Key Highlights

● Second-quarter 2026 Revenue was US$290.6 million, up 3.0%, with Recurring Revenue 98.2% of the total.

● Blackbaud reaffirmed 2026 revenue guidance of US$1.173 billion to US$1.179 billion.

● It has repurchased just over 6% of its shares in 2026 so far.

● About US$850 million remained under the repurchase authorisation at 30 June.

Latest verified development

Blackbaud, Inc. (NASDAQ:BLKB), the Charleston-based provider of software to non-profits, education and healthcare organisations, last published results on 29 July, when it reported its second-quarter 2026 figures. That release reaffirmed full-year guidance and emphasised the pace of share repurchases, and it remains the company's most recent primary document.

Second-quarter results

For the quarter ended 30 June 2026, Blackbaud reported GAAP revenue of US$290.6 million, up 3.0%, with recurring revenue of US$285.3 million, up 3.3% and 98.2% of the total. GAAP income from operations was US$62.0 million, a 21.3% margin, and GAAP Net Income was US$35.4 million, or US$0.79 per diluted share. Operating Cash Flow was US$91.1 million.

On a non-GAAP basis, Operating Income was US$94.6 million, a 32.6% Margin that was down 110 basis points, and Diluted Earnings per Share were US$1.33. Adjusted EBITDA was US$110.3 million, a 38.0% margin, and free cash flow was US$75.3 million. Chief executive Mike Gianoni said the quarter and first half "came in as expected". Free cash flow rose US$23.8 million from a year earlier, while operating cash flow rose US$24.1 million.

Guidance and Capital return

Management reaffirmed 2026 guidance of GAAP revenue between US$1.173 billion and US$1.179 billion, adjusted EBITDA of US$430 million to US$438 million, non-GAAP diluted earnings per share of US$5.15 to US$5.25 and free cash flow of US$280 million to US$290 million. It expects results in the upper half of each range, with earnings per share and free cash flow at the high end.

Buybacks are central to the story. Blackbaud has repurchased just over 6% of its shares in 2026 so far, planned 2026 purchases are 6% to 10% of shares outstanding at the end of 2025, and about US$850 million remained under the authorisation at 30 June. Shares outstanding are down roughly 15% since the fourth quarter of 2023. Chief financial officer Chad Anderson said the company remains "aggressive" in repurchasing its shares.

Buyback pace against revenue growth

The share count is shrinking faster than revenue is growing. Shares outstanding are down roughly 15% since the fourth quarter of 2023, while second-quarter revenue rose 3.0% and the non-GAAP Operating Margin was 110 basis points lower than a year earlier. Free cash flow in the quarter was US$75.3 million, up US$23.8 million from a year earlier.