Stock Analysis · Blackbaud Inc (BLKB)

Overview

Blackbaud, Inc. is a software company focused on the social impact sector, meaning organizations such as nonprofits, charities, foundations, K–12 schools, and higher education institutions. Its products are designed to help these organizations run day-to-day operations and raise money, including tools for fundraising, donor management, marketing and engagement, financial management, and payment processing.

In practical terms, Blackbaud mainly earns revenue by selling software (often through subscriptions) and related services that help customers manage relationships with donors and supporters, track donations, and run campaigns. The business model is closely tied to customers staying on the platform for many years, because switching systems can be disruptive for a nonprofit or school.

Main revenue categories commonly described by the company include software subscriptions and recurring fees, as well as services and other revenue streams. Specific percentages by category can vary by reporting period and should be taken from the most recent annual filing for the latest breakdown.

Across recent years, total revenue increased from about $928M (2021) to a peak around $1.16B (2024), then eased to about $1.13B (2025). Over the same period, operating income expanded meaningfully (from roughly $32M in 2021 to about $200M in 2025), which points to improved operating performance even though net income fluctuated (including a large loss in 2024).

Key Figures

At the latest snapshot, Blackbaud’s market capitalization is about $2.35B and its beta is about 1.10, which implies the stock has tended to move slightly more than the overall market. The company’s P/E ratio is ~20.7, below the industry median of ~27.5. The latest profit margin is ~10.2% versus an industry median of ~7.7%, while year-over-year revenue growth is about -2.3% compared with an industry median of ~15.8%. Debt-to-equity is about 32%, above the industry median of about 25%. Trailing twelve-month free cash flow is about $243M.

Growth (medium)

Blackbaud operates in a part of the software market that is shaped by long-term digitization: nonprofits and education institutions increasingly rely on cloud software to manage donors, campaigns, student information, communications, and payments. This type of “mission-critical” software can be sticky once implemented, supporting recurring revenue over time.

However, recent growth signals are mixed. Revenue growth has slowed and turned slightly negative most recently, which suggests the near-term pace of expansion has softened compared with many software peers.

The year-over-year revenue growth trend shows stronger growth in parts of 2022, moderating through 2023–2024, and turning negative in 2025 (around -2% in the latest period). For a long-term view, this makes execution on customer retention, pricing, and new product adoption important to monitor.

Cash generation is a potential support for long-term business flexibility. Free cash flow has generally risen over the last several years, even though it dipped somewhat in the most recent trailing period versus the prior year.

Trailing free cash flow increased from roughly $163M (2021) to about $226M (2024), and is about $210M in the latest trailing period, with the latest snapshot showing about $243M. Consistently positive free cash flow can matter for software companies because it can help fund product development, repay debt, or support other corporate priorities.

Risks (high)

This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer