Blackbaud (NASDAQ:BLKB) delivered a strong finish to 2025 on Tuesday, February 10, 2026, reporting fourth-quarter results that surpassed analyst estimates and signaling a high-conviction growth path for the year ahead.
The Charleston-based leader in social impact software posted adjusted earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.15, as its pivot toward higher-margin AI solutions offset the revenue impact of the EVERFI divestiture.
While headline GAAP revenue for the quarter fell 2.3% to $295.3 million due to the sale of the EVERFI business, the underlying business showed significant momentum.
Non-GAAP organic revenue grew 4.3% in the quarter and 5.5% for the full year.
Most notably, Blackbaud achieved its "Rule of 40" goal—a key SaaS metric where the sum of growth rate and profit margin exceeds 40%—two years ahead of its initial 2027 target, finishing the year with a score of 41.4%.
CEO Mike Gianoni attributed the performance to the "next wave of technological change," specifically the integration of 70+ generative AI capabilities across the company’s product suite.
This innovation has allowed nonprofit customers to accelerate fundraising efforts while allowing Blackbaud to expand its non-GAAP adjusted EBITDA margin by 220 basis points to 35.9%.
For the full year, the company returned to GAAP profitability with a net income of $115 million, a dramatic reversal from the previous year’s losses.
Looking ahead, Blackbaud issued an optimistic 2026 forecast that projects adjusted EPS between $5.15 and $5.25, well above the $4.87 analyst consensus.