#United States #financial results #Blackbaud #Q2 2025 #Charleston, S.C.

Blackbaud Reports Q2 2025 Financial Results

On July 30, 2025, Blackbaud (NASDAQ: BLKB), recognized as a leading provider of software that supports social impact initiatives, announced its financial performance for the second quarter ending on June 30, 2025. The results reveal continued improvement in both revenue and profitability since the company started its recovery journey in 2020.

Key Highlights:

• - Growth and Profitability: Mike Gianoni, Blackbaud's president and CEO, expressed satisfaction with the notable advancements in growth and profitability, citing the second quarter as a testament to the team's dedication and the strength of Blackbaud's offerings. The company reported a Rule of 40 score of 45.3%, surpassing earlier metrics and aligning with their goal of reaching a Rule of 45.

• - Financial Performance:

- GAAP Total Revenue amounted to $281.4 million, reflecting a slight decline of 2.1% attributed to the divestiture of EVERFI. Additionally, the non-GAAP organic revenue showed a growth of 6.8%.
- Blackbaud's GAAP Recurring Revenue was reported at $275.6 million, demonstrating a decline of 2.0%, while non-GAAP organic recurring revenue increased by 6.9%.
- The company achieved a GAAP Income from Operations of $56.7 million, a 540 basis point increase in operating margin to 20.1%. For non-GAAP metrics, the income from operations stood at $94.3 million with a margin of 33.5%.
- A GAAP net income of $26.0 million was reported with a diluted earnings per share of $0.54, marking an increase from the previous year.

• - Future Guidance: Based on the strong performance in the first half of 2025, Blackbaud has revised its full-year financial outlook:

- GAAP Revenue is expected to range between $1.120 billion to $1.130 billion.
- Non-GAAP adjusted EBITDA margin is anticipated to be between 35.4% and 36.2%.
- Non-GAAP earnings per share is projected in the range of $4.30 to $4.50.
- The company expects to generate between $190 million to $200 million in non-GAAP adjusted free cash flow.

Strategic Moves and Company Updates:

In addition to the impressive financial outcomes, Blackbaud continues to make strides in organizational development. Recently, the company appointed Bill Fort, a veteran from Salesforce, as the senior vice president of North America sales. This strategic hire aligns with Blackbaud's ongoing efforts to enhance its sales capabilities and drive client engagement.

Blackbaud showcased its focus on AI integration at its annual developer's conference, presenting the Agentic AI vision aimed at enhancing customer interactions and fundraising effectiveness. The implementation of Intelligence for Good® is central to this mission.

Moreover, Blackbaud executed a strategic integration with Constant Contact, which will optimize how its social impact clients engage with supporters through a suite of digital marketing tools.

Also noteworthy is the release of the Blackbaud Institute's 2025 Status of Fundraising Report, which highlights the increasing role of technology and AI in driving positive fundraising outcomes. The report showcases substantial recognition of tech adoption within the social impact sector, emphasizing its direct correlation with revenue growth.

Furthermore, Blackbaud published its 2024 Impact Report, demonstrating progress in environmental and social governance priorities. This year, the company was also honored as one of Newsweek's World's Greenest Companies for 2025.

For those interested in learning more, Blackbaud will host its annual conference, bbcon 2025, taking place from October 6 to 8 in Philadelphia, where they will delve deeper into these strategies and outcomes.

Blackbaud continues to reinforce its position in the nonprofit and education sectors, aiding organizations dedicated to social responsibility and positive change. With several initiatives in motion and a clear path forward, Blackbaud illustrates its steadfast commitment to empowering social impact.