Blackbaud 2025 Q2 Earnings Surpasses Expectations with Net Income Rising 19.2%

Blackbaud (BLKB) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. Blackbaud's reported earnings exceeded analyst expectations, highlighted by an impressive rise in its net income. The company raised its full-year guidance, projecting revenue between $1.120 billion and $1.130 billion and non-GAAP EPS between $4.30 and $4.50. This outlook reflects Blackbaud's strong operational execution and confidence in continued growth, underscoring its commitment to delivering value to shareholders.

Revenue
Blackbaud's total revenue for Q2 2025 amounted to $281.38 million, reflecting a 2.1% decrease from the previous year. The breakdown of revenue includes $275.63 million from recurring sources and $5.75 million from one-time services and other segments, contributing to the overall revenue figure.

Earnings/Net Income
Blackbaud's earnings per share (EPS) in 2025 Q2 increased by 25.6%, reaching $0.54 compared to $0.43 in 2024 Q2, indicating robust earnings growth. Net income also exhibited strength, rising 19.2% to $25.98 million from $21.80 million in the prior year. The EPS performance suggests positive financial momentum.

Post-Earnings Price Action Review
The post-earnings strategy of purchasing Blackbaud shares following a quarter of revenue growth and holding them for 30 days resulted in modest returns, underperforming the broader market. The strategy demonstrated a compound annual growth rate (CAGR) of 0.58%, lagging behind the benchmark by 84.70%. Despite the low risk indicated by a maximum drawdown of 0.00% and a Sharpe ratio of 0.02, the returns remained modest. This suggests that while the approach holds potential for gains, it may not match the overall market performance. Investors should consider this strategy's historical performance when evaluating future opportunities.

CEO Commentary
Blackbaud’s President and CEO, Michael P. Gianoni, emphasized significant growth and profitability improvements, highlighting a 6.8% organic revenue growth to $281 million and a non-GAAP diluted earnings per share of $1.21, a 12% increase year-over-year. He noted that the company’s success stemmed from acquiring new clients, driving innovation, and enhancing customer relationships. Gianoni described Blackbaud's unique position in the social impact sector, stating, "We remain the premier software partner across the social impact space." He expressed optimism about future growth, stating, "Blackbaud is a sound investment choice, with the potential to create substantial shareholder value."

Guidance
Blackbaud raised its 2025 revenue guidance to a range of $1.120 billion to $1.130 billion, reflecting organic growth of approximately 5% at the midpoint. Non-GAAP EPS is projected between $4.30 and $4.50, indicating an approximately 11% year-over-year growth rate. Expected adjusted EBITDA margins are set between 35.4% and 36.2%, with anticipated adjusted free cash flow of $190 million to $200 million. The company aims to continue focusing on margin expansion while investing in innovation and operational efficiency.

Additional News
Blackbaud has welcomed Salesforce veteran Bill Fort as Senior Vice President of North America Sales, enhancing its leadership team with experienced industry expertise. The company also announced the sale of its EVERFI Inc. business to a private investment firm, marking a significant divestiture aimed at refocusing resources on core operations. Additionally, Blackbaud continues its commitment to shareholder returns through its stock repurchase program; as of June 30, 2025, the company had approximately $545 million remaining under this program, indicating sustained efforts in capital management and shareholder value enhancement. Visit www.blackbaud.com/newsroom for more information about Blackbaud’s recent highlights.