Blackbaud : Q1 2026 Investor Presentation (99ad00)
BLKB
Published on 04/29/2026 at 12:21 pm EDT
Blackbaud
Ticker: BLKB
April 28, 2026
Historical Financials and Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures: The Company has provided in this presentation financial information that has not been prepared in accordance with GAAP. The Company uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company's ongoing operational performance. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results from period to period with other companies in the Company's industry, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. The Company believes that these non-GAAP financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in the Company's business. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.
Blackbaud discusses non-GAAP organic revenue growth measures, including non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis, non-GAAP organic recurring revenue growth, and non-GAAP organic recurring revenue growth on a constant currency basis, which Blackbaud believes provide useful information for evaluating the periodic growth of its business as well as growth on a consistent basis. Each measure of non-GAAP organic revenue growth excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, if any, each measure of non-GAAP organic revenue growth reflects presentation of full year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period, and it includes the current period non-GAAP revenue attributable to those companies. In addition, each measure of non-GAAP organic revenue growth excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is intended to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of our current business' organic revenue growth and revenue run-rate. In these materials, Blackbaud is presenting the following unaudited information: historical recurring and total revenue for the three month period ended March 31, 2026, for the fiscal year ended December 31, 2025 and the interim periods therein; calculations for recurring revenue growth and total revenue growth for the period ended March 31, 2026; and calculations of non-GAAP organic revenue growth, non-GAAP organic recurring revenue growth, non-GAAP organic revenue growth on a constant currency basis and non-GAAP organic recurring revenue growth on a constant currency basis for the same periods.
Rule of 40 is defined as non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. Non-GAAP adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision (benefit); depreciation; amortization of intangible assets from business combinations; amortization of software development costs; stock-based compensation; acquisition and disposition-related costs; employee severance; GCC workforce transition costs; restructuring and other real estate activities; costs, net of insurance, related to the previously disclosed security incident discovered in May 2020 (the "Security Incident"); and impairment charges.
Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment. Blackbaud believes non-GAAP free cash flow provides a useful measure of the company's operating performance.
Historical Financial Statements Being Presented: In these materials, Blackbaud is presenting the following unaudited historical financial information: historical consolidated balance sheets as of the fiscal year ended December 31, 2025 and interim consolidated balance sheets for each of the quarters within fiscal 2026 and 2025; historical consolidated statements of comprehensive income for the fiscal year ended December 31, 2025 and interim consolidated statements of comprehensive income for each of the quarters within fiscal 2026 and 2025; historical consolidated statements of cash flows for the fiscal year ended December 31, 2025 and interim consolidated statements of cash flows for each of the interim year-to-date periods within fiscal 2026 and 2025; and historical non-GAAP financial information for the fiscal year ended December 31, 2025 and for each of the quarters within fiscal 2026 and 2025 as well as reconciliations of the non-GAAP measures to their most directly comparable GAAP measures and related non-GAAP adjustments. Blackbaud is providing this unaudited financial information to allow investors and analysts to more easily access and review the Company's historical consolidated financial data by including such information in one document.
Reconciliation of GAAP to Non-GAAP Financial Measures: Reconciliations of the most directly comparable GAAP measures to non-GAAP financial measures and related adjustments, as well as details of Blackbaud's methodology for calculating non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis, non-GAAP organic recurring revenue growth, non-GAAP organic recurring revenue growth on a constant currency basis and Rule of 40 can be found in the Appendix to these materials and on the "Investor Relations" page of the Company's website.
Blackbaud has not reconciled forward-looking non-GAAP financial measures contained in this investor material to their most directly comparable GAAP measures. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.
Blackbaud Investment Pillars
Rich Market
Opportunity
Global market
leadership
Significant available
TAM
Stable end markets
Fragmented competitive landscape
Innovation Driving Product Value
AI empowering
customers
Embedded cyber security protects customer data
Product first approach driving 90%+ retention rates
Market leading portfolio depth and breadth
Continued migration to 3rd party cloud enables leverage & efficiencies
Attractive Financial Model
Enviable recurring
revenue stream
Large and diverse
customer base
Sustained double
digit earnings growth
Strong cash flows
Purposeful Capital Allocation
Multi-year, programmatic share repurchase
Focus on debt level to maintain optimal capital structure
Targeted M&A to
bolster innovation
Blackbaud is the world's leading provider of AI-powered solutions for social impact
Cloud Software
We build, integrate and implement vertical-specific solutions purpose-built for the unique needs of our customers.
