Blackbaud Announces 2025 Second Quarter Results

Company Raises Full Year 2025 Financial Guidance

CHARLESTON, S.C., July 30, 2025 -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced financial results for its second quarter ended June 30, 2025.

"I continue to be very pleased with Blackbaud's significant improvement in growth and profitability since 2020, and our very strong second quarter and first half of 2025 results are a further testament to the power of our people, our products and our position in the marketplace serving the social impact sector," said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. "In fact, in the second quarter, we significantly exceeded the Rule of 40, delivering our highest quarterly performance in this metric in the Company's history. This result demonstrates that Blackbaud is well positioned to continue improving our results on the Rule of 40 as we move to a Rule of 45."

Second Quarter 2025 Results Compared to Second Quarter 2024 Results:

• GAAP total revenue was $281.4 million, down 2.1% (driven by divestiture of EVERFI) and non-GAAP organic revenue increased 6.8%.
• GAAP recurring revenue was $275.6 million, down 2.0% (driven by divestiture of EVERFI) and represented 98.0% of total revenue. Non-GAAP organic recurring revenue increased 6.9%.
• GAAP income from operations was $56.7 million, with GAAP operating margin of 20.1%, an increase of 540 basis points.
• Non-GAAP income from operations was $94.3 million, with non-GAAP operating margin of 33.5%, an increase of 350 basis points.
• GAAP net income was $26.0 million, with GAAP diluted earnings per share of $0.54, up $0.12 per share.
• Non-GAAP net income was $58.2 million, with non-GAAP diluted earnings per share of $1.21, up $0.13 per share.
• Non-GAAP adjusted EBITDA was $108.5 million, up $5.9 million, with non-GAAP adjusted EBITDA margin of 38.5%, an increase of 280 basis points.
• Rule of 40 score of 45.3%.
• GAAP net cash provided by operating activities was $66.9 million, an increase of $13.1 million, with GAAP operating cash flow margin of 23.8%, an increase of 510 basis points.
• Non-GAAP free cash flow was $51.5 million, an increase of $18.9 million, with non-GAAP free cash flow margin of 18.3%, an increase of 690 basis points.
• Non-GAAP adjusted free cash flow was $53.1 million, an increase of $16.7 million, with non-GAAP adjusted free cash flow margin of 18.9%, an increase of 620 basis points.

"We are raising our full-year 2025 financial guidance across all key metrics, driven by our strong performance in the first half of the year," said Chad Anderson, executive vice president and CFO, Blackbaud. "Our outperformance in both revenue and profitability reflects our disciplined operational execution, ongoing productivity improvements, and the strength of our financial model. We remain focused on delivering greater value to our customers and shareholders—both now and in the future."

An explanation of all non-GAAP financial measures referenced in this press release, including the Rule of 40, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Recent Company Highlights

• Blackbaud has welcomed Salesforce veteran Bill Fort as senior vice president of North America sales. 
• At its annual developer's conference, Blackbaud equipped developers with cutting edge AI skills and announced the company's vision for Agentic AI to help customers unlock new levels of effectiveness and deeper connections across critical fundraising operations like donor cultivation, stewardship, and sustainer management.
• In addition, at its May Product Update Briefings, Blackbaud showcased its Intelligence for Good® AI strategy, highlighting how powerful, responsible AI is being integrated directly within products.
• Blackbaud and Constant Contact rolled out a strategic integration to enable social impact customers to reach and engage supporters more effectively using leading email, SMS, social media and other digital marketing functions, all through an embedded experience in Blackbaud Raiser's Edge NXT®.
• The Blackbaud Institute released a 2025 Status of Fundraising report, showing the growing recognition of technology, including AI, within social impact and its impact on fundraising revenue growth and success.
• Blackbaud released its 2024 Impact Report, sharing how the company has advanced its environmental, social and governance priorities in the past year, and Blackbaud was also named one of Newsweek's World's Greenest Companies 2025.
• Blackbaud announced keynote speakers and sessions for bbcon 2025, happening Oct. 6-8 in Philadelphia.

Visit www.blackbaud.com/newsroom for more information about Blackbaud's recent highlights.

Financial Outlook
Blackbaud today raised its 2025 full year financial guidance (does not contemplate future impact of the One Big Beautiful Bill Act):

• GAAP revenue of $1.120 billion to $1.130 billion
• Non-GAAP adjusted EBITDA margin of 35.4% to 36.2%
• Non-GAAP earnings per share of $4.30 to $4.50
• Non-GAAP adjusted free cash flow of $190 million to $200 million

Included in its 2025 full year financial guidance are the following updated assumptions:

• Non-GAAP annualized effective tax rate is expected to be approximately 24.5%
• Interest expense for the year is expected to be approximately $65 million to $69 million
• Fully diluted shares for the year are expected to be approximately 48.5 million to 49.5 million
• Capital expenditures for the year are expected to be approximately $55 million to $65 million, including approximately $50 million to $60 million of capitalized software development costs

Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.

In order to provide a meaningful basis for comparison, Blackbaud uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, capital expenditures for property and equipment, plus cash outflows related to the previously disclosed Security Incident discovered in May 2020 (the "Security Incident"). Please refer to the section below titled "Non-GAAP Financial Measures" for more information on Blackbaud's use of non-GAAP financial measures.

Stock Repurchase Program
As of June 30, 2025, Blackbaud had approximately $545 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in July 2024.

Reclassifications
Our revenue from "recurring" and "one-time services and other" have been combined within "revenue" beginning in 2025 due to the immateriality of our one-time services and other revenue. In order to provide comparability between periods presented, our "recurring" and "one-time services and other" revenue lines have been combined within "revenue" in the previously reported consolidated statements of comprehensive income to conform to the presentation of the current period. Similarly, "cost of recurring" and "cost of one-time services and other" have been combined within "cost of revenue" in the previously reported consolidated statements of comprehensive income to conform to the presentation of the current period.

Conference Call Details
What:       Blackbaud's 2025 Second Quarter Conference Call
When:      July 30, 2025
Time:       8:00 a.m. (Eastern Time)
Live Call:  1-877-407-3088 (US/Canada)
Webcast: Blackbaud's Investor Relations Webpage

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud's essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud's solutions are unleashing the potential of the people and organizations who change the world. Blackbaud has been named to Newsweek's list of America's Most Responsible Companies, Quartz's list of Best Companies for Remote Workers and Forbes' list of America's Best Employers. A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica, India and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com, or follow us on X/Twitter, LinkedIn, Instagram, and Facebook.