# Blackbaud Q3 2026 Earnings Report Highlights

> Blackbaud reports 4.1% revenue growth with AI-driven platform launches and strong cash flow.
- Title: Blackbaud Q3 2026 Earnings Report Highlights · The Motley Fool
- Summary: 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%…
- Keywords: blackbaud, blkb, 2026, earnings, revenue, platform for good, lantern, non-gaap, ebitda, diluted eps, Report, Highlights
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/28/blackbaud-blkb-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-28T15:38:55+00:00
- Read time: 1 min
- Topics: blackbaud, blkb, q3, 2026, earnings, revenue, ai, platform for good, lantern, non-gaap, ebitda, diluted eps
## 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.
## Key takeaway

Blackbaud's Q3 2026 earnings show 4.1% revenue growth, 38% non-GAAP adjusted EBITDA margin, and $1.36 diluted EPS.