Blackbaud Inc (BLKB)

Price$47.27Cached quoteAs of 2026-09-04 16:23 UTC

AI: Undervalued

Price checkThe valuation looks low for recurring software, though debt and slow growth justify a meaningful discount.

Blackbaud, Inc. (Nasdaq Global Select Market: BLKB) is valued around $2.0 billion in equity. Market data shows roughly six-to-seven times trailing free cash flow and about eight times forward earnings; using management’s 2026 free-cash-flow guide gives a similar sub-seven-times equity cash-flow multiple. Free cash flow means cash left after running the business and funding capital spending. Those levels are inexpensive for a mostly recurring software business, but the discount is partly explained by leverage, retention pressure, and only low-single-digit revenue growth.

Big pictureRevenue is growing slowly, while margins and cash generation are improving much faster than sales.

Second-quarter revenue rose 3.0% to $290.6 million, while GAAP operating margin improved to 21.3% and adjusted EBITDA margin reached 38.0%. First-half operating cash flow more than doubled to $142.5 million, and free cash flow rose to $112.3 million. Management expects 2026 revenue of $1.173-$1.179 billion and free cash flow of $280-$290 million, with results toward the upper end. Cash durability is helped by recurring subscriptions, though 2026 cash flow also benefits from tax changes and normal seasonality.

Business strengthLong contracts and recurring revenue support durability, but retention softness and leverage still deserve close attention.

About 98% of second-quarter revenue was recurring, and roughly 90% of contractual recurring revenue sits on contracts of three years or longer. Gross dollar retention, meaning revenue kept from existing customers before upsells, was about 91% and has weakened as a larger renewal cohort comes due. Debt was about $1.15 billion against $34.4 million of unrestricted cash, but the company had $374 million of borrowing capacity and remained well inside covenants. Stock-based compensation was $46.6 million in the first half, so buybacks also offset dilution; repurchases were partly accompanied by higher borrowings.

What could change the storyBetter retention and mid-single-digit growth could unlock upside; weaker renewals or heavier leverage would challenge value.

Bull case: retention stabilizes and moves back toward historical levels, organic recurring growth improves toward 4%-5%, adjusted EBITDA margins hold near the high-30s, and free cash flow lands near the top of guidance while buybacks reduce the net share count without lifting leverage. Bear case: retention slips below roughly 90%, transactional giving or tuition volumes soften, growth stays near 2%-3%, tax benefits fade, or repurchases require more borrowing. In that case, today’s low valuation multiple could be appropriate rather than a bargain.

AI: News

Q2 cash flow jumpsBlackbaud posted modest sales growth but much stronger margins and first-half cash generation.

On July 29, 2026, Blackbaud reported Q2 revenue of $290.6 million, up 3.0% year over year, and GAAP operating margin of 21.3%. First-half free cash flow reached $112.3 million, up from $39.2 million a year earlier. Management reaffirmed full-year guidance and said it expected to finish in the upper half across key metrics, with earnings and free cash flow near the high end.

Copilot integration expandsRaiser’s Edge NXT can now surface fundraising insights inside Microsoft 365 Copilot workflows.

On August 10, 2026, Blackbaud announced a Microsoft 365 Copilot-enabled agent for Raiser’s Edge NXT. The integration lets fundraising teams query donor data and insights from applications including Copilot Chat, Outlook, Teams, Word, and Excel. Strategically, it may reduce workflow friction and deepen product stickiness, but the announcement did not include revenue targets, so the near-term financial impact remains unquantified.

Hyderabad footprint expandsA second Hyderabad office adds customer-operations capacity and supports Blackbaud’s broader global delivery model.

