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Blackbaud's Q3 Earnings & Revenues Surpass Estimates, Stock Up
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Key Takeaways
Blackbaud's Q3 EPS rose 11.1% year over year, beating estimates by 2.8%.
Revenue slipped 1.9% due to the EVERFI divestiture but exceeded expectations.
Margins expanded as operating expenses fell and productivity gains continued.
Blackbaud, Inc. (BLKB - Free Report) reported third-quarter 2025 non-GAAP earnings per share (EPS) of $1.10, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line increased around 11.1% year over year.
Total revenues decreased 1.9% year over year to $281.1 million. This was due to the divestiture of EVERFI. The top line surpassed the Zacks Consensus Estimate by 0.5%.
The company’s solid results demonstrate disciplined execution and continued productivity gains. Blackbaud is focused on delivering an attractive financial model that balances growth in revenue, earnings and cash flow with a thoughtful and strategic approach to capital allocation. So far this year, the company has repurchased more than 5% of its outstanding common stock.
GAAP recurring revenue declined 1.5% to $275.8 million, primarily due to the divestiture of EVERFI, accounting for 98.1% of total revenue.
Non-GAAP organic revenues were up 5.2% on a reported basis and 4.8% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 5.5% on a reported basis and 5.1% on a constant-currency basis.
After the announcement, shares of the company jumped around 6% in the trading session yesterday. Shares of the company have soared 11.3% in the past six months compared with the Zacks Computer - Software industry's growth of 26.1%.
Image Source: Zacks Investment Research
BLKB’s Margin Details
Non-GAAP gross margin was 63% compared with 61% a year ago. Total operating expenses fell 2.8% on a year-over-year basis to $112.9 million. GAAP operating margin increased 500 basis points (bps) to 19.4%.
Non-GAAP operating margin increased 240 bps to 29.9%. Non-GAAP adjusted EBITDA margin was 27.6%.
BLKB’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, Blackbaud had total cash, cash equivalents and restricted cash of $457.4 million compared with $911.8 million as of June 30, 2025. Total debt (including the current portion) as of Sept. 30, 2025, was $1 billion compared with $1.1 billion as of June 30, 2025.
For the third quarter, cash provided by operating activities was $207.5 million compared with $222.4 million in the prior-year quarter. Non-GAAP adjusted free cash outflow was $125.1 million, up $27.5 million in the year-ago quarter.
As of Sept. 30, 2025, Blackbaud had nearly $514 million available under its stock buyback program, which was expanded and renewed in July 2024. According to current plans, the company expects total share repurchases in 2025 to represent between 5.2% and 7.0% of its outstanding common stock as of Dec. 31, 2024.
Blackbaud reiterated its guidance for full-year 2025. The company projects GAAP revenues between $1.120 billion and $1.130 billion, reflecting approximately 5% organic growth at the midpoint on a constant currency basis. This represents a $5 million increase, driven by strong transactional revenue in the first half of the year and favorable foreign exchange impacts compared to initial expectations. The Zacks Consensus Estimate is pegged at $1.13 billion.
The company still projects non-GAAP adjusted EBITDA margin in the range of 35.4-36.2%. Non-GAAP EPS is anticipated to be between $4.30 and $4.50. The Zacks Consensus Estimate for EPS is pegged at $4.40.
Non-GAAP adjusted free cash flow for 2025 is forecasted to be in the range of $195-$205 million compared with $190-$200 million projected earlier.
Non-GAAP annualized effective tax rate is still anticipated to be approximately 24.5%. Interest expense is expected in the band of $66 million to $70 million. Fully diluted shares are still estimated to be 48.5 million to 49.5 million. Capital expenditures are expected to be in the range of $55 million to $65 million, which includes $50-$60 million of capitalized software and content development costs.
Recent Updates
Blackbaud unveiled a wide range of new embedded AI capabilities across its product portfolio at bbcon 2025, marking a major step toward its vision for a new era of intelligent action. Also, the company announced significant enhancements to Blackbaud Impact Edge, introducing smarter AI features, advanced analytics and measurement tools, and deeper data insights.
Additionally, Blackbaud launched its 2025 Ultimate End-of-Year Fundraising Toolkit, a comprehensive resource designed to help organizations maximize fundraising success. The Blackbaud Institute, in partnership with GivingTuesday, released a new report highlighting the long-term impact of GivingTuesday donors and offering strategies for nonprofits to foster stronger, year-round engagement.
Cadence Design Systems (CDNS - Free Report) reported third-quarter 2025 non-GAAP earnings per share of $1.93, which beat the Zacks Consensus Estimate by 7.8%. The bottom line increased 17.7% year over year, exceeding management’s guided range of $1.75-$1.81.
Revenues of $1.339 billion beat the Zacks Consensus Estimate by 0.9% and increased 10.2% year over year. The figure also beat the management’s guided range of $1.305-$1.335 billion.
SAP SE (SAP - Free Report) reported third-quarter 2025 non-IFRS earnings of €1.59 ($1.86) per share, climbing 29% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.69. Driven by robust cloud growth, disciplined cost control and expanding AI capabilities, SAP reported total revenues on a non-IFRS basis of €9.08 billion ($10.6 billion), representing a 7% year-over-year increase (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $10.56 billion.
Badger Meter, Inc. (BMI - Free Report) reported EPS of $1.19 for third-quarter 2025, which surpassed the Zacks Consensus Estimate by 7.2%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of $1.08. Quarterly net sales were $235.7 million, up 13.1% from $208.4 million in the year-ago quarter, driven by higher utility water sales. The Zacks Consensus Estimate was pegged at $229.4 million.
