Blackbaud, Inc. (BLKB)
UndervaluedFundamental
73
Price
$55.54
Market Cap
$2.44B
Part 1 · What the company is worth
Overview
Blackbaud is a cloud software provider serving nonprofits, educational institutions, healthcare organizations, and corporations with corporate social responsibility programs. The company provides integrated solutions for fundraising, donor management, financial operations, student information systems, tuition processing, and stakeholder engagement, built specifically for the social impact sector.
How it makes money
Subscription-based software-as-a-service (SaaS) model with two primary revenue types: contractual recurring revenue from multi-year cloud subscriptions (predominantly three-year terms with embedded price increases), and transactional recurring revenue from payment processing services (donation processing, tuition management, consumer giving, and event registration/ticketing).
Revenue by segment
Cloud software subscriptions and maintenance fees for access to subscription-based solutions, online training programs, and analytic services, as well as support for on-premises solutions.
Transaction fees from donation processing (powered by Blackbaud Integrated Payments and the JustGiving platform), tuition management processing, and event-based usage including registration and ticketing services.
Competitive moat
Patents and licences · NarrowProprietary data about nonprofit and education sector operations, deep domain-specific expertise from 40+ years of market presence, integrated product ecosystem with embedded AI capabilities, and high switching costs from deeply embedded workflows. However, competitive position is vulnerable to large general-purpose software vendors (Microsoft, Salesforce, Oracle) expanding nonprofit-specific offerings and new AI-driven entrants.
What drives demand
Moderately cyclicalNonprofit and education sector spending is moderately cyclical, dependent on charitable giving patterns, corporate CSR budgets, and education enrollment cycles. However, mission-critical nature of software and multi-year contracts with price escalators provide defensive characteristics. Year-end giving spikes and seasonal education cycles create intra-year volatility.
Key risks
- Cybersecurity and data protection liabilities — The company may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on operations and reputation.
- AI adoption and regulatory risks — AI-enhanced products may not achieve widespread market adoption due to technology challenges, customer acceptance concerns, security risks, or regulatory scrutiny (including the EU AI Act). Execution risks exist in early-stage AI technologies.
- Intense competition from larger vendors and new entrants — Competition from Microsoft, Salesforce, and Oracle expanding nonprofit-specific offerings, plus new AI-enabled competitors with potentially superior or more cost-effective solutions. Third-party proprietary rights may interfere with AI feature implementation.
- Large 2026 renewal cohort creates churn risk — Approximately 40% of existing contractual annual recurring revenue is due for renewal in 2026, significantly higher than prior year, which may result in elevated churn and customer defection.
- Economic sensitivity of transactional revenue — Approximately 34% of revenue depends on transactional volume and discretionary spending (charitable giving and education tuition). Economic downturns, nonprofit budget contractions, and reduced corporate giving directly reduce revenue.
Customer concentration
No single customer represents more than 1% of annual revenue. The company serves a highly diversified customer base of approximately 100,000 transactional customers and 40,000 contractual customers, with no meaningful customer concentration risk.
The case for
Buyers argue that Blackbaud benefits from secular tailwinds: nonprofit digitalization accelerating, ESG and corporate giving becoming strategic business priorities, and philanthropic organizations increasingly adopting cloud software. The company's early-mover advantage in embedding AI and agentic automation capabilities (Agents for Good) positions it to capture emerging demand in a large addressable market. Multi-year recurring contracts (predominantly three-year terms with price escalators) provide revenue visibility and stability. Management's operational efficiency initiatives—including global capability center expansion in India and cloud platform modernization—target 20-30% EBITDA margins, offering significant upside. Capital allocation focused on 5-10% annual share repurchases demonstrates confidence in valuation and free cash flow generation.
The case against
Sellers fear that approximately 40% of contractual annual recurring revenue faces renewal in 2026—substantially higher than the typical cohort—creating acute churn risk as customers evaluate competitive alternatives and potentially resist price increases. Transactional revenue (34% of total), driven by discretionary charitable giving, tuition payments, and event activity, faces headwinds from economic slowdown, nonprofit budget cuts, and reduced corporate giving during downturns. Competitive pressure intensifies as Microsoft, Salesforce, and Oracle deploy nonprofit-specific modules backed by massive R&D resources and distribution advantages. New AI-powered competitors with lower cost structures pose existential threats. The company has limited pricing power against large customers and faces margin pressure from continued investment in AI capabilities. Early-stage AI technologies carry execution risk and regulatory uncertainty (EU AI Act, data privacy laws), while customer adoption remains unproven.
Generated with artificial intelligence on September 21, 2026, shared with all users
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on September 18, 2026, shared with all users
Blackbaud names Salesforce in its 10-K: its Nonprofit Cloud is the main alternative platform for large charities, universities and foundations choosing a donor-relationship system.
Named in Blackbaud's 10-K among general business software vendors: Dynamics 365 configured for nonprofits is bought instead of a Blackbaud suite for CRM and back-office needs.
Bonterra sells fundraising CRM, case management and corporate grantmaking software to the same nonprofits, foundations and corporate giving teams that buy Raiser's Edge NXT and YourCause.
