Blackbaud (NASDAQ:BLKB) released its third-quarter 2026 financial results on October 28, 2026, reporting GAAP total revenue of $292.6 million and reaffirming its full-year guidance with an expectation to finish in the upper half of its previously stated ranges.

Key Highlights

  • GAAP total revenue: $292.6 million, up 4.1% compared to the third quarter of 2025.
  • GAAP diluted EPS: $1.02, up $0.04 per share year over year; non-GAAP diluted EPS was $1.36, up $0.26 per share.
  • Non-GAAP adjusted EBITDA: $111.1 million, up $11.4 million, with a margin of 38.0%, an increase of 260 basis points.
  • Stock repurchases: As of September 30, 2026, approximately $832 million remained under the common stock repurchase program; year-to-date repurchases exceeded 7% of common stock outstanding since end of 2025.
  • Full-year 2026 guidance reaffirmed: GAAP revenue of $1.173 billion to $1.179 billion, with the company expecting to finish in the upper half of all four key metric ranges.
  • Rule of 40 score: 42.1% for the third quarter.
  • New product launches: Blackbaud introduced Platform for Good and Lantern, a domain-specific language model developed with Databricks, at its bbcon 2026 user conference.

Blackbaud's Third Quarter 2026 Financial and Product Disclosures

According to the filing, Blackbaud reported GAAP recurring revenue of $287.0 million for the third quarter ended September 30, 2026, up 4.1% year over year and representing 98.1% of total revenue. GAAP income from operations was $60.0 million, with a GAAP operating margin of 20.5%, an increase of 110 basis points. Non-GAAP income from operations was $94.6 million, reflecting a non-GAAP operating margin of 32.3%, an increase of 240 basis points.

The company disclosed GAAP net cash provided by operating activities of $141.7 million, an increase of $2.5 million, with a GAAP operating cash flow margin of 48.4%, a decrease of 110 basis points. Non-GAAP free cash flow was $126.0 million, an increase of $2.8 million, with a non-GAAP free cash flow margin of 43.1%, a decrease of 70 basis points. The filing noted that the company's leverage ratio declined from 2.7x in Q1 to 2.3x in Q3 2026.

Blackbaud also disclosed product and partnership announcements made at its bbcon 2026 conference, including the unveiling of "Platform for Good," described as a unified operating system for social impact, and "Lantern," a domain-specific language model built in collaboration with Databricks. The filing also noted a strategic partnership with BILL to embed payment-processing capabilities into Blackbaud Financial Edge NXT Payment Assistant, and new integrations with Microsoft 365 Copilot and Intuit Mailchimp. Full-year 2026 guidance assumptions include a non-GAAP annualized effective tax rate of approximately 24.5%, interest expense of approximately $62 million to $66 million, and diluted weighted average shares outstanding of approximately 45.0 million to 46.0 million.

What Was Disclosed

Blackbaud disclosed its third-quarter 2026 financial results, reaffirmed full-year 2026 guidance across four key metrics, reported approximately $832 million remaining in its repurchase program, and announced several new product and partnership developments at its bbcon 2026 conference.