Blackbaud (NASDAQ:BLKB) posted fourth-quarter results on Tuesday that topped market expectations and paired them with a stronger-than-anticipated outlook for 2026, sending shares sharply higher.
The AI-driven social impact software company’s stock jumped 6.74% in pre-market trading following the announcement.
Adjusted earnings for the quarter came in at $1.19 per share, ahead of the analyst consensus of $1.14. Revenue totaled $295.3 million, exceeding expectations of $292.17 million. Although reported revenue declined 2.3% year over year due to the sale of EVERFI, organic revenue rose 4.3% when excluding the divested unit.
“2025 was another clear example of Blackbaud’s multi-year trajectory of extending our market leadership position and delivering strong financial results,” said Mike Gianoni, president, CEO and vice chairman of the board of directors, noting that the company achieved its Rule of 40 target two years earlier than planned.
For full-year 2025, Blackbaud reported adjusted earnings of $4.45 per share on revenue of $1.13 billion. Its non-GAAP adjusted EBITDA margin expanded to 35.9%, an improvement of 220 basis points from the prior year.
Looking ahead, the company issued an upbeat forecast for 2026, guiding revenue to a range of $1.173 billion to $1.179 billion, slightly above the Street consensus of $1.17 billion. Adjusted earnings per share are expected to land between $5.15 and $5.25, well ahead of analysts’ expectations of $4.87.
“We executed firmly against our operating plan, delivering results that met or exceeded our financial guidance in 2025,” said Chad Anderson, executive vice president and CFO.
“Over the next five years we are committed to delivering an attractive financial model. The combination of healthy top-line growth, margin expansion, EPS improvement, and strong free cash flow reflects the strength of our model.”
Blackbaud also said it plans to repurchase between 5% and 10% of its outstanding common shares in 2026, extending its capital return program to shareholders.