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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's recent performance faces scrutiny due to comparisons with Trend Micro and Triple P, raising questions about its superiority as an investment. Despite showcasing customer wins, with AI-driven platforms boosting efficiency and collaboration, concerns linger. The company's focus on AI innovation to enhance social impact outcomes, while positive, may not entirely offset these concerns. With a beta indicating higher volatility, Blackbaud's risk profile may deter some investors. Its Q4 2025 earnings call highlighted improved profitability and cash flow, yet the stock's standing amidst industry peers remains under evaluation.

1.c. Company Highlights

2. Blackbaud's 2025 Earnings: A Strong Year of Growth and Profitability

Blackbaud reported a robust financial performance for 2025, with organic revenues growing 5.5% to $1.128 billion, surpassing analyst estimates. The company's adjusted EBITDA reached $405 million, representing an 8% increase after adjusting for the EVERFI divestiture impact. Earnings per share (EPS) came in at $1.19, beating estimates of $1.15. The company's financial success is a result of its proven operating plan, focused on company efficiencies and continuous product innovation, including the integration of generative and agentic AI capabilities.

Publication Date: Feb -18

📋 Highlights
  • Rule of 40 Milestone Achieved:: Blackbaud became a Rule of 40 company 2 years ahead of schedule in 2025, balancing growth and profit margins.
  • 2025 Financial Performance:: Organic revenue grew 5.5% to $1.128B, adjusted EBITDA rose 8% to $405M, and shares were repurchased at 8% of outstanding stock.
  • 2026 Guidance:: Organic revenue growth of 4–4.5%, adjusted EBITDA of $430M–$438M (6–8% YoY growth), and non-GAAP EPS of $5.15–$5.25 (16–18% YoY growth).
  • Capital Allocation Strategy:: 50%+ of cumulative free cash flow (2026–2030) will fund stock repurchases, with $60M–$70M in capex including $52M–$62M in capitalized software costs.
  • Long-Term Targets:: 4–6% organic revenue growth (2026–2030), 6–8% adjusted EBITDA CAGR, and 40%+ EBITDA margin expansion, alongside 13%+ non-GAAP EPS CAGR through 2030.

Revenue Growth and Margin Expansion

The company's revenue growth was driven by its strong subscription-based model, with no seat-based pricing. Blackbaud's products enable customers to raise more money while increasing operational efficiency. The company's adjusted EBITDA margin expanded, reflecting its focus on operational efficiencies and cost management. For 2026, the company expects organic revenue growth to be between 4% and 4.5%, with adjusted EBITDA expected to grow 6% to 8% year-over-year.

Capital Allocation and Shareholder Returns

Blackbaud continues to prioritize shareholder returns, with a significant share repurchase program in 2025, buying back approximately 8% of its common stock outstanding. The company expects to utilize at least 50% of its cumulative free cash flow from 2026 to 2030 for stock repurchases. With a strong track record of generating cash flow, Blackbaud is well-positioned to return value to shareholders while investing in growth initiatives. The company's net debt to EBITDA ratio stands at 0.02, indicating a healthy balance sheet.

Valuation and Growth Prospects

Blackbaud's current valuation metrics suggest a reasonable price for its growth prospects. The company's P/E Ratio stands at 19.28, while its P/S Ratio is 2.01. The EV/EBITDA ratio is 0.15, indicating a relatively low valuation for its earnings. With expected EPS growth of 16% to 18% in 2026 and a long-term target of 13% plus EPS CAGR between 2026 and 2030, the company's valuation appears to be supported by its growth prospects. Analysts estimate revenue growth at 4.7% for next year, aligning with the company's guidance.

3. NewsRoom

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Blackbaud Expands AI Innovation to Boost Social Impact Outcomes

Mar -05

Source: zacks.com

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Blackbaud Announces Powerful Customer Outcomes, Signaling Positive Traction for AI in Social Impact

Mar -04

Source: prnewswire.com

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Best Growth Stocks to Buy for March 3rd

Mar -03

Source: zacks.com

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Mar -03

Source: zacks.com

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New Strong Buy Stocks for March 3rd

Mar -03

Source: zacks.com

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Analyzing Trend Micro (OTCMKTS:TMICY) & Blackbaud (NASDAQ:BLKB)

Mar -02

Source: defenseworld.net

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Best Growth Stocks to Buy for February 18th

Feb -18

Source: zacks.com

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Blackbaud Q4 Earnings Call Highlights

Feb -12

Source: defenseworld.net

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

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DoubleVerify Holdings

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Value: 4.3

Growth: 8.9

Quality: 7.1

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

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Value: 3.7

Growth: 7.8

Quality: 3.5

Yield: 0.0

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Growth: 7.8

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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

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Growth: 9.4

Quality: 5.1

Yield: 0.0

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A-Score: 3.4/10

Value: 4.4

Growth: 6.3

Quality: 3.8

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

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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

44.03$

Current Price

44.03$

Potential

-0.00%

Expected Cash-Flows