#United States #Charleston #AI Innovations #Blackbaud #Social Impact

Blackbaud Reports Significant Financial Achievements in Q3 2025

On October 29, 2025, Blackbaud (NASDAQ: BLKB), a premier provider of software dedicated to social impact, unveiled its financial results for the third quarter that ended on September 30, 2025. The company's leadership expressed enthusiasm about the steady momentum in their market presence and the ongoing integration of innovative AI technologies into their offerings.

Financial Highlights

In the first three quarters of 2025, Blackbaud reported significant financial outcomes, despite a minor decrease in total revenue compared to the previous year. The following details highlight the key figures:

• - GAAP Total Revenue: $281.1 million, which marks a decline of 1.9% year-over-year, primarily due to the divestiture of EVERFI.
• - Non-GAAP Organic Revenue: Increased by 5.2%, reflecting the company’s focus on bolstering its core operations.
• - GAAP Recurring Revenue: $275.8 million, down by 1.5%, yet representing 98.1% of total revenue, showcasing the company’s robust subscription model.
• - GAAP Net Income: $47.5 million, translating to diluted earnings per share of $0.98, an impressive uptick of $0.63 from the previous year.

The company also showcased a notable increase in operational efficiency, with a GAAP operating margin rising by 500 basis points to 19.4%, alongside a non-GAAP operating margin increase of 240 basis points to 29.9%.

Innovations Driving Growth

At the recently held bbcon conference, Blackbaud unveiled various innovative features that firmly place them at the forefront of AI integration in social impact sectors. Their emphasis on artificial intelligence aims to transform how organizations engage with their constituents, improving fundraising methods and operational efficiency. According to Mike Gianoni, President and CEO, the company is committed to continuous investments in AI technologies that empower customers and bolster fundraising capabilities.

Reassuring Investor Confidence

Chad Anderson, CFO of Blackbaud, expressed optimism about the company’s long-term growth trajectory. The strong performance thus far aligns with their strategic vision of enhancing revenue, earnings, and cash flow alongside a diligent capital allocation approach. Notably, the company has repurchased over 5% of its common stock in 2025 amid efforts to reduce leverage from 2.9x in Q1 to 2.4x by Q3.

Recent Achievements

Beyond their financial results, Blackbaud took pride in being ranked #20 by Fast Company on its 2025 list of the Best Workplaces for Innovators, reinforcing their commitment to fostering a dynamic work environment. Furthermore, the launch of their 2025 Ultimate End-of-Year Fundraising Toolkit aims to be a comprehensive resource to support organizations' fundraising activities as the year concludes. The Blackbaud Institute also collaborated with GivingTuesday to analyze the long-term effects of its donors and how nonprofits can engage them year-round.

Looking Ahead

Looking forward, Blackbaud maintained its revenue guidance for the full year of 2025, forecasting GAAP revenue in the range of $1.120 billion to $1.130 billion, alongside an adjusted EBITDA margin of 35.4% to 36.2%. Expectations for diluted earnings per share have been raised to between $4.30 and $4.50, along with adjusted free cash flow projections of $195 million to $205 million. This guidance supports a positive outlook for the upcoming quarters, anticipating consistent growth and innovation in their product offerings.

In conclusion, Blackbaud's Q3 2025 performance emphasizes their commitment to innovation and operational excellence while reaffirming a strong long-term vision for growth in the social impact sector. Their continued focus on AI integration and robust financial outcomes positions them as a formidable leader in their industry.