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Blackbaud's Financial Overview for 2025

Blackbaud, a leader in AI for social impact, recently announced its financial performance results for the fourth quarter and full fiscal year ending December 31, 2025. This release reaffirmed the company's status as a strong player in the market, showcasing multiple strategic achievements and financial improvements.

Key Highlights

In the fourth quarter, Blackbaud recorded a total revenue of $295.3 million, reflecting a 2.3% decrease from the previous year primarily due to the divestiture of EVERFI. However, when excluding that factor, the company reported a 4.3% growth in organic revenue. The recurring revenue, which accounted for 98.5% of total revenue, was recorded at $290.8 million, illustrating stability and resilience in core business operations.

Financially, the company managed to deliver a GAAP income from operations of $59.1 million for the quarter, with a substantial operating margin improvement, reaching 20.0%, an increase of over 14,160 basis points compared to the previous quarter's loss. The total net income attributed to shareholders stood at $36.7 million, amounting to $0.76 per share.

Full-Year 2025 Performance

For the entirety of 2025, Blackbaud reported total revenues of $1.1 billion, marking a 2.3% decrease, which again was mostly due to the EVERFI divestiture. Nevertheless, the company achieved a 5.5% increase in non-GAAP organic revenue, indicating strong performance in its core offerings.

GAAP operating income for the year reached $190.8 million, corresponding to a 16.9% operating margin. Blackbaud also noted a notable increase in non-GAAP operating income, which amounted to $344.4 million or 30.5% in operating margin.

Net income for the full year was declared at $115 million, translating to $2.37 per share, an improvement reflecting the recoveries from previous years' losses.

Strategic Initiatives and Outlook

Looking ahead to 2026, Blackbaud's leadership expressed optimistic growth prospects, with a revenue guidance set between $1.173 billion to $1.179 billion and a non-GAAP adjusted EBITDA expected to range from $430 million to $438 million. The company’s ambitious financial model forecasts continued expansion with improved earnings per share projected at $5.15 to $5.25.

CEO Mike Gianoni emphasized the company’s commitment to leveraging AI to enhance its operational efficiencies and customer solutions. This format of embracing innovative technologies is aimed at capitalizing on the next significant wave of technological advancements, supporting not just the company's growth but also their clients’ success in social impact initiatives.

Additionally, Blackbaud’s recent partnership with Anthropic highlights an exciting shift toward innovating AI-driven solutions. Such collaborations signify the company’s intent to stay ahead in an advancing technological landscape.

Conclusion

Blackbaud’s performance in 2025 reflects its strong positioning in the market, marked by substantial revenue and income growth amidst strategic transitions. The company's commitment to fostering social impact through technology continues to define its path forward as it gears up for an optimistic 2026. For more detailed updates and insights, visit Blackbaud's newsroom.