Start here if you're new
what it is
Blackbaud sells cloud software and payment tools to nonprofits, schools, and other groups serving over 1 million users.
how it gets paid
Last year Blackbaud made $1.1B in revenue. Recurring software subscriptions and support was the main engine at $760M, or 69% of sales.
why growth slowed
Revenue fell 2.3% last year. $833M mattered because it was the quarter’s top line and it came with 196% vs. prior year growth.
what just happened
Blackbaud posted $833M in revenue, $1.61 EPS, and 58.9% gross margin.
At a glance
B+ balance sheet — decent shape, but not bulletproof
20/100 earnings predictability — expect surprises
26.1x trailing p/e — priced about right
0.7% return on capital — nothing to write home about
-$0.39 fy2024 eps est
xvary composite: 47/100 — below average
What they do
Blackbaud sells cloud software and payment tools to nonprofits, schools, and other groups serving over 1 million users.
Your donor records, school records, and payments all sit in one system. Moving them means moving people, data, and reports at once. That is why a $1.1B business can still hold a 22.2% operating margin.
How they make money
$1.1B
annual revenue · their business grew -2.3% last year
Recurring software subscriptions and support
$760M
+2.0%
Transaction and payment services
$170M
+5.0%
Professional services and implementation
$90M
8.0%
Analytics and data services
$45M
+1.0%
Other one-time services
$35M
12.0%
The products that matter
fundraising and donor software
Fundraising and donor management
part of the $1.1B platform revenue base
This is central to the Blackbaud story, but the current snapshot does not break out exact segment dollars. That matters, because without the mix you cannot see which products are offsetting the 2.3% decline in companywide revenue.
segment mix not disclosed here
finance and admin software
Financial and administrative suite
supported by 58.9% gross margin
The margin profile tells you the software still has pricing and delivery value. The problem is that a 58.9% gross margin has not translated into more than 0.7% return on capital.
margin without efficiency
engagement and sector workflow tools
Sector-specific cloud tools
revenue base: $1.1B
You own a niche software company, and niche can be good if retention is high and growth is steady. Right now the only hard companywide read is $1.1B in revenue moving backward, which keeps this more turnaround than compounding story.
niche, but unproven
Key numbers
$1.1B
annual revenue
This is the size of the business. It is big enough to matter and small enough that a few bad quarters move the stock.
22.2%
operating margin
This shows the core software engine still throws off solid profit before the balance sheet gets a vote.
$1.0B
long-term debt
This is the bill sitting in the background. It limits how much of that profit reaches shareholders.
0.7%
return on capital
This is the quiet warning light. The business earns far less on invested money than the margin number suggests.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 55 / 100
- long-term debt $1.0B (34% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for BLKB right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Blackbaud posted $833M in revenue, $1.61 EPS, and 58.9% gross margin.
Revenue was $833M, up 196% from a year earlier. EPS was $1.61, up 64%, and gross margin held at 58.9%. The base was weak, so the growth math looked louder than the business.
$280M
revenue
$1.61
eps
58.9%
gross margin
the number that mattered
$833M mattered because it was the quarter’s top line and it came with 196% vs. prior year growth.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the top risk is execution risk in a shrinking software revenue base.
med
Revenue contraction keeps going
Revenue fell 2.3% to $1.1B. If the core platform keeps shrinking, the market stops treating this like a software turnaround and starts treating it like a mature vendor with limited growth.
At 26.1x trailing earnings, another weak sales period would make the current multiple harder to defend.
med
Low capital efficiency is not a rounding error
0.7% return on capital is far below what investors usually want from a cloud software company. Blackbaud can post decent margins and still disappoint if capital returns stay this low.
That gap between 58.9% gross margin and 0.7% return on capital is why the stock can feel optically profitable and still earn a discount.
med
Debt narrows the room for error
Long-term debt is $1.0B, or 34% of capital. That is manageable with a B+ balance sheet, but it leaves less flexibility if revenue stays soft or earnings estimates keep drifting down.
When your forward EPS estimate is already -$0.39, balance-sheet flexibility matters more than the headline grade suggests.
$1.1B of revenue, $1.0B of debt, and 0.7% return on capital do not leave much room for another year of drift.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
You need evidence that revenue is at least stabilizing. Another decline after a -2.3% year keeps the turnaround thesis on pause.
trend
top-line direction
The simplest test on BLKB is still the best one: does revenue move back above the current $1.1B run rate, or not.
metric
return on capital
0.7% is too low for a company selling cloud software. If that number stays stuck, the valuation ceiling stays low too.
risk
debt versus earnings pressure
$1.0B in long-term debt is fine until earnings weaken again. Watch whether negative EPS expectations start colliding with leverage concerns.
Analyst rankings
earnings predictability
20 / 100
In human-speak, analysts do not see this as a smooth quarter-to-quarter story.
risk rank
4
That points to below-average safety. You are not buying a bunker stock here.
price stability
55 / 100
Middle of the road. Less chaos than a true small-cap rollercoaster, more noise than a high-quality software compounder.
source: institutional data
Institutional activity
institutional ownership data for BLKB is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$62
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive