Blackbaud(US:BLKB)2026-02-10 12:09Financial Performance - GAAP total revenue for FY25 was $1.1 billion, down 2.3% year-over-year, while non-GAAP organic revenue increased by 5.5%[12] - GAAP recurring revenue was $1.1 billion, down 2.0% year-over-year, representing 98.0% of total revenue, with non-GAAP organic recurring revenue increasing by 5.8%[12] - GAAP net income for FY25 was $115.0 million, with GAAP diluted earnings per share of $2.37, an increase of $8.29 per share[12] - Non-GAAP adjusted EBITDA for FY25 was $405.3 million, up $17.3 million, with a margin of 35.9%, an increase of 220 basis points[12] - The Rule of 40 score for FY25 was 41.4%[12] - Non-GAAP free cash flow for FY25 was $203.5 million, a decrease of $25.2 million, with a margin of 18.0%, down 180 basis points[12] - Total revenue for the year ended December 31, 2025, was $1,128,365, a decrease of 2.3% from $1,154,624 in 2024[33] - Gross profit increased to $663,292 for the year ended December 31, 2025, compared to $631,426 in 2024, reflecting a growth of 5.0%[33] - Net income for the year ended December 31, 2025, was $114,970, a significant improvement from a net loss of $299,524 in 2024[33] - Operating expenses for the year decreased to $472,538 in 2025 from $902,803 in 2024, a reduction of 47.7%[33] - Cash flows from operating activities for the year ended December 31, 2025, were $265,550, down from $295,969 in 2024[35] - GAAP revenue for Q4 2025 was $295,256, a decrease of 2.3% compared to Q4 2024's $302,113[41] - Non-GAAP organic revenue for Q4 2025 was $295,256, reflecting a growth of 4.3% from Q4 2024's $283,017[41] - GAAP gross profit increased to $172,284 in Q4 2025, up from $162,530 in Q4 2024, resulting in a gross margin of 58.4%[41] - Non-GAAP income from operations for the year ended 2025 was $344,442, compared to $319,249 in 2024, with a non-GAAP operating margin of 30.5%[41] - GAAP net income for the year ended 2025 was $114,970, a significant improvement from a loss of $299,524 in 2024[46] - Non-GAAP diluted earnings per share for the year ended 2025 was $4.45, compared to $4.06 in 2024[41] Future Outlook - Blackbaud announced a financial outlook for FY26, projecting GAAP revenue between $1.173 billion and $1.179 billion[18] - Non-GAAP diluted earnings per share for FY26 is expected to be between $5.15 and $5.25[18] Stock and Capital Management - Blackbaud has approximately $961 million remaining under its stock repurchase program, with plans to repurchase 5.0% to 10.0% of outstanding common stock in 2026[16] AI and Innovation - Blackbaud partnered with Anthropic to enhance AI capabilities and showcased AI-powered innovations at product update briefings[12] Balance Sheet and Cash Flow - Total assets decreased to $2,390,682 as of December 31, 2025, from $2,496,000 in 2024, a decline of 4.2%[31] - Total liabilities decreased to $2,305,628 as of December 31, 2025, compared to $2,369,161 in 2024, a reduction of 2.7%[31] - Cash and cash equivalents at the end of 2025 were $38,914, down from $67,628 at the end of 2024, a decrease of 42.5%[35] - The company reported a basic earnings per share of $2.41 for the year ended December 31, 2025, compared to a loss of $5.92 in 2024[33] - The company’s additional paid-in capital increased to $1,391,641 in 2025 from $1,291,442 in 2024, reflecting a growth of 7.8%[31] - GAAP net cash provided by operating activities for 2025 was $265,550, down from $295,969 in 2024[52] - GAAP operating cash flow margin decreased to 23.5% in 2025 from 25.6% in 2024[52] - Non-GAAP free cash flow for 2025 was $203,547, compared to $228,769 in 2024[52] - Non-GAAP free cash flow margin declined to 18.0% in 2025 from 19.8% in 2024[52] - Non-GAAP adjusted free cash flow for 2025 was $208,187, down from $244,694 in 2024[52] - Non-GAAP adjusted free cash flow margin decreased to 18.5% in 2025 from 21.2% in 2024[52] - Non-GAAP adjustments included a $4,640 increase in Security Incident-related cash flows for 2025[52] Currency Impact - The company reported a foreign currency impact on non-GAAP organic revenue of $(3,516) for the year ended 2025[41] - The primary foreign currencies impacting financial results were the Australian Dollar, British Pound, Canadian Dollar, and Euro[48] - Non-GAAP EBITDA was calculated by translating foreign currency results to U.S. Dollars using prior period exchange rates[48] Security Incident Costs - Security Incident-related costs for the year ended 2025 amounted to $3.1 million, down from $13.7 million in 2024[38] Growth and Profitability Metrics - The Rule of 40 metric for the year ended 2025 was 39.7%, indicating a strong balance between growth and profitability[46]