On August 31, 2026, Blackbaud opened a second office in Hyderabad, India, a 45,000-square-foot facility focused primarily on Customer Operations. The company expects its India workforce to keep growing across cloud, AI, engineering, support, and sales operations. The expansion could support scalability and cost efficiency, consistent with the company’s productivity efforts, while also requiring disciplined execution so service quality and customer retention improve rather than weaken.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2014	2013	2012	2011	2010	2009	2008
Revenue	$1.13B	$1.15B	$1.11B	$1.06B	$927.7M	$913.2M	$900.4M	$848.6M	$788.5M	$564.4M	$503.8M	$447.4M	$370.9M	$326.6M	$309.5M	$302.5M
Gross profit	$663.3M	$631.4M	$599.1M	$552.7M	$484.5M	$485.2M	$482.0M	$466.9M	$426.6M	$291.0M	$271.2M	$245.0M	$213.7M	$194.4M	$188.3M	$186.1M
Gross margin	58.78%	54.69%	54.11%	52.24%	52.23%	53.13%	53.53%	55.02%	54.10%	51.55%	53.82%	54.75%	57.61%	59.54%	60.86%	61.51%
Research & development	$138.1M	$153.7M	$147.5M	$156.9M	$124.6M	$100.1M	$106.2M	$98.8M	$89.9M	$77.2M	$65.6M	$64.7M	$47.7M	$45.5M	$45.5M	$38.7M
Operating expenses	$472.5M	$902.8M	$552.7M	$581.2M	$459.6M	$447.9M	$454.9M	$407.4M	$358.4M	$244.6M	$219.6M	$225.5M	$162.7M	$148.4M	$143.2M	$138.7M
Operating income	$190.8M	−$271.4M	$46.4M	−$28.5M	$24.9M	$37.2M	$27.1M	$59.4M	$68.2M	$46.4M	$51.5M	$19.4M	$50.9M	$46.0M	$45.2M	$47.4M
Operating margin	16.91%	−23.50%	4.19%	−2.69%	2.68%	4.08%	3.01%	7.00%	8.65%	8.21%	10.23%	4.34%	13.73%	14.09%	14.60%	15.67%
EBITDA	$277.0M	−$149.7M	$155.8M	$73.9M	$107.3M	$130.0M	$112.8M	$139.0M	$142.1M	$91.8M	$94.7M	$51.7M	$67.9M	$62.2M	$60.8M	$60.3M
EBITDA margin	24.55%	−12.97%	14.08%	6.98%	11.57%	14.23%	12.53%	16.38%	18.03%	16.26%	18.80%	11.55%	18.31%	19.05%	19.65%	19.92%
Net income	$115.0M	−$299.5M	$3.0M	−$45.4M	$5.7M	$7.7M	$11.9M	$44.8M	$73.6M	$28.3M	$30.5M	$6.6M	$33.2M	$29.2M	$27.5M	$29.9M
Net profit margin	10.19%	−25.94%	0.27%	−4.29%	0.61%	0.85%	1.32%	5.28%	9.34%	5.01%	6.05%	1.47%	8.96%	8.94%	8.89%	9.88%
Basic EPSper basic share	$2.41	-$5.92	$0.06	-$0.88	$0.12	$0.16	$0.25	$0.95	$1.58	$0.63	$0.68	$0.15	$0.76	$0.68	$0.64	$0.70
Diluted EPSper diluted share	$2.37	-$5.92	$0.06	-$0.88	$0.12	$0.16	$0.25	$0.93	$1.54	$0.62	$0.67	$0.15	$0.75	$0.67	$0.63	$0.68

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

21.43%of listed shares

CLEARLAKE CAPITAL GROUP, L.P.9.75M shares · Jun 30, 2026

View holders

Top 20 reported holders of BLKB
Holder	% owned
CLEARLAKE CAPITAL GROUP, L.P.	21.43%9.75M shares
BlackRock, Inc.	13.14%5.98M shares
MORGAN STANLEY	10.77%4.9M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	6.92%3.15M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.26%1.94M shares
STATE STREET CORP	3.63%1.65M shares
Jupiter Topco LLC	3.50%1.59M shares
GOLDMAN SACHS GROUP INC	2.73%1.24M shares
GEODE CAPITAL MANAGEMENT, LLC	2.06%938.93K shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.89%858.42K shares
Qube Research & Technologies Ltd	1.79%814.14K shares
FULLER & THALER ASSET MANAGEMENT, INC.	1.57%713.03K shares
SHAPIRO CAPITAL MANAGEMENT LLC	1.55%703.61K shares
Clearline Capital LP	1.51%688.85K shares
TWO SIGMA INVESTMENTS, LP	1.43%652.25K shares
FIRST TRUST ADVISORS LP	1.37%625.81K shares
Lightrock Netherlands B.V.	1.26%573.95K shares
GENEVA CAPITAL MANAGEMENT LLC	1.23%558.11K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.21%549.93K shares
DIMENSIONAL FUND ADVISORS LP	1.19%543.22K shares

Percentages use 45.51M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)55$19.23M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 1, 2026Form 4 · 10b5-1	Anderson ChadExecutive VP and CFO	SellCommon Stock	6.2K	$31.31	$194.3K	62.9K
Mar 4, 2026Form 4	Gregoire Kevin P.EVP, Chief Operating Officer	SellCommon Stock	2.0K	$50.02	$100.0K	135.2K
Mar 3, 2026Form 4	Olson Jon WSVP and General Counsel	SellCommon Stock	5.0K	$49.10	$245.5K	35.9K
Feb 27, 2026Form 4	Olson Jon WSVP and General Counsel	SellCommon Stock	10.0K	$48.23	$482.3K	40.9K
Feb 24, 2026Form 4	Benjamin David JEVP, Chief Commercial Officer	SellCommon Stock	14.3K	$47.47	$681.1K	73.1K

Review ownership filings at SEC.gov ↗

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Blackbaud Inc (BLKB)

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