Key Highlights:

  • Revenue came in at USD 290.6 million, representing 3.0% organic growth year over year.
  • Non-GAAP EPS totaled USD 1.33, an increase of 9.0% compared to the prior year.
  • Full Year Revenue Guidance stood at USD 1.173 billion to USD 1.179 billion, with management targeting the upper half.
  • Recurring Revenue was reported at USD 285.3 million, accounting for 98.2% of total revenue and growing 3.3% organically.

Blackbaud, Inc. (NASDAQ:BLKB) is scheduled to report third quarter results on Wednesday, Oct. 28, before the market open. Consensus estimates call for adjusted earnings per share of USD 1.33 on revenue of USD 293.93 million, against a market capitalization of USD 2.50 billion.

In the most recently reported quarter, Revenue came in at USD 290.6 million, representing 3.0% organic growth year over year. Non-GAAP EPS totaled USD 1.33, an increase of 9.0% compared to the prior year.

Non-GAAP Adjusted EBITDA and Other Business Trends

Non-GAAP Adjusted EBITDA came in at USD 110.3 million, resulting in an adjusted EBITDA margin of 38.0%. Free Cash Flow totaled USD 75.3 million, an increase of USD 23.8 million or 46.0% reflecting improved operating discipline. Share Repurchases stood at 6.1% of outstanding common stock repurchased in the first half of 2026. Total Share Reduction was reported at 15.0% reduction in common stock outstanding since the fourth quarter of 2023.

What Management Guided

Full Year EPS Guidance came in at USD 5.15 to USD 5.25, with expectations to finish at or above the high end. Full Year Free Cash Flow Guidance totaled USD 280 million to USD 290 million, projected to reach the high end of the range. Interest Expense Guidance stood at USD 62 million to USD 66 million for the full fiscal year 2026. Capital Expenditures Guidance was reported at USD 60 million to USD 70 million, including USD 52 million to USD 62 million in capitalized software development costs.

Contract Duration and Capital Position

Contract Duration came in at 25.0% of contractual recurring revenue is now on four-year or longer contracts, up from 20.0% previously. Multiyear Contracts totaled 90.0% of contractual recurring revenue is secured by three-year or longer contracts. Renewal Cohort stood at 40.0% larger contractual recurring renewal volume in 2026 compared to 2025, impacting reported retention metrics. Long-term Revenue Growth Target was reported at 4.0% to 6.0% annual organic growth projected for the 2026 to 2030 period. Long-term Adjusted EBITDA Target came in at 6.0% to 8.0% annual growth with margins targeted at 40.0% or higher by 2030.

Long-term Capital Allocation and Additional Detail

Long-term Capital Allocation came in at 50.0% or more of cumulative free cash flow to be used for stock repurchases through 2030. Rule of 40 Score totaled 41.0% achieved during the second quarter. Tax Rate stood at 24.5% non-GAAP effective tax rate assumed for the full year. Cash and Cash Equivalents was reported at USD 34.4 million on hand as of June 30, 2026. Total Debt came in at USD 1.15 billion, including a current portion of USD 22.6 million.

Figures to Follow in the Release

Investors can watch third quarter results against the figures management has already put on record, including the following: Full Year Revenue Guidance came in at USD 1.173 billion to USD 1.179 billion, with management targeting the upper half of the range.