Blackbaud (BLKB) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 357.96K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.65
• Revenue Growth: -1.17%
• EPS Growth: -597.89%
• Country: US
• Employees: 2,600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.19
• Shares Outstanding: 45,933,453
• 10 Day Avg. Volume: 372,241
• 30 Day Avg. Volume: 357,959
• PEG Ratio: -0.18
• Price to Book (P/B): 35.50
• Price to Sales (P/S): 2.68
• P/FCF Ratio: 11.71
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: 8.66
• 1Y Price Target: $56.25
• Price Target Upside: 27.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.99
• Revenue Forecast (FY): $1.17B

• Rating: 56 Neutral
• Price Target: $45.00 ▲(2.09% Upside)
• Action: Downgraded Date: 02/11/26
• Date: Action: Downgraded 02/11/26

The score is driven mainly by mixed financial performance (strong free cash flow and improved leverage offset by revenue pressure and earnings volatility). Technicals materially detract given the clear downtrend and negative momentum, while valuation is neutral at a ~20x P/E. The latest earnings call supports the rating with upbeat multi-year targets and 2026 guidance for higher EPS and free cash flow, tempered by near-term growth headwinds.

Positive Factors

Strong cash generation

Consistent, high free cash flow gives Blackbaud durable flexibility to fund operations, capex, buybacks and deleveraging without relying on external financing. Strong cash conversion cushions profit volatility and supports multi-year return-of-capital plans and reinvestment.

Improving leverage and capital returns

Measured buybacks plus lower leverage signal financial discipline and lower interest burden. Reduced leverage and active capital returns improve shareholder optionality and enhance resiliency versus cyclical pressures over the medium term.

Recurring SaaS model in social-good niche

A subscription and transaction-based model servicing mission-driven organizations yields predictable recurring revenue and high customer stickiness. Diverse product modules (fundraising, CRM, payments) create cross-sell paths and durable demand from mission-critical operations.

Negative Factors

Sharp revenue decline & profit volatility

Large historical revenue declines and inconsistent reported earnings reduce visibility on sustainable growth and margins. Persistent volatility undermines planning, raises execution risk for reinvestment, and can erode pricing power over multiple quarters.

Renewal cohort & transactional normalization headwinds

A materially larger renewal cohort and returning transactional volumes create structural near-term revenue pressure. This can delay margin expansion and defer the benefits of AI/product investments, constraining durable top-line momentum for several quarters.

Thin equity base and weak ROE

A small equity buffer and negative ROE leave the balance sheet sensitive to further earnings weakness. This reduces capital flexibility, increases reliance on cash generation for investments and buybacks, and heightens downside risk if profitability weakens.

Blackbaud Business Overview & Revenue Model

Company Description

Blackbaud, Inc. provides cloud software solutions to higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies, and individual change agents in the United States and internationally. The company offers fundraising and relationship management solutions, such as Blackbaud Raiser's Edge NXT and Blackbaud CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, JustGiving, and Blackbaud Guided Fundraising and Blackbaud Volunteer Network Fundraising; marketing and engagement solutions, including Blackbaud Luminate Online, Blackbaud Online Express, and Blackbaud School Website System; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid Management. It also provides grant and award management solutions, consisting of Blackbaud Grantmaking and Blackbaud Award Management; organizational and program management, such as Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; social responsibility solutions, which includes YourCause GrantsConnect and YourCause CSRconnect; Blackbaud Merchant Services and Blackbaud Purchase Cards payment services; and Blackbaud's Intelligence for Good solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services. It sells its solutions and related services through its direct sales force. Blackbaud, Inc. was founded in 1981 and is headquartered in Charleston, South Carolina.

How the Company Makes Money

Blackbaud primarily makes money by selling software (largely delivered via cloud/SaaS) to social good organizations, typically under subscription arrangements that generate recurring revenue. A major revenue stream is fees from its fundraising, donor/CRM, financial management, and engagement platforms, where customers pay for access to the software (often priced by organization size, feature set, users, or usage). The company also earns revenue from payments and transaction-related services tied to fundraising and donation processing (e.g., payment processing and related platform/transaction fees) when donors contribute through Blackbaud-enabled tools. In addition, Blackbaud generates services revenue from implementation, onboarding, data conversion, training, consulting, and customer support offerings associated with deploying and optimizing its software. Material contributing factors to earnings include renewal/retention of subscription customers, expansion of existing customer accounts (upselling additional modules and capabilities), and transaction volume processed through its payments-related offerings. Specific partnership details are null.

Blackbaud Financial Statement Overview

Summary

Overall fundamentals are mixed: strong cash generation (TTM operating cash flow ~$266M and free cash flow ~$243M with solid cash conversion) and improved leverage metrics support the score, but the income statement is pressured by a sharp revenue decline and volatile/unclear profitability, which raises operating risk.