Data Intelligence
Using exclusive data, analytics and expertise, we deliver unparalleled insight and intelligence to the customers we serve.
Services
We drive impact through dedicated customer support and training, along with strategic and managed services tailored to our customers.
Expertise
With over four decades of experience, we are undisputed industry experts on technology for social good.
Blackbaud propels impact at scale with the sector's most intelligent solutions
AI-powered solutions serving the specific needs of the diverse social impact market
Arts & Cultural Organizations
Foundations
Individual Change Agents
Companies
Healthcare Organizations
K-12 Schools
Faith Communities
Higher Education Institutions
Nonprofits
Our core competencies expand what is possible for purpose-driven organizations
Fundraising &
Engagement
Fundraising
Peer-to-Peer Fundraising
Marketing
AI & Data Intelligence
Agents for Good
Insights
Data Health
Financial Management
Fund Accounting
Financial Aid Management
Tuition Management
Organizational &
Program Management
Education Management
Ticketing
Grant & Award Management
Grantmaking
Award Management
Payment Services
Merchant Services
Payables
Social Responsibility
Employee Giving and Volunteering
Grantmaking
Services
Consulting Services
Implementation and Optimization Services
Most comprehensive solution set that accelerates impact
Fundraising, Relationship Management & Engagement
Blackbaud is the leading provider of AI-powered solutions wholly dedicated to powering social impact
(and partners)
Only Blackbaud offers a full portfolio of purpose-built, integrated solutions
Highly fragmented competition offers single-point solutions
Large customer base with strong retention
Financial Management, Grant & Award Management
Organizational & Program Management
Corporate Social Responsibility
Payment Services
OUR COMPETITORS1
1Informed by internal competitive intelligence and analysis.
Fueling accelerated impact for our customers
rolling fundraising average achieved by leveraging Blackbaud Enterprise Fundraising CRMTM
year-over-year increase in giving and volunteering by using YourCause® CSRconnect® and Impact EdgeTM
of lapsed donors recaptured by using Prospect Insights in Blackbaud Raiser's Edge NXT®
increase in annual fundraising since the inception of its Challenge Against Cancer program by using Blackbaud TeamRaiser®
reduction in workload by leveraging Payment Assistant in Blackbaud Financial Edge NXT®
year-over-year increase in fundraising with their use of Blackbaud Raiser's Edge NXT® and Blackbaud Donation Forms
Large and underpenetrated total addressable market
Financial Management, Grant and Award Management Revenue Penetration: <10%
Organizational and
$3.5B
Fundraising, Relationship Management and Engagement Revenue Penetration: <20%
Program Management
Revenue Penetration: <10%
Corporate Social
Responsibility
Revenue Penetration: <5%
$1.0B
Blackbaud TAM
$3.0B
Payment Services
Revenue Penetration: <20%
Sources: FY 2025 Blackbaud Revenue. Global Blackbaud TAM based on IRS data, Canadian Revenue Agency, Private School Universe, IPEDS, Dun & Bradstreet, HIMSS, Guidestar, S&P Global database, Small Business & Entrepreneurship Council, Blackbaud internal data
Q1 2026 Performance
Q1 2026
One-time Services
Contractual Transactional Recurring Recurring
Q1 2025
4.2%
Organic Revenue Growth
$269.9M
$6.8M
($2.0M)
$281.1M
$6.3M
Non-GAAP Organic Revenue Year over Year
Non-GAAP Diluted EPS
Non-GAAP Adj. EBITDA Margin
Q1 2026
Q1 2025
Q1 2026
Q1 2025
$0.95
$1.14
34.1%
35.1%
20% growth
+100bps
Profitability Year over Year
Non-GAAP performance through 3/31/26. Non-GAAP adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision (benefit); depreciation; amortization of intangible assets from business combinations; amortization of software development costs; stock-based compensation; acquisition and disposition-related costs; employee severance; GCC workforce transition costs; restructuring and other real estate activities; costs, net of insurance, related to the previously disclosed security incident discovered in May 2020 (the "Security Incident"); and impairment charges. Please refer to the appendix of this presentation.
