Blackbaud Reports Q3 2026 Growth Driven by Recurring Revenue and Margin Expansion
Blackbaud (BLKB) reported strong third-quarter results for fiscal year 2026, characterized by a 4.1% increase in GAAP total revenue to $292.6 million. The company saw significant margin expansion, with non-GAAP adjusted EBITDA margins reaching 38.0%, up 260 basis points year-over-year. This growth was supported by high recurring revenue levels, which accounted for over 98% of total revenue. Despite the strong performance, management issued a cautionary note regarding renewal cohorts. The current 2026 cohort is 40% larger than last year, which is expected to weigh on gross dollar retention and moderate growth through the first half of 2027. Additionally, workforce transition costs have been revised upward to an estimated $8 million to $10 million for the full year.
Tickers: $BLKB
Topics: Free Cash Flow GAAP Revenue Non-GAAP Adjusted EBITDA Recurring Revenue Revenue Growth