Blackbaud, Inc.

Blackbaud reported Q2 organic revenue growth of 3% to $291 million. Non-GAAP adjusted EBITDA was $110 million, with an adjusted EBITDA margin of approximately 38%. Non-GAAP EPS increased 9% to $1.33, and free cash flow rose approximately $24 million, up 46% year over year, to $75 million. For 2026, management reaffirmed full-year guidance ranges but said it now expects to finish in the upper half of the range across revenue, adjusted EBITDA, EPS and free cash flow, with EPS and free cash flow expected at or above the high end. Management also said 2026 quarterly performance will be heavily weighted to the back half and especially Q4, partly due to the platform fee launch and renewal timing.

Mike Gianoni framed the quarter as another period of solid execution, with continued emphasis on efficiency and a rapid cadence of product innovation. He said Blackbaud is increasingly differentiated by AI embedded inside trusted, purpose-built products and highlighted early results from the development agent as evidence that the strategy is working. He also stressed that customer trust, long contract lengths, and sector-specific workflows support the company’s competitive position and future growth.

Chad Anderson said the company balanced cost management, growth, and innovation while maintaining durable subscription-led performance and steady cash flow generation. He noted Q2 organic revenue of $291 million, adjusted EBITDA of $110 million, EPS of $1.33, and free cash flow of $75 million, and said results support the full-year outlook. He also pointed to a 2026 renewal cohort about 40% larger than last year, the new platform fee on certain online form transactions, and capital allocation that included repurchasing just over 6% of outstanding shares in the first half of 2026; since Q4 2023, the company has offset 100% of dilution from stock-based compensation and reduced shares outstanding by approximately 15%.

Analysts focused on win-backs/new logo momentum, the rationale for higher guidance, the platform fee, gross retention, and how AI agents will be sold and monetized. Management said win-backs are being driven by innovation in core products and embedded AI, while new logo activity is strong across K-12, nonprofit, higher ed, and even Fortune 100 accounts. On the platform fee, Chad said it is included in guidance, common in the industry, and will help drive the back-half and Q4 weighting; on AI, Mike said the first agent started with a dedicated team and early adopters before moving into the broader sales force, with more product announcements expected at BBCON.