2026 total company guidance
($ in millions, except per Low
Midpoint
High
Implied Growth
at Midpoint
Total Revenue $1,173
$1,176
$1,179
4.25%
Non-GAAP $430
$434
$438
7%
Non-GAAP $5.15
$5.20
$5.25
17%
Non-GAAP $280
$285
$290
37%
share amounts)
Adjusted EBITDA EPS
Free Cash Flow
Assumptions included in full year 2026 financial guidance: Non-GAAP annualized effective tax rate of 24.5%; Interest expense for the year of $62M - $66M; Fully diluted shares for the year in the range of 45M - 46M; Capital expenditures for the year in the range of $60M to $70M, including approximately $52M to $62M of capitalized software development costs.
Anticipated impact of larger up for renewal cohort on FY26 revenue growth outlook
Renewal Cohort Sizes
~40% Increase YoY
Dollar value of renewal cohorts fluctuate from year to year
based on mix of contracts up for renewal.
Blackbaud's 2026 contractual recurring renewal cohort is
approximately 40% larger than last year.
We anticipate renewal rates on these up for renewal contracts to remain in line with prior years, however the larger volume of contracts up for renewal may result in higher churn dollars.
This is forecasted to have a negative impact of 0.5 to 0.75 percentage points on total revenue growth for 2026, which is reflected in our financial guidance ranges.
2025 2026
Estimate
Blackbaud is an ideal platform for compounding profitable growth
Clear market leader with the most comprehensive set of purpose-built and mission critical solutions powering social impact
Durable and proven operating model with resilient end markets and strong recurring revenue
Sustained competitive advantage via commitment to AI and product innovation with a platform to deliver these solutions at scale
Track record of delivering improved financial performance with a pathway to consistent revenue growth, expanding margins and double-digit EPS growth over the long-term
Significant financial progress since 2020
Total Revenue
Non-GAAP Adjusted EBITDA
$913M
4% CAGR
$1,176M
$242M
10% CAGR
$434M
FY20 FY26 Guidance Midpoint
Non-GAAP Diluted EPS
FY20 FY26 Guidance Midpoint
Non-GAAP Free Cash Flow
10% CAGR
$5.20
25% CAGR
$285M
$2.94
$76M
FY20 FY26 Guidance Midpoint FY20 FY26 Guidance Midpoint
Executing on defined initiatives to drive strong financial results
($ in millions, except per share amounts)
FY25
Actuals
FY26
Guidance Midpoint
CAGR Targets:
'26 - '30
Total Revenue
$1,128
(5.5% growth1)
$1,176
(4.3% growth)
4% to 6%
Non-GAAP
Adjusted EBITDA
$405
(~8% growth1)
$434
(7% growth)
6% to 8%
Non-GAAP EPS
$4.45
(~12% growth1)
$5.20
(17% growth)
13%+
Goal of achieving Rule of 45 by 2030.
New product offerings such as Agents for Good represent potential upside to current long-term revenue growth targets.
Expect EBITDA growth to outpace revenue growth via operating leverage and ongoing cost and efficiency initiatives, with focus on improving EBITDA to FCF conversion.
Targeting consistent double digit non-GAAP EPS growth supported by continued stock repurchase and debt reduction.
FCF Margin
18%
24%
Expand FCF margin to
28%+
1) FY25 growth rates after normalizing for estimated impact of 12/31/24 divestiture of EverFi.
Blackbaud's revenue growth model
Contractual Recurring (Software)
Transactional Recurring (Payments)
One-time Services and Other
Total Revenue
Revenue Mix (% of FY25 Total)
Historical Growth CAGR (FY20-FY25)
64% 34% 2% 100%
4% 8% (19%) 4%
Growth Drivers
Bookings (new logo)
Bookings (cross-sell & upsell)
Sales productivity
Customer retention (3+ year contracts)
Price uplift at renewal & annual escalators
New unit (new logo)
New unit (cross-sell & upsell)
Same store volume growth
Digital giving mix shift
Pricing models
Small component of overall revenue
Actively shrunk this portion of portfolio (transition to third party partners) to focus on high value software and payments
Expected Growth Contribution (FY26-FY30)
Mid single-digit
Mid to high single-digit
Near-term drag becoming neutral contributor
Mid single-digit plus
Disclaimer
Blackbaud Inc. published this content on April 29, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2026 at 16:19 UTC.