📊 BLKB Key Takeaways
Is Blackbaud Inc. (BLKB) a Good Investment?
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.
Blackbaud shows solid underlying profitability and excellent cash conversion, with a 22.8% free cash flow margin and meaningful operating income despite a modest revenue decline. However, the balance sheet is the main constraint: very high leverage, weak liquidity, and a thin equity base make the improved earnings profile less durable and raise financial risk if growth or margins soften.
Why Buy Blackbaud Inc. Stock? BLKB 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
- 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
- Strong free cash flow generation with $257.78M of free cash flow and a 22.8% FCF margin
- Healthy gross margin of 58.8% and operating margin of 16.9%, indicating durable software economics
- Net income and diluted EPS improved sharply year over year, showing materially better bottom-line execution
BLKB Stock Risks: Blackbaud Inc. Investment 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
- Revenue declined 2.3% year over year, which weakens confidence in growth quality
- Leverage is elevated with $1.11B of long-term debt, 13.06x debt-to-equity, and only 2.8x interest coverage
- Liquidity is tight with a 0.79x current ratio and only $38.91M in cash against a highly leveraged balance sheet
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
- Organic revenue growth and recurring revenue retention
- Debt reduction progress and interest coverage improvement
Blackbaud Inc. (BLKB) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
BLKB vs Technology Sector: How Blackbaud Inc. Compares
How Blackbaud Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Blackbaud Inc. Stock Overvalued? BLKB Valuation Analysis 2026
Based on fundamental analysis, Blackbaud Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Blackbaud Inc. Balance Sheet: BLKB Debt, Cash & Liquidity
BLKB Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
BLKB Quarterly Earnings & 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.
Blackbaud Inc. Dividends, Buybacks & Capital Allocation
BLKB SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BLKB's key strengths?
Claude: 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. ChatGPT: Strong free cash flow generation with $257.78M of free cash flow and a 22.8% FCF margin. Healthy gross margin of 58.8% and operating margin of 16.9%, indicating durable software economics.
What are the risks of investing in BLKB?
Claude: 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. ChatGPT: Revenue declined 2.3% year over year, which weakens confidence in growth quality. Leverage is elevated with $1.11B of long-term debt, 13.06x debt-to-equity, and only 2.8x interest coverage.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BLKB a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Blackbaud Inc. has a HOLD rating with 73% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is BLKB stock overvalued or undervalued?
Valuation metrics for BLKB: ROE of 135.2% (sector avg: 22%), net margin of 10.2% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy BLKB stock in 2026?
Our dual AI analysis gives Blackbaud Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BLKB's free cash flow?
Blackbaud Inc.'s operating cash flow is $265.6M, with capital expenditures of $7.8M. FCF margin is 22.8%.
How does BLKB compare to other Technology stocks?
Vs Technology sector averages: Net margin 10.2% (avg: 18%), ROE 135.2% (avg: 22%), current ratio 0.79 (avg: 2.5).
Is Blackbaud Inc. carrying too much debt?
BLKB has a debt-to-equity ratio of 13.06x, which is above the Technology sector average of 0.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is BLKB's return on equity (ROE) so high?
Blackbaud Inc. has a return on equity of 135.2%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 10.2% net margin.