Blackbaud (NASDAQ:BLKB) Issues Quarterly Earnings Results

Blackbaud (NASDAQ:BLKB) announced its quarterly earnings results on Wednesday. The technology company reported $1.33 earnings per share for the quarter, beating the consensus estimate of $1.23 by $0.10, Briefing.com reports. Blackbaud had a return on equity of 197.49% and a net margin of 13.12%.The company had revenue of $290.60 million during the quarter, compared to analysts’ expectations of $292.23 million. During the same period last year, the business earned $1.21 earnings per share. Blackbaud’s quarterly revenue 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 Trading Up 5.3%

NASDAQ BLKB traded up $2.12 on Friday, reaching $42.20. 275,207 shares of the company were exchanged, compared to its average volume of 657,843. The company has a current ratio of 0.83, a quick ratio of 0.74 and a debt-to-equity ratio of 16.82. The business’s fifty day moving average price is $30.13 and its 200 day moving average price is $39.08. The stock has a market capitalization of $1.94 billion, a P/E ratio of 13.13, a price-to-earnings-growth ratio of 1.50 and a beta of 1.01. Blackbaud has a fifty-two week low of $25.58 and a fifty-two week high of $70.94.

Insider Activity

In other 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 owned 62,869 shares in the company, valued at $1,968,428.39. The trade was a 8.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Blackbaud

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Pacer Advisors Inc. boosted its holdings in Blackbaud by 23.9% in the 4th quarter. Pacer Advisors Inc. now owns 6,133 shares of the technology company’s stock valued at $388,000 after purchasing an additional 1,183 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Blackbaud by 2.4% during the 4th quarter. Invesco Ltd. now owns 106,070 shares of the technology company’s stock worth $6,716,000 after buying an additional 2,465 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its position in shares of 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 acquired a new position in Blackbaud in the fourth quarter valued at approximately $252,000. Finally, Fuller & Thaler Asset Management Inc. lifted its holdings 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 valued at $25,375,000 after acquiring an additional 50,235 shares during the last quarter. 94.21% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

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

About Blackbaud

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.