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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

Blackbaud, Inc.'s recent performance was impacted by a 30.2% increase in short interest in March, indicating growing bearish sentiment. Additionally, Allspring Global Investments Holdings LLC reduced its stake in the company by 8.1%. Despite this, the company reported strong Q4 2025 earnings, beating estimates with $1.19 per share. Blackbaud also announced its Q1 FY2026 financial results date, and its focus on AI-powered solutions for social impact. The company's long-term aspirational targets and recent AI innovation are also noteworthy.

1.c. Company Highlights

2. Blackbaud Q1 2026: AI-Driven Growth Amid Strong Execution

Blackbaud reported a 4.2% organic revenue increase to $281 million, with non‑GAAP adjusted EBITDA climbing to $99 million and a margin lift of roughly one percentage point. EPS rose 20% to $1.14 versus the $0.95 in Q1 2025, beating analysts’ $1.08 forecast.

Publication Date: Apr -30

📋 Highlights
  • Organic Revenue Growth:: Q1 2026 organic revenue increased 4.2% to $281 million.
  • Non-GAAP Adjusted EBITDA:: Rose $7 million to $99 million, with a 1 percentage point margin improvement.
  • Non-GAAP EPS Growth:: EPS reached $1.14, up 20% year-over-year from $0.95.
  • Free Cash Flow Increase:: Free cash flow surged nearly $50 million YoY to $37 million in Q1.
  • Enterprise Deal Win:: Closed a 5-year contract with a large nonprofit, the largest deal in company history.

Revenue Momentum and Customer Wins

The company’s $281 million top line reflects continued traction across sectors, highlighted by a historic 5‑year contract with a large nonprofit. New logos and enterprise deals are fueling a flywheel effect, while the Blackbaud Verified Network expands networked engagement for existing customers.

AI Enablement Fuels Product Innovation

CEO Mike Gianoni emphasized the launch of the Agent For Good solution, an agentic AI that automates complex donor workflows. This investment underpins Blackbaud’s strategy to embed AI across its portfolio, positioning the firm to capture new revenue streams at lower marginal cost.

Operating Efficiency and Margin Upside

While AI spending temporarily depresses adjusted EBITDA dollars, the company foresees gross margin gains from decommissioning legacy data centers and consolidating software infrastructure. The result should offset short‑term investment drag and support higher profitability in the back half of 2026.

Cash Flow and Free Cash Generation

Free cash flow surged nearly $50 million year‑over‑year to $37 million, underscoring the firm’s ability to generate liquidity. With a free cash flow yield of 16.21% and ROIC at 11.75%, Blackbaud demonstrates efficient capital deployment and attractive returns for investors.

Valuation Snapshot

At a P/E of 16.42 and a P/S of 2.1, Blackbaud trades at a modest premium to its peers, while an EV/EBITDA of 7.4 reflects the market’s confidence in future earnings growth. These ratios suggest the stock is fairly priced relative to its high growth trajectory.

Guidance and Outlook

The company reaffirms 2026 full‑year guidance, projecting a 17% EPS growth midpoint and targeting double‑digit EPS expansion in 2027. With AI investments poised to unlock new markets and pricing models, Blackbaud’s trajectory remains firmly upward, positioning it as a compelling long‑term play in the nonprofit tech space.

3. NewsRoom

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Blackbaud: 2026 Renewals Will Be The Major Test (Upgrade)

Apr -29

Source: seekingalpha.com

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Blackbaud, Inc. (BLKB) Q1 2026 Earnings Call Transcript

Apr -29

Source: seekingalpha.com

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Blackbaud (BLKB) Q1 Earnings and Revenues Surpass Estimates

Apr -29

Source: zacks.com

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Blackbaud Announces 2026 First Quarter Results

Apr -29

Source: prnewswire.com

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Blackbaud Highlights AI Capabilities Transforming Fundraising at AFP ICON 2026

Apr -27

Source: prnewswire.com

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Blackbaud Inc (BLKB) Shares Surge 3.6% -- What GF Score of 65 Tells Investors

Apr -24

Source: gurufocus.com

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Blackbaud, Inc. (NASDAQ:BLKB) Short Interest Up 30.2% in March

Apr -16

Source: defenseworld.net

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Blackbaud Announces Date of First Quarter FY2026 Financial Results

Apr -15

Source: prnewswire.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
DoubleVerify Holdings

A-Score: 4.2/10

Value: 4.3

Growth: 8.9

Quality: 7.1

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

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Instructure Holdings

A-Score: 4.1/10

Value: 3.7

Growth: 7.8

Quality: 3.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

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Intapp

A-Score: 3.8/10

Value: 4.7

Growth: 7.8

Quality: 4.1

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

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Blackbaud

A-Score: 3.6/10

Value: 6.2

Growth: 3.3

Quality: 3.2

Yield: 0.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

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Bill.com

A-Score: 3.6/10

Value: 2.8

Growth: 9.4

Quality: 5.1

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

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Asana

A-Score: 3.4/10

Value: 4.4

Growth: 6.3

Quality: 3.8

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

1-Year Total Return ->

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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

37.47$

Current Price

37.47$

Potential

-0.00%

Expected Cash-Flows