Benevity competes head-on with Blackbaud's YourCause CSRconnect for corporate employee-giving, volunteering and grants budgets at large employers.
Community Brands sells fundraising, membership and K-12 school administration suites to the same associations, private schools and nonprofits served by Blackbaud's education and fundraising products.
Blackbaud's 10-K cites consumer fundraising platforms like GoFundMe, which capture peer-to-peer and campaign donations that would otherwise flow through Blackbaud's giving and payment products.
Balance Sheet & Liquidity
Revenue
$1.15B
Trailing 12 months (through 6/30/2026)
Net Income
$151M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$258M
Total Equity
$85M
Total Liabilities
$2.31B
Current Ratio
0.83
Interest Coverage
3.43
Debt/EBITDA
4.18
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$107.01
Current Price
$55.54
Margin of Safety
+48.1%
Fair Value Range
$69.56 - $144.47
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
17.41
ROE
135.2%
P/B Ratio
37.61
P/FCF
7.66
Gross Margin
59.6%
ROIC
14.4%
Profitability Radar
Value Creation (Economic Moat)
ROIC
14.4%
WACC
8.6%
ROIC − WACC
+5.8 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- EPS CAGR 7.62%
- ROIC 14.4%
- Gross margin 59.6%
- P/FCF 7.66
- Operating margin 19.8%
- Positive free cash flow
- CapEx intensity
- Current ratio
- Interest coverage
- Debt/EBITDA
- Return on tangible assets
- ROE 204.4%
- PEG ratio 0.23
- Earnings quality (operating cash flow / net income) 2.25
- Share dilution -4.1%
- Net margin trend 13.1% vs -26.1%
- Piotroski F-Score 8/9
Failed (8)
- Price CAGR -3.92%
- P/B ratio 37.61
- Debt/equity ratio
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Fairly Valued)
- Revenue growth 5Y 4.3%
- Earnings surprise, average 1.4%
Unavailable (1)
- Dividend payout –
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Michael P. Gianoni | President, CEO & Non-Independent Vice Chairman of the Board | 64 |
| Mr. Chad M. Anderson | Executive VP & CFO | 52 |
| Mr. Kevin P. Gregoire | Executive VP & COO | 57 |
| Mr. Kevin R. McDearis | Executive VP & CTO | 57 |
| Mr. Anthony W. Boor | Executive VP of Corporate Development & Strategy and Director | 62 |
| Mr. David J. Benjamin | Executive VP & Chief Commercial Officer | 53 |
| Mr. Chris Lindner | Chief Information Officer | - |
| Mr. Tom Barth | Head of Investor Relations | - |
| Mr. Jon W. Olson J.D. | Chief Legal Officer & Corporate Secretary | 61 |
| Nicole McGougan | Public Relations Manager | - |
Audit Risk
6
Board Risk
4
Compensation Risk
3
Shareholder Rights Risk
2
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-18
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-29
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-10
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much BLKB moves, measured on its daily prices.
More volatile than 76% of the tracked stocks (90-day volatility).
- Volatility 30d
- 33.7%
- Volatility 90d
- 51.3%
- Beta vs S&P 500 (1y)
- 0.24Correlation 0.06
- Max drawdown (12m)
- -60.9%
- ATR (14d, % of price)
- 3.18%
Earnings reactions
How BLKB moved around its past quarterly results.
Next earnings release
Oct 28, 2026 · In 4 days · Before the open
EPS estimate: 1.33Revenue estimate: $294M
What usually happens
- Over the last 12 releases the stock moved a median of 7.2% the next day, up or down.
- Next-day moves: up 5, down 7 (out of 12).
- Of the 4 releases that beat estimates, the stock fell the next day after 1.
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Jul 29, 2026 | Before the open | 1.30 | 1.33 | +2.1% | +2.9% | +17.4% | +26.6% |
| Apr 29, 2026 | Before the open | 1.14 | 1.14 | 0.0% | +1.3% | +4.1% | -2.0% |
| Feb 10, 2026 | Before the open | 1.16 | 1.19 | +2.8% | +6.7% | -1.2% | -1.9% |
| Oct 29, 2025 | Before the open | 1.09 | 1.10 | +0.8% | +5.0% | +5.9% | -3.3% |
| Jul 30, 2025 | Before the open | n/a | n/a | n/a | +10.1% | +11.0% | -2.1% |
| Apr 30, 2025 | Before the open | n/a | n/a | n/a | +1.4% | -5.5% | -2.9% |
| Feb 18, 2025 | Before the open | n/a | n/a | n/a | -5.3% | -11.2% | -13.7% |
| Oct 30, 2024 | Before the open | n/a | n/a | n/a | -13.8% | -15.1% | -11.1% |
| Jul 30, 2024 | After the close | n/a | n/a | n/a | +0.8% | -1.2% | -6.1% |
| Apr 30, 2024 | After the close | n/a | n/a | n/a | -3.3% | -2.4% | +0.9% |
| Feb 12, 2024 | After the close | n/a | n/a | n/a | -12.3% | -14.8% | -16.5% |
| Oct 31, 2023 | After the close | n/a | n/a | n/a | +6.7% | +8.5% | +11.4% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on BLKB and what the price did next.
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for BLKB.