Blackbaud (BLKB) AI Stock Analysis

• Market Cap: $2.96B
• Dividend Yield: N/A
• Average Volume (3M): 357.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• 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: 372,241
• 30 Day Avg. Volume: 357,959
• 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: 1.38
• Enterprise Value/Revenue: 3.60
• Enterprise Value/Gross Profit: 6.24
• Enterprise Value/Ebitda: 0.24
• 1Y Price Target: $75.00
• Price Target Upside: 21.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $70.00 ▲(13.20% Upside)

The score is driven primarily by improved profitability and healthy cash generation, reinforced by upbeat guidance and stronger free-cash-flow outlook from the latest earnings call. Offsetting factors include elevated balance-sheet leverage and relatively weak valuation support (negative P/E), while technicals indicate only moderate positive momentum.

Positive Factors

Strong Free Cash Flow

The increase in free cash flow enhances Blackbaud's ability to reinvest in growth opportunities, reduce debt, and return capital to shareholders, supporting long-term financial health.

Innovation and AI Advancements

The introduction of AI capabilities positions Blackbaud as a leader in tech-driven solutions for nonprofits, potentially increasing market share and customer retention.

Leadership Stability

Extending the CEO's contract ensures leadership continuity, aligning executive incentives with company performance, which can drive strategic execution and shareholder value.

Negative Factors

High Leverage

High leverage increases financial risk and could limit Blackbaud's ability to invest in growth or withstand economic downturns, affecting long-term stability.

Revenue Reclassification Issues

The revenue reclassification issue highlights potential weaknesses in financial controls, which could impact investor confidence and require resources to address.

Negative Revenue Growth

Negative revenue growth suggests challenges in maintaining or expanding market presence, which could hinder long-term financial performance and strategic goals.

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

Strong income statement trends with improved profitability (TTM net margin 16.73%) and solid gross margins, supported by positive free-cash-flow growth. The main offset is balance-sheet risk from very high leverage (TTM debt-to-equity 9.84), which raises financial risk despite strong ROE.

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: Negative
• Last Price: 61.84
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 61.84 is below the 20-day moving average (MA) of 62.67, above the 50-day MA of 61.05, and below the 200-day MA of 63.21, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 46.85 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	73 Outperform	$3.37B	140.06	8.74%	―	17.77%	-76.05%
BLKB	71 Outperform	$2.96B	-11.88	-78.53%	―	-1.17%	-597.89%
BL	71 Outperform	$3.28B	50.40	21.85%	―	7.36%	-40.62%
GTM	71 Outperform	$3.30B	33.40	6.51%	―	1.47%	1077.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASAN	57 Neutral	$3.15B	-14.24	-102.48%	―	9.47%	16.97%
RUM	44 Neutral	$2.88B	-4.94	-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.