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Blackbaud's Q3 Earnings & Revenues Surpass Estimates, Stock Up
Key Takeaways
Blackbaud, Inc. (BLKB - Free Report) reported third-quarter 2025 non-GAAP earnings per share (EPS) of $1.10, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line increased around 11.1% year over year.
Total revenues decreased 1.9% year over year to $281.1 million. This was due to the divestiture of EVERFI. The top line surpassed the Zacks Consensus Estimate by 0.5%.
The company’s solid results demonstrate disciplined execution and continued productivity gains. Blackbaud is focused on delivering an attractive financial model that balances growth in revenue, earnings and cash flow with a thoughtful and strategic approach to capital allocation. So far this year, the company has repurchased more than 5% of its outstanding common stock.
GAAP recurring revenue declined 1.5% to $275.8 million, primarily due to the divestiture of EVERFI, accounting for 98.1% of total revenue.
Non-GAAP organic revenues were up 5.2% on a reported basis and 4.8% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 5.5% on a reported basis and 5.1% on a constant-currency basis.
After the announcement, shares of the company jumped around 6% in the trading session yesterday. Shares of the company have soared 11.3% in the past six months compared with the Zacks Computer - Software industry's growth of 26.1%.
Image Source: Zacks Investment Research
BLKB’s Margin Details
Non-GAAP gross margin was 63% compared with 61% a year ago. Total operating expenses fell 2.8% on a year-over-year basis to $112.9 million.
GAAP operating margin increased 500 basis points (bps) to 19.4%.
Non-GAAP operating margin increased 240 bps to 29.9%. Non-GAAP adjusted EBITDA margin was 27.6%.
BLKB’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, Blackbaud had total cash, cash equivalents and restricted cash of $457.4 million compared with $911.8 million as of June 30, 2025. Total debt (including the current portion) as of Sept. 30, 2025, was $1 billion compared with $1.1 billion as of June 30, 2025.
For the third quarter, cash provided by operating activities was $207.5 million compared with $222.4 million in the prior-year quarter. Non-GAAP adjusted free cash outflow was $125.1 million, up $27.5 million in the year-ago quarter.
As of Sept. 30, 2025, Blackbaud had nearly $514 million available under its stock buyback program, which was expanded and renewed in July 2024.
According to current plans, the company expects total share repurchases in 2025 to represent between 5.2% and 7.0% of its outstanding common stock as of Dec. 31, 2024.
Blackbaud, Inc. Price, Consensus and EPS Surprise
Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote
BLKB Provides 2025 Outlook
Blackbaud reiterated its guidance for full-year 2025. The company projects GAAP revenues between $1.120 billion and $1.130 billion, reflecting approximately 5% organic growth at the midpoint on a constant currency basis. This represents a $5 million increase, driven by strong transactional revenue in the first half of the year and favorable foreign exchange impacts compared to initial expectations. The Zacks Consensus Estimate is pegged at $1.13 billion.
The company still projects non-GAAP adjusted EBITDA margin in the range of 35.4-36.2%. Non-GAAP EPS is anticipated to be between $4.30 and $4.50. The Zacks Consensus Estimate for EPS is pegged at $4.40.
Non-GAAP adjusted free cash flow for 2025 is forecasted to be in the range of $195-$205 million compared with $190-$200 million projected earlier.
Non-GAAP annualized effective tax rate is still anticipated to be approximately 24.5%. Interest expense is expected in the band of $66 million to $70 million.
Fully diluted shares are still estimated to be 48.5 million to 49.5 million. Capital expenditures are expected to be in the range of $55 million to $65 million, which includes $50-$60 million of capitalized software and content development costs.
Recent Updates
Blackbaud unveiled a wide range of new embedded AI capabilities across its product portfolio at bbcon 2025, marking a major step toward its vision for a new era of intelligent action. Also, the company announced significant enhancements to Blackbaud Impact Edge, introducing smarter AI features, advanced analytics and measurement tools, and deeper data insights.
Additionally, Blackbaud launched its 2025 Ultimate End-of-Year Fundraising Toolkit, a comprehensive resource designed to help organizations maximize fundraising success. The Blackbaud Institute, in partnership with GivingTuesday, released a new report highlighting the long-term impact of GivingTuesday donors and offering strategies for nonprofits to foster stronger, year-round engagement.
BLKB’s Zacks Rank
Blackbaud currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Firms
Cadence Design Systems (CDNS - Free Report) reported third-quarter 2025 non-GAAP earnings per share of $1.93, which beat the Zacks Consensus Estimate by 7.8%. The bottom line increased 17.7% year over year, exceeding management’s guided range of $1.75-$1.81.
Revenues of $1.339 billion beat the Zacks Consensus Estimate by 0.9% and increased 10.2% year over year. The figure also beat the management’s guided range of $1.305-$1.335 billion.
SAP SE (SAP - Free Report) reported third-quarter 2025 non-IFRS earnings of €1.59 ($1.86) per share, climbing 29% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.69. Driven by robust cloud growth, disciplined cost control and expanding AI capabilities, SAP reported total revenues on a non-IFRS basis of €9.08 billion ($10.6 billion), representing a 7% year-over-year increase (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $10.56 billion.
Badger Meter, Inc. (BMI - Free Report) reported EPS of $1.19 for third-quarter 2025, which surpassed the Zacks Consensus Estimate by 7.2%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of $1.08. Quarterly net sales were $235.7 million, up 13.1% from $208.4 million in the year-ago quarter, driven by higher utility water sales. The Zacks Consensus Estimate was pegged at $229.4 million.