Blackbaud (BLKB) AI Stock Analysis

• Market Cap: $2.23B
• Dividend Yield: N/A
• Average Volume (3M): 357.96K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.63
• 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: 1.20
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 0.16
• 1Y Price Target: $56.25
• Price Target Upside: 15.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.99
• Revenue Forecast (FY): $1.17B

• Rating: 56 Neutral
• Price Target: $50.00 ▲(3.01% 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

Recurring SaaS & Mission-Critical Position

Blackbaud’s core SaaS offerings serve fundraising, financial management and constituent engagement for nonprofits and institutions. That mission-critical positioning creates high switching costs, multi-year contracts and predictable recurring revenue, supporting durable revenue stability and customer stickiness.

Strong Cash Generation

Consistently strong operating and free cash flow, with cash conversion near parity to net income, provides durable internal funding for product investment, M&A optionality, deleveraging and capital returns. Robust cash generation cushions the business through revenue cycles and underpins strategic flexibility.

Improved Leverage & Capital Returns

Material de-leveraging and aggressive repurchases signal disciplined capital allocation and stronger balance sheet flexibility. Lower leverage reduces interest burden and risk, while buybacks reflect confidence and return excess cash to shareholders, supporting long-term per-share metrics if cash generation persists.

Negative Factors

Historic Revenue Decline & Volatility

Large prior revenue contractions and uneven reported results undermine visibility into sustainable growth. Persistent top-line volatility complicates planning and investment, can compress operating leverage over time, and makes multi-year forecasting and margin expansion targets harder to rely on.

Earnings Quality & Weak ROE

Negative ROE and a modest equity base indicate limited shareholder value creation and higher sensitivity to profit swings. Even with lower debt, a small equity cushion can amplify shocks to capital structure and constrain future capital-raising or investment flexibility during adverse operating periods.

Renewal Cohort & Transactional Normalization

A materially larger renewal cohort and reversion of transactional revenue represent structural headwinds to near-term organic growth and mean growth is likely back‑loaded. These contract timing effects pressure year-over-year comparisons and can delay margin and cash conversion improvements.

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 generates revenue primarily through subscription fees for its cloud-based software solutions, which provide organizations with tools to enhance fundraising and operational efficiency. The company's revenue model includes a combination of recurring subscription revenue from its software-as-a-service (SaaS) offerings, transaction fees for payment processing services, and professional services such as implementation, training, and consulting. Key revenue streams include donations and fundraising management software, donor engagement solutions, and financial management systems. Additionally, Blackbaud has established significant partnerships with various organizations, including integration with payment processors and collaboration with industry leaders, further enhancing its service offerings and driving revenue growth.

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	661.06M	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: 48.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 48.54 is below the 20-day moving average (MA) of 48.67, below the 50-day MA of 55.50, and below the 200-day MA of 61.49, indicating a bearish trend. The MACD of -1.95 indicates Negative momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 55.98 is Neutral, 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	$2.03B	67.32	10.68%	―	17.77%	-76.05%
GTM	66 Neutral	$1.90B	16.05	7.76%	―	1.47%	1077.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BLKB	56 Neutral	$2.23B	20.39	-78.53%	―	-1.17%	-597.89%
BL	53 Neutral	$2.10B	91.23	6.29%	―	7.36%	-40.62%
ASAN	46 Neutral	$1.68B	-7.62	-102.48%	―	9.47%	16.97%
RUM	42 Neutral	$2.35B	-4.03	-122.08%	―	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.

Blackbaud Updates Retirement Program for 2026

On December 1, 2025, Blackbaud‘s Board of Directors approved updates to their retirement program, effective January 1, 2026, to enhance the long-term incentive equity awards for eligible employees. The changes aim to attract and retain talent, align employee interests with shareholders, and support succession planning by adjusting eligibility criteria and vesting conditions for retirement, impacting future awards but not existing ones.

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

Blackbaud Expands Stock Repurchase Program to $1 Billion

On December 1, 2025, Blackbaud‘s Board of Directors reauthorized, expanded, and replenished its stock repurchase program, increasing its capacity from $800 million to $1 billion. This strategic move reflects the company’s commitment to enhancing shareholder value, with expectations to repurchase between 7.0% and 8.5% of its outstanding common stock by the end of 2025. The program, which has no expiration date, allows for stock repurchases through various transactions, subject to market conditions and available liquidity. Blackbaud’s decision underscores its long-term capital allocation strategy aimed at achieving consistent revenue and earnings growth.

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