Blackbaud Reports Q3 2025 Results and AI Innovations

Blackbaud ( (BLKB) ) has released its Q3 earnings. Here is a breakdown of the information Blackbaud presented to its investors.

Blackbaud, a leading software provider for social impact, serves the nonprofit and education sectors by offering solutions that enhance fundraising, financial management, and corporate social responsibility. In its third quarter of 2025, Blackbaud reported a slight decline in GAAP total revenue to $281.1 million, primarily due to the divestiture of EVERFI, while non-GAAP organic revenue saw a 5.2% increase. The company also highlighted significant advancements in AI technology at its annual bbcon conference, aiming to empower clients with deeper constituent relationships and improved operational efficiency.

Key financial metrics for the quarter included a GAAP income from operations of $54.6 million, with an operating margin increase of 500 basis points, and a non-GAAP net income of $53.2 million, reflecting a rise in diluted earnings per share. Additionally, Blackbaud’s non-GAAP adjusted EBITDA reached $99.7 million, marking a margin increase of 220 basis points. The company also reported a robust GAAP net cash flow from operations of $139.2 million, with a notable increase in free cash flow.

Strategically, Blackbaud continues to focus on enhancing its AI capabilities, as demonstrated by the launch of new features at bbcon 2025. The company remains committed to a balanced financial model, emphasizing revenue growth, earnings, and cash flow, while also executing a stock repurchase program that has already seen over 5% of its common stock repurchased this year.

Looking forward, Blackbaud maintains a positive outlook for the remainder of 2025, reiterating its full-year financial guidance and raising its forecast for adjusted free cash flow. The management’s confidence is supported by ongoing productivity improvements and a strategic capital allocation approach, positioning the company well for future growth.