📊 BLKB Key Takeaways
Investment Thesis
Blackbaud demonstrates strong profitability with excellent gross margins (58.8%) and impressive free cash flow generation ($257.8M, 22.8% FCF margin), supporting its software business model. However, revenue contraction (-2.3% YoY), extreme leverage (13.06x debt-to-equity), and weak liquidity (0.79x current ratio) present material financial risks that offset operational strengths.
BLKB Strengths
- Exceptional free cash flow generation of $257.8M with 22.8% FCF margin, indicating high-quality earnings
- Strong gross margin of 58.8% and operating margin of 16.9% typical of mature software businesses
- Significant operating cash flow of $265.6M with minimal capex requirements demonstrates asset-light software model
- Net income surge of 138.4% YoY and diluted EPS growth of 140% indicate improving profitability
BLKB Risks
- Revenue declining 2.3% YoY signals market headwinds or competitive pressure in core business
- Extremely high leverage with 13.06x debt-to-equity ratio and $1.1B long-term debt against only $85.1M equity creates financial distress risk
- Liquidity crisis evident with 0.79x current ratio and insufficient cash ($38.9M) relative to liabilities, threatening operational flexibility
- Weak interest coverage ratio of 2.8x provides limited cushion if cash flows deteriorate or rates rise
- Inverted balance sheet structure with total liabilities ($2.3B) exceeding total assets ($2.4B) by narrow margin
Key Metrics to Watch
- Revenue growth trajectory - critical to reverse negative YoY trend
- Operating cash flow sustainability - ensure 22.8% FCF margin can be maintained
- Debt reduction progress - watch for deleveraging to bring debt/equity below 5.0x
- Current ratio improvement - target minimum 1.2x to restore adequate liquidity
BLKB Financial Metrics
💡 AI Analyst Insight
The 22.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
BLKB Profitability Ratios
BLKB vs Technology Sector
How BLACKBAUD INC compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BLKB Balance Sheet & Liquidity
BLKB 5-Year Financial Trend
5-Year Trend Summary: BLACKBAUD INC's revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.06 reflects profitable operations.
BLKB Growth Metrics (YoY)
BLKB Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $269.9M | $3.0M | $0.06 |
| Q2 2025 | $281.4M | $4.9M | $0.42 |
| Q1 2025 | $270.7M | $4.9M | $0.10 |
| Q3 2024 | $277.6M | $2.1M | $-0.07 |
| Q2 2024 | $271.0M | $2.1M | $0.04 |
| Q1 2024 | $261.8M | $5.2M | $0.10 |
| Q3 2023 | $261.3M | $2.1M | $-0.07 |
| Q2 2023 | $264.9M | $2.1M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BLKB Capital Allocation
BLKB SEC Filings
Access official SEC EDGAR filings for BLACKBAUD INC (CIK: 0001280058)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 6, 2026 | 4 | xslF345X05/wk-form4_1772839099.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772577029.xml | View → |
| Feb 25, 2026 | 4 | xslF345X05/wk-form4_1772071832.xml | View → |
| Feb 25, 2026 | 4 | xslF345X05/wk-form4_1772071794.xml | View → |
| Feb 25, 2026 | 4 | xslF345X05/wk-form4_1772071753.xml | View → |
❓ Frequently Asked Questions about BLKB
What is the AI rating for BLKB?
BLACKBAUD INC (BLKB) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BLKB's key strengths?
Exceptional free cash flow generation of $257.8M with 22.8% FCF margin, indicating high-quality earnings. Strong gross margin of 58.8% and operating margin of 16.9% typical of mature software businesses.
What are the risks of investing in BLKB?
Revenue declining 2.3% YoY signals market headwinds or competitive pressure in core business. Extremely high leverage with 13.06x debt-to-equity ratio and $1.1B long-term debt against only $85.1M equity creates financial distress risk.
What is BLKB's revenue and growth?
BLACKBAUD INC reported revenue of $1.1B.
Does BLKB pay dividends?
BLACKBAUD INC does not currently pay dividends.
Where can I find BLKB SEC filings?
Official SEC filings for BLACKBAUD INC (CIK: 0001280058) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BLKB's EPS?
BLACKBAUD INC has a diluted EPS of $2.37.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.