Blackbaud (BLKB) AI Stock Analysis

• Market Cap: $3.04B
• Dividend Yield: N/A
• Average Volume (3M): 363.78K
• Price to Earnings (P/E): ―
• 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): 1.10
• Shares Outstanding: 47,834,180
• 10 Day Avg. Volume: 351,029
• 30 Day Avg. Volume: 363,778
• PEG Ratio: <0.01
• Price to Book (P/B): 26.32
• Price to Sales (P/S): 3.23
• P/FCF Ratio: 12.95
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 3.29
• Enterprise Value/Gross Profit: 5.69
• Enterprise Value/Ebitda: 0.22
• 1Y Price Target: $75.00
• Price Target Upside: 17.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.41
• Revenue Forecast (FY): $1.13B

• Rating: 70 Outperform
• Price Target: $70.00 ▲(10.01% Upside)

Blackbaud's overall stock score reflects strong financial performance and positive earnings call guidance, which are offset by high leverage and valuation concerns. The technical analysis suggests potential resistance, while corporate events positively impact shareholder value.

Positive Factors

Revenue Growth

Consistent revenue growth highlights Blackbaud's ability to expand its market presence and enhance its product adoption, ensuring long-term business stability.

Cash Flow Generation

Strong cash flow generation supports Blackbaud's operational flexibility and ability to invest in growth initiatives, underpinning future financial health.

Innovation and AI Advancements

AI advancements position Blackbaud as a leader in tech innovation, enhancing its competitive edge and potential for long-term growth in the nonprofit sector.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting Blackbaud's ability to invest in growth and manage economic downturns effectively.

Revenue Reclassification and Tax Restatement

Revenue reclassification and tax restatement issues could undermine investor confidence and indicate potential weaknesses in financial controls.

Volatile Profit Margins

Volatile profit margins suggest potential instability in earnings, which could impact Blackbaud's ability to sustain long-term profitability.

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

Blackbaud demonstrates strong revenue growth and improved profitability, supported by efficient cost management and operational improvements. However, the high leverage poses a financial risk, partially mitigated by substantial returns on equity. Cash flow metrics are positive, indicating healthy cash generation relative to income.

Income Statement

Blackbaud's income statement shows strong revenue growth, particularly in the TTM period, with a remarkable 24614.88% increase. The company has maintained a healthy gross profit margin around 55-59% over the years, indicating efficient cost management. However, net profit margins have been volatile, with significant improvement in the TTM period to 16.73% from negative margins in previous years. The EBIT and EBITDA margins have also improved significantly, reflecting enhanced operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, peaking at 9.84 in the TTM period, which indicates high leverage and potential financial risk. Despite this, the return on equity has surged to 508.39% in the TTM period, suggesting effective use of equity to generate profits. The equity ratio has been relatively low, reflecting a higher reliance on debt financing.

Cash Flow

Cash flow analysis shows positive trends with a 20.71% growth in free cash flow in the TTM period. The operating cash flow to net income ratio and free cash flow to net income ratio indicate that the company is generating sufficient cash relative to its net income, although these ratios have fluctuated over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14B	1.16B	1.11B	1.06B	927.74M	913.22M
Gross Profit	655.75M	639.20M	604.04M	552.72M	484.55M	486.05M
EBITDA	17.08B	253.72M	178.72M	99.01M	83.69M	103.88M
Net Income	-252.43M	-283.17M	1.82M	-45.41M	5.70M	7.72M
Balance Sheet
Total Assets	2.10B	2.50B	2.91B	2.99B	2.97B	2.04B
Cash, Cash Equivalents and Short-Term Investments	38.26M	67.63M	31.25M	31.69M	55.15M	35.75M
Total Debt	1.07B	1.11B	826.45M	903.96M	1.01B	548.39M
Total Liabilities	2.00B	2.35B	2.10B	2.25B	2.25B	1.62B
Stockholders Equity	108.19M	141.99M	808.71M	744.03M	717.06M	426.15M
Cash Flow
Free Cash Flow	261.29M	288.52M	135.51M	132.83M	161.51M	76.11M
Operating Cash Flow	281.12M	295.97M	199.63M	203.89M	213.66M	147.96M
Investing Cash Flow	-74.39M	-73.41M	-64.39M	-85.55M	-471.27M	-71.85M
Financing Cash Flow	-212.31M	-139.35M	-142.97M	-25.69M	264.11M	-10.68M

Blackbaud Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 63.63 is above the 20-day moving average (MA) of 60.64, above the 50-day MA of 61.41, and above the 200-day MA of 63.33, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 58.75 is Neutral, neither overbought nor oversold. The STOCH value of 75.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLKB.

Blackbaud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	73 Outperform	$3.41B	141.38	8.74%	―	17.77%	-76.05%
BL	71 Outperform	$3.44B	52.81	21.85%	―	7.36%	-40.62%
GTM	71 Outperform	$3.20B	32.42	6.51%	―	1.47%	1077.70%
BLKB	70 Outperform	$3.04B	-12.23	-78.53%	―	-1.17%	-597.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASAN	57 Neutral	$3.43B	-15.53	-102.48%	―	9.47%	16.97%
RUM	44 Neutral	$3.00B	-5.14	-122.08%	―	21.17%	-108.27%

Blackbaud Corporate Events

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.

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.

Blackbaud Director Yogesh K. Gupta Resigns

On September 10, 2025, Yogesh K. Gupta announced his resignation as a director of Blackbaud, Inc., effective September 11, 2025, to focus on other professional commitments. Following his resignation, the Board of Directors reduced its size from eight to seven members.