Why is results day on 28 October a test of guidance for Blackbaud?

Sonal Goyal

28 October 2026 04:59 PM AEDT

Why is results day on 28 October a test of guidance for Blackbaud?

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Key Highlights

Blackbaud will report third-quarter results on 28 October 2026 at 8:00am Eastern Time, before US markets open.
Second-quarter Revenue was $290.6 million, up 3.0%, with Recurring Revenue making up 98.2% of the total.
The company reaffirmed full-year 2026 revenue guidance of $1.173 billion to $1.179 billion.

Results due on 28 October

Blackbaud, Inc. (NASDAQ:BLKB), the Charleston, South Carolina-based provider of software for nonprofits, schools and philanthropic organisations, announced on 14 October 2026 that it will report third-quarter results on Wednesday 28 October at 8:00am Eastern Time, before US markets open. A conference call will be held at the same time.

Because the figures are not yet public, this article relies on the second-quarter report, issued on 29 July 2026, as the latest set of results. The third-quarter release will show whether the trends below have continued or changed, and it should be read alongside the updated outlook and the reconciliation of non-GAAP measures to GAAP figures that the company publishes.

What the second quarter showed

For the quarter ended 30 June 2026, revenue was $290.6 million, up 3.0%, with organic growth also at 3.0% (2.8% on a constant-currency basis). Blackbaud also reported a Rule of 40 score of 41.0%, combining growth and adjusted EBITDA margin. Recurring revenue was $285.3 million, up 3.3%, and made up 98.2% of the total, which is the core attraction of a subscription-led model.

GAAP income from operations was $62.0 million, a Margin of 21.3%, up 100 basis points. Non-GAAP income from operations was $94.6 million, a margin of 32.6%, which was down 110 basis points. Adjusted EBITDA was $110.3 million, a margin of 38.0%, down 70 basis points.

Diluted earnings per share were $0.79 on a GAAP basis, up $0.24, and $1.33 on a non-GAAP basis, up $0.11. Non-GAAP free Cash Flow was $75.3 million, up $23.8 million, a margin of 25.9%. The mix of rising GAAP margin and falling non-GAAP margin is worth reading closely in the reconciliation tables.

Guidance and Capital returns

Blackbaud reaffirmed its full-year 2026 outlook: GAAP revenue of $1.173 billion to $1.179 billion, adjusted EBITDA of $430 million to $438 million, non-GAAP earnings per share of $5.15 to $5.25, and free cash flow of $280 million to $290 million. It said it expected to finish in the upper half of each range, with earnings per share and free cash flow at the high end. These are company expectations, not reported results.

The company has repurchased just over 6% of its shares so far in 2026, with about $850 million remaining under its authorisation at 30 June, and it expects to buy back 6% to 10% of shares outstanding at the end of 2025 over the year. Shares outstanding are down about 15% since the fourth quarter of 2023.

Balance sheet and AI investment

The Balance Sheet carries leverage. Unrestricted cash was $34.4 million. Management guides to interest expense of $62 million to $66 million for the year.

Chief executive Mike Gianoni said the company would continue to invest aggressively in AI, pointing to its Agents for Good product push and to AI-driven improvements in the company's own productivity. The question is whether this spending supports growth without eroding margin.

What to watch

On the day, the main questions are whether organic growth holds near 3%, whether the guidance ranges are reaffirmed or narrowed, how the non-GAAP margin trends against the second quarter, and how much stock was repurchased. Cash flow, Debt and AI product adoption also merit close attention.

FAQs

Q: When does Blackbaud report third-quarter 2026 results?

A: Blackbaud will report on Wednesday 28 October 2026 at 8:00am Eastern Time, before US markets open, with a conference call at the same time.

Q: What were Blackbaud's second-quarter 2026 results?

A: Revenue was $290.6 million, up 3.0%, with recurring revenue of $285.3 million making up 98.2% of the total. Non-GAAP diluted EPS was $1.33 and non-GAAP free cash flow was $75.3 million.

Q: What is Blackbaud's full-year 2026 outlook?

A: The company reaffirmed GAAP revenue of $1.173 billion to $1.179 billion, adjusted EBITDA of $430 million to $438 million, non-GAAP EPS of $5.15 to $5.25 and free cash flow of $280 million to $290 million. It expects to finish in the upper half of each range.

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