Income Statement

TTM (Trailing-Twelve-Months) shows solid underlying operating profitability (about 58% gross margin and ~15% EBIT margin), but results are overshadowed by a sharp revenue decline (-61% revenue growth rate) and inconsistent bottom-line performance across years. After a large loss in 2024, the company returned to positive net income in TTM, yet net margin remains volatile and reported as negative in TTM, signaling earnings quality and comparability issues that weigh on confidence.

Balance Sheet

Balance sheet leverage appears to have improved materially in TTM, with much lower total debt and a moderate debt-to-equity ratio (~0.32) versus very high leverage in 2024 (~7.8). However, equity is relatively small versus total assets, and returns on equity have been negative in recent periods (TTM and 2024), indicating weak value creation for shareholders and potential sensitivity if profitability softens.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow (~$266M) and free cash flow (~$243M) are strong and free cash flow is close to net income (about 0.93x), suggesting solid cash conversion. The main drawbacks are the decline in TTM free cash flow growth and only modest operating cash flow relative to revenue, but overall cash flow resilience stands out versus the volatility seen in reported earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.13B	1.16B	1.11B	1.06B	927.74M
Gross Profit	663.29M	639.20M	604.04M	552.72M	484.55M
EBITDA	285.97M	253.72M	178.72M	99.01M	83.69M
Net Income	114.97M	-283.17M	1.82M	-45.41M	5.70M
Balance Sheet
Total Assets	2.39B	2.50B	2.91B	2.99B	2.97B
Cash, Cash Equivalents and Short-Term Investments	758.98M	67.63M	31.25M	31.69M	55.15M
Total Debt	1.12B	1.11B	826.45M	903.96M	1.01B
Total Liabilities	2.31B	2.35B	2.10B	2.25B	2.25B
Stockholders Equity	85.05M	141.99M	808.71M	744.03M	717.06M
Cash Flow
Free Cash Flow	257.78M	288.52M	135.51M	132.83M	161.51M
Operating Cash Flow	265.55M	295.97M	199.63M	203.89M	213.66M
Investing Cash Flow	-74.94M	-73.41M	-64.39M	-85.55M	-471.27M
Financing Cash Flow	-247.40M	-139.35M	-142.97M	-25.69M	264.11M

Blackbaud Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLKB, the sentiment is Negative. The current price of 44.08 is below the 20-day moving average (MA) of 47.07, below the 50-day MA of 51.18, and below the 200-day MA of 60.44, indicating a bearish trend. The MACD of -1.97 indicates Positive momentum. The RSI at 33.88 is Neutral, neither overbought nor oversold. The STOCH value of 10.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLKB.

Blackbaud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	71 Outperform	$1.96B	83.96	10.50%	―	17.77%	-76.05%
GTM	66 Neutral	$1.82B	26.41	7.96%	―	1.47%	1077.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASAN	57 Neutral	$1.56B	-12.84	-94.12%	―	9.47%	16.97%
BLKB	56 Neutral	$2.03B	26.26	146.36%	―	-1.17%	-597.89%
BL	54 Neutral	$2.29B	134.48	6.57%	―	7.36%	-40.62%
RUM	46 Neutral	$2.30B	-19.67	-26.59%	―	21.17%	-108.27%

Blackbaud Corporate Events

Blackbaud Extends CEO Gianoni’s Contract and Incentives

On December 17, 2025, Blackbaud, Inc. entered into an amended and restated employment and noncompetition agreement with Chief Executive Officer and President Michael P. Gianoni, under which he will continue as CEO, president, and board member for an initial term running from January 1, 2026 through December 31, 2027, with potential one-year renewals. The agreement maintains his $800,000 base salary and establishes substantial equity-based compensation, including an annual performance-based equity bonus targeted at 100% of base salary and an additional annual equity grant with a target value of $6 million to $12 million, a significant portion of which may be tied to company performance and subject to multi‑year vesting. The contract sets detailed severance, vesting acceleration, and benefits protections for various termination scenarios, including termination without cause, resignation for good reason, change in control, death, disability, and nonrenewal, while also providing for continued post‑retirement vesting under the company’s long‑term incentive program in certain cases and imposing 12‑month post‑employment non‑compete and non‑solicitation restrictions. These terms reinforce leadership stability at Blackbaud and tightly link Gianoni’s long‑term compensation to company performance and shareholder value, while giving the board structured flexibility around succession and change‑in‑control situations.

The most recent analyst rating on (BLKB) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Blackbaud stock, see the BLKB Stock Forecast page.

Blackbaud Updates Bylaws to Strengthen Corporate Governance

On December 17, 2025, Blackbaud’s board of directors adopted amended and restated bylaws, effective immediately, to update the company’s governance framework. The revisions align the bylaws with recent developments in Delaware corporate law and current market practice, tighten and clarify procedures for shareholder nominations and proposals made outside the company’s proxy process, refine and in some cases limit the information that proposing shareholders and director nominees must provide, and introduce a series of technical and conforming changes, collectively signaling a more structured and controlled approach to shareholder engagement in corporate decision-making.

The most recent analyst rating on (BLKB) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Blackbaud stock, see the BLKB Stock Forecast page.