From The Motley Fool · Motley Fool Transcribing · · 1m 50s
Blackbaud Q3 2026 Earnings Report Highlights
Blackbaud reports 4.1% revenue growth with AI-driven platform launches and strong cash flow.
In brief
Blackbaud reports 4.1% revenue growth with AI-driven platform launches and strong cash flow. Blackbaud's Q3 2026 earnings show 4.1% revenue growth, 38% non-GAAP adjusted EBITDA margin, and $1.36 diluted EPS. Originally reported by The Motley Fool.
Q3 Revenue Growth
GAAP Total Revenue reached $292.6 million, representing 4.1% growth.
Non-GAAP Organic Growth
Non-GAAP Organic Revenue Growth increased to 4.1%, up one percentage point from previous quarter.
Recurring Revenue
GAAP Recurring Revenue stood at $287.0 million, representing 98.1% of total revenue.
Operating Margin
Non-GAAP Operating Margin reached 32.3%, increasing 240 basis points year over year.
Adjusted EBITDA
Non-GAAP Adjusted EBITDA was $111.1 million, up $11.4 million from prior year.
Diluted EPS
Non-GAAP Diluted EPS reached $1.36, up $0.26 per share from Q3 2025.
Free Cash Flow
Non-GAAP Free Cash Flow was $126.0 million, with a 43.1% margin.
Debt Leverage
Debt Leverage Ratio decreased to 2.3x from 2.7x at end of Q1 2026.
Rule of 40
Rule of 40 Score increased to 42.1%, combining organic growth and EBITDA margin.
Stock Repurchases
Management reported a 16% reduction in common stock outstanding since Q4 2023.
Contract Terms
Approximately 90% of contractual recurring revenue is on contracts of 3 years or longer.
Long-term Contracts
Approximately 25% of contractual recurring revenue is on contracts of 4 years or longer, up from 20%.
2026 Renewal Cohort
2026 renewal cohort is approximately 40% larger than 2025 cohort, affecting gross dollar retention.
2027 Renewal Cohort
2027 renewal cohort expected to be nearly 25% smaller than 2026 cohort.
Workforce Transition
Workforce transition costs estimated at $8 million to $10 million for 2026, up from $6 million to $8 million.
2026 Guidance
GAAP Total Revenue guidance: $1.173 billion to $1.179 billion for full year 2026.
Here's the gist
Blackbaud's Q3 2026 earnings show 4.1% revenue growth, 38% non-GAAP adjusted EBITDA margin, and $1.36 diluted EPS.
