Blackbaud Q2 total revenue down 2.1%

Overview

• Blackbaud Q2 2025 GAAP total revenue was $281.4 million, down 2.1%

• Adjusted EPS for Q2 2025 beats consensus, reflecting improved profitability

• Company raises full-year 2025 financial guidance across all key metrics

Outlook

• Blackbaud raises 2025 GAAP revenue guidance to $1.120 bln-$1.130 bln

• Company expects 2025 non-GAAP EPS of $4.30 to $4.50

• Blackbaud sees 2025 non-GAAP adjusted EBITDA margin of 35.4%-36.2%

• Company forecasts 2025 non-GAAP adjusted free cash flow of $190 mln-$200 mln

Result Drivers

• DIVESTITURE IMPACT - Decline in GAAP revenue driven by divestiture of EVERFI

• ORGANIC REVENUE GROWTH - Non-GAAP organic revenue increased 6.8%, driven by operational execution and productivity improvements

• RULE OF 40 - Achieved highest quarterly performance in Rule of 40, indicating strong revenue growth and profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Blackbaud Inc is $70.00, about 7.9% above its July 29 closing price of $64.50

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: