Blackbaud Inc
NASDAQ:BLKB
Blackbaud Inc
Blackbaud Inc. has carved its niche in the software industry by serving a mission-driven clientele, including nonprofits, educational institutions, healthcare organizations, and faith communities. Founded in 1981, it has steadily grown to become a leader in cloud software for social good. By providing tailored solutions like fundraising, financial management, grant management, and donor analytics, Blackbaud empowers organizations to increase their impact while streamlining operations. The company's comprehensive suite of products allows its clients to manage their data more efficiently, analyze donor behaviors, and enhance their engagement efforts, thus driving both donations and mission delivery.
The business model of Blackbaud pivots on its subscription-based revenue from its robust cloud solutions. By offering Software as a Service (SaaS), the company ensures a steady revenue stream while also encouraging long-term client relationships. Blackbaud also complements its software offerings with professional services, assisting clients in the implementation and optimization of its solutions. Over the years, strategic acquisitions have played a vital role in expanding Blackbaud's capabilities and reach, enabling it to stay ahead in this specialized sector. The seamless integration of technology and domain expertise defines Blackbaud's ongoing success and commitment to empowering social impact across its diverse customer base.
Blackbaud Inc. has carved its niche in the software industry by serving a mission-driven clientele, including nonprofits, educational institutions, healthcare organizations, and faith communities. Founded in 1981, it has steadily grown to become a leader in cloud software for social good. By providing tailored solutions like fundraising, financial management, grant management, and donor analytics, Blackbaud empowers organizations to increase their impact while streamlining operations. The company's comprehensive suite of products allows its clients to manage their data more efficiently, analyze donor behaviors, and enhance their engagement efforts, thus driving both donations and mission delivery.
The business model of Blackbaud pivots on its subscription-based revenue from its robust cloud solutions. By offering Software as a Service (SaaS), the company ensures a steady revenue stream while also encouraging long-term client relationships. Blackbaud also complements its software offerings with professional services, assisting clients in the implementation and optimization of its solutions. Over the years, strategic acquisitions have played a vital role in expanding Blackbaud's capabilities and reach, enabling it to stay ahead in this specialized sector. The seamless integration of technology and domain expertise defines Blackbaud's ongoing success and commitment to empowering social impact across its diverse customer base.
Rule of 40 Milestone: Blackbaud achieved Rule of 40 status in 2025, two years ahead of plan, reflecting strong growth and profitability.
AI Strategy: Heavy investment in AI and product innovation is driving new solutions, including the launch of AI chat and an agentic fundraising tool, with more products planned.
Financial Results: 2025 organic revenue grew 5.5% to $1.128 billion and adjusted EBITDA reached $405 million, up 8%.
2026 Guidance: The company expects 2026 revenue of $1.173–$1.179 billion (4–4.5% growth), adjusted EBITDA of $430–$438 million, and non-GAAP EPS of $5.15–$5.25 (16–18% growth).
Free Cash Flow: 2025 free cash flow was $208 million, beating guidance. 2026 guidance is $280–$290 million.
Capital Allocation: Stock repurchases remain a top priority, with 50%+ of free cash flow from 2026–2030 targeted for buybacks.
Long-Term Goals: Blackbaud targets 4–6% organic revenue CAGR, 6–8% EBITDA CAGR, and 13%+ non-GAAP EPS CAGR through 2030, with margin expansion to 40%+.
