software designed for nonprofits to manage their financial operations, including general ledger, accounts payable, and budgeting.

Blackbaud Grantmaking

A cloud-based grant management software designed for foundations and corporations to manage their grantmaking processes, from application to award and reporting.

JustGiving

A social fundraising platform designed for individuals to create fundraising campaigns and events, and for nonprofits to manage their online fundraising efforts.

Blackbaud Online Express

A cloud-based online fundraising and donation management software designed for nonprofits to create online donation forms, events, and campaigns.

Blackbaud School Website System

A website content management system designed for K-12 schools to create and manage their website, including content, events, and news.

8. Blackbaud, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Blackbaud, Inc. operates in a niche market, providing software and services to non-profit organizations. While there are some substitutes available, they are not as comprehensive as Blackbaud's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Blackbaud's customers are primarily non-profit organizations, which often have limited budgets and resources. This reduces their bargaining power, giving Blackbaud an upper hand in negotiations.

Bargaining Power Of Suppliers

Blackbaud relies on a few key suppliers for its technology and infrastructure. While these suppliers have some bargaining power, Blackbaud's size and reputation help to mitigate this threat.

Threat Of New Entrants

The non-profit software market is highly specialized, and new entrants would need significant investment and expertise to compete with Blackbaud's established offerings.

Intensity Of Rivalry

The non-profit software market is highly competitive, with several established players vying for market share. Blackbaud faces intense competition from rivals such as Salesforce.org and Classy.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.09%
Debt Cost 9.03%
Equity Weight 50.91%
Equity Cost 9.03%
WACC 9.03%
Leverage 96.41%

11. Quality Control: Blackbaud, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Blackbaud

A-Score: 4.5/10

Value: 7.1

Growth: 3.4

Quality: 7.4

Yield: 0.0

Momentum: 2.0

Volatility: 7.0

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DoubleVerify Holdings

A-Score: 4.2/10

Value: 4.2

Growth: 9.0

Quality: 7.1

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

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Bill.com

A-Score: 4.0/10

Value: 2.9

Growth: 9.4

Quality: 4.6

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

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Intapp

A-Score: 4.0/10

Value: 5.0

Growth: 7.8

Quality: 4.5

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

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Asana

A-Score: 3.7/10

Value: 4.4

Growth: 6.3

Quality: 3.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

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Instructure Holdings

A-Score: 3.7/10

Value: 3.1

Growth: 7.8

Quality: 3.1

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

62.97$

Current Price

62.97$

Potential

-0.00%

Expected Cash-Flows