Blackbaud Reports Q2 Earnings, Reaffirms Full-Year Guidance and AI Expansion Plans
Blackbaud (NASDAQ:BLKB) delivered second-quarter results that met its operating plan. Organic revenue rose 3% year over year to $291 million, with adjusted EBITDA at $110 million and free cash flow up 46% to $75 million. The company reaffirmed full-year guidance but expects performance to be weighted toward the second half of 2026. Blackbaud is expanding its AI capabilities through new products such as Development Agent, which has shown early customer engagement above industry benchmarks. However, management clarified that these initiatives are not expected to contribute meaningful revenue in 2026. The company also emphasized capital returns, having repurchased over 6% of shares outstanding year-to-date and planning to direct at least half of its cumulative free cash flow from 2026–2030 toward buybacks. The CEO highlighted AI enablement as central to the company's strategy while investing in cybersecurity and responsible AI governance. CFO Chad Anderson noted that a larger renewal cohort could temporarily impact gross dollar retention, but overall performance is expected to align with or exceed guidance ranges.
Tickers: $BLKB